This New Venture Proposal is created by the N7 consultant group at the Imperial College Business School. It was very well received during the business pitch. Hopefully, this will spark ideas for other entrepreneurs. I am currently looking for job opportunities in London. If interested, please contact me at: wai.chan12@imperial.ac.uk Petaway is a new social network that utilises a two-sided market strategy. Petaway allows pet owners to leave their pets with other members of the network while they are away on vacation. Members will be able to search for pet-friendly homes around their neighbourhood. The underlying aim of Petaway is to provide an alternate offering to pet sitters and pet hotels, which can sometimes be very expensive. The business model consists of 3 main revenue streams: advertising, selling of additional services, and premium subscription, where users can subscribe to see homes that are verified by Petaway, and to book them in advance. We forecast revenues to be £277K in Year 1.

1. Your pet will be in safe while your are away
This investor presentation is strictly private and confidential, and specifically prepared in context of the first capital round of PetAway

2. Executive Summary
Pain of the Customer
Existing Solutions
Customer Satisfaction
Solution
Business Model
Value Chain
Revenue Streams
Personas
Market Summary
Marketing Approach
Customer Acquisition and LTV
Agenda
Key Objectives
Go-to Market Strategy
Milestones and Funding Strategy
Key Metrics and “if not” scenario
Financials
Valuation and Investment Opportunity
Appendix 1: Web User Interfaces
Appendix 2: Financial Statement
Appendix 3: Financial Justifications
Appendix 4: Team CVs
Appendix 5: References

3. Executive Summary
•
Pet owners in the UK are increasingly away from home on business and leisure trips;
•
Petaway provides an online community for pet owners and pet lovers to interact and find temporary homes
for their pets;
•
The current offerings in the market are not always available, expensive and do not guarantee peace of mind
to customers;
•
Petaway has a competitive edge, as it is an economical solution that provides a reliable service;
•
The market size in the UK is very vast as more than 40% of households have one dog or one cat. This
equates to a market size in excess of 13 million pets.The pet industry is forecasted to grow at a favourable
rate of 12% p.a. enhancing the prospects for Petaway’s success;
•
The Petaway team currently consists of 6 entrepreneurs with diverse skills and work experience specializing
in online marketing and web based services;
•
We intend to use a 3 stage process to successfully launch Petaway.The first stage would involve Beta testing.
This will be followed by an initial launch in the community of Richmond prior to full UK expansion in 2014;
•
Petaway has 2 key sources of revenue – premium subscriptions and additional services. We forecast
revenues to be £277K inYear 1, £730K inYear 2 and £2.9 million inYear 3;
•
Petaway seeks to raise £60K in equity from investors in exchange for a 12% equity share in the company

4. Pain of the Customer
• Pet owners in the UK are increasingly away from their homes and consequently
their pets due to business and leisure trips;
• Pet owners currently leave their pets in the care of friends/relatives, pet-sitters
or pet-boarding facilities;
• Pet owners are dissatisfied with these solutions as friends/relatives are not always
available, pet-sitters and pet-boarding facilities can be very expensive if used on a
frequent basis and furthermore they do not guarantee good quality care for pets;
• Pet owners are looking for a reliable and economical solution that takes good
care of the pets they love when they are away
The
problem,
and
how
we
propose
to
solve
it

5. Existing Solutions
60%19%
10%
11%
Primary Research: 102 total responses, 71% are pet owners
• 60% of pet owners leave their pet
with a relative or friend;
• 19% of pet owners leave their pets
with pet sitters;
• 10% use boarding services
while they are away;
• 11% use other solutions (The most
frequent answers are “Trainer” and
“Take a pet with me in a trip”)
Where do you leave your pet when
you are away?
The
problem,
and
how
we
propose
to
solve
it

6. Customer Satisfaction
22% indicated that they are not satisfied
with existing solutions
Do you experience any problems with the
current available offerings?
Relative/Friend
• Not always available;
• Feel like a burden
Pet Sitter
• Expensive;
• Suitable just for short trips;
• Pet sitters treat a pet badly
Yes
22%
No
78%
Primary Research: 102 total responses, 71% are pet owners
Pet Boarding
• Expensive;
• Cleanliness and safety issues
The
problem,
and
how
we
propose
to
solve
it

