寵物殯葬服務 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 寵物殯葬服務. n. al. er. io. Business Plan: Pet’s Funeral Services. Ch. engchi. i n U. v. Student: Jose Gabriel Ramos Advisor: Professor Chester Ho. 中華民國一○一年六月 June 2012.

(2) 寵物殯葬服務 Business Plan: Pet’s Funeral Services. 研究生：阮荷西. Student: Jose Gabriel Ramos. 指導教授：何小台. Advisor: Chester Ho. 國立政治大學. 學. ‧ 國. 立. 政治大. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國一○一年六月 June 2012.

(3) Abstract. Pet’s Funeral Services By Jose Gabriel Ramos. Pet’s Heaven Funeral Services will be a local, dedicated to help through the. 政治大 grace and dignity of a human 立 funeral home, our full-time licensed funeral process of saying goodbye to every family’s beloved pet. Offering the same. ‧ 國. 學. directors give your pet the final arrangements that they deserve and the peace you need in knowing they are respectfully and lovingly cared for at the end of. ‧. their life.. y. Nat. Pet’s Heaven Funeral Services will be located in a Plaza Mall in an Urban area. market is around 25% of total population.. al. er. io. sit. in Panama City, targeting people with a medium to high level income. Target. n. iv n C The different services offered h will be: pet’s pick e n g c h i U up, cremation, burial and. exhumation and ashes cremation. Prices will depend on the pet’s weight and size. The initial investment to start the business will be $US 45,000, which will be funded from owner’s capital and a bank loan. Pet’s Funeral Services has a positive Net Present Value (NPV) of 29,007.09 and the IRR of 21%, which indicate that the project is possible and can be profitable.. I.

(4) TABLE OF CONTENTS 1.. Executive Summary ................................................................................. 1 1.1. Introduction............................................................................................ 1. 1.2. Market .................................................................................................... 2. 1.3. Vision and Mission ................................................................................ 2. 1.3.1 Mission ........................................................................................................................ 2 1.3.2 Vision ........................................................................................................................... 3 1.4 1.5. Company overview ................................................................................... 4. ‧ 國. 學. The company ......................................................................................... 4. 2.2. Company ownership .............................................................................. 4. 2.3. Legal consideration................................................................................ 5. 2.4. Objectives .............................................................................................. 5. 2.5. a ............................................................................ Key factors to success 5 v. 3.1. Product Offering .................................................................................... 6. 3.2. Services .................................................................................................. 7. ‧. 2.1. io. sit. y. Nat. n. er. 2.. 政治大 Long-term goals ..................................................................................... 3 立. The proposal .......................................................................................... 3. i l C n hengchi U Product / Service ...................................................................................... 6. 3.. 3.2.1 Our Standard Services Include: ......................................................................... 8 3.2.2 Other Benefits We Offer: ..................................................................................... 9 3.2.3 Planning Ahead Services .................................................................................... 10 3.2.4 Benefits of Advanced Planning ....................................................................... 10 4.. Market Overview ................................................................................... 11 4.1. Overall Market ..................................................................................... 11 II.

(5) 4.3. Consumer Profile ................................................................................. 13. 4.4. Competitive Analysis .......................................................................... 13. 4.5. Swot Analysis ...................................................................................... 15. Marketing Plan ....................................................................................... 16 5.1. Target Market ...................................................................................... 16. 5.2. Pricing .................................................................................................. 16. 政治大 Financial Plan ......................................................................................... 18 立 Promotion strategy ............................................................................... 18. 6.1. Source of funds - First Month Startup expense ................................... 18. 6.2. Revenue Forecast ................................................................................. 20. 6.3. Revenue vs Expenses........................................................................... 22. 6.4. Projected Cash Flow ............................................................................ 23. 6.5. Income Statement ................................................................................ 24. 6.6. Breakeven Analysis 25 a ............................................................................. v. ‧. y. sit. n. 8.. io. 7.. Nat. 6.7. 學. 5.3. er. 6.. Market opportunities............................................................................ 12. ‧ 國. 5.. 4.2. i l C n hengchi U Legal consideration.............................................................................. 26. Risk .......................................................................................................... 26 7.1. Market Risk ......................................................................................... 26. 7.2. Financing Risks ................................................................................... 27. 7.3. Managerial Risks ................................................................................. 27. CONCLUSION....................................................................................... 28. REFERENCES ............................................................................................... 29. III.

