Question

Susan Dovi is a single, 31-year-old wife and mother, who wants to start her own company. She has no previous business experience but has an idea for marketing a mobile animal-grooming service with an approach similar to that used for pizza delivery. When a customer calls, Susan will arrive in a van in less than 30 minutes and will provide the grooming service. Many of her friends think the idea has promise but dismiss her efforts to seriously discuss the venture. However, Susan is not discouraged; she plans to purchase the van and the necessary grooming equipment. She is hopeful that her business loan will be financed through her local bank where she has maintained a relationship for several years. Susan would like to hear your suggestions and recommendations. Question 6: Describe two insurance needs Susan will have to consider for her new company Question 7: Overall do you think Susan has a sound business/market strategy? (Please elaborate)

Answer 1

Introduction

The vast growth of the internet technology and the social media industries has given exposure to the world, to conduct activities which will lead to growth and development of the same.

Over a period of years, internet as a technology has enabled services to be conducted within 30 minutes such as pizzas and others. Susan's ideas are an emerging market type and should not be seen as backward at all.

People over the years have developed great care for their pets and it is a booming industry among others respectively. However, some considerations need to be taken care off. These include deciding the vicinity in which the operations have to be conducted, the scale of operations, cost of equipment purchased, target markets, profit margins, salaries to be paid for people etc.

A successful business requires careful analysis of the above listed things before which a company should ideally come into existence and is the requisite for its long term success respectively.

Question 6: Describe two insurance needs Susan will have to consider for her new company?

For the purpose of answering this question we know the fact that Susan is considering to purchase a truck to run her operations of the company. Therefore to safeguard her against any accident which might happen on the road and result in long term liabilities for the company, it is important for her to get a motor vehicles insurance in place.

This is the basic step since she has chosen that mode as the option of entry into the industry respectively. Further, this is more so required because of the dynamics of business operations of the 30 minute guaranteed approach. In this it is possible to make an error in judgement which must be insured by the company she wants to operate in respectively.

Further the second type of insurance is to ensure accidental damage to the pets themselves. This would come under business insurance and can extend to customized ones which many companies indeed do offer. The product which her company sells is a service in which grooming is to be done. To safeguard her interests, in case of any accidental damage, the customers should be paid off in a proper manner and this can be done by having an insurance of the kind explained respectively. This would ensure that any damage to the pets is taken care off by the insurance company and Susan is not held accountable for the same respectively.

Question 7: Overall do you think Susan has a sound business/market strategy? (Please elaborate)

Susan indeed has a sound business strategy in the current times. The personal grooming space for pets is rapidly expanding in the United States and otherwise. People have higher net disposable incomes and prefer that their pets be taken care off by professionals who have better knowledge. This saves time and effort and ensures that the pet gets appropriate and professional services respectively.

One thing, however to keep in mind is modernization of the business unit as the plan grows and so does the profits. Susan needs to have a bigger approach than just renting a truck and being limited to local services if she wants this plan to work.

It needs to be extended to incorporate other areas and only then it can be a larger success respectively. These should include the use of tools such as social media, advertising and promotions & discounts to spread word of mouth respectively.

The pricing of the products must also be competitive enough to allow most people owning pets to be able to avail the services than it be a matter of luxury respectively.