7. Solution
• Petaway is a website that allows pet owners to find a suitable home for their
pets when they are travelling;
• It connects pet owners and pet lovers to create an online community;
• Members will also have access to a range of additional service offerings;
• USP: Petaway is an economical solution that connects pet lovers and pet owners
to create a user generated platform to solve the pain of pet owners
The
problem,
and
how
we
propose
to
solve
it

8. >50% are interested in leaving their pet with pet lover/owner via our network and
taking care of someone else’s pet while they are away
Yes
52%
No
48%
Would you be interested in taking care of
someone else’s pet while they are away?
Would you be interested in leaving your pet with
a pet lover/owner via our pet network?
Yes
53%
No
47%
Solution: Validation
Primary Research: 102 total responses, 71% are pet owners
The
problem,
and
how
we
propose
to
solve
it

9. VISITS VISITS
CREATION OF
ACCOUNT
CREATION OF
ACCOUNT
LISTING OF
PETS
LISTING OF
HOMES
SEARCH
SHORTLIST
COMMUNICATION/
TRANSACTION
ADDITIONAL
SERVICE OFFERINGS
GPS Collar
Pick-up and
Drop-off Service
Insurance
PREMIUM
SUBSCRIPTION
SEARCH (WITH
VERIFIED HOMES)
PET STAY IN HOMES
REVIEWS & RATINGS
REIMBURSEMENT
Pet owner Pet lover
Verification by
PetAway
GETVERIFIED
HOME STATUS
Business Model
1 2
3 4
5 6
7
8
9 1110
12
13
12
14 15
16Description is on the next slide
The
problem,
and
how
we
propose
to
solve
it

10. Business Model
Petaway is a two-sided platform consisting of pet owners (those who want to leave their pets in good
hands whilst they are away) and pet lovers (those who are willing to take care of other’s pets)1, 2
3, 4
5, 6, 7, 8
9
10
11, 12, 13
14, 15
16
Both pet owners and pet lovers can sign up to a free account to enlist their pets or homes on our database
Pet owners can search our database for their ideal home of stay and vice versa for the pet lovers
Pet-owners can communicate with pet lovers via our service to organise a period of stay
At the stage of the transaction, Petaway will offer pet owners additional services (GPS collar,
Insurance, and Pick-up and Drop-off services) to ease their pets’ stay
After the period of the pet’s stay, pet owners will be asked to review and rate the services of the pet
lover, which will allow Petaway to identify the 50 most popular homes to be given the status of a
Verified Home
Upon account registration, pet owners will be able to subscribe to a premium account, which will give them
the ability to view and book the verified homes in advance. (In our primary research, we found out that pet
owners are willing to pay a premium to ensure that their pets are in good hands – homes verified by
Petaway will give them that extra assurance)
Due to the extra demand, Petaway will reimburse verified homes £40 each month
The
problem,
and
how
we
propose
to
solve
it

11. Value Chain
Feedback
Inbound
content
Management
of platforms
Customer
service
Marketing
•
Customers create supply;
•
New ideas are based on feedback;
•
Review and rating system creates value
for customers
•
Monitoring and managing a
two segment database;
•
Monitroing of technical
aspect of the platform (e.g.
updates);
•
Verification of homes for
the premium users
•
SEO and PPC;
•
E-mail;
•
Facebook ads and Sponsored stories;
•
Offline marketing
•
Customers are
encouraged to provide
feedback through
reviews and ratings
•
GPS Collar;
•
Insurance;
•
Pick-up and Drop-off
The
problem,
and
how
we
propose
to
solve
it

12. Revenue Streams
ADVERTISING
PREMIUM
SUBSCRIPTION
Dog Collar Supplier
(Shenzhen Xiyuan
Electronic Technology
Co., Ltd.)
Pet Insurance
(PetPlan Ltd.)
Private Cab Company
Partnership: PetAway
earns 20% of margin
Partnership: PetAway
earns 20% of margin
Bulk purchase: PetAway
earns 20% of margin
ADDITIONAL
SERVICES
GPS Dog Collar Insurance
Pick-up and Drop-off
Service
DOG OWNERS
Through Google
AdSense Sell to dog owners Offer to dog owners
How
will
Petaway
make
money?

