Exercise #2 (Part 1-30 points) G H You are starting a new business in your local community, providing a service of at-home dog grooming. You have determined that this will be a worthwhile business endeavor if you can make $40,000 per year in Net Profit. You have conducted some local market research, as well as made some estimates regarding your operating costs. Using the relevant facts and estimates listed below, create a Sales Plan for your business venture. Be sure to include in your analysis a projection for Profit Margin, Gross Profit, Net Profit, and Target Market Share. You may format the sales plan in whatever style you feel appropriate. If data you require is unknown given the analysis provided, provide your own assumptions or estimates. Be sure to indicate if the Sales Plan represents a 7 viable business endevour. 9 Market Data: 10 There are 30.000 dog owners in your local community 11 The average going rate' to have a dog professionally groomed is $75 12 There are currently 29 Dog Groomers in business in your community 13 The average dog is professionally groomed twice a year 14 Surveys indicate that approximately 75% of dog owners are loyal to their groomer 15 Surveys indicate that 60% of dog breeds require regular grooming 16 Surveys indicate 50% of owners would switch groomers to save $10/grooming 17 16 19 20 21 CRONINGS 25 Operations Analysis: It takes an average of 2 hours to completely groom a dog You estimate average travel time for each house call to be 1/2 an hour R You personally desire to limit your total working hours to 10 hours/day, 5 days/week You intend to give yourself 12 holidays off, and 2 weeks of vacation a year You estimate your average daily transportation expense (gas, toils, etc.) at $36/day You estimate the average grooming expense (shampoo, ribbons, etc.) at $3/dog You intend to spend $500 a year on advertising and promotion You expect to have to invest $3000 annually in grooming tools Your estimate for annual vehicle expense (service, registration, insurance, etc.) is $6500 You need to plan for how you will handle grooming reservations, reschedules, and cancellations