Financial analysis is one of the most important part of the business as through this it is possible to manage finance which is one of the most crucial resource of the enterprise. Further, the present business plan is totally based on pet care service where different type of service will be delivered to target market. Therefore, it is necessarily required to undertake the part of financial analysis in appropriate manner so that overall operations of the business can be carried out in effective manner. Different revenue sources are present with organization as different type of services are rendered such as pet spa, massage, hydrotherapy, self serving bathing area, hair styling, doggy facial etc. By providing different type of facilities to the pets high amount of income can be earned easily and in turn it is beneficial for business
On the other hand business has to incur different type of expenses and this directly leads to decline in profitability level of the enterprise. Further, the major expenses of the enterprise are salary, payroll, advertising, pick and drop facility, accounting and legal etc. All these are major expenses of the organization and without this it is not at all possible for company to operate efficiently in the market.
Repairs and maintenance
Repairs and maintenance of 200$ every month is one of the major expense which business enterprise has to incur for carrying out its operations in effective manner. Further, it is well known fact that dogs world has installed advanced machines for rendering different type of service to the pets and due to this reason proper repair facility is required to be given so that quality of service may not be influenced due to this. Moreover, proper maintenance of machines and other tools is required so that overall productivity may not be influenced due to this. In short it is one of the major expense of the firm and without proper repair and maintenance of tools and other type of crucial equipments need and requirement of target market cannot be met efficiently.
Advertising is also one of the major expense of enterprise as business is totally new in the market and it is required to promote products and services to the target market so that they can easily take purchase decision with the help of this. Amount for advertising is $1000 for every month. Further, effective promotional and marketing strategies have been developed by management of dogs world so that pet care owners can know the unique services granted by organization which is different from other pet care service providers in the market. Different sources of advertising has been undertaken by firm such as print, electronic media etc. All these sources directly enhances expenditure level of the organization but in turn good response can be received by firm when its product range is highlighted in front of target market. It is one of the most important start up expense of Dogs world and in turn can provide large number of benefits to the enterprise. On the other hand, it is the duty of management to control major expenses so that profit margin can be easily increased with the help of this.
Pick and drop facility
Pick and drop facility of the pets is another expense of the dogs world and this facility is beneficial for the pet owners who do not have time to take their pets to places where treatment and other kind of facilities can be provided to them. Amount for pick and drop facility is 1% of sales Further, pick and drop facility also increases cost of the business as firm will pay salary to the drivers who are providing this facility to the pets. It is one of the main expense of the business enterprise and can assist in gaining competitive advantage to the entity in every possible manner. Apart from this, pick and drop facility will allow business to serve large number of customers in short period of time and is one of the best way to provide comfort along with convenience to the target market.
Accounting and legal
Accounting and legal is another expense for dogs world as it is necessary for enterprise to comply with the legal requirement and has to maintain proper accounting records so that it is possible to operate efficiently as per need and requirement of customers. Amount for accounting and legal is 500$ every month. Further, it is necessary for business to pay legal fees. It is a kind of start up expense for the business and complying with the requirement of government authorities is necessary for the business. Moreover, time to time it is necessarily required for enterprise to comply with the legal requirement of the government so that it may have positive impact on the brand image of entity in every possible manner. Proper maintenance of accounts and other type of books will help in determining whether financial resources of the business have been utilized in efficient manner or not. This can surely bring favourable results for the business and in turn can act as development tool for the management