Hit the ground running with your new business
Creating sound financial projections for a start-up requires experience and massive data. Banks and investors want to see credible numbers, but it can be difficult to predict financial performance 3-5 years down the road, especially if you don’t have experience owning and operating a successful pet care facility. You also need assurance your business plan is viable...many businesses fail early on due to unrealistic revenue and profit goals.
Components of Profit & Loss Projection
A full profit & loss projection is a key part to any business plan and is the outcome of careful analysis of many factors, including:
- Demographics – Are there enough potential customers within your geographic area that meet your target customer profile?
- Pricing – What prices are appropriate for your geographic area? Is your planned pricing conservative or aggressive for your market?
- Sales Forecast – As a start-up you don’t have past results to predict future performance. What are industry norms? What have other pet care start-ups in similar markets realized?
- Expenses Budget – What are the typical costs associated with a pet care facility? Which costs are fixed, and which costs are variable?
- Labor Expenses – This is the largest operating cost for a pet care facility. How do you estimate these costs for each functional area? What are the industry benchmarks?
Some banks and savvy investors will want to see month by month projections for the first 12 to 24 months, then annual projections for at least the first 3-5 years. Our financial models can be easily modified--as you change your assumptions the associated revenue or expenses automatically calculate and flow through to projected net income.
Cash Flow Statement
Your projections should also result in a detailed Cash Flow Statement. “Cash is king” is a relatable adage that rings true in any business situation—especially in a start-up business. It’s particularly true if you don’t have prior industry experience. A key reason most small business fail is because they did not accurately project cash flow.
Another key number is your break-even point. How many customers do you need, at your intended price, to cover all of your expenses and not dip into cash reserves? What is this number per month? What is this number for a year?
Leveraging the experience of others is key to ensuring your projections are believable and credible. Too conservative and you may miss an opportunity to obtain financing. Too aggressive and you enter your new business with a “rosy” outlook...only to be disappointed and strapped for cash.
OPC’s team of industry experts have the tools and experience to analyze your market, business plan, and other key variables that will make or break your fledgling company.
I have seen firsthand that Laura Laaman and the Outstanding Pet Care team substantially increase her clients' revenues and significantly outperform the industry norm. These increases were essential in helping OPC clients command top dollar when it came time to sell. She guarantees her client's success in writing;
I can't imagine why anyone would not be an OPC client.
Teija Heikkila, Principal Broker at National Kennel Sales & Appraisals
In just 18 months, Outstanding Pet Care increased our revenue by over $1,000,000. Due to this increased revenue, we received a minimum of $1,000,000 in additional revenue when we successfully sold our business.”
Chris Starko, Nashville, TN
We have been working with Laura Laaman since 2004. Since then she has helped us transform our business in ways we could never imagine. In the first month, the busiest time of the year, with no additional capacity we increased our revenues by 33%. The best part is although we always provided exceptional care, our pets were even happier and healthier. Since working with Laura and her team we have conservatively realized an additional $5,000,000 in additional revenue to date. Any company that works with Laura will understand her commitment to quality pet care and that her proven systems will equal success.
Walt & Joanne Morris, Morris Animal Inn
Rover Oaks has been a client of Outstanding Pet Care program for years and couldn't be more pleased with the results! It's nice to see that, thanks to the guidance and support of the OPC team, our revenues and profits can match the level of care we provide!
Steve Smith, Rover Oaks Pet Resort
Hiring Laura and the OPC team was a pivotal defining moment for our business. In our first year with OPC, we increased $330,000 over our previous year. She was instrumental in helping us transition from an all-inclusive lodging model where our revenue per pet per night was capped, to a more progressive and profitable model where the sky is the limit. We like to call her our revenue rainmaker!
Hailey Seidel, Bow Dog Canine Specialists