(6) LIST OF TABLES. Table 1. Swot Analysis..................................................................................... 15 Table 2. Prices .................................................................................................. 17 Table 3. Startup Expenses ................................................................................ 20 Table 4. Revenue Forecast ............................................................................... 21 Table 5. Revenue vs Expenses ......................................................................... 23 Table 6. Projected Cash Flow .......................................................................... 24. 治政 Table 8. Breakeven Analysis ........................................................................... 26 大立學. ‧ 國. Table 7. Income Statement ............................................................................... 25. LIST OF FIGURES. Figure 1. Revenue Forecast .............................................................................. 22. ‧. Figure 2. Revenue vs Expenses ........................................................................ 23. n. er. io. sit. y. Nat. al. Ch. engchi. IV. i n U. v.

(7) 1.. Executive Summary. 1.1. Introduction. Pets are members of our family. We love them, we care for them, and we grow up with them. Like our human companions, they add joy and happiness to our lives on a daily basis. And while they sometimes can make us mad, mostly they make us laugh, and without a shadow of a doubt, they make our families more complete.. 立. 政治大. When a beloved human family member passes away, most of us turn to a. ‧ 國. 學. trusted funeral home to help us care for their final arrangements. Why do we miss out on this experience with a four legged member of our family? Rather. ‧. than go through the grief of losing a pet alone, you can give them the same. y. er. io. sit. family member.. Nat. dignity, care, and compassion as you lay them to rest as you would any other. n. a is here to serve thosei vneeds. The professional Pet’s heaven Funeral Services l C n U staff counselors stand ready to help the process of saying goodbye to h e nthrough i gch. your beloved pet. Offering your furry family member the same grace and dignity of a human funeral home, our full-time licensed funeral directors give your pet the final arrangements that they deserve and the peace you need in knowing they are respectfully and lovingly cared for at the end of their life.. 1.

(8) 1.2. Market. 政治大. Presentation of the business environment. 立. At present Latin American has had a remarkable growth in the pet ownership. ‧ 國. 學. and pet related products as food, clothes, toys, accessories in general. Moreover, the pace of this expansion is about 13% annually in all. ‧. socioeconomic sectors. With this we can conclude that the company is being. n. al. er. io. sit. y. Nat. settled on a solid platform in terms of demand and growth expectations.. 1.3 1.3.1. Vision and Mission C. hengchi. i n U. v. Mission. Pet’s heaven seeks to become the best service provider for pet’s funerals in the Panamanian Market by offering a high quality services and products in order to provide a deserve good bye to whom is considered as part of our families. 2.

(9) 1.3.2. Vision. Be the market leader in pet’s funeral services, positioned and recognized for offering a high quality product portfolio, innovative and proven.. 1.4. The proposal. Pet’s heaven will raise an initial capital of USD 20,000 to fund the company’s start up and operations for the first year, 4 partners, mostly family members or. 政治大. close friends would take part of the project, by investing USD5,000 each and a USD 25,000 bank loan.. 立. ‧ 國. 學. We are expecting a 100% return on initial investment by the end of the third year, afterwards we expect the company to gain more profit.. ‧. By the end of the fifth year, we are expecting to have revenues for USD. Nat. sit. y. 72,000, that would give us the opportunity to possibly expand our business. n. al. er. io. and open a second service center in Panama City.. 1.5. Long-term goals. Ch. engchi. i n U. v. - Review annually reports of our competitors and customers to identify opportunities in the market. - Expand our operations to take advantage of demand in other places and increase our sales margin. - Ensure that product and service quality is optimal to the point of consumption in order to provide a superior service.. 3.

