101-A: Pet Sitting Business
Workbook to Conquer Success
by
Deborah Laughlin
Copyright
2002-2011 House Calls, Inc.
Smashwords Edition
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Cover
By: Donna Casey
http://digitaldonna.com
LETTER FROM THE AUTHOR
Welcome,
and thank you for investing in my
Step-by-Step
“A-101:
Pet Sitting Business
Workbook to Conquer Success”
Pet Sitting by House Calls, Inc. was founded in 1981 so that pets could stay in the comfort of their homes while giving owners the ability to travel worry free. Servicing over 10,000 customers, House Calls, Inc. is a professional, successful, profitable and dependable pet and home sitting service.
Throughout the years, I have been asked to write a book with instructions on how to start a successful pet sitting business. This book shares proven steps, key objectives and the valuable resources one needs to start and operate a successful business.
Sincerely,
Deborah
Laughlin
CEO / Founder
House Calls, Inc.
Pet Sitting &
Home Care Services
http://HouseCalls4Pet.com
http://101PetSitting.com
101-A: Pet Sitting Business. Workbook to Conquer Success
History of Debbie’s Pet-Sitting Business
Dare to
Be an Entrepreneur
Reality
of Ownership
Your
Strong Points
Your
Life in Five-Year Intervals
Game
Plan Table
What
Best Describes Me
The
Business Plan
Start-up
Resources
Pre-Start-up
Checklist
Choosing
the Legal Form for your Business
Start-up
Costs
Control
of the Business
Tax
Considerations
Ability
to Raise Capital
Continuity
of the Business
Personal
Liability of Owners
Defining
Your Business
Business
Start-up Checklist
Start-up
Expenses Questionnaire
The Professional Pet-Sitting Plan
101-B Workbook to Owning a Pet Sitting Business (and) Using Independent Contractors
Independent Contractors in the Pet-Sitting Industry
Independent
Contractors
Benefits
of Hiring Independent Contractors
Risks
of Hiring Independent Contractors
California
Law
Steps to Take Before Hiring an Independent Contractor
Proper
Procedures to Form an Independent Contractor Relationship
Both
Parties’ Intentions and Expectations
Integration
of the Agent’s Services with the Hiring Company’s Business
Enterprise
Trading
and Sharing Assignments
The
Agent’s and the Company’s Compensation
Billing
the Client for Pet-Sitting Services
Workers’
Compensation Insurance
Avoiding
a Continuous Relationship
Reconciling
the Right to Discharge and the Right to Terminate
Federal
Safe Harbor Rules
Independent
Contractor Records
A
Model Agreement
Independent
Contractor’s Master Agreement for Pet-Sitting Services
Common Law Factors Used to Determine Workers’ Classification
Independent Contractor Reporting
101-C: Workbook to Running a Successful Pet Sitting Business
Part 3: Marketing and Advertising
Marketing
and Advertising
Making
the Phone Ring
Brochure
and Business Card
The
Personal Touch
Marketing
List
Describe
Your Business
Know
How to Network
Diversity
through Media
Sample Office Time Line Procedures
Pet-Sitter
Paperwork
Customer
Service Requests
Service
Agreement
Sample
Service Agreement
Customer
Service Instructions
Update
Sheet for Repeat Customers
Invoices
and Customer Payments
Invoices
Customer
Checks and Cash Payments
Sample
Invoice
Coupons
Vet
Card
Thank-You
Card
Leaving
the Customer a Note
Coding
Keys
Paying
Your Independent Contractors
Sample
of One-week Tally Sheet for Paying Independent Contractors
Along the way I did have the help and support of the wonderful people in my life and I would like to thank them.
Linda Gonzalez and Daphne Poh who helped to write and organize the first House Calls, Inc. company guidelines.
Katie Mason, my daughter, who took on the tremendous task of merging all my notes with the company guidelines over the years. Along with the task of proof reading the manuscript and helping to organizing the order the book.
