Schedule<\/p>\n
Sat 27<\/p>\n
Slides content (first pass)<\/p>\n
Mon 29 \u2014 5pm to 6pm<\/p>\n
Presentation Review<\/p>\n
Dec 1 \u2014 5pm<\/p>\n
Final Review (of paper & presentation)<\/p>\n
Final run through<\/p>\n
20 page max (not including appendix)<\/p>\n
Business proposal<\/p>\n
Feasibility of the business<\/p>\n
Entity Selection<\/p>\n
Employment Legal Issues<\/p>\n
IP Issues<\/p>\n
Any Contract Issues<\/p>\n
Any Financing Issues from a Legal Standpoint<\/p>\n
Other Legal issues that you and your investors should be aware of<\/p>\n
Market need for the product and\/or service<\/p>\n
Estimate of success for the business<\/p>\n
The product we are offering is a subscription box containing a mix of toys and treats for dogs. This subscription box is customizable to address the different types of consumers in the market and gather greater market share. The consumer is able to customize the frequency to be monthly or quarterly. This allows customers to choose how often they receive a box and reduces the amount of waste a customer could experience with receiving too many toys and treats. Customers also have the ability to mix and match the items in the box for each order or keep it standardized with 2 toys and 2 treats, allowing them to get items that are most suited for their dog’s needs. We recognize that each dog is unique, therefore customers can take a personality quiz for their dog when they first sign up for the subscription box and this would ensure they are getting the proper toys and treats for their dog. <\/p>\n
We also want to give back to our community and be a sustainable company. We are accomplishing this by allowing our customers to request a free shipping label from the website and send back unused or lightly used toys to Bark Rescue Box, where we then donate them out to animal shelters. This allows us to give back to our community and take care of shelter animals. We are also being sustainable by reusing old toys, as there are over 634 million dog toys that end up in landfills each year. <\/p>\n
This subscription box would be $36 per order, for both monthly or quarterly subscriptions and any combination of toys and treats. This price includes the following: toys and treats, box and packing material, fulfillment, shipping, and other associated fees.<\/p>\n
Justification of the Opportunity (Bobby)<\/p>\n
What problem are you solving?<\/p>\n
Waste – there\u2019s research done by another student<\/p>\n
Donate<\/p>\n
Recycle ??<\/p>\n
Too many toys (for owners) – we can use data from survey<\/p>\n
Need toys (for shelters) – we called shelter(s)<\/p>\n
How do you know it is a real problem?<\/p>\n
Why do you think your business proposal has an opportunity, what, exactly is the opportunity?<\/p>\n
What is your “secret sauce” that will make a difference?<\/p>\n
Reducing waste (sustainability)<\/p>\n
Warm and fuzzies (by donating toys & unopened treats)<\/p>\n
Giving back to the community<\/p>\n
2 million dogs adopted each year (they give back to the shelter they adopted the dog)<\/p>\n
Why is it compelling for customers?<\/p>\n
We believe these are aggressive but achievable numbers as with a TAM of 64 million households with dogs as pets, 29.4 million SAM who are the Gen Z & Millennial owners who are more likely to purchase online, and 20.5 million SOM which is the 32% willing to spend more on sustainable pet products. Two million additional dogs are adopted each year from shelters in the United States which is another targeted group we can service.<\/p>\n