(10) - Achieve a good positioning in the market in order to reflect it in the customer's preferences.. 2.. Company overview. 2.1. The company. As a company, Pet’s Heaven Funeral Services helps you through the process. 治政 of caring for your pet after they pass away. As a 大 business, this is what we do. 立 Yet, Pet’s Heaven Funeral Services goes so far beyond just what happens after of losing a beloved pet. We help you grieve and walk you through the process. ‧ 國. 學. your pet passes. As a family company, we not only celebrate your pet’s life after they’re gone, but also celebrate your pet with you throughout their entire. ‧. sit. Nat. can be, and all that goes into their love and care.. y. experience as a member of your family. We know how much fun having a pet. er. io. This idea started when we lost of a lovely member of every single family that. n. has one, your pet, and forathat reason we have decidedi vto give them a deserved. l C nwe shared and that would U good bye for those happy and h pleasant i e n g cmoments h never come back. That’s how the idea of this new business started.. This company will be dedicated to give a good bye to that lovely pet properly, the way they deserve it, and to make it as less painful as possible for everyone.. 2.2. Company ownership. Pet’s heaven Funeral Services is organized as a partnership among 4 to 5 partners. The company will be divided as marketing and sales, finances, day to 4.

(11) day operations and IT (website), basically every member will do a bit of everything in the beginning to run the business.. 2.3. Legal consideration. For any legal affair, Pet’s heaven will outsource this service from a law firm when the service is needed.. 2.4 -. 政治大 Pet’s heaven seeks立 to establish itself as a leading company in Panama’s. Objectives. ‧ 國. 學. pet funeral services market. - Successfully secure initial funding to sustain the business start up. ‧. - To breakeven in the first year to become profitable in the beginning of the 2nd year of operations.. y. Nat. sit. - Fulfill customer’s needs by providing an excellent service and offer. er. io. high quality products. n. a - Be recognized by professional Veterinarians asi the v leader in superior aftercare services.. 2.5. l C hengchi Un. Key factors to success. - Provide a quality and complete service (from pick up, up to giving the pet’s ashes) - Have a variety of products in order to provide as much choices to our customers as possible, for any bird, cat or dog, no matter race, size, etc. - Provide complete online information through an own website, advertisement on entertainment pages like facebook, twitter, etc. 5.

(12) - Promote in magazines, newspapers, radio stations, etc. to create awareness and become a brand in the near future. - The ability to innovate, create new products, choices, for our customers and being able to customize our services in order to fulfill our customer’s needs.. 3.. Product / Service. 3.1. Product Offering. 立. 政治大. At Pet’s Heaven Funeral Services, Pets are not just a number to us, pets is a Through our customized system, Pet’s Heaven. ‧ 國. 學. member of the family.. Funeral Services accompanies them throughout the removal and cremation. ‧. process guaranteeing that your pet receives the individual cremation service. sit. y. Nat. you desire and your family member deserves.. io. er. These services will be offered to every single person who owns a pet in Panama. According to our results the market segment for pet’s funeral. n. al. iv. services is expected to offer aCpromising margin of profit. n. hengchi U. Death is an unexpected event, which comes all of a sudden and takes away who we care more inexplicably. But for those unexpected cases, there’s Pet's Heaven, more than a pet’s funeral services agency, is the way to heaven for your pets. Pet's Heaven provides cremation and burial services for those little friends that have shared moments of happiness, sadness, good and bad times, that unconditional love that a pet can bring. Pet's Heaven guarantees to give back the real pet’s ashes to their customers, the service is personalized and proven.. 6.

(13) We will go through rigorous state testing and certification processes to ensure that your pet's cremation is held to the highest standard. As a pet parent, you can rest assured knowing that Pet's Heaven is certified and able to meet your needs.. 3.2. Services. 政治大. Pick up service: At the time the incident occurs, we pick up the pet anywhere.. 立. Cremation: Includes pick up of the pet from customer’s home or place of. ‧ 國. 學. death, cremated individually, using an incinerator device specialized for pets. Customers has the choice watch while it happened and once it’s done, the. ‧. ashes will be returned to the owner within 48 hours in a funerary urn.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Pet Cremation Services. Burial services: Includes pick up of the pet from customer’s home or place of death, and then the pet is buried at the owner’s place, a place suggested by the owner himself or in a place suggested by us.. 7.

(14) Pet Burial Services. 政治大. 立. Besides offering funeral services we have decided to offer other kind of. ‧ 國. ‧. 3.2.1. 學. products like:. Our Standard Services Include:. y. Nat. sit. - Transportation of your pet from your Veterinarian’s office or from your. er. io. home to our Funeral Home.. n. a l system for all Individual - Personalized tag tracking i v Pet Cremations C. hengchi under Certification Standards. Un. - Complimentary Container including Preparation and secure placement of your pet's remains - Authenticated Certificate of Individual Cremation - Opportunity to Memorialize your pet through our website posting your pet’s picture and sharing your pet's story with family and friends - Grief Information for you and your family, including special information for children on death. 8.