Tracy Laughlin, my daughter, who helped to keep me motivated and kept me on task as I worked my way towards completing this book.
Attorney Jeffery Mc Clure and Attorney Pat Leong who supported me through the long, arduous battle with the State of California to legitimize my company’s use of Independent Contractors.
My husband Doug and son Andrew for being so patient while I embarked on this journey.
Welcome to the “101-A:Pet Sitting Business Workbook to Conquer Success”, designed specifically to assist you in successfully developing and running your very own professional pet sitting service. The format gives you plenty of the necessary room to write and record your progress as you take the steps to ensure your success.
The beginning of this book will present the basics, and all parts contain clearly written steps for the tasks you will need to perform. Use each section as a stepping-stone to success in developing your business.
I grew up in a home where animals were always present. One of my earlier memories is that of holding a cracker in one hand and the tail of George, my family’s tomcat, in the other. (George was a very patient and trusting fellow.) My cousin Grady's menagerie included an alligator, gerbils, mice and a lizard, all of which I loved to visit. Also, there were stray cats that made their home near the creek that flowed behind our home. My lively interest in these feral felines cost me a painful series of rabies shots.
When I outgrew my teddy bear at age 12, I found my best friend; a Cocker Spaniel and Pekingese mix, named Sniffles. When I moved to my first apartment, which did not allow pets, I was so lonely without my friend. Doug, then my fiancé and now my husband, helped relieve my loneliness with some gifts: first there was “Temba”, the gerbil; then “Tweety”, the yellow parakeet; and then “Bruno”, the Pekingese.
In 1972, I took a trip with some friends and put Bruno in a kennel. He got so depressed that he did not eat for the entire week that I was gone. I vowed I would never again put a pet of mine in a kennel again. Married to Doug, who was in the military, meant a lot of traveling. All too often, airlines would not allow us to take our crew of creatures. Even if they were allowed to come along, the travel was disturbing for them. By 1979, Doug and I had two children, that we took with us on our trips to the Midwest to visit our families and relatives. To care for our pets, we hired the boy next door who had always shown an interest in them. He did a great job giving each animal the attention and food needed. However, I could tell by the muddy paw prints across my floors and carpeting that he was not used to caring for a home.
Shortly after, a few pieces of the pet/home care puzzle started to fall into place. First, because I wanted to work at home while raising my small children, and I had taken several classes at the local college on starting and running a small business. Second, while waiting in a veterinarian's office, I read an article about a woman in San Francisco who walked people’s dogs in the middle of the day. If people would pay her to walk their dogs while they were at work, why wouldn't people pay me to care for their pets and homes while on vacation or business trips? I was sure of the answer to that question, and I began to ask more questions.
•
Were there other such services in the area?
• What did the
future of the pet-service industry hold?
• In what location
would this service best be sold to the public?
Then I applied for, and received a scholarship to attend a six-month entrepreneur program offered by Advocates for Women. What I learned in that program kept me headed in the right direction, and Advocates for Women provided much of the “pat-on-the-back” support I needed. By the end of the program, we relocated our family to an area we thought would be good for my fledgling business. In June of 1981, I began my advertising campaign and the history of my pet-sitting career.
Background
History of Debbie’s Pet-Sitting Business
On June 20th, 1981 I registered the first customer for House Calls. My pet and home sitting business was then a one-person operation. For a full year, I acted on a daily basis as secretary, answering service, bookkeeper, sales person, and caretaker of the pets and homes entrusted to House Calls. Then, I began contracting work out to other caretakers who lived in cities farther away from my home-based office. As word of the service spread, additional caretakers were brought on to help during holiday rushes and summer vacations. By 1985, the business had outgrown the home office and moved to a leased space in San Ramon, CA where several people took turns staffing the office. However, as the scheduling and tracking of assignments continued to grow, it became evident that one person was needed to be responsible for office functions at all times. So, beginning in the summer of 1986, the office was run by one person with an assistant, while ten caretakers were kept busy making the actual service calls.
