FETCH101 Business Plan Final

7/31/2019 FETCH101 Business Plan Final

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FETCH101

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Confidentiality Statement

The undersigned reader acknowledges that the information provided by FETCH101 inthis business plan is unique to this enterprise and is confidential; therefore, thereader agrees not to disclose any information contained herein or in verbaldiscussions without the express written permission of by FETCH101, or its principals.

It is acknowledged by the reader that information to be furnished in this businessplan is in all respects confidential in nature, other than the information that is in thepublic domain, and that any disclosure or use by the reader may cause serious harmor damage to by FETCH101, or its entities.

Upon request, this document is to be immediately returned to FETCH101,

_____________________________________Signature

_____________________________________Name (typed or printed)

_____________________________________Date

This is the business plan of FETCH101. The presentation of this business plan doesnot imply an offering of securities.


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Table of Contents

1.0 EXECUTIVE SUMMARYIntroductionLocationObjectivesGrowing MarketManagement

Competitive LandscapeFactors to SuccessRevenue StrategyStartup Costs

2.0 BUSINESS SUMMARYCompany Profile

Stage of DevelopmentMission StatementLocation & Facilities

ObjectivesKeys to SuccessCapital RequirementsLocation & Facilities

3.0 PRODUCT SUMMARYProducts & Services DescriptionEnvironmentally-FriendlyTechnology Systems

4.0 MARKET ANALYSIS SUMMARYIndustry Analysis

5.0 IMPLEMENTATION SUMMARYValue PropositionCompetitive AdvantageMarketing StrategySales ForecastExit Strategy

6.0 ORGANIZATION SUMMARYManagement TeamPersonnel PlanKey Relationships

7.0 FINANCIAL PLANKey AssumptionsBreak-Even AnalysisProjected Profit & Loss (5 yr)Projected Cash Flow (5 yr)Projected Balance Sheet (5 yr)

APPENDIXPro Forma Financials


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1.0 Executive Summary

Introduction

FETCH101 provides pet care services and peace of mind for pet owners. FETCH101s service offerings areunprecedented for the Southern California market. There are other pet day care facilities that provideovernight care with a variety of other services. But, FETCH101 has studied the competitors and realizedtheir weaknesses to come up with a formula for success that creates space within the market for growthand future expansion.

FETCH101s competitive advantage relies on having a unique facility located in a highly -visible, highlytrafficked location providing a one-stop location underlying convenience, and animal wellness above allelse. FETCH101 will be the first Green animal care facility in Southern California.

ServicesPet Day Care $35/ DayOvernight Care $45/ DayPet Grooming $30/ SessionPet Bathing $10/ SessionGift Shop Ranging from foods, toys, accessories, and

FETCH101 MerchandisePet Energy Work $30/ SessionPet Portraits $175/ SessionRenting Venue $500/ EventAnimal BehaviorClasses

$200/ Course

Holistic Care TBDAgility Training TBD

FETCH101 is exceptional because it isnt an existing facility that is modifi ed for pet care, rather an open-living concept barn style facility built with animals in mind The site plan contains plenty of landscaped


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LocationThe FETCH101 facility will be established in a steadily growing area in Southeast Los Angeles County on3.5 acres of undeveloped, open land. FETCH101 will primarily service the City of Carson, Long Beach andthe adjacent cities along with commuters using the 405 and 710 freeways. FETCH101 is also intent oncapturing the surrounding areas including San Pedro, Rancho Palos Verdes, Lakewood, Seal Beach, andfurther south. FETCH101 will be located along a very busy stretch of the southbound 405 freeway,providing visibility of the FETCH101s facilities to commuters traveling from Orange County to Los Angeles.

FETCH101s management has struck a deal on the previously undeveloped land that is owned by the Cityof Carson to lease the property with an option to purchase after 5 years. On a daily average, there willroughly 260,000 drivers who will pass by FETCH101 and the public dog park.

Currently the property is owned by the City of Carson and is protected by the Redevelopment Society.The Redevelopment Society is completely open to the development of the land, as long as the eucalyptustrees are undisturbed. The City has tried to sell the property with no success and they are willing torezone the land. The land was valued at $3 million a few years ago but since then has lost value.

The City of Carson has requested various scenarios to present in order to negotiate a favorable agreementbetween FETCH101, the City of Carson, and the Redevelopment Society. These scenarios each changethe funds that would be required for startup ranging from $500,000 to $2.5 million. FETCH101 financialmodel is based on a scenario where $3,000 rent is prepaid for all 5 years to the City in the first month andFETCH101 will purchase the property from the City of Carson for $1.5 million minus the prepaid rent.

Objectives

Based on in-depth observation, industry experience, and market trends, FETCH101 has identified thefollowing sets of objectives as key to its growth:


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It is reported that the pet market has fared well overall, despite economic recession, and

will continue to grow. U.S. non-medical pet services is expected to grow an additional 5% compared to 2009 toaggregate over $6 billion dollars and will reach over 10% of the entire pet industry.

Management

Owner and founder, Doug Voorhees has worked at a high profile, fast paced, customer service orientedindustries for more than 27 years and has earned the respect and admiration of his business colleagues

and friends alike through hard work and dedication. Doug is currently a Vice President and Manager for amajor financial institution managing a team of project managers across the United States. Doug hasextensive knowledge in Treasury Management, Project Management, Product Management, and ClientRelations. Doug has what it takes to make this venture extremely successful. He will count on hisreputation to exceed expectations while continuously establishing an active client base.