(15) - Opportunity to share in annual memorial programs in remembrance of your pet. 3.2.2. Other Benefits We Offer:. - Full-time Licensed Funeral Directors on staff; - Memorial Products - A large selection of urns and other memorial products, including paw prints, nose prints, nameplates, markers, urns etc.. 政治大 In loving memory of your beloved pet, a reading of the Prayers For 立. - Pre-Arrangement Programs for advance preparation -. Animals.. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. Pet Markers. i n U. Nameplates. 9. v.

(16) 立. Paw prints. Urns. ‧ 國. 學. 3.2.3. 政治大. Planning Ahead Services. ‧. No one likes to think about losing their beloved pet. Whether it comes. sit. y. Nat. unexpectedly, or after the course of a long illness, the death of a pet leaves us. io. er. feeling anguished and confused. So often we hear, “...we wish we would have known about you sooner...“, having found out about our services after the. n. al. fact.. Ch. engchi. i n U. v. At Pet’s Heaven Funeral Services, we offer you the opportunity to plan ahead for your pet’s aftercare needs through a variety of individual pet burial and pet cremation plans designed to fit your family’s needs and budget.. 3.2.4. Benefits of Advanced Planning. By planning ahead for your pet’s aftercare needs, you are: - Protecting your family from having to make difficult decisions during an emotional time 10.

(17) - Making your decisions ahead of time weighing out the options of whether you prefer burial or cremation, types of service or merchandise you prefer - Determining your family’s needs and budget ahead of time - Finalizing your pet’s cremation or pet burial pre-arrangements eliminating hastily made decisions and later regrets - Locking in today’s prices for services that may not be needed for many years.. 立. Market Overview. 4.1. Overall Market. ‧ 國. 學. 4.. 政治大. ‧. According to statistics by end of 2008, Panama’s Pet market is full of potential. y. considering. pet. ownership. io. sit. anyone. Pets. are. a. lifetime. er. For. Nat. as the total count of pets is approximately 25% of total population.. commitment. Adopting a pet is just like adopting a child because it entails all. n. al. iv. the same responsibilities; C financial, medical, n emotional, physical, and. hengchi U. more. Pets need constant attention, supervision, and consistency of rules to train them to live inside a home. A pet's medical needs cannot be ignored. Even diet must be considered. What a pet owner feeds their pet cannot be the cheapest food they can find! Would anyone feed their kids cheap junk food every day and expect them to be healthy? Pets give back so much to their pet parents. The unconditional love and companionship they freely provide should be shown appreciation with the best possible pet parenting one can give.. 11.

(18) I wish every person could and would adopt a pet, but only if they are willing to go the full distance, treating that pet as if it's a member of the family or their only child. Anything less is unacceptable.. 4.2. Market opportunities. Reasons for starting this kind of business and why it might be profitable: -. 政治大 Change in lifestyles (childless couples usually adopt pets) 立 Regional economies expansion. ‧ 國. 學. - Pets have becomes relevant in families and individuals lives - Increase in mass communication and promotion in the pet’s category. ‧. - Most countries in the region during the decade have shown growth - In recent years, has evolved the idea that the dog is man's best friend. Nat. sit. y. because of his faithfulness.. er. io. - In different countries, trends have emerged where a pet is treated like a. n. child, and thereforearequires more care and attention v. i l C n hengchi U. The market for pets has been increasing over the past years. According to veterinarians, the result of this growth has affected the average monthly expenditure for a person who owns a pet, which includes spending for food, medical, baths and accessories. Another point worth noting is the growth of our country veterinaries, especially in the last decade where the demand has grown.. 12.

(19) Experts say that a few years ago, veterinarians usually received three to four visits a day and today have risen to around 20 visits a day. According to studies results in the following years this market may continue to grow.. 4.3. Consumer Profile. Pet’s Heaven has the following profile: -. People who own pets: they are our target audience as it is they who. 治政 Belong to the socioeconomic level A and B:大 according to our economic 立 growth, people have increased their purchasing power, so as a result of. would require the service.. 學. ‧ 國. -. this effect, people increase their investment in their pets. - People who are within this range know how important pets are,. ‧. depending on this, owners will decided either to spend in funeral. al Competitive Analysis n. 4.4. er. io. sit. y. Nat. services for their pets or not.. - Threat of new entrants. Ch. engchi. i n U. v. In this market entry barriers for new competitors are low because they are easy to overcome, but it is also true that a corporation would find a little profitable to get in the niche of the market that we are heading to. It is important that our corporate strategy is to position ourselves to be prepared for any threat of entry in the long run.. 13.