Every year there are ~3.1 million dogs that enter U.S. animal shelters and ~2 million dogs being adopted each year nationwide (source). Many of these dogs will be in shelters for some time before they get adopted. These dogs need treats and toys and Bark Rescue Box can help meet this need by partnering with shelters and potential subscribers. During our research, we contacted several shelters and found that these shelters are always looking for toys and treats for the dogs in their shelter. Another problem we found during our research and from surveys that we conducted was that many dog owners have too many toys. We found that if given the opportunity to donate these toys to shelters, that the overwhelming majority of dog owners would donate their lightly used toys. A third problem that we are solving is helping to reduce waste by recycling toys that are still in good condition. Bark Rescue Box gives dog owners an easy avenue to donate toys and helps solve the problem of \u201ctoo many toys.\u201d We feel that Bark Rescue Box has a good opportunity here to take a portion of the pet industry which currently has a global market of $232 billion. There is a need for both shelters as well as dog owners and our business model can help fulfill their needs.<\/p>\n
The secret sauce that makes Bark Rescue Box different from our competition is that we aim to be a sustainable company by helping to reduce waste. We will also create warm and fuzzy feelings for people since they will be giving back to the community and supporting shelters by donating lightly used toys and unopened snacks. It is compelling for customers because they get to help out other dogs in need, and at the same time declutter their homes. We would also create a website where pet owners can see the dogs and shelters that they are supporting with their donation. Many owners have too many toys that their pets often don\u2019t play with, and Bark Rescue Box will provide an easy way for customers to donate these toys. Customers can use one of our subscription boxes and a printed label from our website to ship lightly used toys or extra treats to us and we will handle the donation of toys to the shelters. This makes it less of a hassle for customers, helps customers feel good that they will be helping other dogs, and also allows customers to contribute to sustainability by recycling lightly used toys. Other compelling things for our customers are our ethical values and strong purpose. Studies show that consumers are four to six times more likely to buy from, trust, champion, and defend companies with a strong purpose (source). They also show that Gen Z and Millenials are 32% more willing to spend more on sustainable pet products. We reuse boxes by allowing our customers to make their donations using the same box that their subscription arrived in. Studies also show that 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly (source). Being a sustainable and purpose driven company will give us an advantage over our competitors because it aligns with the values that consumers find most important in a business. <\/p>\n
Marketing & Distribution (Sofia)<\/p>\n
How will you attract customers and sell product or service<\/p>\n
Our target market is dog owners. This market in the United States alone is extremely large. According to The Humane Society, approximately 50% (or 63.4 million) of households in the United States own at least one dog (source). Overall, it is estimated that 89.7 million dogs are owned. Our market niche is dog owners that own rescue dogs. This is because we believe that people who own rescue dogs will be more inclined to a service like Bark Rescue Box that benefits shelters and dogs in need. This market is much smaller as the Humane Society estimates that only 19% (or 12 million) of dogs are adopted from animal shelters (source). While our market niche is much smaller, through strong marketing, we can bring awareness to shelter animals and the need to give back. <\/p>\n
Our major competitors are other toy and treat subscription boxes for dogs, including BarkBox, Chewy\u2019s Goody Box (although not a subscription service), RescueBox, DapperDog Box, and more. The largest of these subscription services is BarkBox which has approximately 1.5 million monthly subscribers. RescueBox, however, is the only subscription service for dogs that has a similar mission. With every RescueBox purchased, approximately 142 bowls of food are sent to shelter pets in need. While this overall mission is similar to ours, RescueBox is still a small business which leaves room for others to enter the market. <\/p>\n