To achieve his objectives, FETCH101 will use a combination of cash reserves on hand as well as long-termfinancing. This financing will be paid back from the cash flow of the business, collateralized by the assetsof the company, backed by personal integrity, experience and a contractual guarantee from the owner.

Start-up costs will be used to secure real estate, (lease with option to purchase) purchase fixed assets,supplies, advertising, and opening cash on hand.

Competitive Landscape

Indoor/OutdoorFacility

Supervision IndividualSpace

Daily Care GroupPlaytime

Webcam BehavioralModification

THE PET SET Indoor Only Day Only Yes NoFeedings,No Walks

Yes Yes AdditionalService

MAR MEL INN Outdoor Only Day Only Yes No Walks,2 F di

Yes No None


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Value Proposition

FETCH101 has summarized its value proposition that pertains to investors, future customers, and futurebusiness partners below. Every offering below is something that competitors cannot claim to do in itsentirety. In fact, a lot of the concepts FETCH101 plans to materialize are new to Southern California interms of animal care. FETCH101 separates itself from other facilities and will plan to continue to stayahead with forward-thinking and continuous research into new products and services.

Superior Animal CareConvenient Location off Major FreewayMultiservice FacilityEnvironmentally-Friendly / Green BusinessInclusive Pick-up / Drop-off ServicePublic Off-Leash Dog Park on Grounds

Indoor/Outdoor Facilities with Natural Grass24/7 Care with Web Cameras available to the publicOpen-Living Concept

Factors for Success

The 5 factors below are fundamental to the success of FETCH101. It is imperative that these factors donot change in the business unless something unforeseen forces FETCH101 to changes it business model.


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Revenue Strategy

The revenue streams are calculated with a conservative occupancy rate of the available space starting at10% and accumulating as FETCH101 becomes more established and marketing efforts take off. Anotherkey assumption is that all additional services have been projected very conservatively. In addition, withthose conservative figures and a 50% (50 dogs) occupancy rate FETCH101 will have positive operatingcash flows.

FETCH101s monthly operating expenditures are speculatively calculated on the higher end to be almost$57k. If FETCH101 maintains 90% occupancy with the same OPEX sooner than the expected salesgrowth, FETCH101 has the potential to pay off its loan much sooner than expected.


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2.0 Business Summary

Company Profile

FETCH101 will be structured as a limited liability corporation in the State of California, owned by founderand principal Doug Voorhees. The Company will operate from Carson, California at a developed piece of prime land leased from the City of Carson to FETCH101 on special terms with the option to purchase atthe end of 5 years. The land itself will be developed for FETCH101 facilities and an on-site public dogpark. Doug is currently negotiating with the City of Carson as to the terms of the agreement. The citycurrently has no plans for this piece of property and is inviting to FETCH101 to submit their projectproposal and is ready to rezone to its purposes.

Part of the appeal for the City of Carson to be involved in this project is the public benefit of afree, public off-leash dog park for the Carson community to use, as well as the tax revenuegenerated from this unique business located in a highly visible location off the 405 Freeway. Itbrings positive publicity to the City of Carson and its visitors who will spend money at FETCH101 and localbusinesses.

Doug, t he Companys owner and founder, has a proven track record as a project manager in banking inaddition to being an animal caregiver. Doug and his team have done extensive research and revealed anopportunity that the current competition has overlooked. Doug is passionate and driven to making thisbusiness model and its services accessible to all pet owners in the Southland. As outlined in themanagement summary of this business plan, Doug has developed a sound organizational structure toeffectively execute the strategies that ensure the long-term viability of the corporation.

FETCH101 will provide pet care services and peace of mind for pet owners. FETCH101 s service offeringsare unprecedented for the Southern California market. There are other pet day care facilities that provide

overnight care with a variety of other services. But FETCH101 has studied the competitors and realizedtheir weaknesses to come up with a formula for success that creates space within the market for growthand future expansion.


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Stage of Development

FETCH101 is currently in the advanced phases of start-up. All partnership and alliances are inplace and the business will be operational once funding has been received. FETCH101 has hand-picked its location pending approval from the City of Carsons City Planner. Management has alsosetup its construction and build-out plan for the facilities. Furthermore, FETCH101 has developedits strategy and growth plan. Although support staff has not been hired as of yet, managementhas recruited the most qualified candidates and will be ready to hire when business is operable.FETCH101 has also assembled a high-quality advisory board consisting of industry and community

specialists, which is detailed in this plan.

Mission Statement

Simply stated, FETCH101 s mission is to provide a safe, hea lthy, environmentally friendly and entirely fun atmosphere with an abundance of interaction between dogs and humans. Fetch101will be the leader in the market of pet care for the Southland community by providing a safe,

positive, playful environment for pets. The operations will instill confidence in pet owners with our ability to personally care for their pets rather than boarding them in cages..

Objectives

Based on in-depth observation, industry experience, and market trends, FETCH101 has identified thefollowing sets of objectives as key to its growth:

Position FETCH101 as the market leader in the South Bay region as a full-service, first-classanimal care provider by marketing its added value features, convenient location, as well asits on-site, free, off-leash public dog park.


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Keys to Success

Both the short-term and long-term success of FETCH101 rests in the ability to satisfy the needs of themarket above and beyond what current service providers are doing. These factors create a competitiveadvantage for FETCH101.

