Evaluate finances needed for startup of a brick and mortar pet store that also has an online presence where these items will be sold and/or rented. The store will offer dog and cat toys, pet costume...

Running Head: Financial Analysis        1
Financial Analysis        
FINANCIAL ANALYSIS OF A PET STORE BASED ON BRICK AND MORTAR BSUINESS MODEL
Table of contents
Introduction    3
Starting up the pet store    3
The business plan    4
Cost of products and services    5
Ongoing expenses    5

Additional expenses    6
Cost of Expansion    6
Conclusion    7
References    8
Introduction
    Brick and mortar has become one of the most popular business model which allows businesses to offer their customers products and services either face-to-face through physical stores or through online business. As opined by Pauwels and Neslin (2015) such business models helps the businesses make huge profits out of their day-to-day business operations. This pet store is based on the brick and mortar business model selling pet toys and selling or renting pet costumes. They also offer services such as monthly grooming and vaccination van visits. The pet store organizes photo contests, which when won will allow the entrants of the competition avail exciting discounts and other offers. This report shall present an overview of the finances required for establishing a pet store physically as well as through online platform and for the expansion of the store to two other locations.
Starting up the pet store
    It has been observed that pet owners spend approximately $45.5 billion on an average on their pets when calculated in a financial year. Animal lovers love to visit pet stores particularly online pet stores from where they can choose the right product for their pet among the several products available. This helps to save their time while enjoying superfast delivery of products at unimaginably low prices. The shop may provide free home delivery to its customers. Since, this pet shop will be a retail business as well as an online store the startup may require slightly high costs of establishment and expansion. The estimated cost of starting up the business can be as high as $150,000 for online store and nearly the thrice of the amount or online stores for physical retail stores along with the cost of expansion to two other locations.
The business plan
    To startup a new business, it is necessary to have a clearly defined business plan with a deep analysis of the targeted market and the budget or finances, which may be required to establish the business. To develop a business plan it is important that the business must hire trained, professional and experiences staff for conducting analysis of the market, collecting organization and management information, describing the service line as well as the product line, managing marketing information, managing the finances required and managing the sales information (Rauter, Jonker &...