Business Plan: Tierra’s & Bow Ties Boutique
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Tierra’s & Bow Ties Boutique
Start-Up
Business
Plan
Business Plan: Tierra’s & Bow Ties Boutique
Chastity Clemons
Tierra’s & Bow Ties Boutique
300 W. Central Texas Expressway
Suite #101
Harker Heights, Texas 76542
Telephone: (254) 634-2219
Fax: (254) 526-1212
E-Mail: Tierrasnbowties@yahoo.com
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Business Plan: Tierra’s & Bow Ties Boutique
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I.
Table of Contents
I.
Table of Contents .................................................................................................................................... 3
II.
Executive Summary ................................................................................................................................ 44-6
III.
General Company Description ............................................................................................................. 77-8
IV.
Products and Services ............................................................................................................................. 99-10
V.
Marketing Plan ......................................................................................................................................... 911-24
VI.
Competition Analysis……………………………………………………………………… 24-34
VII.
Budget……………………………………………………………………………………… 35-39
VIII.
Operational Plan………………………………………………………………………….. 40-43
IX.
References………………………………………………………………………………… 46-48
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II.
Executive Summary
Tierra’s and Bow Ties Boutique is a fun and trendy high end boutique that caters to dog lovers and the not so average dog,
whom only want the best. Tierra’s and Bow Ties Boutique exist to provide world class quality unique clothing and accessories that set
the standard of excellence for dog lovers and the not so average dogs in Central Texas and around the nation at a reasonable price. The
basic proposition of our boutique is fun, classy, sassy, and distinguished. We bring top of line clothing and accessories for dog lovers
and their prize possession without paying the top of line prices, while successfully providing glamour and a sense of high class
through excellent customer service.
Business Concept
Tierra’s and Bow Ties Boutique is a store front boutique that is located in Harker Heights, Texas off of the busiest
highway, HWY 190 in the Modac Shopping Center. The concept of Tierra’s and Bow Ties Boutique is to provide a wide array of
clothing and accessories for small to large dogs. The need for a boutique of this caliber is in high demand because there is only a PetCo that specializes in general pet supplies. The consumer who spends hundreds of dollars on toy breed dogs or even pure breed large
dogs is known for the way they take care of and cater to them. I have learned that where there is a compliant there is opportunity.
Every time I took my AKC registered Chihuahua to a franchise pet store, there were many complaints of quality of products and
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service. Just as Wal-Mart provides clothing, Macy’s or Lord & Taylor provide top quality clothing. Tierra’s and Bow Ties provides a
better product at the same prices as the franchise. We are able to do that because we offer personalized clothing that the owner can
choose to be hand-made in the store location or a catalog from brand name suppliers. Purchasing dog clothing and accessories that is
hand-made with options to personalize and choose colors as well as shopping in an environment that is catered to the “not-so-average”
dog, by dog treats and bottled water filled bowls for the dogs while their owners shop. In addition we offer dressing rooms for the
dogs to try on clothing and a tailor to make measurements for custom orders
Finance Outlook
Tierra’s & Bow Ties Boutique will need to purchase a Hewlett Packard desktop, printer, fax machine, telephone, and credit
card swipe (Square). The business already has in its possession a sewing machine and embroidery machine. Long term projections of
equipment will be gazebo, pricing gun, alarm system, and higher quality sewing and embroidery machines. The expected benefits
from the purchase of the equipment will ensure greater speed and mass production of products. Initial start-up cost is averaged at
$10,000 for equipment and first month of operations.
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Business Management
The business is owned and operated by Chastity Clemons, but will employee one full-time employee to manage store and
provide quality customer service. As business expands and begins to bring in profit, their long-term goal is to employee two additional
employees: one full-time for sales and one part-time for sales.
Potential Issues
Lack of marketing can affect the success of Tierra’s & Bow Ties Boutique from entering into the market smoothly and
gaining competitive advantage. Failure to target high end customers who pamper their pets will cause the business to fail.
Additionally, cost of operations, products, insurance, employee benefits, taxes, and etc rising could affect our competitive pricing
amongst our competition. Future owners of property that is being leased changing the animal policy of store front businesses.
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III. General Company Description
Tierra’s and Bow Ties Boutique is a fun and trendy high end boutique that caters to dog lovers and the not so average dog, whom only
want the best.
Slogan/Motto-….FOR THE BONE-A-FIED PUP
Mission Statement- Tierra’s and Bow Ties Boutique exist to provide world class quality unique clothing and accessories that set the
standard of excellence for dog lovers and the not so average dogs in Central Texas and around the nation at a reasonable price. The
basic proposition of our boutique is fun, classy, sassy, and distinguished. We bring top of line clothing and accessories for dog lovers
and their prize possession without paying the top of line prices, while successfully providing glamour and a sense of high class
through excellent customer service.