Fundamentally, success lies in the following elements:


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Location and Facilities

The FETCH101 facility will be established in a steadily growing area in Southeast Los Angeles County on3.5 acres of undeveloped, open land. FETCH101 will primarily service the City of Carson, Long Beach andthe adjacent cities along with commuters using the 405 and 710 freeways. The demographics showgrowing condominium developments throughout downtown Long Beach. FETCH101 is also intent oncapturing the surrounding areas including San Pedro, Rancho Palos Verdes, Lakewood, Seal Beach, andfurther south. Because FETCH101 will be located on along a very busy stretch of the southbound 405freeway, commuters traveling to and from Orange Counties will also have visibility to the FETCH101facility. Below, you will find the traffic figures. On a daily annual average, there will roughly

260,000 drivers who will pass by FETCH101 and the public dog park.

* Peak Hour TrafficIncluded is an estimate of the "peak hour" traffic at all points on the state highway system. This value is useful totraffic engineers in estimating the amount of congestion experienced, and shows how near to capacity the highway isoperating. Unless otherwise indicated, peak hour values indicate the volume in both directions. A few hours eachyear are higher than the "peak hour", but not many. In urban and suburban areas, the peak hour normally occursevery weekday and 200 or more hours will all be about the same On roads with large seasonal fluctuations in

Route City & Interchange/Junction PeakHour*

South of Exit/Jct.

AADT**South of Exit/Jct.

PeakHour*

North of Exit/Jct.

AADT**North of Exit/Jc

405 Long Beach, Wardlow Rd/Long Beach Blvd 20,700 295,000 21,100 295,000

405 Long Beach, Jct. Rte. 710, Long BeachFreeway 21,100 295,000 18,800 294,000

405 Carson, Alameda St 18,800 294,000 18,600 285,000405 Carson, Wilmington Ave 18,600 285,000 17,600 260,000405 Carson, Carson St 17,600 260,000 17,200 254,000405 Carson, Avalon Blvd 17,200 254,000 18,900 272,000


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In the following satellite images, FETCH101s future location is highlighted in the red box.


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Carson Fact Sheet

A comparison of selected Southern California cities and unincorporated Los Angeles County shows Carson isthe most competitive city in the South Bay because of its low cost of doing business, low crime and greatlocation. (See the graphs below)

Carson is the only city in the South Bay with no utility user taxes. (see below) Carson Has the second lowest business license fees of the South Bay cities. (see below) Carson has the lowest Part 1 crime rate of those cities in the L.A. County basin. (see below) Carson has the lowest development and planning fees of the South Bay cities. (see below)

Based on annual tax for the first $10 million in receipts or the first 100 employees, as applicable, for amanufacturing company.


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3.0 Products and Services SummaryFetch101 is set apart from other animal service facilities due to their limited services. FETCH101conducted first-hand research by interviewing pet owners within the local communities, as well as petsupply retailers, city-owned animal shelters and animal rescue centers. FETCH101 has concluded that thecommunities desire for additional services that fill gaps in regards to an open-living concept facility withopen pastures that values convenience, animal health , and the environments welfare , above everythingelse. This first-hand research concluded that pet owners primary frustration was there because there isno convenient service provider that met all needs in one place. The focus of FETCH101 is animal day careand overnight care (long-term and short-term).

FETCH101 s b usiness atmosphere will be clean, environmentally-friendly, sociable, and upscale.Customers will be comfortable leaving their pets for short or long periods of time. FETCH101 s personaltouches will include free grooming for long term overnight care, birthday parties, birthday cards and dailyreport cards for each registered pet. Also, monthly newsletters and social media will bring the communityof pet owners together. The FETCH101 business will offer 24-hour operations which is a unique concept inthis type of industry. Most competitors provide services during the day but do not have someone on-siteovernight. By providing staff 24/7, owners can be confident that their pets are being supervised and caredfor at all hours of the day and night.

ServicesPet Day Care $35/ DayOvernight Care $45/ DayPet Grooming $30/ SessionPet Bathing $10/ SessionGift Shop Ranging from foods, toys, accessories, and

FETCH101 MerchandisePet Energy Work $30/ SessionPet Portraits $175/ SessionRenting Venue $500/ EventAnimal Behavior $200/ Course


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Products and Services Descriptions

FETCH101 will be considered an upscale, full-service animal care facility. FETCH101 will offer a wide rangeof services, not limited to dogs or cats. The services provided to FETCH101s customers are above andbeyond what the competition currently can offer.

Core Services are as follows:

o Day Care: 2+ acres for a fun, safe atmosphere for pets to spend the day exercising and enjoyingthe company of other pets, both indoor and outdoor while owners are away. For every 15 dogsthere will be at least 2 staff members. This will also include special requests for pets with special

needs including administering medication, physical therapy, assisting with recovery from surgery,handicaps, etc.

o Remote Pick-up / Drop-Off: Provide satellite pick-up and drop-off centers in surrounding citiesin order to accommodate pet owners busy work schedules and transport pets to and from theFETCH101 facility for day care service.

o Overnight Care: Customers can leave their pet for as long as necessary for 24 hour care andattention. Various accommodations for dogs and cats will be available ranging from open living,basic kennels to private designer Pet Homes as well as Kitty Condos , all with valet services.

o Pet Energy Work: Offer pet energy services such as Reiki by licensed therapists.

o Pet Grooming: On-site professional pet grooming services by a bonded groomer.

o Wash Your Own Pet: Fetch101 will provide bathing tubs, brushes, environmentally-friendly andpet-safe shampoo, dryers and aprons for customers who would like to bathe their own pets.

o Gift Shop: On-site and on-line stores with specialty pet-related gifts and products including petfood, toys, beds, and other products.

o Off-Leash Dog Park: Provide 1 acre of land for pet owners to bring their pets and interact withthem directly on-site in order to promote healthy pets as well as to create more marketing


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o Pet Agility Training: Contract with service provider to train pets on obstacle courses to increase

stamina and endurance. Potentially, FETCH101 will put together competitions in order to promotecommunity interaction.

