Microeconomics Business Project

Business: Pet Waste Removal

1. CR Pet Waste Removal Specialists will offer residential and commercial waste removal service, including pick-up and transfer of any pet waste within the area. Most of our customers will use our services once every weekly or bi-weekly, depending on the amount animals per household and season, but we can create a custom schedule for clients if they have beginning of the season projects, or if the weather changes. Variation of service needs will change due to hot weather and winds that might speed up client service needs or have them reduced due to cold weather and/or no winds.

2. CR Pet Waste Removal Specialists will start out as a sole-proprietorship and be home based. As the business grows, the owners will consider a partnership with a small amount of employees and dual home locations.

3. Start up Costs:

CR Pet Waste Removal Specialists start-up costs include:

A. Home office equipment:

Computer system (including printer, file cabinet, scanner, and fax software) provided by the owner.

B. Vehicle: The owner is using his 1996 Chevy Silverado pickup for transfer and transportation.

C. One rake $35

D. One shovels $30

E. One Pooper Scooper $22

F. 6 Boxes of 100ct. latex gloves $36

H. Licensing Fee: $76

I. Ad $50

J. Brochures/Business Cards $120

K. Accounting Software $100

Total Start-up Expenses $ 469

CR Pet Waste Removal Specialists will target rural middle-class families with larger lawns or parcels of property. This population is the most likely to use a lawn care service such as ours, since they often have more acreage than they can easily care for. I will be investigating neighborhoods and posting flyers to develop clients. I will also place advertisements in the local newspaper hoping to get a clientele base of 20 houses. In the second year, I will expand service beyond the small rural town to the urban area located 10 miles north. CR Pet Waste Removal Specialists will be aiming for families with annual income over $70,000. The median income of $60,000 and above is targeted because they tend to have more throwaway income for the care of their pets and lawns and with the high housing costs, whereas lower income families will tend to provide their own pet and lawn care. By targeting customers with large lawns and parcels of property we will keep our margins higher than we could with small lawns. Transportation time and costs for all the equipment make it more profitable to do a few large lawns than many smaller ones.

Supply Schedule

Target Market Segment Strategy

Initially, I will investigate nearby homes in our town. I will be setting up the office at home and very close to the target market. I will start by speaking with my own neighbors. Although some people are put off by solicitors, since I am their neighbor they will be more at ease with me and will be able to make my sales pitch. I will also put some small signs on my lawn advertising my service.

Once I have built up a steady list of customers I will begin to run advertisements in the Penny Saver, City Beat, San Diego Union Tribune, and the Reader to get noticed in different neighborhoods. In the second year, I will continue running ads and begin