Business Description
Tierra’s and Bow Ties Boutique will be run by sole-proprietor and will be a store front boutique that is located in Harker Heights,
Texas off of the busiest highway, HWY 190 in the Modac Shopping Center. The concept of Tierra’s and Bow Ties Boutique is to
provide a wide array of clothing and accessories for small to large dogs. The need for a boutique of this caliber is in high demand
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because there is only a Pet-Co that specializes in general pet supplies. The consumer who spends hundreds of dollars on toy breed
dogs or even pure breed large dogs is known for the way they take care of and cater to them. I have learned that where there is a
compliant there is opportunity. Every time I took my AKC registered Chihuahua to a franchise pet store, there were many complaints
of quality of products and service. Just as Walmart provides clothing, Macy’s or Lord & Taylor provide top quality clothing. Tierra’s
and Bow Ties provides a better product at the same prices as the franchise. We are able to do that because we offer personalized
clothing that the owner can choose to be hand-made in the store location or a catalog from brand name suppliers. Purchasing dog
clothing and accessories that is hand-made with options to personalize and choose colors as well as shopping in an environment that is
catered to the “not-so-average” dog, by dog treats and bottled water filled bowls for the dogs while their owners shop. In addition we
offer dressing rooms for the dogs to try on clothing and a tailor to make measurements for custom orders.
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IV. Products and Services
Products & Services
Tierra’s & Bow Ties Boutique is a sole proprietorship company that will sell custom unique dog clothing and accessories, top of the
line dog clothing and products, grooming, and treats. Our greatest feature is the quality customer service and atmosphere we provide
for every customer and their distinguished dog.
Custom Clothing ranges from bridal gowns, tux, wedding party, birthday suits, ACU’s, pajamas, pants, dresses, shirts, and suits.
Tailor service is free of charge to any client that orders custom clothing. Each dog will be measured to ensure accuracy of clothing
fitting. Tailor will help choose colors that compliment your pup. Dressing rooms are provided for in-store fittings.
Product lines include clothing by Guess, Louis Vuitton, Coach, LuLu, Polo, Coastal, Ruff Ruff Couture, Haute Puppy, Dog in The
Closet, One Lucky Dog Couture, Oscar Newman Luxury Pet Couture, Toni Mari Haute Couture, Woofink, and more.
Accessories range from collars, tags, harnesses, shoes, bows, ribbons, hats, sunglasses, jewelry, coats, rain coats, boots, beds, toys,
bowls, carry bags, shampoo, conditioner and bathing products, and more.
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Grooming includes bathing, clipping, cleaning ears, de-shedding, brushing, facials, fur dye, painting toes, and more.
Clothing will be available in store on the shelves and hangers. Custom orders will be hand measured by our expert tailor and made to
the customer’s request within two weeks.
Treats all natural and healthy and are made by our own chef that custom makes birthday cakes, everyday treats, wedding cakes, and
bones.
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V.
Marketing Plan
Pet Ownership

According to the 2011-2012 APPA National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 72.9 million homes

In 1988, the first year the survey was conducted, 56% of U.S. households owned a pet as compared to 62% in 2008
Breakdown of pet ownership in the U.S. according to the 2011-2012 APPA National Pet Owners Survey
Number of U.S. Households that Own a Pet (millions)
Bird
5.7
Cat
38.9
Dog
46.3
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Equine
2.4
Freshwater Fish
11.9
Saltwater Fish
0.7
Reptile
4.6
Small Animal
5.0
Total Number of Pets Owned in the U.S. (millions)
Bird
16.2
Cat
86.4
Dog
78.2
Equine
7.9
Freshwater Fish
151.1
Saltwater Fish
8.61
Reptile
13.0
Small Animal
16.0
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* Ownership statistics are gathered from APPA’s 2011-2012 National Pet Owners Survey
Spending
The following spending statistics are gathered by APPA from various market reseach sources and are not included in the organization's bi-annual National
Pet Owners Survey.
Total U.S. Pet Industry Expenditures
Year
Billion
2012
$52.87 Estimate
2011
$50.96 Actual
2010
$48.35
2009
$45.5
2008
$43.2
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2007
$41.2
2006
$38.5
2005
$36.3
2004
$34.4
2003
$32.4
2002
$29.5
2001
$28.5
1998
$23
1996
$21
1994
$17
Estimated 2012 Sales within the U.S. Market
For 2012, it estimated that $52.87 billion will be spent on our pets in the U.S.
Estimated Breakdown:
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Food
Supplies/OTC Medicine
Vet Care
Live animal purchases
Pet Services: grooming & boarding
$20.46 billion
$12.56 billion
$13.59 billion
$2.15 billion
$4.11 billion
Actual Sales within the U.S. Market in 2011
In 2011, $50.96 billion was spent on our pets in the U.S.
Breakdown:
Food
Supplies/OTC Medicine
Vet Care
Live animal purchases
$19.85 billion
$11.77 billion
$13.41 billion
$2.14 billion
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Pet Services: grooming & boarding
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$3.79 billion
According to the 2011-2012 APPA National Pet Owners Survey, basic annual expenses for dog and cat owners in dollars include:
Dogs
Cats
Surgical Vet Visits
$407
$425
Routine Vet
$248
$219
Food
$254
$220
Boarding Kennels
Vitamins
Travel Expense
$274
$166
$95
$43
$78
$48
Groomer/Grooming Aids
$73
$34
Food Treats
$70
$41
Toys
$43
$21
Tierra’s and Bow Ties will explore several media for marketing our product and services. In order to keep a constant flow of consumers and be
profitable we must be able to utilize traditional and word-of-mouth marketing. In order for us to use the most effective means of marketing we must
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understand and hone in on who we are marketing to. Once we understand who our customers are, we must then learn where they are, how they think, and
what they do on their own personal time. This will give insight to the mediums we will use to market to them.