Environmentally-Friendly Facilities

FETCH101 will be the first environmentally-friendly, sustainably designed and operated dog day care andpublic Dog Park in Southern California. This will be a key distinguishing feature from other pet day carecenters and public dog parks nationwide. The FETCH101 facilities will be built with USGBCs LEED Credit

system in mind in order to maintain the highest performance in energy use, water conservation, indoor airquality, working environment, protection of plant-life and wildlife in and around the facility.

Sustainable Design:o Partner with Southern California Edison (SCE) to install a photovoltaic array to produce

energy and sell back extra to SCE. o Use recycled/reclaimed water for all irrigation allowable. Install a water catchment system

to reduce storm water runoff and utilize this water as a secondary water source foroperations.

o Partner with the County of Los Angel es and participate in their 1 Million Tree program byplanting at least 20 trees throughout the FETCH101 property in order to absorb CO2emissions and produce fresh oxygen back to the community, while beautifying the grounds.

o Optimized use of lighting and passive solar for day lighting and reduction in heating/coolingenergy.

o Work with City of Carsons Redevelopment and P reservation society s in order to minimizethe disturbance to the site being developed including the use of recycled, repurposed, andreclaimed materials.

o Comprehensive recycling and composting programs to drastically cut waste while producingorganic fertilizer for use on the grounds.


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4.0 Market Analysis Summary

Industry Analysis

There are competitors that offer pet day care and overnight care in and around the City of Carson.However, these facilities are not at as convenient as FETCH101, nor do they offer a free, on-site publicdog park. Additionally, these facilities have much smaller environments which typically comprised of allconcrete and consequently restricts the quality of the care and exercise that a pet requires. FETCH101will be situated on 3.5 acres of land that will be structured in a way to ensure ample exercise andsocialization for pets as well as promote community involvement and safety for guests and employees.

Pet day care is a relatively new business that, unlike FETCH101, is offered primarily to dogs. There arefive pet day care facilities in the Carson and Long Beach and surrounding areas:

The Pet Set North East Long Beach

Mar Mel Inn Central Long Beach

Kennel Kare Central Long Beach

Bark! Bark! Central Long Beach

All Star Pet Resort South Torrance

Each of the competitive facilities has restrictions including:

Restricted pet drop-off and pick-up times


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Competitive Landscape

Indoor/OutdoorFacility

Supervision IndividualSpace

DailyCare

GroupPlaytime

Webcam BehavioralModification

THE PET SET Indoor Only Day Only Yes NoFeedings,No Walks

Yes Yes AdditionalService

MAR MEL INN Outdoor Only Day Only Yes No Walks,

2Feedings

Yes No None

SUNNY DOGPLACE

Indoor/Outdoor 24/7 Yes No Walks,Medicine

Yes No AdditionalService

BARK! BARK! Indoor Day Only Yes Leash.Off-leash,

2Feedings,Medicine

Yes No AdditionalService

ALL STAR PETRESORT

Indoor 24/7 Yes Leash, 2Feedings,Medicine

Yes No None

FETCH101 Indoor/OutdoorWith open

pasture and off-leash dog park

24/7 withlive

streamingwebcams

Yes Leash.Off-

leash,Feedings,Medicine

Yes Yes Added Value

Market Trends

o According to Reuters (February 12, 2010), the economy grew at a 5.7% annual rate in thefourth quarter of 2009. The fastest clip in six years, for 2 straight quarters of growth.


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The pet markets advantages are many, with the emotional impact of the human/animal bond topping th e

list, and perhaps even strengthening during the uncertain economic times. Simply put, many pet ownersview their pets as members of the family, with regard to which they would no more take lightly anyserious cutbacks on spending than they would for their kids, and in many cases only after reducingspending on their own less essential needs.

US retail sales of pet products in the US will increase by 6% even with current economicconditions.

Majority of pet owners are spending the same if not more on their pets despite downturn in theeconomy.

Non-medical pet services is a growing a portion of the pet market and has no intentions of slowingdown.

The charts and graphs below illustrate the growth of pet products and services and projected increase indollars spent on pets. A large portion of this growth are non-medical pet services such as pet grooming,day care overnight care, and behavioral medication as the consumers pets are treated more and more likea part of the family.


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The graph below shows how large retailers are entering the market for additional pet services realizing the

huge opportunity that is available. Fetch101 does not consider these competitors because they cannotoffer a cage-free environment with 3.5 acres of open pastures which includes an on-site off-leash publicdog park which pet owners have identified are key elements in their pet care provider selection.


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the world, a 305,000-square-foot manufacturing facility that has received LEED Gold certification from the

United States Green Building Council. During the past few years, Mars has also taken many other steps toreduce its environmental impact, including expanding its plant recycling systems, modifying packagingfrom paper to woven polypropylene, and reducing solid waste, thereby eliminating 4,500 tons of packaging per year and 2,300 tons of carbon dioxide emissions.

