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Business Plan

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Page 1: Petsmod8

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Page 2: Petsmod8

petaides.competaides.comU Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!

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U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!U Snooz; U Lose!

CONTACT INFO:

G. L. ‘Tex’ Texeira

[email protected]

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The Quick FactsThe Quick Facts

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For 2007, it is estimated that $41.2 billion $41.2 billion was spent on pets in the U.S.

After consumer electronics, pet care is the fastest-

growing category in retail, expanding about 6% a year.

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63% of U.S. households own a pet; 71.1 million homes.

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Number of U.S. households that own a dog; 44.8 million44.8 million.

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petaides.competaides.com initially will focus on selling items for dogs, puppies, and their owners.

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The Business ModelThe Business Model

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Our business model is patterned after woot.comwoot.com, the originator of

the “one deal a dayone deal a day” format on the internet.

woot.comwoot.com sells electronics and is estimated to have gross

revenues of $72 million for 2007. That is an average of

$1.5 million per week$1.5 million per week.

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• At noon (Eastern Time) each day of the year, petaides.competaides.com

offers for sale one new dog or puppy product.

• Products and their quantity are never announced beforehand.

• If a product sells out during its 24 hour run, the next item still

does not appear until its scheduled noon slot.

• About once a month, the daily items not sold will be liquidated• About once a month, the daily items not sold will be liquidated

during a 24 hour fast paced format.

In contrast to a market characterized by everIn contrast to a market characterized by ever--expanding expanding

consumer choice, our business model relies on the consumer choice, our business model relies on the

elements of simplicity and surprise.elements of simplicity and surprise.

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The whole idea of selling

one item a dayone item a day

is a very simple concept.

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The range of products include $10,000

dog mansions to treat packs of $10.

We provide vendors a new channel to:

1) reduce inventory

2) test market new or existing products

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The Web SiteThe Web Site

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The most important info is big and clear so that

anyoneanyone

The Opening ScreenThe Opening Screen

anyoneanyone

can see it instantly.

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We have created a list of the most important elements that need

to be on the opening screen by prioritizing them:

1. The main priority is that the picture of the item is seen as

large as it can be on the opening screen.

2. Then the item’s sales title.

3. The item’s price.3. The item’s price.

4. A giant “Buy It Now” button.

5. A video linkvideo link to “You Tube” showing & explaining the product.

6. Links on the side for associated information.

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After the opening page loads, each customer

can instantly see the product and the price.

They can decide whether or not they want it,

all within five seconds.

It’s either threethree clicks to buy or fivefive seconds

to move on.

It doesn’t take a lot of daily commitment.

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There are a lot of sites that take many clicks

to get through all the information.

This can be very time consuming, and people

don’t want to do that everyday.don’t want to do that everyday.

petaides.competaides.com does everything it can to focus

on keeping people coming back day after day.

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The MarketingThe Marketing

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Marketing will on free sites of the internet -

viral and social networking sites such as:

diggit.com moderndogmagazine.com

stumbleupon.com myspace.com

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stumbleupon.com myspace.com

newsvine.com facebook.com

reddit.com youtube.com

dogster.com flickr.com

dogchannel.com secondlife.com

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The Quick

Pro-FormaPro-Forma

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Year Avg. UnitPrice Units/Day Days Gross/Year

2008 $15 200 180 $ 540,000

2009 $20 500 365 $ 3,650,000

2010 $25 1,000 365 $ 9,125,000

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2011 $30 2,000 365 $21,900,000

2012 $35 3,000 366 $38,430,000

Sell company at 5 x gross revenue of $38 million for $190190 million

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The Capital

For StartupFor Startup

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$250,000$250,000 for an equity position of 35% to

purchase hardware, software, web design.

withwith

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a low-interest line of credit in the

amount of $250,000$250,000 to purchase inventory.

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The investor should have ability to run the

financial side of the business, including

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financial side of the business, including

setting-up merchant accounts.

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The Exit

StrategyStrategy

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IPO

thenthen

A buyout from either -

Microsoft,Amazon,

Ebay,Google,

or

Other

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Within

55

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55

Years

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The Back-up

InformationInformation

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Industry Statistics & TrendsIndustry Statistics & Trends

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Breakdown of pet ownership in the U.S. according to the 2007 - 2008 National Pet Owners Survey:

Number of U.S. Households that Own a Pet (millions)

DogDog 44.844.8

Cat 38.4

Freshwater Fish 14.2

Bird 6.4

Small Animal 6.0

Reptile 4.8

Equine 4.3

Saltwater Fish .8

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Actual 2007 Sales within the U.S. Market

There was $ 41.2 billion spent on our pets in the U.S.

Breakdown:

Food $16.2 billion

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Vet Care $10.1 billion

Supplies/OTC Medicine $ 9.8 billion

Pet Services: grooming & boarding $ 3.0 billion

Live animal purchases $ 2.1 billion

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HEALTH BENEFITS

• Pets Help to Lower Blood Pressure(Dr. Karen Allen, State University of New York at Buffalo)

• Pets Help to Reduce Stress(Josephine M. Wills, Waltham Centre for Pet Nutrition, United Kingdom)

• Pets Help to Prevent Heart Disease• Pets Help to Prevent Heart Disease(National Institute of Health Technology Assessment Workshop: Health Benefits of Pets)

• Pets Help to Lower Health Care Costs(National Institute of Health Technology Assessment Workshop: Health Benefits of Pets)

• Pets Help to Fight Depression(Between Pets and People: The Importance of Animal Companionship)

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Every six seconds someone turns 50.

Seniors with pets have 21 percent Seniors with pets have 21 percent Seniors with pets have 21 percent Seniors with pets have 21 percent

fewer physician visits, lower blood fewer physician visits, lower blood fewer physician visits, lower blood fewer physician visits, lower blood

pressure and better coping skills.pressure and better coping skills.pressure and better coping skills.pressure and better coping skills.

A

With With With With 76 million baby boomers in 76 million baby boomers in 76 million baby boomers in 76 million baby boomers in

the U.S., more Americans are the U.S., more Americans are the U.S., more Americans are the U.S., more Americans are

seeking healthy ways to age.seeking healthy ways to age.seeking healthy ways to age.seeking healthy ways to age.

A A

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A

Page 39: Petsmod8

Rx for Successful Aging

• Health is crucial. The key is walking 30 minutes a day, stretching

religiously and weight training.

• Nutrition: “We should eat like a rabbit.” (Focus on vegetables)

• Have a purpose and meaning in life. “We need something to make

us feel part of something over and above ourselves.”

• Relationships.• Relationships.

• Spirituality, a sense of a higher power.

• Sleep — six to eight hours a night.

• Get a pet. “The pet that you rescue will really rescue you.”

Dr. Edward Creagan, OncologistProfessor, Mayo Clinic Medical School

{ THANK YOU }{ THANK YOU }