(20) - Rivalry among competitors Our direct and indirect competitors in the market are not very strong so far, our company would be prepared to face this market and our strategy of differentiation is to offer a high and proven quality funeral services which would only be offered by us, on the other hand, the growing market for pets makes the rivalry among competitors less intense. It should also mention that our company long-term strategy is to reduce fixed costs, set aggressive advertising and promotions. 治政 - Bargaining power of buyers 大 The market is considered立 less attractive because we will allow buyers to ‧ 國. 學. choose between buying our different products, Also, we will try to address this position and gain loyalty is by offering a product/service that is almost. ‧. nonexistent in the market but seems to be attractive. Buyers are small and are. y. sit. io. er. integration.. Nat. not organized. There is also very low probability that there will be a backward. n. a. l C - Bargaining power of suppliers. h. i. i n U. v. e nbecause g c h we don’t need to make much Bargaining power of suppliers is low purchase to offer our main services, for extra services even if the inputs are key to us, there are many providers of these. Also as our sales grow, which consequently will grow our purchases, we will gain more power over them.. - Threat of substitute products We know that our greatest threat of substitute products are the alternative services that some veterinary clinics could offer, but they are not focused on providing this kind of service and are not 100% proven as us. But we also 14.

(21) know that it would be difficult to make the entry of a substitute product, so our company aims to improve its processes y expand its portfolio of alternative services which allow the market to provide products with higher strengths.. 4.5. Swot Analysis Table 1. Swot. Some people won't see worthy to 政治大 spend in this kind of business Weakness and would bury their pets by. Quality Service Guaranteed First in the market Strength. 立. No need to Bank Refinancing Good Profit Margin. Big changes in people's lifestyle growing demand for pet related products and services. Threats. ‧. ‧ 國. 學. Nat. New people entering in the pet market as New Competition. sit. io. n. al. y. Environment is more pet friendly nowadays. er. Opportunities. themselves or maybe throw them away in a plastic bag. Ch. engchi. 15. i n U. v.

(22) 5.. Marketing Plan. 5.1. Target Market. For this project we are considering three important segmentation variables: Geographic: Most of the people with purchasing power are located in Panama City. Population: The product/service is intended for people who own pets,. 政治大. belonging to socioeconomic levels A and B.. 立. Psychographic: For this kind of segmentation we consider people who. ‧ 國. 學. consider worthy to give a pet a deserved good bye, for all those special moments that were shared.. ‧. io. y. sit. Pricing. Nat. 5.2. n. al. er. According to our pricing strategy, we set the following policies:. i n U. Ch. v. e n gonly a) The price of our product will change c hifithe perceived value of it change to our target audience, and this we will know this through market research that we expect to conduct every year.. b) We will have some discounts, but these will differ depending on the services required by the customer, either pick up, cremation, burial, or a combination of two or more services. Price also vary depending on pet’s size, small, medium or large. So far, we do not have a reference in the market to set our prices.. 16.

(23) c) The price will be calculated on production costs and taking into account that cannot exceed certain amount of money.. We have decided to enter in the market with the following prices:. Table 2. Prices. Service Deceased Pet Pick up. 立. 政治大. Description pick up of the pet from customer’s home or place of death. Prices (USD) $ 50.00. Pick up + Cremation and pet’s ashes in a funerary urn.. Cremation. ‧ 國. 學. 1-15 pounds 16 -30 pounds. Large Size Pet. Large 31-60 pounds Too Large 61-100 pounds Extra Large 101-130 pounds. ‧. Small Size Pet Middle Size Pet. n. al. Exhumation + Ashes cremation Memorial Products pet markers nameplates paw prints (one size) urns. er. io. sit. y. Nat Burial Cremation + Burial. Pick up + Burial Pick up + Cremation + burial Pick up and remove pet’s ashes from where it was buried, then proceed to cremate and give back ashes in a pet urn.. Ch. n engchi U. small $50 $10 $50 $30. 17. iv. medium $100 $15. large $150 $20. $35. $40. $ 125.00 $ 145.00 $ 170.00 $ 190.00 $ 250.00 $ 240.00 $ 350.00. $ 250.00.