13. Revenue Streams: Validation
0
20
40
60
2530
52
Willingness to buy extra services, % of all customers
GPS Collar Insurance Pick-up and Drop-
off Service
Primary Research: 102 total responses, 71% are pet owners
0
40,000
80,000
120,000
160,000
200,000
Predicted Revenur afterYear 1
Premium
Subscription
GPS Collar InsuranceAdvertisingPick-up and
Drop-off
Service
• In our primary research, we found that customers believe that there is added
value in the extra services, with the GPS collar being the most popular;
• Premium subscription is introduced after the first 6 months, subsequently it is
predicted to be our second biggest revenue stream afterYear 1
How
will
Petaway
make
money?

14. Personas
Joanna, 36,
Senior manager
•
Travels for work and
leisure frequently;
•
Is a pet owner and cares
about their well being;
•
Has a high disposable
income;
•
Wants a reliable service
that assures pets’ well being;
•
Internet user;
•
Willing to pay up to £10 per
month for Petaway
•
Loves animals;
•
Has a lot of free time;
•
Wiling to take care of
other’s pets;
•
Can provide a safe
environment for pets;
•
Internet user;
•
Verified by Petaway
Nickolas, 52,
Retired
Share
How
will
Petaway
make
money?
According to our primary research, we identified two distinct groups of users - those that are willing to take care of
other’s pets but not willing to leave their pets with others and vice versa (refer to Appendix 3.13 for more
information). Hence, Petaway can offer premium subscriptions with access to verified homes for greater peace of
mind.
Personas of premium subscribers and verified homeowners:

15. Market Summary
•
Market size: 13 million households have at least one pet out of a total of 27 million in the UK (PFMA, 2013);
•
Expenditure: Pet owners spend £14.9billion a year on their animals’ care – an average of £11.04 each week
(The Mirror, 2011);
•
Growth: the UK pet industry grew by approximately 12 percent, swelling to nearly 4 billion (Pet Business World,
2012);
•
Trips: 92.9 million holidays (Mintel, 2012) were taken by people from the UK (domestic and international) with
expected growth of 1.4%.The average nights spent whilst travelling globally is 10 nights (Travel Trends, 2010), while
the average length of domestic trips is 2.31 nights (VisitEngland, 2010)
0 2 4 6 8
5.5
8
8
Pet population, million
Dogs
Cats
Other animals
(rabbits, hamsters,
rats etc)
Potential for expansion
in the future
Source: PFMA, 2013
2012
2013
2014
2015
2016
2017
92 93.5 95 96.5 98
97.5
96.5
95.0
94.7
94.5
92.9
Domestic and overseas holiday, million
Source: Mintel, 2012
Market
attractiveness
and
customer
acquisition

16. Marketing Approach
10%
5%
7%
78%
Traffic Sources forYear 1
Seo
Facebook Ads
PPC
Offline Marketing and other sources
•
Digital Predominantly: Since our platform is web-based, we
will use digital marketing tools, which will enable us to target
people according to different demographics and psychographics
characteristics;
•
Traffic is Key:The aim of our marketing activities is to increase
traffic to the website thereby increasing the number of memebers;
•
SEO is King: Our website will be optimized by keywords which
are related to existing solutions (‘Dog sitter’, ‘Cat boarding’ etc),
additional services (‘Cat insurance’, ‘GPS Collar’ etc) and general
search queries (‘Dog care’ etc);
•
Traffic Generation: We will use PPC and Facebook Ads to
generate traffic as well. Facebook ads will be very important in the
Stickiness Period enabling us to target people, who live in
Richmond, and will help to create an initial audience;
•
Retention: E-mail marketing will be used for retention and
engagement purposes;
•
Offline: We will also use offline advertising – flyers, which will be
distributed in parks during the time dog owners are walking with
their dogs
Market
attractiveness
and
customer
acquisition

17. Cusomer Acquisition and LTV
2%
3%
17%
26%
52%
Marketing Expenditure
Seo
Facebook Ads
PPC
E-mail Marketing
Offline Marketing
•
Expenditure and Customer base: The marketing budget,
which is £46,275 forYear 1, will be mainly spend on SEO, Facebook
Ads and PPC. 21,105 members are predicted to be acquired by the
end ofYear 1;
•
Customer Acquisition: Customer acquisition cost is £0.45,
assuming that 1 out of 5 unique visitors will become a member,
and, hence, a customer. Taking into consideration that all our
advertising will be highly targeted, this metric is more than
realistic;
•
Customer LTV: The lifetime value of the customer is £120,
assuming that the average pet lives for 10 years, and taking into
account that a pet owner is going on vacation/trip twice a year for
3 days each time;
•
Monetary Value: Customer LTV is in 267 times higher
that customer acquisition cost
Market
attractiveness
and
customer
acquisition

