Entrepreneurship is defined as that mind-set that gives someone the ability to see opportunity everywhere (co-founder of Sweeten) This can be a business idea and it can also mean the ability to see the opportunities in people that can help someone grow the company.
Mauritian economy encourages young entrepreneurs with great incentives. SMEs contribution to the Gross Domestic Product (GDP) is 40 percent and accounts for 54.6 percent total employment in the country.
Pet Care is a good investment opportunity in Mauritian market as people love their pets, and they are willing to provide them with the standard quality of grooming and care when they are away or busy.
1.1 Opportunity Analysis
For the past decades, there have been many incentives and supports given to enterprises for the promotion of the SME sector in Mauritius. The Start-Up Scheme that provide financial support of up to a maximum of Rs. 100,000 to entrepreneurs to set up their enterprise.
The trends that effect the pet care industry includes the increase in disposable income of middle-income group and rising trend of nuclear families. Moreover, people are adopting more pets and demanding higher quality pet products and services (Market, 2019)
The Mauritius commercial bank had teamed up with the DCDM Research to investigate on the mindset of entrepreneurs, their behaviours and motivations with regards to same.
In Year 2016, the SME sector contributes approximately 40% to the GDP and employs around 300,000 people in the country (55% of total employment).
This report provides not only the opportunity analysis, but also my affection for pets. I have always been a pet lover and the idea for pet care business originated from my passion for pet grooming and pet sitting. The goal is not just to start a business, but to form a work family who work with integrity and radical transparency with clients and provide services with excellence.
To provide innovative, high-quality, consistent, value-for-money, pet friendly service that will make your pet want to come back again and again.
Vision: To bring integrity and excellence in the pet care industry and become the number 1 service provider in Mauritius.
1.3 Key People and Skills
Pet Coach intends to open two branches, one in Balaclava and the other one in Trou aux Biches
Training pets require skills and time; therefore, the firmwill employ professionals with experience in dealing with pets but most importantly animal lovers. The veterinarians possess technical skills, e.g., first aid, wound stitching, sterilization of surgical instruments. The administrative clerk with top communication skills and administrative, two carers who have the know-how of Pets’ grooming and especially those who know the premises and safety measures of Pets (especially dogs). There will also be 2 drivers, one of which will be on part time basis, and the finance administrator in charge of all financials of the company.
2.0 External analysis
The World Trade Organization considers Mauritius’s investment apparatus as “open and transparent.” (Freedom, 2019). Mauritius’ GDP expanded by 3.4% in June 2019. While the GDP per capita reached 10,992.3 USD. Mauritius Consumer Price Index (CPI) for February 2020 was estimated to be 2.1%. Moreover, the Gross Saving rate of Mauritius was 6.8% in 2019. (CEIC, 2020). These macro indicators show the financial condition of Mauritius. Over 4 million pets are transferred by air, Millions of people are choosing to take their pets while they travel. According to LA Traveling magazine, Millions tend to marry later, and often spend a vast amount of money on their pets (Forbes, 2019).
A robust legal framework protects property rights and improves business acumen. Political stability will help pet coach in many ways including traveling, tax payments.
In terms of Business Confidence, Mauritius has moved up the ladder to 161.60 index points in 2019. The average compensation for labour has increased by 5.1 percent (Anon., 2019). The literacy rate of Mauritius is 93.16 percent (UNESCO, 2016), having educated and well-spoken staff and employees will prove to be beneficial tothe business.
Poverty and inequality is not a serious challenge in Mauritius which means the residents are not too poor to afford pet care services. Moreover, the government of Mauritius contributes a lot to social inequality and social justice, enabling businesses and service providers a safe and secure environment, social benefits will help pet care expand its business further.
Smart cities and techno parks is another pillar, which the government believes can assist inturning Mauritius into an intelligent island. Pet Coach is a mobile pet care service provider and is directly associated with technological improvement in the country.
Intellectual property rights are protected in Mauritius by the Trademark act of 2002 (Bheenick, 2018) making it secure and safe for pet coach to purchase new assets. According to Mauritius workers’ law, 2019 monthly salary of an employee must not increase MUR 50,000 (except for some sections), and an employee shall not work more than 12 hours a week (Yuen, 2019). Pet coach will provide its employees all the required and legal incentives.
