12 Jun “Paws,” a Mobile Pet Grooming Business Touchstone 4: Case Study Review:
Question 1:
How might the economy and supply and demand impact Emma’s business?
Response:
Question 2:
What entrepreneurial risks did Emma take when choosing to start this business?
Response:
Question 3:
What ethical responsibilities should Emma consider in terms of her customers and the animals she grooms?
Response:
Question 4:
How will Emma’s management responsibilities change if she hires another person?
Response:
Question 5:
What financial risk should Emma consider before purchasing a second van?
Response:
Question 6:
What are Emma’s options in terms of secured and unsecured financing?
Which option would be the best, and why?
Response:
Question 7:
When Emma is considering her finances to fund the business, what should she consider as options for short-term financing?
Response:
Question 8:
Who is Emma’s target market, and how might she be able to reach them?
Response:
Question 9:
How might Emma use positioning and branding strategies to market her business?
Response:
CASE STUDY:
Emma Martinez used to work in human resources for a large corporation. Last year, she decided to leave her job and start her own mobile pet grooming business, called Paws. Rather than renting a space and having a storefront, Emma decided to purchase a van and equip it for grooming. The large van has everything Emma needs, including a drying station, a grooming table, and all the necessary equipment. Emma offers haircuts, nail trimming, and bathing at prices less expensive than traditional dog grooming businesses, because she does not have the same overhead as she would with a traditional storefront.
Her service utilizes a booking app, which allows customers to easily and quickly make appointments. She has a loyal customer base that frequently recommends her services.
Emma is able to groom four pets a day, which averages $100 per appointment for the services. Her variable costs include:
· Fuel
· Grooming supplies
· Van maintenance
Her fixed costs include:
· The van loan payment
· Insurance
· Her licensing fees
She believes her business strengths include affordability and customer loyalty, while her weaknesses include increasing competition, high fuel prices, and—because she runs the business on her own—limited growth opportunities because she only has one van and must consider traffic and maintenance when scheduling appointments.
EXAMPLE
For every 2-hr appointment, Emma needs to book out 3 hr to plan for traffic and other potential challenges.
This means Emma works very long hours—about 12 hr per day for the four daily appointments and travel times. Emma has attempted to take at least 1 day off a week, but in order to satisfy customers, she really needs to be available every day of the week.
Given these challenges, Emma has considered purchasing a second van and hiring another groomer to expand her business. She feels this will generate more revenue, but she is concerned about managing another person and the challenges it will bring. Also, she finds that she will have plenty of revenue if she books at least four appointments per day, 6 days a week.
Assume you are one of Emma’s friends who has just taken a business class and offered to help her with some of the difficulties she is facing. Answer these questions by addressing her problems with the business concepts you’ve learned about in this course. When addressing these problems, add what Emma might consider as marketing opportunities for the future.