18. Key Objectives
Year 1
Revenue 276,764
Burn 112,504
Headcount 6
Members 21,105
Premium Subscribers
6,753
Year 2
Revenue 730,591
Burn 346,394
Headcount 9
Members 82,544
Premium Subscribers
26,414
Year 3
Revenue 2,947,869
Burn 739,184
Headcount 24
Members 330,177
Premium Subscribers
105,657
150%
400%
Annual Growth Rate
Annual Growth Rate
Implementation
strategy
and
metrics

19. SCALE
UK expansion
STICKINESS
Launch in Richmond
VIRALITY
Launch in the UK
EMPATHY
Beta-testing
1 month 4 months 8 months
2-3 years
Validation 1 Validation 2 Validation 3
Go-to-Market Strategy
Challenge: Difficulty for
users to comprehend the
idea or use the interface
Stage:Will involve a beta-
testing phase comprising
of 200 individuals.The aim
will be to acquire early
adopters and gain their
feedback with regards to
the platform and assess
their activity and monitor
risks and against-plan
scenario’s.
Challenge: Creating initial
audience (Egg and chicken
problem) and retaining customers
Stage: Start the service in the
neighbourhood of Richmond with
a population of 20K people.This
network process will help to
engage users on a more personal
level and because of the limited
area, word-of-mouth will spread
more effectively.
Challenge: Increase growth
rate and implement premium
subscription
Stage: Launch the service
throughout the UK by
increasing marketing activities
and WoM communication. In
the same time we will launch
premium subscription to meet
needs of customers, who want
a reliable service, thereby and
increasing revenue income.
Challenge: Further
expansion of the
business
Stage: Expansion in-
depth the UK and
generating additional
revenue by providing
services to new
categories of
customers (rats, rabbit,
hamsters owners etc).
Implementation
strategy
and
metrics

20. Milestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding StrategyMilestones and Funding Strategy
STAGE ACTIVITIESSTAGE ACTIVITIESSTAGE ACTIVITIES
Founding the
business
Domains registration
Founding the
business
IA & UX prototyping
Founding the
business
CMS development
Founding the
business
Agreement with
partners
(transportation,
insurance, GPS collar
production)
Founding the
business
Beta-testing
Business
Development
Launch
Business
Development
Marketing activities &
customer acquisition
Business
Development
Introduction of
premium subscription
Business
Development
Mobile/tablet app
development
Business
Development
Hiring additional staff
Funding
Strategy
Own investment
(~ £10,000)Funding
Strategy Business Angel
(~ £60,000)
PERIOD 0
YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1YEAR 1
YEAR 2 YEAR 3
PERIOD 0
RICHMONDRICHMONDRICHMONDRICHMOND UKUKUKUKUKUKUKUK YEAR 2 YEAR 3
Jun-Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
YEAR 2 YEAR 3

21. Key Metrics and “if not” scenario
Additional Services
• GPS Collar/Members: >50%
• Insurance/Members: >30%
• Pick-Up and Drop-off/Members: >25%
• Profit per interaction: >£9
Validation 1: Empathy => Stickiness
Validation 2: Stickiness =>Virality
Validation 3:Virality => Scale
Feasibility of the Solution
• Interaction/members: >50%
• Recommendations/interactions: 50%
• Satisfied members/interactions: 85%
Conversion Rate
• Members/Unique visitors: >20%
Advertising
•Traffic: >2,500 visitors in April
• Frequency of visiting website: >10
times per month
Growth
• New customers: >60% p/m
Premium Subscription
• Premium subscribers/Members switch:
>32%
Improve UI and UX, build personal
relations with customers,
implement encourage system for
interaction (e.g. amazon vouchers)
if not
Promote benefits of additional
services to customers, improve
UX, pricing and discount issues
Revision of marketing mix and
sources of traffic, promotion
offers and benefits on “first
screen” to catch a visitor
Increase traffic by communication
through opinion leaders, PR and
viral content in SM. Increase
number of content on the website
and number of keywords for SEO
Increase marketing budget,
implement system of inviting new
customers by existing members
(e.g. DropBox)
Free trial, providing additional
benefits for premium subscribers
1
2
1
2
3
4
3
4
5
6
5
6
Implementation
strategy
and
metrics

