Dog training and kennel business builds foundation for a financial plan
by New North B2B staff
Following a little more than a month of work with their small business consultant, Doug and Sue Beaupre have discovered there’s much more financial wherewithal to operate Beaupre Gun Dogs for the long term than what they’ve done over the past 11 years as a part-time endeavor.
For the next four months the couple has been teamed up with Gary Vaughan of Appleton-based Guident Business Solutions as part of B2B’s Firefighters initiative to help them work on long-term strategies to improve their business and put out the fires of the daily distractions that stand in the way of progress.
Since working with one another in June, the Beaupres have learned more about “the true cost of doing our business,” as Doug stated, as well as the concept that profits don’t equal cash flow.
The couple worked with Gary to identify five profit centers for generating revenue within their business: 1) breeding puppies; 2) training dogs; 3) offering seminars to dog owners; 4) dog boarding; and 5) grooming.
Along with each of those five profit centers, the Beaupres have associated the appropriate costs to each and determined the gross profit for each area. They’ve also identified the seasonality that each month of their Omro-based business will have, enabling them to pin down monthly costs by dollars as well as to estimate the percentage associated with the revenue for each profit center.
“Dollars only tell us half the story,” Vaughan explained. “Dollars along with percentages can give Doug and Sue the analysis they will need going forward. This work has given us a very reasonable revenue, cost of goods sold, and gross profit for their pro-forma financial statement.”
The Beaupres hope to eventually purchase a larger property out in the country where they could provide kenneling, onsite field training, grooming and the ability to handle dozens of dogs at once. They need a business loan for such an investment, though, and they need a more bona fide financial plan to show to any commercial lender who might consider helping the Beaupres achieve some success with their business.
Along with Vaughan’s assistance, the couple is working to research costs “below the line” so that they can calculate their overhead to develop a three-year financial plan.
“I have told Doug and Sue the budget we have developed is just numbers on paper,” Vaughan explained. “They will have to work their strategy to accomplish their financial goals.”