Our competitive advantage over subscription boxes like BarkBox is that we are a company designed to help pets in need. Our ethical values and strong purpose gives us a major competitive advantage. Studies show that consumers are four to six times more likely to buy from, trust, champion, and defend companies with a strong purpose (source). Bark Rescue Box also partners with shelters so that consumers receive photos of dogs with the toys they have donated. This personal touch allows consumers to build an even stronger connection with the impact they are making. Additionally, Bark Rescue Box is environmentally friendly because unopened treats and unused or lightly used toys are donated. This reduces waste because without donations, these unwanted toys and treats would likely end up in the trash. We also reuse boxes by allowing our customers to make their donations using the same box that their subscription arrived in. Studies also show that 78% of people are more likely to purchase a product that is clearly labeled as environmentally friendly (source). Being a sustainable and purpose driven company will give us an advantage over our competitors because it aligns with the values that consumers find most important in a business. <\/p>\n
Bark Rescue Box will be sold online through our barkrescuebox.com domain. This website will allow consumers to input information about their dog (i.e. size, age, breed), select their desired subscription frequency (i.e. monthly, quarterly, bi-annually), and select the combination of toys and treats they want in each box (i.e. two toys and two treats). Consumers will have the ability to customize their orders up to one week prior to the shipping date. The website will also allow consumers to request and print a free shipping label if they have toys or treats to donate. As the company grows, we also plan to expand our website into a mobile application for added convenience. Once the consumer selects their desired subscription, a Bark Rescue Box will be delivered straight to their door. <\/p>\n
In order to bring awareness to Bark Rescue Box we plan to market through shelters. Shelters are our key partners and each partner will be given flyers as well as free sample boxes to send home with each adopted dog. We also plan to market through social media, especially through Facebook and Instagram ads. Our survey results suggested that our primary consumers are millennials (57.6%) and marketing through social media is an effective way to market to younger generations. <\/p>\n
Industry Size (Bobby & Sung)<\/p>\n
Size, major competitors and their potential reactions and strategies<\/p>\n
Overall, it is estimated that there are 89.7 million dogs in the United States that are owned. The pet\/dog industry will only continue to grow as the U.S. population and dog population continue to grow. In fact, according to the census bureau, the U.S. population will grow by an average of 2.3 million people until 2030 and decline to 1.9 million per year between 2030 and 2040 (source). The dog population also continues to grow, and because of this there is overcrowding at the shelters. Shelters are unable to keep up with the amount of dogs entering the shelters, and as a result of this ~390,000 dogs per year are being euthanized (source). Some other key statistics that show the size of the pet industry are: by 2027 it is projected that the pet toy market will reach $3.7 billion growing at a CAGR of 5.8% from 2020-2027 (source), while the dog food and snacks market is projected to reach $90 billion growing at a CAGR of 4% from 2021-2027 (source). Globally, the pet industry is expected to grow from $232 Billion in 2021 to $350 Billion by 2027 with a CAGR of 6.1% (source). <\/p>\n