Eco-friendly appeals are also advancing in the pet services market, and this will be a much larger point of interest in the years ahead in the luxury boarding segment especially, as providers seek to differentiatefrom the competition. One of the oldest green operators is Stay -N-Play Pet Ranch, located outsideAusten, TX, which has been in business for over 12 years. Describing itself as an all-natural facility that

does not use any chemicals so your pet is staying in a safe, environmentally friendly atmosphere, eco-friendly earmarks of the 60-room resort include an open-air design in structure and placement, rainwaterharvesting, an aerobic septic system, biodegradable waste bags, organic cleansing agents, human-gradefood, and herbal treatments.


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administration, whose commitment to supporting environmental responsibility promises to lend this

movement considerable financial support and dynamism. There will be a tremendous opportunity for petmarket participants to assume a leadership position in the green movement by positioning pets as aprimary connection to the earth and all things natural.


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The move toward multiservice pet care is coming to define the pet services market. Continuing trends

established during the recession, 2010, and 2011 indicate that the multiservice trend will increasinglymerge with consumer demand for value, since obtaining multiple services and products in one place canhelp to save on time and gas. This trend is apparent in all of the service categories, such as; veterinary,grooming, boarding, training and pet-sitting as specialists add on services and retail departments inorder to become one-stop destinations.Running in tandem with, and helping to drive, the multiservice shift in pet boarding and daycare is theongoing expansion by PetSmart, which offers veterinary, boarding, grooming and training services alongwith a multitude of retail items. At the same time, many smaller providers are also offering a broaderarray of services, in part to help protect against the invasion of pet specialty retailers. By working this

angle, a number of pure-play service operators are gaining ground, led by Best Friends Pet Care, whichboasts 44 locations in 19 states. For all parties, the goal is not just to attract new customers but also tograb a larger share of existing customers business by providing doggie daycare services to groomingclients, for example a formula that adds up to bigger and higher margin sales for operators and to much-appreciated shopping convenience for pet owners. It also allows for important synergies, as in the case of veterinary assistants providing free pre -grooming exams resulting in more business opportunities.

Removing any doubt as to the direction in which the pet services market is moving, in April 2008 theAmerican Boarding Kennel Association (ABKA) changed its name to the Pet Care Services Association

(PCSA) to better reflect the scope of its membership. According to Joan Saunders, CEO of the 3,100-member PCSA, Our association has set the standard for dog boarding facilities, but that no longerrepresents the entirety of our membership. Our members now offer expanded services such as daycare,grooming, training, retail, services for special needs pets, lodging services for cats, pool time, naturewalks, exercise programs, and luxury spas.

In order to gauge industry trends and support market growth, during 2009 the PCSA conducted a membersurvey, garnering responses from approximately 290 facility operators in the United States and Canada.According to the survey, 91% of PCSA members offer dog boarding, 78% offer dog daycare, over two-thirds (69%) offer grooming services, and almost half (47%) offer dog training services, with 49% and29% having added the latter two services in the past five years, respectively. Dog training tops the list of service add-ons providers planned to add in 2009, cited by 63% of survey respondents, followed bygrooming (27%), daycare (12%), boarding (10%) and veterinary (7%).


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STRENGTHS

Excellent location withconvenient freeway access Pick-up/Drop-off delivery

service Multiservice facility with on site

public dog park Green Products/Services

appeal to consumers

WEAKNESSES

No established brand No established customer-base Relatively large investment for

brand-new facility

OPPORTUNITIES No barriers to enter No industry standard Opportunities for expansion

into other areas of the country. Establish brand by community

impact through service andspecial events

THREATS Large retailers expandingservices

Imitation from competitors City of Carsons negotiations

on piece of land.


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5.0 Implementation Summary

Through development of a strong promotions approach and a focused, integrated marketingcommunications strategy, FETCH101 intends to be regionally focused for Southern California in order tomeet demand and gauge capacity. Initially, FETCH101 will launch a full-scale marketing promotionsprogram with direct-mailers, press releases, community outreach, search engine optimization, mediabuying including billboards.

Year 1 Marketing BudgetPromotional Flyers

For handouts and distribution to localbusinesses

$10,000

Radio Local radio buys $5,000

Web Banner Advertisements E-mail Marketing Viral Multimedia $2,500

Memberships Chamber of Commerce National Dog Groomers Association Pet Services Association SC Veterinary Medical Association Long Beach Green Business Association

$2,000Affiliations

SC Regional Occupational Center Californias Green Workforce Coalition Human Society PETA

P t O h f S th C lif i $2 000


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Year 1 Objectives

Add Veterinary Services - To perform low-cost spay and neuter clinics and pet vaccinations onspecified days as well as tend to any unforeseen emergencies.

Monthly newsletter To promote up-coming programs being offered by FETCH101 and thecommunity.

Daily play hour To encourage interaction between FETCH101 neighbors and their pets. Wireless Internet To provide pet owners with the ability to stay connected while

interacting with their pet at the public dog park.

Year 3 Objectives

Mobile Pet Care Trailer will provide pet care by the hour at various community events Mobile pet washer Exercise pool to provide extensive exercise and rehabilitative services to Dogs Sub-Contract with a local veterinarian to allow pet owners the ease of veterinary care on site. Add two satellite drop-off / pick-up centers in two additional citites.