22. Financials
-75,000
-37,500
0
37,500
75,000
112,500
150,000
Period 0Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Profit after Tax
Expected Cash Flow (before financing)
Expected Financials inYear 1
0
375,000
750,000
1,125,000
1,500,000
Year 1 Year 2 Year 3
Expected Financials inYear 1, 2 and 3
• Profit after Tax inYear 1 is expected to be £112,500;
• Profit after Tax in Year 2 and 3 are expected to be £346,000 and £739,000
respectively, with an expected cashflow of £1,208,000 at the end of period 3
Financial
statements

23. Financials
0
37,500
75,000
112,500
150,000
Period 0Sep Oct Noc Dec Jan Feb Mar Apr May June July Aug
Total Net Costs Total Net Revenue
Revenue and Costs inYear 1
0
750,000
1,500,000
2,250,000
3,000,000
Year 1 Year 2 Year 3
Revenue and Costs inYear 1, 2 and 3
• Total net revenue is expected to be £277,00 in Year 1, £731,000 in Year 2 and
£2,948,000 inYear 3;
• Expected Stabilised Gross Profit Margin is expected to be 31% inYear 3
Financial
statements

24. Team Credentials
Igor Stefanyuk
CEO
• 2 years of experience in digital
marketing and PR;
• Led project development of CMS
and IA for several websites;
• MSc in Internationl Relations
CFO
Tiffany Chan
•Worked at Standard Chartered
Private Back (financial institution);
• BSc in Operational Research from
London School of Economics
Anushka Suri
•Worked at Ormax World (market
research firm);
• BSc in Law and Business Studies
from University of Warwick
CMO
•Worked in Sales Department of
Samsonite (global luggage manufacturer);
• BSc Management Studies from
Nottingham University Business
School
Anant Berlia
Caroline Stavrou
CCO
•Worked in Sales Department at
L'occitane (beauty products);
• Co-organiser of few charity events;
• BSc Business Management from
University of Surrey
CSO
Faris Memon
•Worked in Sales Department at
Hassan A. Muzaffar Trading;
• Fluent in 5 languages;
• BA Business Management, Kingston
Business School
CCSO

25. Valuation and Investment
Opportunity
Petaway seeks to raise £60,000 in equity from investment partners for Jan, 2014
(Core Capital funding for website development and CMS), for which a 12% equity
share is offered
£60,000
12%
of
total
equity
with
a
35%
annual
return
for
3
years

26. APPENDIX 1: WEB USER
INTERFACES

30. APPENDIX 2: FINANCIAL
STATEMENT

32. APPENDIX 3: FINANCIAL
JUSTIFICATIONS

33. 1.Prediction of Traffic for Richmond
Prediction: In the launch of Richmond, there is insufficient data to calculate a bottom-up approach (as with the approach for the entire UK).
The following Top-down approach is used for the first 4 months in the financial models:
The key assumption is that 10% of the population with pets will visit the website, and 50% of the visitors will become users.
Total population in Richmond 21,469
Total population with pets (44%) 9,446
Traffic to Petaway (10%) 944,636
% to use Petaway in Jan (50% of traffic) 20%
Number of population to use Petaway in Jan 189
Month on month growth rate in Richmond 40%
2. Prediction of Traffic for the Entire UK
Our traffic in December was predicted by using marketing expenditures: SEO, PPC and Facebook Ads and 10% markup from other channels
After SEO, we predict that Petaway will be the last result in the TOP3 organic search results.Therefore, capturing 9.5% (Search Engine
Watch, 2011) of all Search traffic.Traffic from SEO = 75,525 in December ofYear 1.

