Long Run Costs and Economies of Scale

I have always had an interest in launching a dog walking business. Services offered would include a 1/2 hour or one hour, walk or run in addition to dog sitting, visits, overnight stays, bathing and grooming, and play dates. Equipped with sufficient training and experience, I would provide quality time with dogs that many owners are not able to afford due to busy work schedules. A daily diary would be written after each interaction describing activites pets engaged in, behavior, what they ate. etc. Promoting a stronger connection between the dog and myself or employee, I would offer a discounted rate for clients who signed up for a minimum number of walks per week.

The initial market for my business would be small, targeting people within my own neighborhood. Living half a block form a popular dog park gives me the advantage of word of mouth advertising and  low start-up costs. After building a credible reputation I would begin using other forms of advertising such as; kijiji, craigslist, brochures in vet offices and grooming boutiques and rotation of a professional business card. In reaching out to a larger market, my business would have the potential to continue growing. This in turn would require larger costs and more employess but would be outweighed by greater profits.

Cost incurred from the foundation of this business through to continual operation fall under the following categories:
long-run costs- dog food and treats, baggies for clean up, travel, taxes
short-run costs- dog toys, leashes, brochures, business cards, website launch
fixed costs- telephone bill, employee salaries, insurance

Furbabies Calgary is a local business that embodies many characteristics I would aspire to mirror in my own venture. It is owned by a women named Janice, who has a great passion for animals. She decided to "follow her dreams" and now has a growing, successful business that offers a variation of services.

The advantages of offering pet care services are:
- creating your own hours
- low costs
- physical activities
- enjoyment of spending time with animals

The disadvantages include:
- dealing with difficult behaviors
- putting yourself at risk for injury or harm
- upkeep of cleanliness at place of business
- bad weather

In my opinion, the benefits far outweigh the setbacks!



Resources:

Sayre, J.E. & Morris, A.J.  (2009).  Principles of Microeconomics (6th ed.).  Toronto, ON: McGraw-Hill Ryerson.

http://www.furbabiescalgary.com/