Growing business-what to do?

[Coffudled]

Hello,

I own and run a pet care business, which has shown growth over the last 3 years, but I am now at a stage where I need to expand by either buying a bigger property or looking for a commercial property to convert into a dog day centre. The money earners are dog walking, dog day care and dog home boarding (day care and home boarding are where dogs stay in my house as part of the family). I am currently licensed by the local authority to board/day care 4 dogs in my home and this is now leading to potential new customers being turned away as I have a number of regulars, who board/day care. Regulars are great, but I also want to be able to encourage new customers too.

I really would like to open a day care centre, but as I am a single mother and only have my income, I don't want to risk too much, but I am not one to let opportunities pass me by. My annual income is approx 12k, not huge in the grand scheme of things, but it could get better if I expanded.

So how do I expand, grow my business?

Any help would be greatly appreciated.

TIA

 

[Bigbmxdave]

Have you had a look at any conversions you can make to your current property to increase the amount of pets you can look after at once?

 

[Coffudled]

I am a mid terrace, so doubt I will get accepted for an extension. Neighbours over the way, had all on getting permission for a conservatory.

 

[S-Marketing]

I am a mid terrace, so doubt I will get accepted for an extension. Neighbours over the way, had all on getting permission for a conservatory.

Have you got permission for the address to be used for business use in this way?

 

[webwam]

If you are earning £12,000, you would need to expand pretty quickly in order to cover the costs of buying and running bigger premises, and a quick expansion is always risky.

Another alternative for you could be to find other people in who are willing to become licensed to look after dogs in their home. They can be self-employed, so you are effectively working as an agent. You handle the bookings and take a cut for this, then pass the work to one of your team. This will help you to build your brand and stay in control of the marketing.

Whilst this will require some additional work and problem solving (how will you ensure quality control or deal with any problems etc), it will enable you to expand your business without much additional outlay, especially if you are already turning away business.

Once you have enough customers to support additional premises, (and the money to help with the expansion), it becomes much less risky.

 

[Coffudled]

Yes I have all relevant parties informed.

 

[S-Marketing]

Yes I have all relevant parties informed.

Was just wondering. Thought it was the kind of business that could pretty quickly annoy the neighbours. This is a very easy business to expand but watch that your overheads dont expand quicker than your income. Equally make sure your profits expand in line with your T/O. It would be very easy to increase T/O by 300 % and find profit had remained the same.

 

[Coffudled]

Was just wondering. Thought it was the kind of business that could pretty quickly annoy the neighbours. This is a very easy business to expand but watch that your overheads dont expand quicker than your income. Equally make sure your profits expand in line with your T/O. It would be very easy to increase T/O by 300 % and find profit had remained the same.

Most people think it will annoy the neighbours, but you don't get the barking like a kennel environment, the neighbours dogs bark worse than any I have in

I have taken people on to home board and been messed about by both of them, so slightly reluctant on this approach again. Maybe I need to have a re think though.

 

[S-Marketing]

Most people think it will annoy the neighbours, but you don't get the barking like a kennel environment, the neighbours dogs bark worse than any I have in

I have taken people on to home board and been messed about by both of them, so slightly reluctant on this approach again. Maybe I need to have a re think though.

I have a lot of experience with this type of business and also with veterinary surgeries. Dont underestimate the ability of people to complain about a noise level that normal people amongst us would find acceptable. A surgery I know had complaints made to the council for dogs barking overnight by a neighbour. This neighbour was the owner of an office that was always empty after 6 in the evening.:|

 

[Coffudled]

I have a lot of experience with this type of business and also with veterinary surgeries. Dont underestimate the ability of people to complain about a noise level that normal people amongst us would find acceptable. A surgery I know had complaints made to the council for dogs barking overnight by a neighbour. This neighbour was the owner of an office that was always empty after 6 in the evening.:|

Sadly I think some people are only happy when complaining, I was inspected last month and no one had reported me, but I know exactly what you are saying

 

[webwam]

I have taken people on to home board and been messed about by both of them, so slightly reluctant on this approach again. Maybe I need to have a re think though.