Traditional Marketing
First, we will use traditional marketing through fliers that display a coupon for a percentage off of total purchase, free item for the month, and
clearance specials. This will gauge if the fliers are working and how many of our customers actually utilize the coupons through the flier marketing. Fliers
will be distributed through mailings of previous customers, local addresses, events, brochure displays in several locations, and personally handing them out.
Second, I plan to execute marketing via magazines which are local and national that gear only to spoiling dogs. Our targeted consumer wants the very
best and latest fashion for their pampered pup, thus they will subscribe to Modern Dog Magazine. I will use the local military paper only because new
military personal and their families are continually coming in and out of Fort Hood Army Installation and their one of the major means of introducing what
the community has is through the Fort Hood Sentinel, which is free of charge to military families and located in almost 100 locations across the military post.
We will put an advertisement in the paper to include a coupon, again to be able to track the level of marketing that we receive from the advertisement.
Social Marketing
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Third, I will mostly use the internet and social marketing to get the word out about our business. This means creating our own website that will allow
consumers to directly order off line, see inventory, products, and available services. In order to give the website visibility I will create a Facebook, Twitter,
and Instagram accounts. Facebook will allow me to link into my personal networking as well as my employees. Taking advantage of other networking
groups by linking them to our Facebook will generate more publicity and awareness of our business. Holding monthly picture competitions to other
incentives to generate “friends” will create a buzz about our business. Creating daily tweets on Twitter to highlight new arrivals in fashion to puppy visitors
in store. Pictures shared on Instagram will also generate customers. “Enterprises must adapt to how social media is changing businesses and the new the new
interactive forms of advertising is has created” (Kesisoglu, 2012).
Fouth, we will utilize promotional products such as personalized calendars, logo bags, custom pens, and etc to help create impressions and brand
recognition. Consumers are more likely to remember our name because we have given them promotional items. This will generate traffic and save money
because they are inexpensive and have been proven to bring in customers and increase profits.
Fifth, expos and events will allow our company to hold tables and booths with items for sale and advertise for our local community. The cost of a
table or booth will out way the ability to generate customers by having that one on one time. Using local rodeos, flea-markets, wine tastings, officer wife
Christmas affair, and several other events and expos in our local community generate a lot of flow. Events such as a dog fashion show hosted by Tierra’s and
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Bow Ties in our local mall, will be the first of this kind in this area.
And sixth, we will rely on press releases and participation in local events to help market our brand and company. Partnering with community walks
and fundraisers to save “abused animals” with our local animal shelters and vet hospitals. On a larger scale we would work with the children’s hospital to set
up a program to encourage children who are sick from cancer and other life threatening illnesses a change to spend a day with a pampered pooch. Small dogs
are used to help with stress as companion dogs.
Return on Investment
For traditional marketing we are going to invest a small portion of our budget because of the small return that we will receive. Being that
marketing is moving more into social media we don’t want to waste our finances on traditional marketing. In addition, traditional marketing is very limited to
local customers and will lack the ability to reach a larger audience. The cost of printing fliers can be in access of $500 for 1,000 color copies, so we will scale
the size of our fliers to 4X6 that way we be able to print more.
For the magazine and newspaper article, we will run once a month adds for a year while monitoring the coupon codes from the magazine for
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online purchases and newspaper paper coupons. Our goal for the newspaper is draw customers into the business where as the magazine will draw them to the
internet website. Downfall for both is that traditional marketing is beginning to decline with technology increasing and the use of social media and online
advertising increasing. If we notice we are not drawing consumers through this medium we will discontinue. Newspapers, fliers, and magazines will be a
short-term outlet for marketing and based up on our return on investments.
Mostly, we will rely on the social and internet medium to generate word of mouth (WOM) marketing. We choose this because it is the fastest rate of
marketing and allows users of social media to invite their networking which opens doors to others. “ To build a good part time or full time income with
network marketing takes time, effort and money” (Marketing AWeekly News, 2010). While the upside to social, internet, and WOM is low cost, the
downfall of social media is that is takes time to generate buzz. Utilizing this route of advertising will give us fast results and draw in more consumers to both
our business location and website. Social media, internet, and WOM marketing will be a long term goal and plan.
Promotional items will create high ROI and research has shown that “62% on average reported that they have done business with someone after
receiving a promotional item from them” (ASI Power Summit, 2008). In addition, “84% of people remembered the names of advertisers who given them
promotional items” (ASI Power Summit, 2008).
Marketing our clothing line will be the first step, once we get customers online or in the store then they will be able to accessories with the clothing
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and view other products. I hope that using the mediums described above that we will dominate the market share for high end dog clothing and create an
environment and culture of pampered pooches.