Value Proposition

Management has identified several key factors on which to differentiate the business from regionalcompetitors.

Superior Animal Care

Convenient Location off Major FreewayMultiservice FacilityEnvironmentally-Friendly / Green BusinessInclusive Pick-up / Drop-off Service


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Marketing Strategy

FETCH101 intends to commit to a significant annual marketing and advertising budget throughout thescope of this business plan and the life of the enterprise. The budget for sales and marketing expenses iscurrently based on estimated needs, but will be adjusted as needed as the business develops and keyvehicles and promotional venues are further cultivated.

FETCH101 will begin with a general corporate brochure highlighting services and benefits. This brochurewill be developed as part of the start-up expenses and distributed to large businesses, restaurants, localveterinarians, pet stores, neighborhood dog parks, beaches, real estate agencies, fire departments, the

Humane Society, and various home owners associations as well as local community supported events.There will be a direct mailing to registered pet owners and a website that will be created. Literature andmailing for the initial market forums will be very important, with the need to establish a high-quality lookand feel in order to create a trusting sense of professionalism.

Our marketing strategy includes transparency to satisfied customers. Word-of-mouth marketing is themost cost-effective and most influential tool. When a customer leaves with a happy pet, knowing that ithas had a fun-fulfilled day, FETCH101 has created a raving fan. Part of the strategy is to promote a trialoffer for pet owners to take advantage before prices increase.

Local TV networks will be proactively contacted in order to feature FETCH101 as a new service to thecommunity. Direct mail will be sent to all registered pet owners in the surrounding communities.Brochures will be distributed to hotels, restaurants, condominiums, pet stores, coffee shops, localveterinarians, dog parks and dog beaches. Advertising in local newspapers, such as the Daily Gazette,Press Telegram, and various pet publications and internet sites will be established. Additionally, FETCH101will secure vendor booths at various events throughout the Los Angeles and Orange counties.

A key marketing strategy that FETCH101 will offer is an on-site, free public, off-leash dog park, where thecommunity can bring their pets to interact in a safe, friendly environment. By having the dog park within

the same grounds as the FETCH101 facility, pet owners will be face to face with the products, services,staff and surroundings that FETCH101 has to offer and this will organically market the business.


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Services Forecast

The following forecast outlines the revenue activity generated from FETCH101 s business model over thefive-year period outlined in this business plan. These revenue projections do not show growth in theancillary services offered by FETCH101. The design of these projections is focused on day care andovernight care to set a base of operating cash flow. These other services will grow naturally as FETCH101has access expanding customer-base. In this scenario the day care and overnight care are also notexpanded from year to year. If these two services are expanded, revenue can directly grow as well.

Year 1 Year 2 Year 3 Year 4 Year 5

Day Care $441,000 $882,000 $957,600 $1,149,120 $1,378,944Overnight Care $56,700 $165,600 $183,600 $220,320 $264,384Pet Grooming $4,440 $8,640 $8,640 $10,368 $12,442Wash Your Own Pet $4,320 $4,320 $4,680 $5,616 $6,739Pet Energy Work / Reiki $6,660 $12,960 $13,398 $16,077 $19,292Pet Agility Work $1,850 $3,600 $3,600 $3,870 $4,160Gift Shop $10,800 $3,600 $12,960 $15,552 $18,662Pet Portraits $4,200 $4,200 $10,800 $12,960 $15,552Animal Behavior Classes $9,600 $9,600 $4,200 $5,040 $6,048Venue Rent $12,000 $11,500 $9,600 $11,520 $13,824

Cost of Sales ($10,425) ($20,904) ($22,852) ($27,413) ($32,887) Gross Profit $541,145 $1,085,116 $1,186,226 $1,423,030 $1,707,161

Conservative occupancy rates have been projected for space for 120 dogs and 20 cats for day careas well as 20 animals for overnight care. The days available for day care and overnight care is 20


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6.0 Organization Summary

The management team has developed the following personnel plan and hiring schedule based onestimated daily and weekly sales projections. The management team will offer competitive pay scales forthe type of work and the region.

Management Team

Doug Voorhees, Owner, Founder, and President

Personnel Plan

FETCH101 will be organized and managed in a creative manner to generate very high customersatisfaction. FETCH101 will create a working climate conducive to a high degree of personal developmentand satisfaction for employees.

A policy manual will be developed and implemented. Job descriptions will be developed to identify

necessary competencies and skill sets. Team oriented professionals with common goals and diversebackgrounds will be employed. FETCH101 will also use volunteers to provide ground supervision, doginteraction as well as administrative and custodial duties.

FETCH101 will conduct regular staff meetings to discuss ideas, suggestions, and operational procedures.The FETCH101 staff will be required to attend ongoing animal care training. Seminars will be held for theFETCH101 staff and will develop an employee recognition program. As the business grows, the companywill eventually offer an employee benefit package to include health and vacation benefits.

Initially, FETCH101 will be managed by owner/operator, Doug Voorhees along with two individuals hiredpart-time to provide assistance with some of the clerical duties until the client base grows, revenuesincrease and additional resources are required. Additionally, there will be one employee that will provideovernight care.