You are not alone on that one. When I first started, I made the mistake of trying to partner with anyone who said they could do what I needed. It took me a long while (and a lot of headaches ) to find a team of trusted people to partner with and even now, sometimes things go wrong, unforseen circumstances occur and it is down to me to deal with the client.

If you go down this route, you need to work out what possible circumstances could affect your business (e.g. people getting sick, quitting etc), what would be the consequences, and what backups you would have in place to protect your reputation. You could also try getting in touch with other people who are already in the same line of work to build up your contacts and find other reliable people to work with.

 

[Damjana Zohar]

General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business.

 

[oldeagleeye]

The problem that you have OP is that what you have at the moment isn't a business as such. It is just a way of earning a bit of personal pin money - albeit a fair bit of dosh and please don't think that in saying that I am undermining your business skills.

The fact is however that if you took into account the cost of premises and the hours that you put in I doubt very much that your earning anywhere near even the min wage. Where a proper biz is concerned it should earn a profit after paying wages and all other expenses.

To become a business then you have to take your venture up a level or 2. In fact I am thinking at least 4 levels so as to pull in a gross £40K a year and you would need that sort of turnover in order to absorb the sort of overheads that you would be faced with and even then your probably only come out with the min wage.

Premises with rent - rate & unilities. About £10K a year. Transport another £5K. That is £15K. You also need some-one to help you and what have you got left. Just enough to pay the 2 of you the min wage. Whoops. In fact you would not have enough. You would only have £25K left. You would need to have about £32,000 with NI.

You have a tough decission then to make OP. Either you stay small and earn what is a reasonable if modest income or risk gearing up to a higher level. A tough decission but one only you can make. I will however help sum up the options at least as I see them.

I can not for instance see you being licenced for more that 4 dogs in a mid terraced house and even where permision to keep that many is concern you are relying on the goodwill of neighbours which could change at any time. Risking the reputation that you have built up is also fraught with danger by farming out.

As regards expansion. I think that you could actually be on a winner here if you put the right business plan together.

Both the general public and local councils for instance are fed up to the eye teeth of seeing youngsters being left in charge of big dogs that they can't control. A training program at a day care centre I would suggest go down a wow - or inded a wow wow (if you forgive the pun) It is however relevant. Most training courses are for adults. Bring the children in instead - make it fun and you would have a winning USP.

Not only would many of these lazy parents love to leave the task itself to their kids as they couldn't be bothered but they get rid of the kids for a while too. Being kids however - if the course was made fun they would enjoy it. Well worth bunging the kids £10-£15 quid a pop then and that sort of dosh soon mounts up. Just 2 x 2 hr sessions in the evenings could pull in over £25K a year. Then of course there could be other services. Dog grooming etc etc.

And finally to wrap up with another USP. Local councils everywhere have property they own which lays unoccupied now due to the recession. If you market this venture then as a 'public' service your either get premises dirt cheap of free for a couple of years.

Hope my comments help you look at the options more clearly OP.

Rob

 

[kari666]

Sadly I think some people are only happy when complaining, I was inspected last month and no one had reported me, but I know exactly what you are saying

think some people are only happy when complaining, I was inspected last month and no one had reported me, but I know exactly what you are saying:

 

[oldeagleeye]

Do you not think it might not have something to do with your PR Karl.

I mean that 666 after your name is the Devils Logo

Rob

 

[cjd]

Just to back up what Eagle is saying, what you have now is a paid hobby that has zero to no overhead - to make it into a business you have to add a big chunk of fixed and overhead costs which means that your new income will need to be 4 or 5 time higher (at a guess) to achieve the same profit.

Before you get too involved, think carefully about how you can achieve that level of sales and what you would need to do it - in other words, do the math ;-)