In the spring of 1988, I moved the office back to my home. This way, I could spend more time during non-office hours developing the business while still being with my family. With the aid of a new computer, the company's customer program was developed to handle customer’s bookings, caretaker’s schedules, and bookkeeping for the growing business. In 1989, the business was restructured, and became the S Corporation, House Calls Inc., Pet & Home Services. The company's business forms and sales materials were redesigned; a newsletter for customers was developed, and the company sold its first license to operate a branch in another area. Sales volume increased 41% over 1988, and the company needed almost thirty caretakers during its peak seasons. The 1990s began with the opening of several-licensed House Calls Inc., offices in California.
Any information obtained from this book pertaining to a specific commercial product, process or service does not constitute or imply an endorsement by the writers of this book of the product, process, or service, or its producer or provider. The views and opinions expressed in any referenced document do not necessarily state or reflect those of the writers of the book, the state of California or the United States Government.
Neither the writer of this book, nor the United States Government, makes any warranty, expressed or implied, including warranties of merchantability and fitness for a particular purpose, or assumes any legal liability for the accuracy, completeness or usefulness of any information from this book or any reference to it.
All rights reserved. No part of this book, including interior design and cover design, may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the prior written permission of the writer.
Copyright @ 2011 DJ Laughlin/House Calls, Inc
The Library of Congress Control Number: 2011960618
ISBN-13: 978-0-615-56393-0
Copyright 2002 by Deborah Laughlin
All rights reserved. No part of this book may be reproduced or transmitted in any form or by means, electronic or mechanical, including photocopying, recording, or by any information’s storage and retrieval system, without the written permission of the Publisher, except where permitted by law. For information address: PO BOX 349, San Ramon, CA 94583
This publication is designed to provide information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
House Calls, Inc. may have patents, patent applications, trademarks, service marks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written agreement from House Calls, Inc., the furnishing of this document does not give you any license to these patents, trademarks, service marks, copyrights, or other property.
1981 – 2011 House Calls, Inc. All rights reserved.
The Business Plan
There are various aspects to starting a business. Each step you take will affect the next step. Look at each step you take from all aspects of the business. Knowing what kind of person you are; your likes and dislikes; successes and failures; wants and needs will be very helpful when you create your business. You can use all of that knowledge to mold your business into the type of business that best suits you.
You will come to understand and know yourself by mapping out a Game Plan. The plan will be determined by where you see yourself and your business from the onset through the development stage and ultimate success. Organizing and prioritizing will not only help you to see the light at the end of the tunnel, but will also help you to build an enduring, satisfying, successful and profitable business.
Before opening the doors to House Calls Inc., I returned to college, taking Small Business classes such and attending Small Business Administration workshops. While doing this I was also writing a business plan, working with SCORE, and volunteering in a veterinarian’s office to learn first aid and more about people and pets interactions. Over the years, I have continued my education through attending a variety of classes covering topics such as computer programming, new computer software applications, computer anxiety and time management.
The following sections in this workbook will help you to create a Game Plan. Take your time and complete each of the following sections. They will assist you in understanding who you are, the process to starting your business, how to set your goals for the road to success and the means to analyze your success.
•
Do you like to make your own decisions?
• Do you enjoy being
challenged and do you thrive on competition?
• Are you outgoing
by nature?
• Can you put yourself in the other person’s
shoes?
• Are you honest and ethical?
• Do you have will
power and self-discipline?
• Do you get things done on time and
plan ahead?
If you said yes to all of the above and you are willing to work hard and long hours (12 to 16 hours a day, probably 6 days a week, and possibly on holidays), you may be a prime candidate to start your own successful business. The secret ingredient in the formula for a successful small business is your desire to be an obsessed owner, one willing to put in the time and energy needed to get the job done and finish the day, still full of enthusiasm.