Primary Customers-Consumers
According to the American Pet Products Association (APPA), “pet spending by Americans totaled over $48 billion in 2010” (www.americanpetproducts.org,
2012) and is projected to continue to grow. Today’s dog owner is making a statement by dressing their dog. Dog owners are influenced by celebrities who
dress their pooches and carry them to make a fashion statement, thus creating a trend. The population today are no longer having those large families with 4
or 5 kids, statistics show that families are having that one to two children if not none. So, people are using dogs to replace that need to pamper someone else.
(www.americanpetproducts.org, 2012).
The target market for Tierra’s and Bow Ties Boutique is the Central Texas (Bell, Coryell, and Travis counties) and web sales will be global. The boutique
will be approximately 5 miles from the largest military Army installation in the United States, Fort Hood. Fort Hood houses over 60,000 soldiers not
including their families. Fort Hood operates off a 3 year rotation which allows for new consumers every three years to the local area. Average age of a
customer in Central Texas is between 25 and 64, mostly females, but there is a rising trend in gay men who own dogs and want to pamper them. Average
customer has some college or a degree and an average $50,000 a year income. Most common occupation in Central Texas is military, health and service. One
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of the programs that just started in the military is companion pups, where a soldier with who has been deployed is given a companion pup to help de-stress
him/her. The soldier proudly dresses their pup in an ACU hanky.
Our online customers include a wide array of ages, race, and economic status. Our products meet the need of any age, race, and wallet size. Our website
targets pet lovers that are looking to make that fashion statement by pampering their pup with top of the line products and show it off.
Tierra’s and Bow Ties will provide excellent upstream marketing by creating a strategic process of identifying and fulfilling our customers’ needs through in
store purchasing and online ordering. Marketing will be done through our website, social media, local media, discounts, club memberships, non-profit
partnerships (ie: dog rescue, shelters, and walk-a-dog), and mobile marketing (app, code scan).
Products and service will follow the 6’s of marketing:

Price- Fair and quality driven.

Performance- no hidden costs, quality customer service, quick deliveries, quality products.

Payback- money back guarantees, donations to non-profit dog rescue organizations.
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
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Packaging- custom boutique bags with logo on them, huge tags, tissue paper packaging sprayed with dog fragrances, paw print packing paper for
online shipping.

Promotion- birthday dog club free treat and accessories, birthday party catering, wedding planning and catering, play date organizer, monthly
percentages off on certain items, end of season clearance, coupons.
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VI. Competition Analysis
Direct Competitors
Name of Business and Location
PetSmart
2500 W. Central Texas Expy.
Killeen, Texas
(4 miles west)
*Located in a shopping center with
Toys R Us, Office Max, and
Academy Sports.
Business
Strengths
Wide variety of
pet products.
Grooming and vet
services. Prices
are moderate to
local income.
Training classes.
Business Weakness
Marketing Strategy
Impersonal customer
service. Doesn’t
specialize in just dog
apparel or dog
accessories, can’t
customs order treats
and clothing.
Franchise feel. Dog
clothing is generic and
slim. Very limited on
dog harnesses, collars,
and leashes. No
custom clothing
ordering.
Coupons, ability to bring
animal in store to shop.
Flyers, commercials, and
website to market
products. Online set
product ordering. One
stop shop-pet supplies,
pet grooming, and pet
veterinarian.
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Petco
201 E. Central Texas Expy.
Harker Heights, Texas
(1 mile east)
Moderate variety
of pet products.
Grooming
services.
*Located in the largest shopping
center with Target, Old Navy,
Barnes & Noble, and several
restaurants and services.
Dogadillo Boutique
12912 Hill Country Blvd.
Suite F-155
Austin, Texas
(45 miles south)
Located in downtown
Austin and online sales
around the globe.
Sell custom dog
food; carry
purses, beds,
clothing, toys,
collars, feeders,
and bathing.
Online store and
physical store.
High end clothing
and accessories.
Top of the line
nutritional
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Impersonal customer
service. Doesn’t
specialize in just dog
apparel or dog
accessories. Can’t
custom order treats.
Franchise feel. Dog
clothing is generic and
slim choices. Prices
are too high. Very
limited on dog
harnesses, collars, and
leashes. No custom
clothing ordering.
No custom clothing
line to order.
Grooming isn’t
available. Limited
styles of clothing.
Coupons, ability to bring
animal in store to shop.
Flyers, commercials, and
website to market
products. Online set
product ordering.
Facebook, website,
community dog walk
organizers, birthday
clubs, and happy hour.
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produces. Ability
to bring dog into
shop and feel like
you’re at home.
2011-2012
Retailer of the
year-Outstanding
Pet Boutique by
Pet Product News
Internatinal.
2009-2011 Most
Awesome-ist Pet
Boutique by
Austin Pets
Wide array of
Custom clothing is not
Hundreds of Online Pet
clothing choices
fitted to the dog in
Boutiques-Example:
Bloomingtails Dog Boutique
and accessories.
person.
www.bloomingtaildogboutique.com Dog toys,
costumes, bed,
health and
Located on the world wide web
wellness products,
with sales around the globe.
custom made
clothing. All
Natural food &
treats, spa and
bath products.