(24) 5.3. Promotion strategy. We will manage pet’s events in different places to promote our funeral services including:. 1. Online Community website: We will provide some information to our possible new customers about services description, prices, alternatives, events and special promotions. 2. Magazines / Newspapers: We will advertise our services on newspapers. 政治大 about us. Advertisement expenses will vary depending on customer’s 立. and magazine, which are the better and cheaper way to let people know. ‧ 國. 學. demand.. 3. Pet’s sport events: These events have been hosted for several years already. ‧. and it is a smart way to introduce our services to people.. 4. Press Interviews: We will arrange interviews with the media (press and. Nat. n. al. er. io. sit. y. magazines) to introduce our services to general public.. Ch. engchi. i n U. v. 6.. Financial Plan. 6.1. Source of funds - First Month Startup expense. Pet’s Heaven Funeral Services will ask for a bank loan of USD25,000 and will raise an investment amount of USD 20,000.00 from founders for startup fund. The fund will be used for the purchase of furniture, an industrial oven, car, computer, advertising & promotion expenses and the first month of operation. The profit of the first years will be retained to fund future operation expenses.. 18.

(25) The first month startup expense includes the location and administration expenses which are the office rent which is $400 USD and its deposit (one month paid in advance), utilities expenses such as phone bills, internet, electricity, water, etc. Salaries won’t be taken into account until the business start gaining profit. The total source of fund would be for USD 45,000 while the first month expenses would be for a total of USD 27,290, leaving a difference of USD 17,710.00 for future operation reserve fund.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 19. i n U. v.

(26) Table 3. Startup expense Pet's Heaven - First Month Startup Expense Source of Capital Partner's investment total investment bank loans startup expenses office equipment Furniture Car others total capital equipment location and admin expenses Office rent rent deposit salaries maintenance utility bills (electricity, water, gas) telephone bill other miscellaneous expense total location and admin expense summary statement sources of capital bank loans total source of funds startup expenses capital equipment location / administration expense total startup expenses reserve fund. 20,000.00 10,000.00. 學 ‧. n. er. io. sit. y. Nat. al. 6.2. 8,000.00 3,000.00 15,000.00 26,000.00. 政治大. ‧ 國. 立. Ch. 20,000.00. n engchi U. iv. 400.00 400.00 100.00 250.00 40.00 100.00 1,290.00 20,000.00 10,000.00 30,000.00 28,000.00 1,290.00 29,290.00 710.00. Revenue Forecast. Pet’s Heaven categorizes its services into 5 different types by using their standard prices. Giving a realistic scenario, we won’t earn salaries the first. 20.

(27) year or until we start gaining real profit from the business, In the meantime we would have our own jobs and work on this project part time. The five-year sale forecast shows that the revenue is slowly growing from the first year, but grows constantly year by year. The amount of each year is shown in table 4 and figure 1. Table 4. Revenue Forecast 5 years revenue forecast. Cremation. 立. + Burial. Accessories. Total. Cremation. 6,220.00. 4,500.00. 3,350.00. 學. 2,500.00. 27,000.00. 9,800.00. 8,600.00. 6,200.00. 4,200.00. 3,000.00. 36,000.00. 11,550.00. 10,500.00. 9,900.00. 8,050.00. 5,350.00. 54,000.00. Nat. 12,800.00. 10,600.00. 10,150.00. 6,500.00. 63,000.00. 14,700.00. 12,900.00. 7,850.00. 72,000.00. 2013. 4,200.00. 2014. 8,650.00. 2015. 9,550.00. 13,400.00. 2016. 10,300.00. 15,300.00. n. al. Ch. engchi. 21. sit. y. 3,000.00. io. 2012. ‧. 7,430.00. er. Pick up. ‧ 國. Revenue. Exhumation 治政 Cremation 大 Burial + Ashes. 10,950.00. i n U. v.