It is likely that running your own business will be harder than working at a regular job. Studies have demonstrated that most entrepreneurs are not primarily motivated by the desire to make money. Their satisfactions lie more in the areas of independence, power over the future, and the pleasure of accomplishing all goals.
Whether a business succeeds or fails frequently depends on having a steady cash flow. A smart entrepreneur is very conservative and reserves every bit of cash that’s available for those dry periods. Giving into the temptation to expand too quickly or show off your sudden profits can and will lead to failure!
Owning your own business while working at home has personal, professional and financial benefits. Let us compare the advantages to the disadvantages of starting your own business.
ADVANTAGES
•
You are your own boss with no one to report to but yourself. You are
responsible for the success.
• You can work at your own speed.
• Your schedule will be flexible. You can structure your work
hours to coincide with your home life and its responsibilities.
•
You reap the profits from your hard work.
• Your business may
provide security or add security for you and your family.
• You
will not face forced retirement.
DISADVANTAGES
•
You are responsible for any failure.
• You may work during all
your waking hours. Work is money.
• You will have no paid
vacations; in fact you may have no vacation at all for a few years.
• You will have no weekly paycheck or fringe benefits.
•
You may have less time to spend with your family.
• If the
business fails, your savings and property may be eaten up by debts,
leaving nothing for retirement.
One question asked frequently is, “How do I determine what area I should start a business in?” Here is a quick formula to help you find an area where you are best suited.
YOUR LIFE IN FIVE-YEAR INTERVALS
Fill out the following Success Chart. The results will provide information regarding your marketable skills.
1.
List each success or accomplishment in the second column.
2.
Enter the year(s) in that they took place in the first column.
3.
Place the skills or experiences gained from the successes and
accomplishments in the third column.
Note: Take
the time to carefully consider the satisfactions and rewards obtained
by each experience. These should also be listed in the third column.
4. It is a good idea to consider negative experiences.
Example: You hated selling Girl Scout cookies.
You should ask yourself if this typifies your attitude toward
selling, and if so, you might want to stay out of this field. Place
these negative experiences in the fourth column.
When you have determined the type of small business that is suited to you, ask yourself each of the questions on the following page and be very thorough in your answers.
This exercise will help you to design your business around your strengths and likes, while being fully responsible for the additional roles necessary for a successful business!
Check off the role that best describes you, by using the chart from the previous page:
Entrepreneur
Technician
Manager
Entrepreneur
•
Creative and inventive.
• Enjoys taking risks and making
decisions.
• Typically does not like being in a rut.
•
Self- starter and a visionary.
Technician
•
Someone who is an expert at a particular task or discipline;
engineer, designer, scientist, or salesperson.
• Someone that
likes to go narrow and deep, and take a singular direction.
Manager
•
Someone who really enjoys managing people, organizing, and
administration.
• Someone who enjoys multi-tasking.
Complete your business plan before you get too involved in your new business. Many entrepreneurs take business plans too lightly.
•
A business plan should be a living document that you both use and
learn from.
• A business plan is a promise to yourself; if you
don’t know where you’re going you might not get there.
• A
business plan forces you to evaluate if your product or service will
satisfy a need. It provides a roadmap to operate your company.
Research is an essential part of the planning process. While it may seem time-consuming, it is a wise investment of time and will prevent problems down the road. To help gain experience you could volunteer at a local veterinarian’s office. You will see how pet owners react to leaving their pet in someone else’s care, and you will also learn first aid procedures. Work for another pet-sitting company and learn the strengths and weaknesses of that company’s system. Experience is of the utmost.
The following pages will walk you through preparing the professional pet-sitting business plan.
Small Business
Administration program is designed to help small businesses
succeed and offers many resources. Please contact the Small Business
Administration “S.B.A.”, Answer Desk at 800-U ASK SBA or
www.sba.gov.