Some of our major competitors includes: RescueBox, Chewy\u2019s Goody Box (not really a subscription service), DapperDog Box, PupBox, and BarkBox just to name a few. Barkbox being our largest competitor and already well established, would be our biggest threat. The major problem with our business is that it is not defensible. Large companies like Barkbox who already has economies of scale could easily implement the same business model as us by adding a donation option. Another potential reaction from competitors could be that we are too small to matter. If we end up getting to a size that does matter, larger competitors could try to buy us out or partner with us. <\/p>\n
Business Model & Metrics (Sung)<\/p>\n
Does it make sense?<\/p>\n
What are your key metrics?<\/p>\n
Single Unit Economics, CAC, LTV, Total Addressable Market<\/p>\n
What are the start-up expenses and your first year loss?<\/p>\n
What does the first full year income statement look like?<\/p>\n
Expectations (revenue & profit) longer term in 3-5 years.<\/p>\n
What possible exit strategies are there for investors?<\/p>\n
We estimate that the initial fixed costs for launching Bark Rescue Box will be about $13,071.80 per month or $156,861.60 in the first year. These fixed costs include:<\/p>\n
Month<\/p>\n
Count<\/p>\n
Per Month<\/p>\n
Per Year<\/p>\n
Developer<\/p>\n
-$6,240<\/p>\n
1<\/p>\n
-$6,240.00<\/p>\n
-$74,880.00<\/p>\n
Customer Support<\/p>\n
Team<\/p>\n
All<\/p>\n
$0.00<\/p>\n
$0.00<\/p>\n
Data Analyst<\/p>\n
Team<\/p>\n
Keerit<\/p>\n
$0.00<\/p>\n
$0.00<\/p>\n
Marketing<\/p>\n
Team<\/p>\n
Sung & Hahn<\/p>\n
$0.00<\/p>\n
$0.00<\/p>\n
Social<\/p>\n
Team<\/p>\n
Sung & Hahn<\/p>\n
$0.00<\/p>\n
$0.00<\/p>\n
Buyer<\/p>\n
-$6,240<\/p>\n
1<\/p>\n
-$6,240<\/p>\n
-$74.880.00<\/p>\n
Shopify<\/p>\n
-$323.67<\/p>\n
1<\/p>\n
-$328.90<\/p>\n
-$3,946.80<\/p>\n
G Suite<\/p>\n
-$12.99<\/p>\n
7<\/p>\n
-$92.40<\/p>\n
-$1,108.80<\/p>\n
Insurance<\/p>\n
-$140.73<\/p>\n
12 months<\/p>\n
-$143.00<\/p>\n
-$1,716.00<\/p>\n
Business License<\/p>\n
-$27.06<\/p>\n
12 months<\/p>\n
-$27.50<\/p>\n
-$330.00<\/p>\n
Year 1 Fixed Costs<\/p>\n
-$13,071.80<\/p>\n
-$156,861.60<\/p>\n
We estimate that it will take about 6 months in order to launch the shopify site, find wholesale distributors for toys & treats, develop relationships with shelters nationwide and prepare for the launch of Bark Rescue Box. We\u2019ll be using CrateJoy (a fulfillment service) to package and deliver our subscription box in the first two years in order to save costs in fulfillment center lease fees and utilities until we have enough subscribers to bring fulfillment inhouse.<\/p>\n
Our COGS is estimated at $17.69 per box, with a profit margin of 50.85% or 35.57% based on if our customer requests a shipping label to donate lightly used toys or unopened treats to their local shelters. This per box costs can be reduced once we have enough customers through scale & bringing in fulfillment inhouse. The COGS breakdown is as follows.<\/p>\n
Customer does not donate<\/p>\n
Customer does donate<\/p>\n
Cost of 2 Toys & 2 Treats<\/p>\n
$8.00<\/p>\n
$8.00<\/p>\n
Cost of Box<\/p>\n
$0.80<\/p>\n
$0.80<\/p>\n
Cost of Packaging Material<\/p>\n
$0.50<\/p>\n
$0.50<\/p>\n
Cost of Postage<\/p>\n
$5.50<\/p>\n
$11.00<\/p>\n
Cost to Pack a Box (CrateJoy)<\/p>\n
$1.00<\/p>\n
$1.00<\/p>\n
CrateJoy Fee<\/p>\n
$0.45<\/p>\n
$0.45<\/p>\n
CrateJoy Transaction Fee<\/p>\n
$0.10<\/p>\n
$0.10<\/p>\n
Stripe Fee<\/p>\n
$1.04<\/p>\n
$1.04<\/p>\n
Stripe Transaction Fee<\/p>\n
$0.30<\/p>\n
$0.30<\/p>\n
COGS<\/p>\n
$17.69<\/p>\n
$23.19<\/p>\n
Price Per Box<\/p>\n
$36.00<\/p>\n
$36.00<\/p>\n
Profit Per Box<\/p>\n
$18.31<\/p>\n
$12.81<\/p>\n
Profit Margin<\/p>\n
50.85%<\/p>\n
35.57%<\/p>\n
Our CAC is unknown at this time, using BarkBox\u2019s CAC (as of 2021) of $51.47, it would take 3 months to recoup the CAC if our customers do not donate, and 4 months if they do donate. We will make efforts to reduce the CAC by working with shelters around the US and offering a free box to anyone who adopts a dog and registering with Bark Rescue Box. This would allow us to directly market to customers using the information about them and their dog(s) though email marketing which has a lower cost of conversion.<\/p>\n
