Small Dog Boarding Business: Balanced Scorecard Report

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Introduction

Small dog boarding Business deals with taking care of small dogs. A large number of families own pets especially dogs. This has called for the need for dog care given that the owners have little time to spare for their pets. The households are willing to delegate the responsibility of taking care of the pets. This business encompasses all the services that are offered to improve and maintain the good health of the dogs. Bragonier (2007) posits that SWOT analysis is essential in the running of the business because it helps the management to analyze the business at a glance.

The Balanced Scorecard Table.

ObjectiveMeasurementTarget
InternalEffectiveness of the strategies of the business in the marketThe price charged$100 per day for each dog
The customer responsesThe time that elapses before customers respondWithin 1 day of business encounter
CustomerThe acquisition of customersThe number of new customersAn average of 50 customers per day
Retention of customersThe frequency of the same customers5
The accomplishment of pre-set goals and objectivesThe surpassing of the revenue target
FinancialInitial fundingThe proportion of financing sourcesDebt to Equity financing ratio – 3:2, because debt financing is the best option.
Revenue growthThe percentage of sales growthGrowth rate – 5%
The cash flowThe revenue turnover rate2
Learning and growthThe acquisition of a volunteer groupThey should remain in service until the completion of the tasksThe retention percentage of the group members – 85%
Development of IT systemsThe systems should be sound and operationalThe systems should be running within one year of business commencement
Development of e-marketingThe number of new online customers100 customers per day

Internal

The dog boarding business must be efficient from within in order to appeal to the customers. For instance, it is the onus of the management to ensure that services are offered on demand. In this regard, there should be enough personnel, who will assist in the delivery of the various services. The internal environment should be co-ordinated and work in synergy in order to scale the heights of success in the business. In fact, the marketing team needs to perform an awareness campaign in order to sensitize people to the business existence. This initiative will draw many customers into the business. Market research is also a crucial part of succeeding in this business. This research will provide new insight into the business hence improvement in the service delivery.

Financial

The main objectives of the financial wing are the attaining of maximum sales volume and a continuous increase in the cash flow. Indeed, the revenue from dog boarding must surpass the costs incurred in the delivery of the services. This will ensure that the business runs at a profit rather than on losses. Bragonier (2007) asserts that the financial component is the major determinant of the other components in the balanced scorecard. The financing methods for the business include debt financing and equity financing. Feasible business proposals can guarantee loan funds from lending institutions. Debt financing is the best source of financing a business given that the debt interest is tax-deductible. In this regard, the debt reduces taxable income hence the entrepreneur earns tax savings. Furthermore, debt financing is cheap compared to equity financing. On the other hand, Equity financing is also a good source because there is no debt interest charged in order to be guaranteed of the funds. However, the financiers of this financing must be privy to the insider information of the business.

Customer

This is an important component of the business balanced scorecard. This is because a business cannot be run without customers, who are the source of revenue for the business. The retaining of the customers is essential in the going concern of a business. Therefore, customer satisfaction and total quality management measures must be taken into consideration. The continuous improvement principle should also be applied in order to maintain and attract more customers. This will increase the customer base hence more revenue and a good business reputation. Customer service requires an accomplished person given that the customers vary in need, temperance, and preference yet all of them contribute to the business returns.

Learning and Growth

The learning period of the business operation should be short in order to achieve growth and boom of the business early. This entails the development and refurbishing of infrastructural structures in order for the small dogs to receive maximum care. The kennels and roads leading to the business center should be well maintained. The business center should also be easily accessible. The kennel should have cages for the dogs in order to avoid instances of dogfighting, which can reduce the number of customers. The heat within the kennel should be regulated in order to suit the small dogs. According to Mann (2006), high hygiene standards should be maintained in order to avoid the contraction of diseases. The business should be insured in order to accommodate any eventuality in the course of running the business. The media is vital in the business because many customers are found on the internet. The volunteering groups contribute immensely to the business because they will reduce the cost of delivery of service.

References

Bragonier, R. (2007). What’s what in sports: The visual glossary of the sports world. Maplewood, N.J: Hammond.

Mann, C. C. (2006). 1491: New revelations of the Americas before Columbus. New York: Vintage Books.

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