SCORE helps
small businesses succeed. SCORE “Counselors to America's Small
Business” is the best source of free and confidential small
business advice to help you build your business—from idea to
start-up to success. SCORE’s extensive, national network of 10,500
retired and working volunteers are experienced entrepreneurs and
corporate managers/executives. These volunteers provide free business
counseling and advice as a public service to all types of businesses,
in all stages of development. SCORE is a resource partner with the
Small Business Administration.
www.score.org
Welcome Business
is a website dedicated to the success of your new venture. Welcome
Business USA offers you a wealth of resources - how-to articles, FREE
business counseling and special discounts and offers from featured
vendors - to assist you with dealing with the various issues you will
face in navigating your business towards success. Welcome Business is
partnered with SCORE.
www.welcomebusiness.com
Internal Revenue
Service offers small business and self-employed online classes on
a variety of topics for small businesses. Employment Taxes, Employer
ID Numbers, links to broad range of resources across federal and
state agencies.
www.irs.gov/businesses/small/index.html
Your state web site may offer everything you need to know about starting, and operating, a business in your state.
Not understanding the law does not exempt you from penalties and interest charged by federal and state agencies if you do not follow the rules. Save time and money by understanding employment taxes both Federal and State for your business.
Create a monthly, quarterly and yearly check list or reminders system for federal and state due dates. All forms to Federal and State agencies being sent by US Mail should be sent certified to avoid receiving late fees years later. Always place your Employer ID or Federal ID number, with the form number and due date on all payments made by check even if sent with a form!
Additional Resources:
Nolo-Law for All
For over 30 years, N.O.L.O. has published the most
reliable do-it-yourself legal and business tools available.
N.O.L.O.’s more than 300 books, software and eProducts are clearly
written and regularly updated. These products help you understand and
tackle your affairs without hiring a pricey professional.
Entrepreneur.com A
tool designed to save you the time and expense of creating business
documents from scratch. You can download and customize each form
according to your needs, and immediately put them to work in your
business.
www.entrepreneur.com
CPA Directory.
Nationwide directory of Accountants, Bookkeepers & CPAs. CPA
license verification, Information on Tax & Accounting issues.
www.cpadirectory.com
The following items will give you an idea of the issues you will need to consider, and the steps to take in order to start your own business.
•
Attend Business Start up classes and workshops
• Identify
market
• Check for availability of your chosen company name
•
Research market
• Research your industry and the competition
•
Research potential vendors and suppliers
• Inventory control
•
Research and analyze the location and space for the business
•
Pricing
• Ability to raise capital
• Determine start-up
and operating costs
• Assess the ability to make the business
profitable
• Assess financial position and resources
•
Determine potential sources of financing (self, friends, family,
equity, debt)
• Calculate and prepare revenue and cash flow
projections
• Find an attorney, an accountant, and an insurance
professional
• Personal liability of owner
• Control of
the business
• Marketing plan
• Service plan
•
Continuity of the business
• Tax considerations
•
Choose the legal form of your business.
Choosing the Legal Form for your Business
One of the most important decisions that organizers of a small business enterprise must make is whether to set up the business as a
•
Sole Proprietorship
• Partnership
• Corporation.
A comparison of the advantages and disadvantages of these three major forms of business organization follows:
Some basic costs such as rent and the cost of acquiring inventory will vary whether you are a sole proprietorship, a partnership or a corporation. Other costs will also vary especially legal fees involved in setting up your business.
Sole Proprietorship: This is the least costly way to start a business. You can form a sole proprietorship by finding a location and opening the door for business. There are the usual fees for registering your business name and for legal work in changing zoning restrictions and obtaining necessary licenses. Attorney’s fees for starting your business will be less than for the other forms because there is less preparation of documents required.
Partnership: You can form a partnership simply by an oral agreement between two or more persons, but this is not recommended. Legal fees for drawing a partnership agreement are higher than those for a sole proprietorship, but may be lower than for incorporating. However, you would be wise to consult an attorney to have a partnership agreement drawn up, to help resolve future disputes.