Environmental protection Act of Mauritius is responsible for assessing and reviewing environmental regulation. Pet Coach will abide by the rules. Tropical cyclones can cause damage to property. However, there is a system of warnings and Pet Coach will adhere to the advice issued by local officials (Environement, 2019)
3.0 Industry analysis
Some of the noteworthy trends in Pet care industry:
Pet owners are treating and taking care of their pets, like family members. Pets provide companionship to their owners. Pet care and Pet products are associated with pet humanization because pet owners want to buy similar products and acquire the best services for their pets as they would for their child. Pet humanization gives rise to other trends in the pet industry. Few examples of pet humanization are per-friendly traveling service, therapy sessions, opulence grooming routine. (INTERNATIONAL, 0CTOBER 2016)
Obesity research done in the United States by the Association for Pet Obesity Prevention (APOP) found that almost 35% of the dogs and about 28% of the cats in the US are obese. The pet obesity is the cause of inappropriate human food provided by pet owners, not having a proper exercise routine, and too much eating. (INTERNATIONAL, 0CTOBER 2016)
Pet premiumization means getting the premium level products for pets. Consumers who demand premium products and tools for their pets are middle class and urban living pet owners. (INTERNATIONAL, 0CTOBER 2016)
- First-ever mobile application-based Pet grooming and Pet care platform in Mauritius
- Managing the business will be easy as most of the time, pet-sitters will be traveling places, which reduces the operating cost.
- No inventory; this reduced the cost of business.
- Pet grooming tools and products are easily accessible on e-commerce platforms.
- Establishing a brand name for any new business is a hurdle. Marketing and Advertisement will help overcome this problem.
- Initially, getting your business started could be very costly. Having a low budget will prove to be a big hurdle.
- Having strong business links and PR (Personal relations) is essential. It might take time to establish ties with clients and locals.
- The increasing use of the mobile and internet will make it much easier to reach out to new customers, making it easy for business expansion.
- Increase in Business confidence (Economics, 2019)
- Turning passion into profit. Being a pet enthusiast could be profitable and a great opportunity for business.
- Once the business has successfully made a brand image, then further franchising to other passionate pet groomers is another opportunity to grow business further.
- Increasing competition
- The higher cost of services (Economics, 2019)
- Volatility in the exchange rate
- An already established business might start providing mobile-based facilities as well (copying our business idea)
4.0 Financial analysis
One thing is clear that there would always be a demand for organizations and individuals pet owners whose demand is extra coaching and grooming for their pets. That is the primary reason why Pet grooming and training will still be required. To start-up capital estimated for Pet Coach is 2.3 million MUR (USD 53,000), which constitutes of 1.3 million MUR loan from a bank and 1 million MUR is personal deposits and some loans (from relative and family members).
One of our primary goals of initiating the Pet Coach is to start a business that will survive off its cash flows without the need for financial resources from outside sources once the business is officially running.
4.1 Investment Outlay
|Total number of employees 20||Employee wages per month 35,000 MUR
|Advertising and Marketing
Billboards, Social media marketing
Transport (10 bikes and twotrucks)
|Tools and equipment||100,000 MUR|
|Tax and legal payments
|Inventory and warehouse||200,000 MUR|
|Total||2 million MUR|
Generally, for Pet grooming and Pet sitting, prices are charged on an hourly basis, but Pet Coach’s pricing strategy is different. They will charge a flat fee for the service, except for, few cases which may require different pricing. E.g., Pet Coach will invoice 700 – 800 MUR for pet sitting. Additionally, if the client needs 24 Hours service or more than 24 hours, the charges will vary. Similarly, during holidays prices charged shall be a little higher than usual due to excess demand for service. Keeping in mind that there would be some clients who wouldn’t mind paying extra bucks for their pet routine and grooming and for that Pet coach has established a premium and tailored services, according to clients’ needs. The Payment policy will be entirely inclusive. Payments transaction shall be accepted via Bank Transfer, via Cheques, via Mobile Payment and Cash payment.
Pet caring is considered a “hot” opportunity for business start-ups. But, in a situation where the business doesn’t go as planned, the pet coach has an exit strategy.
- Merge with an already established business. Sell 51% of the business shares and the controlling power.
- Complete sell-off to another firm or business who will acquire the management as well as the capital of the business.
As per the report, it is concluded that Pet Coach is a viable business opportunity. Bringing a revolutionary and to the Mauritius market. It will prosper in the future as the business is technology-driven, and the targeted audience is expatriates and tourists. With extensive research and business strategies, Pet Coach has the know-how of consumer taste, preferences, and, most of all, customer needs. With PESTEL analysis on the front, the business will be sustainable in the long run producing more jobs to the locals and expansion of business opportunities.
|Potential of New entrance
§ Initial cost is low
§ Tools and products are easily accessible.
§ No barrier to entrance
|Power of Customers
§ High customer loyalty
§ Pet coach has different service identity
§ No mobile pet grooming in Mauritius
|Power of Suppliers
§ Higher number of suppliers
§ Similar products are available
§ E-commerce platforms provides variety of tools and equipment
|Threat of Substitutes
§ Online available free platforms
§ Freelance pet care business
§ Veterinary shops
|Competition in the industry
§ Pet industry is growing
§ People are fond of conventional pet shops
§ Well-known retailers
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