Our LTV is also unknown at this time, using BarkBox\u2019s LTV of 18.5 months, we can calculate our LTV to be between $277.61 to $379.36. Subtracting $51.47 CAC from the LTV we get profits between $226.14 to $327.89 based on the frequency of donations our customers make. <\/p>\n
In the first year, 6 months would be spent in preparation of launching and marketing the service, which would leave 6 months of sales. Taking the profit per box multiplied by six months, subtract the CAC we get revenues between $58.39 to $25.39, which translates to 5,210 to 11,982 customers in order to break even in the first year. We believe this is unrealistic to achieve in the first six months.<\/p>\n
Customer does not donate<\/p>\n
Customer does donate<\/p>\n
Profit per Box<\/p>\n
$18.31<\/p>\n
$12.81<\/p>\n
6 Months<\/p>\n
$109.86<\/p>\n
$76.86<\/p>\n
CAC<\/p>\n
-$51.47<\/p>\n
-$51.47<\/p>\n
Profit in 6 Months<\/p>\n
$58.39<\/p>\n
$25.39<\/p>\n
Total Cost in Year 1<\/p>\n
$304,212.46<\/p>\n
$304,212.46<\/p>\n
Customers Needed<\/p>\n
5,210<\/p>\n
11,982<\/p>\n
Additionally, these calculations do not take into account churn, nor do we take into account the initial cash needed to acquire the customers needed. In order to obtain 11,982 customers, we would need $616,692.21 in CAC, and a much larger team in order to support that subscription base.<\/p>\n
We have decided to go lean in order to minimize our risks and the initial investments needed for Bark Rescue Box. Our focus will be on forming strong relationships with the shelters and leveraging that relationship to reduce CAC. In the first year, we\u2019ll be focusing on forming relationships with the top 10 animal shelters with the highest animal intake in the top 10 states, which translates to 132,033 dogs per year. From that we want to focus on Gen Z & Millennials which account for 46% (19,735), then 32% who are willing to pay more for sustainable products (19,435). Based on our surveys we estimate a 7% conversion rate on this group, ~1,360 customers will be our goal for the first year (200 in the initial month with a 5% monthly growth rate). In the first year, we\u2019ll need a minimum investment of $304,212.46 to cover all expenses or $60,842.49 per founder.<\/p>\n
New Customers<\/p>\n
CAC<\/p>\n
Total Customers – 5% Churn<\/p>\n
Net Income<\/p>\n
Balance<\/p>\n
July<\/p>\n
200<\/p>\n
-$10,200.00<\/p>\n
190<\/p>\n
-$19,609.80<\/p>\n
-$111.112.40<\/p>\n
Aug<\/p>\n
210<\/p>\n
-$10,710.00<\/p>\n
390<\/p>\n
-$16,457.80<\/p>\n
-$140,642.00<\/p>\n
Sept<\/p>\n
221<\/p>\n
-$11,245.50<\/p>\n
599<\/p>\n
-$13,148.20<\/p>\n
-$166,862.00<\/p>\n
Oct<\/p>\n
232<\/p>\n
-$11,807.78<\/p>\n
819<\/p>\n
-$9,673.12<\/p>\n
-$189,606.92<\/p>\n
Nov<\/p>\n
243<\/p>\n
-$12,398.16<\/p>\n
1,050<\/p>\n
-$6,024.29<\/p>\n
-$208,703.01<\/p>\n
Dec<\/p>\n
255<\/p>\n
-$13,018.07<\/p>\n
1,292<\/p>\n
-$2,193.01<\/p>\n
-$223,967.82<\/p>\n
In the first year, Bark Rescue Box would have a loss of -$223,967.82 due to the high CAC and the fixed costs associated with running operations, and the shortened 6 months of revenue. In the subsequent years, our numbers would improve as we increase our subscription base.<\/p>\n
Year 1 Income Statement<\/p>\n
Total Revenue<\/p>\n
$158,675.45<\/p>\n
COGS<\/p>\n
-$69,379.51<\/p>\n
Gross Profit<\/p>\n
$11,324.58<\/p>\n
Developer<\/p>\n
-$74,880.00<\/p>\n
Buyer<\/p>\n
-$74,880.00<\/p>\n
Shopify<\/p>\n
-$3,946.80<\/p>\n
G Suite<\/p>\n
-$1,108.80<\/p>\n
Insurance<\/p>\n
-$1,716.00<\/p>\n
Business License<\/p>\n
-$330.00<\/p>\n
CAC<\/p>\n
-$69,379.51<\/p>\n
Total Expenses<\/p>\n
-$304,212.46<\/p>\n
Net Income Before Taxes<\/p>\n
-$145,537.02<\/p>\n
Less Income Tax Expense<\/p>\n
Net Income<\/p>\n
-$145,537.02<\/p>\n
Our growth goals will be to continue the 5% month over month growth while maintaining our churn at 5%. Our first 5 year projections are as follows. The key metrics we\u2019d be focusing on are, month over month subscriber growth, churn, CAC, and shelter partnerships. These four key metrics will determine if our projections are on track or if we need to make adjustments. <\/p>\n