A partnership agreement should include the following:
•
The type of business
• Amount invested by each partner
•
Divisions of profit or loss
• Compensations to each partner
•
Provisions for drawing salaries by partners
• Distribution of
assets in event of dissolution
• Duration of partnership
•
Provisions for dissolving the business
• Provisions for
withdrawals or admissions of additional partners
• Procedure
for dispute-settlement
• Restrictions on individual authority,
especially regarding expenditures
• Settlements in event of
death or incapacity of one partner
Corporation: You can incorporate without the help of an attorney, but you would be unwise to do so. You may think a small family corporation does not need an attorney, but an attorney can save the members of a family corporation from hard feelings and family squabbles down the road. Attorney’s fees may run high, if organization problems are complex. The corporate form is usually the most costly to organize.
Sole Proprietorship You have absolute authority over all business decisions.
Partnership Control of the business is shared with your partners, which may lead to disputes. A partnership agreement could be helpful in solving possible disputes. However, you still are responsible for your partner’s business actions, as well as your own.
Corporation Control depends on stock ownership. If you have majority stock ownership, you are able to make policy decisions. Control is exercised through regular board of directors meetings and annual stockholders’ meetings. Records must be kept in order to document decisions made by the board of directors. Small, closely held corporations can operate more informally, but record keeping cannot be eliminated. Officers of a corporation can be liable to stockholders for improper actions.
Sole Proprietorship and Partnership: All net income is taxable to the sole proprietorship or to the partnership according to each partner’s share of ownership. Your tax rate depends on your income bracket. You may be able to deduct from your gross income some personal expenses that are directly related to your business. Some examples are:
•
Personal car expenses to the extent used in the business
• A
share of expenses if your business is located in your home
Corporation: There are two ways to tax a corporation: (1) as a straight corporation and (2) as a Subchapter S corporation.
As a straight corporation, profits are taxed at corporate rates that are graduated from 22% on the first $25,000 of income to 48% of income over $25,000. Salaries of officers are deductible expenses and therefore reduce corporate profit subject to income tax. However, salaries of officers are subject to individual income tax. If salaries appear too high, the IRS may treat the excess as a dividend. This means double taxation because the same money is taxed as a part of the corporate profit and as income to individuals.
If you are a Subchapter S corporation, you are taxed in the same way as a sole proprietorship or partnership. In order to qualify as a Subchapter S corporation, you must meet the following requirements:
•
Have individual shareholders
• Have not more than 10
shareholders
• Have no shareholders who are nonresident aliens
• Have only one class of stock
• Have not more than 80
percent of gross receipts from outside the United States
• Have
not more than 20 percent of corporation gross receipts from
royalties, rents, dividends, interest, annuities, and gains on sales
or exchange of stock or securities.
Sole Proprietorship and Partnership: The source of capital is usually limited to personal assets of the proprietor or partner. The ability to get credit depends on personal reputation of the proprietor or partners. Third parties cannot invest in the business without incurring responsibilities for business debts.
Corporation: A corporation can theoretically sell stock to raise capital. Practically speaking, there is no market for stock in small corporations, except through friends or relatives. You may be limited to the personal resources and credit of the owners.
Sole Proprietorship: If you are disabled, the business will falter unless family, friends, or employees are willing and able to substitute for you. Death of a sole proprietor means the end of the business, but your heirs can inherit the assets of the business. Your heirs can start a new business using the same assets and locations, providing your creditors are paid.
Partnership: If one partner is disabled, the other may be able to fill in until the disabled partner recovers. One partner cannot sell his share in a partnership without getting the consent of his partners. Death dissolves a partnership automatically. Heirs of a partner inherit his share of the Partnership assets. Without a partnership agreement, the heirs often have to sue to enforce their legal rights.