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Employment assumptions for the first year are; Owner/operator Doug Voorhees will be the on-sitemanager, 2-3 pet playground supervisors (paid and/or volunteer) and one overnight person until thebusiness establishes a strong client base. The veterinary Tech, groomer, trainer, photographer and petenergy specialists will work on contract, providing a portion of their revenue to FETCH101. During thesecond year, an office receptionist, two additional playground supervisors and a groomer will be added tothe staff.

Key Relationships

Becoming a member of the City of Carson and Los Angeles Chamber of Commercegives automatic credibility to FETCH101. This will create other businessopportunities for FETCH101 while giving access to service providers, businessleaders, and other potential alliances. Through these networking opportunities willserve as another way to publicize the business locally.

The Southern California Regional Occupational Center, also known as SoCal ROC is a leader in providingcurrent and relevant Career Technical Education programs that are meeting todays job demands andcareers of the future. In partnership with the California public school system, the SoCal ROC programsare offered to high school students as well as adults in the South Bay and surrounding communities.FETCH101 will partner with SoCal ROC to offer pet care, pet grooming, and pet therapy to enhance theircurriculum and offer internship and employment opportunities to the students and adults in the SouthBay. Not only will this relationship give FETCH101 access to potential employees and provide visibilitywithin the community in order to establish credibility, but FETCH101 also benefits by obtaining skilled helpf id i t


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California's GREEN Workforce Coalition envisions a thriving, full employment California economy driven by

green industries and jobs. Innovators and employers apply green business practices; employees andentrepreneurs are adept in green workplace applications, and possessappropriate academic and technical preparation for economic success. Allbusinesses, workforce participants, and the self-employed have ready accessto a wide range of demand-driven educational resources, and opportunitiesfor training and development in disciplines, functions, and occupations thatrespect the earth. By being a member, FETCH101 will have admittance to all

meetings with chances to make business connections to other greenbusinesses. The coalition has a wealth of knowledge in terms of federal andstate funds that could be accessed by FETCH101 for employment training,

salaries, wages, and business development.

The Carson-Gardena-Dominguez Rotary Club has already benefitted FETCH101. This club is comprised of

wealthy, influential business leaders in the South Bay that look for up and coming businesses that couldbe potential members. FETCH101 has already initiated contactwith this group with a positive response.


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Advisory BoardFETCH101 has put together a team of experts to help assist management in long-term strategy andprovide knowledge and insight when challenges are faced. This team is comprised of individuals fromDougs personal and professional net work who all have agreed to ease the decision-making process.

Robert Glass Vice President of Sales and Marketing at Ascent Media .With 10+ years at Ascent Media, Roberts solid understanding of sales techniques within theentertainment industry will help Fetch101 leverage the necessary tools to better expose themselves to thecommunity in a quick and effective manner thus increasing revenue.

Carly Moss - Senior Sales Officer for Southern California Waste Management . Carlys focus at Waste Managem ent is on the commercial sector for four counties running from Venturacounty to San Diego County and everything in between. With Waste Managements focus being on thecommunity and environment, Carly will be able to help secure a very effective, efficient and environmentalfriendly manner in which Fetch101 deals with their waste needs in the present and future. This will helpFetch101 to be a more Green and sustainable business within the city of Carson as well as an industryleader.

Brandon Carrillo - Real Estate Professional Lee & Associates / City of Carson Rotary ClubMemberBetween Brandons Real Estate expertise combined with his active involvement with the City of CarsonRotary Club, Brandon will be able to ensure that Fetch101 is not only making the most beneficial decisionsin regards to future development and expansion but, he will also be able to ensure that Fetch101 isaligning themselves with the City of Carsons mission statement in order to establish a solid partnershipwith the City of Carson and the communities it serves.

Dr. Keith Barry - Owner & Head Veterinarian of Agoura Hills Veterinary Hospital & CalabasasVeterinary Hospital . With Dr. Barrys 33 plus years as the head veterinarian and owner of two veterinary practices in the


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7.0 Financial Plan

Management has developed the following financial plan to address the strategic and implementation needsof FETCH101 as summarized in this business plan. Detailed financial forecasts for the first several yearshave been created utilizing figures from sales projections, the pricing strategy, marketing and overheadexpense estimates. Overall, the ratios for margins, growth, and expenses are in line with generalcomparative industry business standards.

The financial plan and projections represent managements best efforts to forecast income and expenses,based on good faith estimates and project planning. Management is seeking 800,000, raised throughconventional business financing.

Key Assumptions

The annual assumptions, which form the basis for much of the financial plan, are depicted below. Ratesare based upon the best available current data for the industry segment. In general, forecasts are basedon the best ability of management to project sales growth, operating expenses, and expected profits using

a combination of experience, research, and industry standards.

GENERAL ASSUMPTIONS

Tax Rate 40%Payroll Tax/ Personnel Burden 12.5%Merchant Account Costs (Credit Cards) 1.89%% of Sales Paid by Credit Card 100%Bad Transactions % 0%Long-Term Loan Interest Rate 7%Current Liability Interest Rate 0.00%

ACCOUNTS PAYABLE

ACCOUNTS RECEIVABLE% of Customers Paying WithinImmediately 75%30 days 25%60 days 0%

Projection Assumptions

Number of days utilized for overnight per month 10Number of days utilized for day care per month 20Average Receipt in Gift Shop 25Capacity 120


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Pro Forma Profit and Loss

The projected profit and loss statement represents the expected performance of FETCH101 during its first12 months of operations. Company sales are forecast to increase at a rate similar to proven growthtrends observed by other operators in the niche space. Net profit margins also steadily rise as thebusiness matures and the traditional learning curve of the first year is overcome.