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Website, facebook, and
targets dog lovers who
want to make a fashion
statement themselves.
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Competitive Assessment
Market Share
Major
Customers
PetCo
PetSmart
DogaDillo Boutique
PetCo has 6% of the market share in
pet supplies across the nation. This is a
result of growth in the pet retailing
industry.
PetSmart has 11% of the market share in pet
supplies across the nation. This is a result of
growth in the pet retailing industry.
PetSmart is a free cash flow, has a better
model then PetCo, thus holding the higher
market share.
Statistics on market share are
unavailable due to being a small
business in the local area (50mile
radius). Dogadillo is one of the 13
boutiques in the Central Texas Area.
This is the closest boutique to our
location and still- 37 miles away.
Local Harker Heights, Killeen,
Nolanville and Copperas Cove. Current
pet owners and new pet owners.
Local Harker Heights, Killeen, Nolanville
and Copperas Cove. Current Pet owners and
new pet owners.
Austin, Georgetown, Round Rock,
Lakeway, Ceder Creek, Hutto, and
Killeen. Dog owners only.
Tierra’s & Bow Ties
Boutique
Unavailable because it is a start-up
business.
Harker Heights, Killeen, Copperas
Cove, Nolanville, and dog owners
only.
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What do their
customers think
of them
After reviewing the comments online
through Superpages.com,
complaints.com, and the Better
Business Bureau in general customers
complained about the quality of
grooming, that the employees at this
particular business that they were not
well trained in different breeds of dogs.
According to sales associate their markup varies based on product. Averages
between 60%-85%
Pricing Policy
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After reviewing the comments from online
the only general complaint I could find was
the slim selections on dog clothing and low
quality customer service. On the plus side
they said that they were very reliable and
usually had stock in a timely fashion when it
came to pet food.
According to sales associate their mark-up is
50-75% at times offering 15% discounts on
seasonal stock or products that are used for
promotions only and don’t sell.
Customer reviews were high and rated
the store as a five star high-end dog
accessories and supplies. The customers
raved about the excellent customer
service and that they remembered each
customer’s dog names upon a second
return. Generally reliable and very good
quality products.
Usual mark-up is 100%.
I think my customers will think the
customer service and the servant
attitude that my staff and I display
will draw them back. The ability to
custom order your own dog
clothing will separate us from the
competition. Having a custom
tailor will allow us to tailor each
outfit to fit not only the size of the
dog but their personality.
Items will be set at a 100% markup on all retail items and 75%
mark-up on custom orders made in
house.
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48
Financial
Strength
Product /
Service Range
Product /
Service Quality
Speculation-large franchise, assuming
that the business is on stable footing.
A variety of pet supplies from foods,
toys, habitats. collars and clothing.
Also, Grooming services, and pet
training.
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Speculation-large franchise, assuming that
the business is on stable footing.
A variety of pet supplies from foods, toys,
habitats. collars and clothing. Also,
Grooming services, vet services, and pet
training.
Family owned business with low
overhead. Business is seeing a strong
profit margin.
Variety of high end dog toys, collars,
clothing, bathing, carriers, feeding
dishes, strollers, beds, health products,
and organic food and snacks.
Exceptional quality-if a product isn’t
perfect it isn’t offered for sale.
Mass produced stock, initial inspection
indicates it’s a good quality.
Mass produced stock, initial inspection
indicates it’s a good quality.
Currently machines for sewing and
embroidery are all purchase and
paid off. Capital has been raised to
the amount of $50,000 and a
business loan of 50,000 has been
taken out.
High end dog apparel, toys, collars,
beds, carriers, feeding dishes, bed
and bath products, custom ordered
clothing, and healthy dog snacks.
Exceptional quality products that
stand out from the franchise
businesses with detail to bling and
our customers wants and needs.
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Customer
Loyalty
Repeat business from pet owners that
like the one stop shop convenience of
shopping while animal is being
groomed.
Brand
Recognition
Common range of products can be
found in Wal-Mart or any pet store.
Length of Time
in Business
4 years at location
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Repeat business from pet owners that like
the one stop shop convenience of shopping
while animal is being groomed.
Regular customers come back on a
monthly basis, and I found out that
they have customers who come when
they get new in season clothing and
accessories in stock. Majority of
customers are new through purchasing
online.
Repeat customers will come back
and online customers will continue
to increase as our business takes
off. In addition, the military
clothing line for dogs will help keep
a continued flow of customers
from the military base, since they
move every three years.
Common range of products can be found in
Wal-Mart or any pet store.
Very distinctive products with high
brand recognition among dog owner
customers. There are a number of
products like them online.
. Very distinctive products but very
little brand recognition as this is a
start up business just establishing
themselves in the marketplace.
15 years at location
4 years
Start-up
Business Plan: Tierra’s & Bow Ties Boutique
48
Alliances
Other PetCo’s across the nation.
Page 31 of
Other PetSmarts across the nation. Banfield
Pet Hospital.