34. Keyword Searches per month in the UK Competition
Pet insurance 246,000 High
Dog insurance 49,500 High
Cat insurance 22,200 High
Pet collar 3,600 High
Dog collar 90,500 High
Cat collar 18,100 High
Pet sitter 33,100 High
Dog sitter 22,200 High
Cat sitter 8,100 High
Dog walking 110,000 Medium
Pet sitting 40,500 Medium
Dog boarding 60,500 Medium
Car boarding 8,100 Medium
Pet boarding 33,100 Medium
Dog care 49,500 Medium
Total 795,000
Source: Google AdWords
For
PPC
and
Facebook
Ads,
we
set
a
budget
of
£1,000
in
December
of
year
1
(budget
per
month
is
calculated
according
to
the
advertising
growth
rate).
Therefore,
the
trafJic
from
PPC
and
FB
ads
is:
PPCPPC
Price per click £0.6
Clicks in Dec 1,667
Facebook adsFacebook ads
Price per click £0.5
Clicks in Dec 2,000

35. Total sources of traffic from the entire UK in December is:
Traffic before December is calculated backwards- from the traffic in December up until the traffic at the end
of April (end of empathy stage in Richmond).
Using this method: month on month Traffic growth is 62%
Traffic sourcesTraffic sources
SEO in Dec 75,525
PPC 13,333
FB ads 24,000
Other sources (10%) 11.286
Total 124,144
3. The month on month growth for marketing activities are:
Calculated backwards from the traffic in December up until the traffic in Richmond)
Growth of market expenditure for PPC 14%
Growth of market expenditure for
Facebook ads
23%
Growth of market expenditure for
Offline
15%

36. 4.Conversion Rate: from visitors ti users
Although in our primary research we found that 53% of customers are willing to join our website, we believe that this number is inflated
due to the discrepancy between expressing desire to commit and actually committing.
Hence, we predict the conversion rate to be 20% and the churn rate 15%.
However, we will need to verify the conversion rates in our beta testing
5.Conversion Rate of revenue streams
We have based our conversion rates according to the percentage of willingness to buy discovered in our primary research.
Assumption: People in the UK travel on average 2 -3 times a year (Mintel, 2013)
Premium Subscription (monthly fee) 32%
GPS Collar (purchase once) 52%
Third Party Insurance (purchase 2 times a year) 30%
Pick-up and Drop-off Service (purchase 2 times a year)
25%
6.Justification for display advertising
Three banner ads will be placed on every website page.The revenue formula is based on the following: size of traffic, average page views per
visit (which is 2.5 pages (Deeho, 2013)), and display ad rates (which is £1.5/per 1000 views (Google AdSense)).
Display Ad Revenue = Traffic*3*2.5/1000*£1.5
7.Justification for affiliate marketing
One affiliate ad will be placed on every website page.The revenue formula is based on the following: the number of traffic, average page views
per visit (which is 2.5 pages (Deeho, 2013)), average CTR for affiliate ads (which is 4% (WSM4B, 2012)), average conversion rate (which is also
4% (Learn Analytics, 2013)), average sale value for pet shops (which is £27 (IndustryIQ, 2009)) and the assumption that the affiliate percentage
will be 10%.
Affiliate Ad Revenue = Traffic*2.5*4%*4%*£2.7

37. 8.Justification of Cost of Production
GPS Collar
Partner with: Shenzhen Xiyuan Electronic Technology
Buy: £60 per unit
Sell: £75 - most of people are willing to pay less than £100 + shipping is £5 for 50 pieces (Hong
Kong post bulk mail)
Pick-up and Drop-off services
Partner with: Private Cab company
Labour price: £5/hours
Assumption:
•
People travel 2 times a year
•
Average journey length is 5miles
•
Negotiation of 80% of margins go to supplier
Insurance
Partner with: Petplan
Assumption:
•
People travel 2 times a year with an average stay of around 3 days
•
Negotiation where 80% of margins go to the supplier
Premium Subscription
Payment of 40£ to 50 verified homes = £2000
Home verification cost= £500
9.Justification of Prices from Revenue Streams
All prices are based on the willingness to pay revealed from our primary research.
GPS Collar
Less than £100
Therefore, price at £75
Pick-up and Drop-off services £3 per mile
Insurance £1 pound per day
Premium Subscription Price at £5 per month