Year 2<\/p>\n
Year 3<\/p>\n
Year 4<\/p>\n
Year 5<\/p>\n
Total Revenue<\/p>\n
$1.388 M<\/p>\n
$3.646 M<\/p>\n
$7.506 M<\/p>\n
$14.109 M<\/p>\n
COGS<\/p>\n
-$445 K<\/p>\n
-$1.074 M<\/p>\n
-$2.150 M<\/p>\n
-$3.989 M<\/p>\n
Gross Profit<\/p>\n
$736 K<\/p>\n
$2.217 M<\/p>\n
$4.750 M<\/p>\n
$9.083 M<\/p>\n
Total Expenses<\/p>\n
-$808 K<\/p>\n
-$1.584 M<\/p>\n
-$2.911 M<\/p>\n
-$5.181 M<\/p>\n
Net Income before Taxes<\/p>\n
$580 K<\/p>\n
$2.061 M<\/p>\n
$4.595 M<\/p>\n
$8.928 M<\/p>\n
Less Income Tax Expense<\/p>\n
-$122 K<\/p>\n
-$433 K<\/p>\n
-$965 K<\/p>\n
-$1.875 M<\/p>\n
Net Income<\/p>\n
$458 K<\/p>\n
$1.628 M<\/p>\n
$3.630 M<\/p>\n
$7.053 M<\/p>\n
Total Subscriptions<\/p>\n
5,152<\/p>\n
11,754<\/p>\n
23,045<\/p>\n
42,356<\/p>\n
Shelter Partnerships<\/p>\n
10<\/p>\n
50<\/p>\n
7,000<\/p>\n
14,000<\/p>\n
We believe these are achievable numbers as our TAM of 1.250 million households adopt dogs each year, SAM of 184,000 households who are Gen Z & Millennial owners willing to spend more on sustainable pet products, and SOM of 12,880 households which is the 7% conversion rate based on our surveys. <\/p>\n
We\u2019re taking a lean approach to minimize costs and risks. We\u2019ll be leveraging the skill set of our founding team members to cover key positions like digital marketing, social media management, data and financial analytics, and customer service. As our subscription base grows and we\u2019re able to increase our growth rate, while maintaining or lowering our CAC and churn, we\u2019ll be able to raise funds as needed. Having a positive net income will allow us to be in a better negotiating position when the time comes.<\/p>\n
Under the current assumptions, we estimate the initial investment needed is $304,212.46 or $60,842.49 per founder. We would see a positive Net Income <\/p>\n
Under the current assumptions, we estimate the initial investment needed is $2 million dollars on a $20 million evaluation to cover the first two years of losses. Some ways to validate these estimates are to do a smoke test by offering our services and seeing what the response is from our target audience. This would allow us to determine CAC, interest, and to refine our offering.<\/p>\n
Exploiting the opportunity (Hahn)<\/p>\n
Why and how is your team capable to succeed in this opportunity?<\/p>\n
Team<\/p>\n
Sofia<\/p>\n
Identify and implement tools, processes, and solutions to scale the business and accommodate rapid growth.<\/p>\n
7 years program manager<\/p>\n
Sung<\/p>\n
Design, organization, user research<\/p>\n
10 years designer, 7 years project manager<\/p>\n
Bobby<\/p>\n
Customer education, business generation, building relationships<\/p>\n
3 years business development, 4 years mechanical engineering<\/p>\n
Keerit<\/p>\n
Data analytics, requirement, relationship building<\/p>\n
5 month recruiter, 3 years coordinator<\/p>\n
Hahn<\/p>\n
Small business owner, e-commerce manager, international logistics<\/p>\n
Strategy for marketing <\/p>\n
Partnerships with 14,000 shelters in US<\/p>\n
(see above in Sofia\u2019s section for other ideas)<\/p>\n
Opportunities<\/p>\n
Reduce waste, donate lightly used toys, subscription boxes to meet customers need for personalization<\/p>\n
Market Potential<\/p>\n
See other sections<\/p>\n
TAM = 64 million households<\/p>\n
SAM = 29.4 million gen z & millennial owners <\/p>\n
SOM = 20.5 million gen z & millennial owners willing to pay more on sustainable pet products<\/p>\n
$232 billion pet industry in 2021<\/p>\n
$350 billion by 2027 with a CAGR of 6.1%<\/p>\n
Competition<\/p>\n
See other sections<\/p>\n
Bark Box, Chewy\u2019s, etc…<\/p>\n
Public welfare<\/p>\n
Environmentally friendly<\/p>\n
Shelter Friendly<\/p>\n
Profitability<\/p>\n
See section 5 for numbers<\/p>\n