Austin City Paws, Austin City Alliance,
Austin Pet First Aid, DogBoy’s,
Carolyne Pawtography, Cain and Able
Spa Collection, Dr. Eric Terrel D.V.M.
and Terell Veterinary Hosp., Hearts and
paws,
2500 E. Central Texas Expy, #D, Killeen,
Texas
12912 Hill Country Blvd., Austin, Texas
201 E. Central Texas Expy, #550,
Harker Heights, TX
Premises /
Location
254-953-8231
Petco.com
254-634-1664
Petsmart.com
Research &
Development
Petco Corporation chooses the
products and changes it accordingly.
Each franchised PetCo has no say in
the exact products they receive.
Products are placed in stored based on
PetSmart Corporation chooses the products
and changes it accordingly. Each franchised
PetSmart has no say in the exact products
they receive. Products are placed in stored
based on history of best selling items in the
demographics the store is located.
Aztec Animal Hospital, Second
Chance Animal Shelter, Polka Dot
Boutique, and Doggie Day Spa.
300 W. Central Texas Expy.
Haker Heights, TX
512-402-9663
254-634-2219
Dogadillo.com
Tierrasnbowties.com
Constant experimentation, changes
product if asked to do so by customer,
market trends, and when new brand
items emerge.
Products will be based upon clients
purchasing power. Items that we
noticed don’t do so well, we will
discontinue in store and only make
available online. Changes to
products will depend on market
Business Plan: Tierra’s & Bow Ties Boutique
48
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history of best selling items in the
demographics the store is located.
Plant and
Technology
Manufacturer,
Wholesale,
Service, Retail
Advertising
Large building in shopping center,
organized and clean. Grooming is inhouse in a separate room with see
through windows.
Service and Retail
Flyer in newspaper, commercials, mail
inserts, industry periodicals and brand
recognition
trends and custom orders.
Large building in shopping center, organized
and clean. Grooming is in-house in a
separate room with see through windows.
Latest equipment is great condition,
well organized and attractive in displays.
Classy showroom.
Small store front building in well lit
with plenty of parking. Attractive
displays throughout the store. Play
areas for dogs of all sizes. Well
organized and color schemed for
boys and girls.
Service and retail
Retail, wholesale, and manufacturer
Retail, wholesale, and manufacturer
Flyers in newspaper, commercials, mail
inserts, industry periodicals and brand
recognition
Business cards, tags on products,
informal networking, market stall
setups, yellow pages, internet,
community events, and buzz marketingword of mouth.
Business cards, tags on products,
informal networking, market stall
setups, internet, community events,
newspaper, animal shelter
fundraisers, partnerships with
groomers, and marketing by word
or mouth.
Business Plan: Tierra’s & Bow Ties Boutique
48
Customer
Service
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Impersonal but welcoming, sometimes
friendly, no follow-up.
Impersonal but welcoming, sometimes
friendly, no follow-up
Reliable and friendly, said to be great
with follow-up, sometimes can be
overly friendly and pressured sales
environment.
Reliable, outstanding, friendly with
terrific follow-up through mail,
email, and personal phone calls, No
pressure sales, environment created
to just enjoy.
25-30 employees
4 employees
2 employees
Products are delivered to store to stock
on shelves customers come in to
purchase. Delivers can be arranged by
owner through special circumstances.
Products are delivered to store to
stock on displays and shelves for
customers to come in and
purchase. Items delivered through
online/internet purchases. Custom
orders are made in store and
customers pick-up except for
weddings and birthday party
catering we deliver all items.
Some products are patented and some
are not.
Some products are patented
through manufacturer. Custom inhouse orders are not.
30-35 employees
Number of
Employees
Distribution
Methods
Products are delivered to store to stock
on shelves and customers come in to
purchase. They do not offer delivery to
homes.
Products are delivered to store to stock on
shelves and customers come in to purchase.
They do not offer delivery to homes.
Yes..all products are patented
Patents
Yes...all products are patented
Business Plan: Tierra’s & Bow Ties Boutique
48
Sales Tactics
Growth
Customers come to store or order
online
Not looking to expand any further.
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Customers come to store or order online
Not looking to expand any further.
Customers come to store, order online,
market stall, informal networking, and
direct sales tactics.
Always looking to capture new retailers
to sell products and investing
opportunities to expand online and instore.
Customers come to store or shop
online.
.
Within 5 years would like to open a
second shop in a larger city in
Texas.
Business Plan: Tierra’s & Bow Ties Boutique
48
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VII. BUDGET
The purpose of a budget or financial requirements for a business plan is for businesses to earn revenue and have the ability to show the
areas which need more attention and control to earn a profit. Budgets help businesses and organizations become more efficient and
effective through cost control. Through a budget a business can not only control its cash flow it can control it. A budget is a working
document, it is meant to change with the business as the business grows. A budget also gives a business a benchmark by which to evaluate
progress.
“Every business should be working with 12 budgets which represent the next 12 months. The monthly budget is your
prediction of what that month’s income statement is going to look like” Shay, 2012). Tierra’s and Bow Ties Boutique have created a first
year of projections through the first month of operations. They found that their operating cost will put them in the negative for the first six
months only if Tierra’s and Bow Ties Boutique can increase sales each month then they will utilize their monthly statements to monitor
their ability to see profit generated.
