Business management class here in Kuwait (little long, but not boring)

[JMarti521]

I'm taking a Biz Mgt course here in Kuwait and as a project, we have to come up w/ a business idea. We all explained why we were taking the course and many just needed the credits, while I was one of the few with a plan to take home and start up a new venture.

Our class broke into three groups and my group is going with the Mobile Dog Grooming biz because I brought in Ellen's Go 'Mobile and Succeed' book and the Wag n Tails business packet. Basically, I was already halfway through with our project...to develop a business plan for a company.

We are pretty far into this, but I do have a couple of questions. Please feel free to PM me if this is at all private. You can round it off as well. My question is...

What kind of start up costs (capital required) would a Mobile encounter? I guess-timated

Vehicle $45,000-60,000
Maintenance/ fuel, insurance $7500 yr
Towel service, Shampoos, Tools, Sharpening, $1000 yr
Uniforms (Smocks, Pants, Jackets Shoes, Embroidery) $400-600 yr
Advertising (web and conventional) $200 yr.
---That's $69,300 on the high side---

My numbers may be way off. Any ideas?

We're up on ending this course and I'll be able to walk away with about 85% of a complete business plan. I'll just alter things like the name and phone number. One of my fellow students worked out the marketing plan and provided a listing of all radio, TV and newspapers in my general area. I provided the U.S. pet ownership calculator, which is in a thread by that name, and we're ready to roll.

Am I missing anything? My instructor is very interested and I'll keep him informed of my progress when I get home.

Thank you, in advance, for any input/advice.

[elizo]

I'm actually going through this at the moment, so here's a few things I can think of!
-Costs of incorporation or biz licenses (Depending on what you do, it can go from $50 to $1,000 approx)
-Initial supply purchase (shampoos, scissors, dryers, etc.)...this could vary quite a bit depending if you are going mobile or a shop and what you already have. In a mobile, much of the equipment is already in the van of course.

These and the van costs (which is not necessarily the entire price of the van but rather the downpayment) are what I can think of as 'start up' costs since they are one time.

Then there are 'operating costs': i.e. monthly (usually) recurring costs. I have mine broken down into the following categories:
Van payment: $1300
Garage, electric, water: $75
Phone: $150
Van Maintenance/Repairs: $100
Grooming Equipment Maintenance: $100
Fuel: $200
Supplies (bows, shampoo, cleaner, etc.): $100
Advertising: $100
Insurance: $150
Accounting/Legal: $100
Misc: $200

The costs of some of the stuff I'm just guessing at since I haven't actually started yet and some I don't think I will need every month but am budgeting for (like van and equipment maintenance).

Hope this is helpful...let me know if I can help any other way!

[k2p1e]

Cleaning supplies

[charlieB]

I think your advertising/marketing cost is too low. Don't forget to add the cost of putting the graphic on your van. If you are going to put the ad in the newspaper or other medias, you probably want to set aside at least $2000-3000 for it. The phone book ad is also expensive. At least for the first year, you may want to set a higher budget for advertising. My biggest expenses are the van payment and the advertising.

[JMarti521]

I think your advertising/marketing cost is too low. Don't forget to add the cost of putting the graphic on your van. If you are going to put the ad in the newspaper or other medias, you probably want to set aside at least $2000-3000 for it. The phone book ad is also expensive. At least for the first year, you may want to set a higher budget for advertising. My biggest expenses are the van payment and the advertising.

I'm thinking of getting a WnT van or Sprinter. I thought the cost of the graphics was included in the price. Maybe not. Also, by reading these threads, I've learned not to worry 'too much' about newspaper or big phone book ads as just driving around should attract a good bit of attention. Also, mty thoughts on Phone book adverstising are that they are issued one a year, so if I miss the last one, I'll just wait it out and submit for the next year when the time approaches. Websights and internet traffic are a valuable option. IMO