Some key facts for financial verification to the success of FETCH101:

Personnel Plan

Doug Voorhees 1 53,760Administration Support 1 38,000Full-Time Care Providers 2 46,000Part-Time Care Providers 3 15,000Marketing Manager 1 45,000Technology Manager 1 40,000Payroll Taxes 12.50%Salary Increase 7.50%

In financial projection, FETCH101 reaches 50% occupancy for day care (60 dogs) in month 6. If 90% occupancy for day care is achieved in the same period monthly revenues will doublefor the revenue stream alone.

Contract providers receive a 30% commission as compensation. Startup costs include the purchase, construction, shipping, modification, and equipment for

building and land. This scenario also includes 50% contribution from the City of Carson for thepublic dog park and for infrastructure (water, sewer, electricity).

Startup Expenses

Buildings/Real Estate Admin Expense


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Confidential 38

Twelve-month Profit and Loss ProjectionREVENUE Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Day Care $21,000 $33,600 $33,600 $33,600 $33,600 $33,600 $33,600 $42,000 $42,000 $42,000 $46,200 $46,200Overni ght Care $900 $900 $900 $4, 500 $4, 500 $4, 500 $4, 500 $4, 500 $4, 500 $9, 000 $9, 000 $9, 000Pet Grooming $240 $240 $240 $240 $240 $360 $360 $360 $360 $360 $720 $720Was h Your Own P et $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360 $360Pet Energy Work / Reiki $360 $360 $360 $360 $360 $540 $540 $540 $540 $540 $1,080 $1,080Pet Agility Work $100 $100 $100 $100 $100 $150 $150 $150 $150 $150 $300 $300Gift Shop $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900Pet Portraits $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350Animal Behavior Classes $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800Venue Rent $1,000 $1, 000 $1,000 $1,000 $1, 000 $1,000 $1,000 $1,000 $1, 000 $1,000 $1,000 $1,000

Cost of Sales ($492) ($730) ($730) ($798) ($798) ($804) ($804) ($963) ($963) ($1,048) ($1,147) ($1,147)

Gross Profi t $25,518 $37,880 $37,880 $41,412 $41,412 $41,756 $41,756 $49,997 $49,997 $54,412 $59,563 $59,563

EXPENSES Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Loan Payment ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846) ($15, 846)Service Providers ($341) ($341) ($341) ($341) ($341) ($425) ($425) ($425) ($425) ($425) ($849) ($849)Salaries & Wages ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867) ($24, 867)Benefits ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708) ($2,708)Employee Taxes (12.5%) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108) ($3,108)Marketing Expenses (all inclusive) ($35,000) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100) ($3,100)Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Utilities ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150)Animal Supplies ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000)Telecommunications ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150)Insurance ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50)Transportation ($480) ($480) ($480) ($480) ($480) ($480) ($480) ($480) ($480) ($480) ($480) ($480)Website Monthly Costs ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50) ($50)Facility Maintenance ($250) ($250) ($250) ($250) ($250) ($250) ($250) ($250) ($250) ($250) ($250) ($250)Office Supplies ($200) ($200) ($200) ($200) ($200) ($200) ($200) ($200) ($200) ($200) ($200) ($200)Misc. Overhead Expenses ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150) ($150)Total Expenses ($85, 350) ($53, 450) ($53, 450) ($53, 450) ($53, 450) ($53, 534) ($53, 534) ($53, 534) ($53, 534) ($53, 534) ($53, 959) ($53, 959)

EBIT ($59,832) ($15,570) ($15,570) ($12,038) ($12,038) ($11,779) ($11,779) ($3,537) ($3, 537) $878 $5,604 $5,604Tax es (real es tat e, inc ome) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0NET PROFIT ($59,832) ($15,570) ($15,570) ($12,038) ($12,038) ($11,779) ($11,779) ($3,537) ($3,537) $878 $5,604 $5,604


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Confidential 39


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Confidential 40

Pro Forma Balance Sheet

The proposed financial plan of FETCH101 provides excellent financial strength and liquidity. Cash reserves for the first 12 monthsrepresent a contingency while cash flow becomes positive. Company operations are designed to minimize loss and shrinkage whilemaximizing existing resources in human and financial capital. The balance sheet in the following table is pre-revenue. The completetable, including monthly estimates for Year One, is included in the appendices.

Liabilities and owner's equity

Current liabilities: 2010

Accounts payable -

Accrued wages -

Accrued compensation -

Income taxes payable -

Unearned revenue -

Other -

Total current liabilities -

Long-term liabilities: 2010

Loan Payable 800,000.00

Total long-term liabilities 800,000.00

Owner's equity: 2010

Investment capital -

Accumulated retained earnings -

Total owner's equity -

Total liabilities andowner's equity 800,000.00

FETCH101 Balance Sheet

AssetsCurrent assets: 2010

Cash 226,568.00Investments (Marketing) 35,000.00

Inventories 20,000.00

Accounts receivable -

Pre-paid expenses 192,000.00

Other -

Total current assets 473,568.00

Fixed assets: 2010

Property and equipment 316,432.00

Leasehold improvements -

Equity and other investments 10,000.00

Less accumulated depreciation -

Total fixed assets 326,432.00

Other assets: 2010

Goodwill -

Total other assets -

Total assets 800,000.00

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FETCH101 Business Plan Final

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