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Startup Budget
July 20, 2012
FIRST YEAR PROJECTIONS
Monthly Costs
Salary of owner-manager
All other salaries and wages
Rent
Advertising
Delivery expense
Supplies
Telephone
Other utilities
Insurance
Taxes, including social security
Interest
Maintenance
Legal and other professional fees
Miscellaneous
Subtotal
One-Time Costs
Fixtures and Equipment
Decorating and remodeling
Cash
Needed
to Start
% of
Total
$3,000
640
650
150
100
300
150
125
200
80
75
100
25
1,000
$6,595
7.7%
1.6%
1.7%
0.4%
0.3%
0.8%
0.4%
0.3%
0.5%
0.2%
0.2%
0.3%
0.1%
2.6%
17.0%
$10,000
14,500
25.7%
37.3%
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48
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Installation charges
Starting inventory
Deposits with public utilities
Legal and other professional fees
Licenses and permits
Advertising and promotion for opening
Cash
Other
Subtotal
0
5,000
300
500
500
500
750
200
$32,250
12.9%
0.8%
1.3%
1.3%
1.3%
1.9%
0.5%
83.0%
Totals
$38,845
100%
CASH FLOW
STATEMENT
Company Name
Tierra's and Bow Ties Boutique
Plan Date
1/1/2013
Beginning Cash
$750.00
2013
Actual or Plan
Cash on Hand (Beginning of Month)
Total
Plan
$750.00
$750.00
Cash Sales
$6,500.00
$6,500.00
Total
$6,500.00
$6,500.00
$7,250.00
$7,250.00
Cash Receipts
Cash Ending (Before cash out)
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Cash Paid Out
$950.00
$950.00
$3,640.00
$3,640.00
Advertising
$150.00
$150.00
Utilities
$125.00
$125.00
Rent
$650.00
$650.00
Purchases
Wages (exact withdrawal)
Taxes
Miscellaneous
Other startup costs
Total
Cash Ending
$80.00
$80.00
$1,000.00
$1,000.00
$0.00
$0.00
$6,595.00
$6,595.00
$655.00
$655.00
Essential Operating Data (non cash flow information)
2013
Sales Revenue ($)
Total
$5,000.00
$5,000.00
Accounts Receivable
$0.00
$0.00
Bad Debt (this period)
$0.00
$0.00
$3,000.00
$3,000.00
Inventory (end of period)
Accounts Payable
Depreciation
$0.00
$0.00
$300.00
$300.00
The first month of operations forecast a $45.00 loss in cash on hand. This indicates that Tierra’s and Bow Ties will have to
increase sales in order to increase revenue or find other ways to lower expenses starting with owner’s salary. If Tierra’s and Bow Ties
Boutique can increase sales at least 20% for the first six months. Increase of online sales will generate more income as well as
advertisement of opening will also generate sales. Increase of 20% projects an additional $1300 a month.
Business Plan: Tierra’s & Bow Ties Boutique
48
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Each month Tierra’s and Bow Ties Boutique will do a revenue analysis that will provide answers to strategic questions on how
their current and future revenue performance is going. “Custom forecasting by establishing groups of select customers and pricing”
(Anonymous, 2005). Your cash flow is the lifeline of your business, so it must be positive in order to survive. Tierra’s and Bow Ties
Boutique will follow basic accounting principles to monitor its cash flow by reporting cash flow with monthly statements using excel
software. In order to improve revenue and see increase in sales, Tierra’s and Bow Ties Boutique will prevent themselves from passive
management because, “passive management of profits will inevitably expose you to ups and downs as well as reducing your change to
becoming a top-earning practice” (Anonymous, 1998).
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VIII. Operational Plan
The operational requirements for Tierra’s and Bow Ties Boutique include general operating procedures, human resources, insurance,
working capital requirements, office space requirements, asset acquisition, and outline of Tierra’s and Bow Ties operational workflow.
General Operating Hours
Tierra’s and Bow Ties Boutique intends to operate Monday thru Saturday from 9am to 7pm. Tierra’s and Bow Ties
Boutique will be in operation year round.
Human Resources
“One's key personnel is the most important ingredient for one's Business Plan. Without them one could end up closing the
business if there is no one to manage and operate the daily operations” (Ruin, 2001). Mrs. Chastity Clemons will be sole owner of
Tierra’s and Bow Ties Boutique and will work full-time and Ms. Leslie Gay will be the sole employee of Tierra’s and Bow Ties
Boutique for the first 6 months, also full-time. When additional employees are needed, Tierra’s and Bow Ties Boutique will identify
the persons qualified and able to assist on a part-time basis for the same rate as the full-time employee (Ms. Leslie Gay).
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Ms. Chastity Clemons holds a Bachelors’ of Science in Business Administration and is currently pursuing her Master’s of
Science in Management. Ms. Clemons will run the daily duties of the shop, manage the shop, and control the inventory.