(28) Revenue Forecast 80,000.00 70,000.00 60,000.00 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 2012. 2013. 2014. 2015. 2016. 政治大 Revenue. 立 Figure 1. Revenue Forecast ‧. ‧ 國. 學. 6.3. Revenue vs Expenses. y. Nat. sit. Revenues are forecasted to be USD 27,000 in the first year, which is an. er. io. average of 15 regular sales per month. We expect this quantity to increase year. n. by year, to reach an amount a of USD 72,000 revenuesvin the 5th year which is. i l C n an average of 40 regular sales per h month, engchi U. Expenses include utility bills (electricity and water), phone bills, gasoline expenses, rent, advertising expenses, wages & salaries. 22.

(29) Table 5. Revenue vs Expenses Year. revenues. expenses. 2012. 27,000.00. 21,280.00. 2013. 36,000.00. 21,280.00. 2014. 54,000.00. 25,280.00. 2015. 63,000.00. 29,620.00. 2016. 72,000.00. 27,960.00. 100.00%. 政治大. 90.00% 80.00%. 立. 70.00%. a l2. 3. n. 1. io. 0.00%. sit. 10.00%. y. Nat. 20.00%. Revenues. Ch. er. 30.00%. Expenses. ‧. 40.00%. ‧ 國. 50.00%. 學. 60.00%. 4. i n U. v. i e n g cvshExpenses Figure 2. Revenue 6.4. Projected Cash Flow. Cash flow projection shows the outflow is steadily reducing from beginning of the second year and cash inflow is significantly increasing from beginning of third year. The major cash spent is on advertising & promotion, equipment purchases and utilities expenses as a service based business. From those expenses only utilities will remain constant regardless of the sales revenue, 23.

(30) while advertising & promotion will always vary year by year and equipment purchase are occasional expenses necessary to run the business at the beginning. The following table indicates the projected cash flow: Table 6. Projected Cash Flow. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. 6.5. Ch. engchi. i n U. v. Income Statement. The net profit for a service-based business is a reflection of the efficiency in which those services are offered. Panama has a quite low inflation rate, so we are not going to take it into consideration, we will assume the for the next 5 years, cost expenses and operating costs will increase as sales increases, phone bill, maintenance will not vary. The highest business expense will reach USD 25,780 by year 5 approximately.. 24.

(31) Wages are one of the crucial part in the cost budget. We will assume that there will be no wages expense until we start gaining at least a low amount of profit, then we will start taking it into account, probably starting in the end of the first year or the beginning of the second, depending on how the business performance goes. With a realistic scenario in sales, business will start to make significant profit in the third year, and we expect to become more profitable afterwards. Table 7. Income Statement. 政治大 Pet's Heaven 5 years Forecast 立 year 1 year 2 year 3. 6,000.00 480.00 4,800.00 10,000.00 21,280.00 2,220.00. 6,000.00 6,500.00 480.00 4,800.00 6,000.00 21,280.00 10,720.00 -750.40 9,969.60. 6,000.00 8,000.00 480.00 4,800.00 6,000.00 25,280.00 22,120.00 -1,548.40 20,571.60. n. al. Ch. engchi. 2,220.00. y. sit. er. ‧ 國 io. 36,000.00 4,000.00 32,000.00. ‧. Nat. 6.6. 27,000.00 3,500.00 23,500.00. 學. Revenues Operating cost Operating gross profit Expenses Wages Utility bill Phone bill Rent Advertising Total expense profit before tax income tax 7% net operating profit. year 4 year 5 54,000.00 63,000.00 72,000.00 6,600.00 10,000.00 12,000.00 47,400.00 53,000.00 60,000.00. i n U. v. 6,000.00 10,400.00 480.00 4,800.00 3,000.00 24,680.00 28,320.00 -1,982.40 26,337.60. 6,000.00 11,500.00 480.00 4,800.00 3,000.00 25,780.00 34,220.00 -2,395.40 31,824.60. Breakeven Analysis. To review the project of Pet’s Heaven Funeral Services start up business, we analyzed the breakeven conditions and related financial indicators. The results show that the project’s initial investment will be recovered by the third year of. 25.