Our operation will be started with a core team, which will be involved in all the work to minimize extra expenses upfront. Our team includes Sung, a product designer with 10 years of experience responsible for design, organization, and user research. Sofia, our project manager, has 7 years of program management experience, as does Sung, and is responsible for identifying and implementing tools, processes, and solutions to scale the business and accommodate rapid growth. Bobby has 3 years of business development, 4 years of mechanical engineering experience and is responsible for customer education, business generation, and building relationships. Hahn is responsible for network operations, marketing, and offline logistics services.<\/p>\n
As the number of clients grows steadily through the initial development phase, Bark Rescue Box’s constructive donations to pet shelters will also increase. As a result, a partnership with 14,000 US shelters will be formed over 3-5 years.<\/p>\n
The number of dog-owning households has been increasing significantly (U.S. Pet Ownership Estimates). https:\/\/humanepro.org\/page\/pets-by-the-numbers As the partnership with shelters is enhanced, Bark Rescue Box will have an additional promotional effect. At that time, we will launch the ‘Bark For’ Welcome Home’ campaign on a regular basis. This is an event that will feature all shelters. All owners who adopt a dog from a rescue shelter will receive a Bark Rescue Box and become a member of Bark Rescue Box. They will receive a 10% subscription for the next year. This is an organic and mutually beneficial partnership that promotes the adoption of rescue dogs and further enhances the relationship between Bark Rescue Box and the rescues while also improving the brand’s image in the minds of consumers and gaining further marketing.<\/p>\n
In addition, our environmentally friendly operation model is another distinctive and market-competitive highlight. The number of pet toys being discarded each year has risen. It is estimated that 634 million dog toys are thrown into landfills each year, which is equivalent to 40,500 tons of waste (source). The materials used in toys are mainly made from durable materials, such as rubber or nylon, which do not degrade easily and have a lasting impact on the environment when dumped as trash. Through a customer subscription service, Bark Rescue Box collects these toys that may be abandoned and donate them to pet rescue shelters. This is an environmentally friendly operation. Shoppers prefer to buy products from companies that contribute to the environment (source).<\/p>\n
Plus, since Bark Rescue Box operates in a privileged way, the pet toy recycling in it involves donations. As such, there is also the benefit of a 50% price tax exemption. This is certainly an extra help for a growing company as well.<\/p>\n
Critical Issues (Keerit)<\/p>\n
What issues will determine the success of this business?<\/p>\n
The first issue that will determine the success of the business is market share. According to The Humane Society, approximately 50% (or 63.4 million) of households in the United States own at least one dog (source). Overall, it is estimated that 89.7 million dogs are owned. This is a large market and our success depends on being able to enter into the market. Our biggest competitor is BarkBox, who currently owns the majority of the market share in the industry with 1.5 million subscribers, however that is only 2.3% of the market, indicating there is still room for new businesses to join the industry. In order to be successful, we would need to enter the market and be competitive enough to gain attraction. Another competitor, RescueBox, has a similar mission as our business. With every purchase, they send approximately 142 bowls of food to animals in need. However, they hold a relatively small market share which allows our business to freely enter the industry.<\/p>\n
Another issue that will determine the success of this business is our price point. According to our customer surveys, the most popular price point is $20-$25, where almost 50% of respondents preferred this price. However, we recognize that our product differentiator and the ability to customize our product to fit any type of customer would allow us to still be successful, even with a higher price point.<\/p>\n