Ms. Leslie Gay, holds an Associates of Applied Science in Management, 15 years of military service in the United States, and
Certificate in Customer Service. Ms. Gay will be a full-time employee and provide customer service and assist owner on inventory
and daily operations.
Once Tierra’s and Bow Ties Boutique reaches 60% of its operational capacity (hoping in 6 months), Tierra’s and Bow Ties
Boutique will hire a part-time employee to help offset the daily demand, on owner and full-time employee. Once hired, all employees
will be covered by the Workers Safety and Insurance Board and covered for Employment Benefits.
Insurance Requirements
Accidents, breakdowns, and disasters will happen, but the Tierra’s and Bow Ties Boutique will incur costs for business
liability insurance. The estimated cost for this requirement is $4000.
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Operating Capital Requirements
“A company that is positioning itself for high future growth may exhibit a low sales to long-term operating capital ratio.
This may be particularly true for small and start-up companies” (Beneda, 2002). With the demands that come with starting a business,
Tierra’s and Bow Ties Boutique will require that the business have sufficient working capital to meet all operational responsibilities
and requirements of the business for the first three months.
Tierra’s and Bow Ties Boutique will need approximately $15,000 in working capital to sustain and ensure the business
meets all opening and on-going financial obligations. Throughout the year Tierra’s and Bow Ties Boutique is aware that there will be
periods of low sales and profit and fully understand that there will be financial pressures during this time. The working capital will
need to be able to cover these times. Tierra’s and Bow Ties Boutique have a strategy to maintain a positive cash flow by diversifying
the company into several entities (ex: clothing, treats, custom events, and accessories). This will be done through the marketing and
training of the buying power of the target market.
Office Requirements And Asset Acquisitions
Tierra’s and Bow Ties Boutique will lease store front space located at:
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300 W. Central Texas Expressway Suite #101
Harker Heights, Texas
The store front space is leased and will accommodate the restroom, countertops, cabinets, and fitting rooms. The facility will require
an estimated $7,000 to renovate in a style that aesthetically pleasing to the customers and their pups. The store front will be leased at
$650.00 a month. Tierra’s and Bow Ties Boutique will require sewing machines, embroidery machines, and small oven that are
already purchased and owned and will not be estimated costs for investment. Though “the focus is on operational excellence, best
practices and process control strategies, not investment in new hardware” (Wood, 2006), but the following is an estimated operating
expenses and estimated costs associated with the investment:
Store renovations
$7,000.00
Store equipment and furniture
$3,500.00
Decoration
$2,500.00
Desktop and laptop for accounting and
cash register
$1,500.00
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48
TOTAL CAPITAL COST
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$14,500.00
The noted capital operating expenses will increase work effectiveness, enhance customer experience, employee
professionalism, and prepare the business for the demand of products and services. The equipment will be bought in the name of the
owner Chastity Clemons and will be used for company use only.
Operational Workflow
As a small “dog” boutique, the operational workflow for this type of business is quite unique and pattern isn’t always easy
to follow. The process of a sale can constitute up to several steps and may be adjusted as necessary. Each consumer is totally different
and requires different needs and wants. The basic steps to follow would be:
Step 1: Greet and meet the customer, they are guest in Tierra’s and Bow Ties Boutique, this includes the animal. Employee will find
out if consumer has been in the shop before and if not let them know of all their rewards, packages, products, and services, while
asking permission to give the pup on or the homemade treats.
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Step 2: At this point the employee is aware of the customer’s needs and wants and addresses with guidance into making a purchase or
assist in the particular service. This includes suggestive selling as well.
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IX. References
Anonymous. (1998). Monitoring cash-flow for a dramatic payoff.
Pulse, 39. Retrieved July 20, 2012, from
ProQuest database.
Anonymous. (2005). Managing Revenue.
Accounting Today, 7, 1. Retrieved July 20, 2012, from
ProQuest database.
ASI Power Summit. (2008). Advertising Specialties Impressions Study: A Cost Analysis of
Promotional Products Verses Other Advertising Media. Retrieved July 6, 2012, from
www.asicentral.com
Business Plan: Tierra’s & Bow Ties Boutique
48
Beneda, N. (2002). Forecasting operating capital requirements for a growth company.
Credit & Financial Management Review, 8.4, 44. Retrieved July 15, 2012 from
PreQuest database.
Kesisoglu, A. (2012). Social media has changed advertising, says Google.
Computer News Middle East, 15, 64. Retrieved July 6, 2012, from
ProQuest database.
Marketing Weekly News. (2010). Is Traditional Network Marketing Dead?
Retrieved July 7, 2012, from
ProQuest database
Page 47 of
Business Plan: Tierra’s & Bow Ties Boutique
48
Ruin, J. (2001). Business operational plan.
New Straits Times, 2, 28-EX. Retrieved July 13, 2012, from
ProQuest database.
Shay, T. (2012). Create budgets to predict income.
HME News, 18.5, 15. Retrieved July 19, 2012, from
ProQuest database.
Wood, A. (2006). Operational Excellence.
Chemical Week, 168, 17-18. Retrieved July 15, 2012, from
ProQuest database.
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