(32) running the business, the Net Present Value (NPV) is 29,007.09 and the IRR is 21%, which means the project is economically feasible to be implemented. The cash generated by years is detailed in the following table Table 8. Breakeven Analysis Breakeven Analysis Item Amount Balance 1 Start up Investment -45000 -45000 2 Net Income 1st year 2,220.00 42,780.00 2nd year 9,969.60 32,810.40 3rd year 20,571.60 12,238.80 4th year 26,337.60 14,098.80 5th year 31,824.60 45,923.40 3 IRR 21% 4 NPV (5% interest rate) 29,077.09 5 Payback year 3. 立. 政治大. ‧. ‧ 國. 學. sit. y. Nat. er. Legal consideration. io. 6.7. n. a. v. For any legal affair, Pet’s lheaven n i service from a law firm C will outsource this when the service is needed.. 7.. Risk. 7.1. Market Risk. hengchi U. Potential risks for Pet’s heaven Funeral Services are described as following: - Possible Crisis that would make market growth slower than expected. 26.

(33) Sale Volume and market growth rate may be worse than our projected figures and consequently the situations result in the revenue shortfall and operation problem. The worse case projection and results are describe as following: - New Competitors As every single new business start, there will be always the new entrants threat, willing to share the market and start a possible price war in the market. Fortunately, price is not the main decision factor but a good quality, performance, certificated service that would add value to all our customers.. 立. Financing Risks. 學. ‧ 國. 7.2. 政治大. Financial risks is a fatal issue for small scale company like Pet’s Heaven Funeral Services, possible risks are described as following:. ‧. - Lack of follow-on capital to complete project. Nat. sit. y. During the startup of Pet’s Heaven Funeral Services there may be unexpected. er. io. factors that may affect the company’s capital. We will have a contingency. n. plan that considers raisinga another amount of capital.. 7.3. iv l C n hengchi U. Managerial Risks. Although Pet’s Heaven Funeral Services only has about 4 to 5 employees and only one branch office in the start-up stage, there might be risks of management causing company growth stagnation. Possible risks might be: - Lack of experienced employees The experience staff is not essential but an important point for the business success. The personality and stability will be considered when recruiting. 27.

(34) employees. Trainings would be required before completely hiring employees for working in this business. Trainings will be provided by specialists, either by hiring one or outsourcing it from a settled funeral services company.. 8.. CONCLUSION. After reviewing all the different stages of this project, I can conclude that:. 治政 so far. So, We have the chance to position ourselves 大 as a profitable and 立 efficient business being the first offering this kind of service. There’s no direct competition in this market for Pet’s Heaven Funeral Services. ‧ 國. 學. Using our differentiation strategy and being the first business offering this. ‧. service will give us a competitive advantage in the market to attract new and loyal customers with middle to high level incomes.. y. Nat. io. sit. The economic environment in Panama is growing very fast which is a positive. n. al. er. opportunity for new businesses, and give us a high probability of success and profitability.. Ch. engchi. i n U. v. Although, we have to be awared of possible entry of new competitors, maintain good prices and a high quality to keep our customer’s loyalty.. 28.

(35) REFERENCES 1. Pets Panama (Mascotas Panama) Available at: http://www.mascotas-panama.com/content/funeraria-de-mascotas 5 January 2012. 2. Pets Cookies Market Case Available at: http://es.scribd.com/doc/53903676/Estudio-de-Mercado-de-Galletas-ParaPerros 5 January 2012. 政治大. 3. Deceased Pet Care Available at: http://www.deceasedpetcare.com/ 11. 立. January 2012. ‧ 國. 學. 4. Panama Guide Available at:. http://www.panama-guide.com/index.php?topic=animals January 11 2012. ‧. 5. Moderno Magazine Available at: http://www.moderndogmagazine.com/ January 12 2012. y. Nat. sit. 6. Cremapet Available at: http://www.cremapet.com/ April 14 2012. er. io. 7. Hornos Felix Available at: http://www.hornosfelix.com/ April 14 2012. n. a lhttp://www.funeravet.com.co/funeraria8. Funeravet Available at: iv mascotas.php. Ch. n engchi U. April 15 2012 9. Pet ownership Available at: http://www.examiner.com/animal-rights-innational/pet-ownership-a-responsibility-equal-to-goodparenting#ixzz1SLeu2hbz April 16 2012 Personal Interviews Dr. Manuel Jaén – Sao Paulo Veterinary Clinic, January 13 2012 Dr. Rosa Alvarez – Pet are Us Veterinary Clinic January 13 2012. 29.

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