38. 10.Justification of Fixed Cost
The web design cost, development of CMS and mobile app development are based on the team’s work experience.The prices in the UK
might be higher, but we will outsource production to Russia or India. We will buy several domains in different domain zones
(.co.uk, .com, .org), and the annual expenditure will not exceed £40 (123-red.co.uk), pets cages will be purchased from ‘Pets at home’ or
other suppliers.
11.Justification of Variable Cost
SEO
The cost is based on the number of keywords and competition (WebpageFX)
£3,000 per month
PPC
PPC expenditure is based on Google Adwords rates
@ £0.6 per click
Email Marketing
Expenditure on e-mail marketing is based on number of total subscription (Sign-
up.to pricing)
@ £19 per 2,000
@ £45 per 5,000
@ £85 per 10,000
@ £125 per 15,000
@ £185 per 25,000
@ 272 per 50,000
Web-hosting Services
For the web-hosting service we will buy the Ultimate package with 24/7 support,
unlimited disk space, a number of databases and the ability to customize the mobile
website from GoDaddy Hosting
@10 per month
Rent of Office We will rent desk space in a shared office, Spitalfield, London, E1 (Gumtree)
@ £75 per week
Facebook Advertising
Expenditure on advertising is based on Facebook rates
@ £0.5 per click
Offline Advertising We will print 20K flyers atVistaprint - £360 per 10,000 flyers

39. 12.Market Growth in Year 2 and 3
The year-on-year growth forYear 2 and 3 are predicted to be:
Year 2: 150%
Year 3: 400%
This is due to the surge in marketing spending, especially for the third year.
Costs of PPC, Facebook Advertisements and Offline marketing have the same month on month growth as inYear 1.
13.Justification for Premium Subscription
•
The retired are the second largest group of users who are willing to take care of others pet (after students, who do nothave a stable
home), but they do not want to leave their pets with other users on our network
•
Senior Managers are the largest group of users who are willing to leave their pets with other users in our network. Moreover, they
prefer to pay a premium to ensure their pets are in good hands
•
Hence, they can generate the supply and demand for our premium subscribers
0
20
40
60
80
Other Part time Retired Senior Manager Home Maker Student Corporate Total
52.52
46.15
76
28.57
33.33
66.67
33.3333.33
38.3838.4640
42.86
50
33.3333.33
Users by Occupation, %
Willing to leave pets to others Willing to take care of pets

40. APPENDIX 4: TEAM CVS

44. APPENDIX 5: REFERENCES

45. •
Deeho (2013), Average pageViews perVisitor [online] available from <http://
www.deehoseo.com/search_engine_optimization/website-average-page-views.php> [28 May
2013]
•
Goodwin, D. (2011) Top Google Result Gets 36.4% of Clicks [online] available from <http://
searchenginewatch.com/article/2049695/Top-Google-Result-Gets-36.4-of-Clicks-Study > [28
May 2013]
•
Hanna, L. (2011) Brits spend £14.9billion a year on pets available from <http://www.mirror.co.uk/
news/uk-news/brits-spend-149billion-a-year-on-pets-126226> [28 May 2013]
•
IndustryIQ (2009) Pets Shops Report [online] available from <http://www.immediate.com/
images/Pet%20Shops.pdf> [28 May 2013]
•
Clarysse, B., Kiefer, S. (2011) The Smart Entrepreneur, Elliott & Thompson [Kindle edition]
•
Croll,A.,Yoskovitz, B. (2013) Lean Analytics: Use Data to Build a Better Startup Faster, O'Reilly
Media [Kindle edition]
•
Mintel (2012) BusinessTraveller – UK – August 2012 [online] available from <http://
academic.mintel.com/display/632323/> [28 May 2013]
•
Mintel (2013) Holiday Review – UK – January 2013 [online] available from <http://
academic.mintel.com/display/651669/> [28 May 2013]
•
Mintel (2013) Pet Food and Suppliers – UK – February 2013 [online] available from <http://
academic.mintel.com/display/637889/?highlight=true> [28 May 2013]
•
Mintel (2008) Pet Food and Suppliers – UK – October 2008 [online] available from <http://
academic.mintel.com/display/280625/?highlight=true> [28 May 2013]
•
Pet Business World (2009) Pet industry growth [online] available from < http://
www.petbusinessworld.co.uk/uk-pet-industry > [28 May 2013]
•
PFMA (2010) Pet Population [online] available from <http://www.pfma.org.uk/pet-population/ >
[28 May 2013]
•
VisitEngland (2010) BusinessTravelTrends [online] available from <http://www.visitengland.org/
Images/UK%20Business%20Trips%202010_tcm30-26793.pdf> [28 May 2013]
•
WSM4B (2012) Affiliate marketing practical: CTR, EPM & EPC [online] available from <http://
wsm4b.com/content/affiliate-marketing-practical-ctr-epm-epc> [28 May 2013]