Another issue is that our business model is not defensible. We have a very similar structure to competitors and there is nothing stopping them from implementing similar tactics in order to maintain their market share. For example, BarkBox can start to donate to animal shelters so their subscribers don\u2019t turn to a competitor. Similarly, Amazon is a concern. There are many people that buy one off toys and treats from Amazon since they offer free 1-2 day delivery to Amazon Prime subscribers, offering a quick, easy and timely purchase for dog lovers. They also sell other competitors’ subscription boxes, however if Bark Rescue Box can gain enough market share and attraction, we could also partner with Amazon. <\/p>\n
Another issue is the name of our business and branding. Our business name, Bark Rescue Box, is similar to competitors, such as Bark Box and Rescue Box. There is an opportunity for our competitors to file a lawsuit because our business name is similar to these two competitors. <\/p>\n
Conclusion (Sofia)<\/p>\n
Overall potential for success (link to google sheets)<\/p>\n
Probability<\/p>\n
Individual Events<\/p>\n
80.00%<\/p>\n
Company has sufficient capital<\/p>\n
100.00%<\/p>\n
Management is capable and focused<\/p>\n
100.00%<\/p>\n
Product development goes as planned<\/p>\n
100.00%<\/p>\n
Production and component sourcing goes as planned<\/p>\n
80.00%<\/p>\n
Competitors behave as expected<\/p>\n
100.00%<\/p>\n
Customers want product<\/p>\n
80.00%<\/p>\n
Pricing is forecast correctly<\/p>\n
40.00%<\/p>\n
Patents are issued and are enforceable<\/p>\n
20.48%<\/p>\n
Combined probability of success<\/p>\n
Not great – the above is from one of the classes on how to calculate probability of success. You can try out different combinations to see what the outcome would be.<\/p>\n
Gist:<\/p>\n
The biggest issue is that our business plan does not have any enforceable patents – so it\u2019s not defensible<\/p>\n
Appendix<\/p>\n
Supporting evidence for the above<\/p>\n
References<\/p>\n
https:\/\/www.aspca.org\/helping-people-pets\/shelter-intake-and-surrender\/pet-statistics<\/p>\n
https:\/\/www.census.gov\/newsroom\/press-releases\/2018\/cb18-41-population-projections.html<\/p>\n
https:\/\/www.prnewswire.com\/news-releases\/global-pet-toys-market-trajectory-to-2027—plush-toys-segment-forecast-to-reach-revised-size-of-us-3-7-billion-by-2027–301246389.html<\/p>\n
https:\/\/www.globenewswire.com\/en\/news-release\/2021\/07\/21\/2266276\/0\/en\/Dog-Food-and-Snacks-Market-to-reach-US-90-billion-by-2027-Says-Global-Market-Insights-Inc.html<\/p>\n
https:\/\/www.forbes.com\/sites\/afdhelaziz\/2020\/06\/17\/global-study-reveals-consumers-are-four-to-six-times-more-likely-to-purchase-protect-and-champion-purpose-driven-companies\/?sh=62b6e710435f<\/p>\n
https:\/\/www.businesswire.com\/news\/home\/20210322005061\/en\/GreenPrint-Survey-Finds-Consumers-Want-to-Buy-Eco-Friendly-Products-but-Dont-Know-How-to-Identify-Them<\/p>\n","protected":false},"excerpt":{"rendered":"
Schedule Sat 27 Slides content (first pass) Mon 29 \u2014 5pm to 6pm Presentation Review Dec 1 \u2014 5pm Final Review (of paper & presentation) Final run through 20 page max (not including appendix) Business proposal Feasibility of the business Entity Selection Employment Legal Issues IP Issues Any Contract Issues Any Financing Issues from a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-79138","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/79138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=79138"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/79138\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=79138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=79138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=79138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}