Artistry Mobile Pet Salon

A Start Up Business Plan

March 2008

Artistry Mobile Pet Salon

Ms. Rebecca Scribner 4840 Leeds Street Simi Valley, California 93063 Phone: 805-526-1873 Web Site: www.artistrygr.com E-mail: mail@artistrygr.com ICQ: 25838927 Golden Retriever Club of America Golden Retriever Club of Greater L.A. American Kennel Club Simi Valley Kennel Club

March 2008

The following business plan provides details starting a mobile pet grooming business. Highlights include detailed explanations of services, cost/benefit analysis, and the equipment and financing needed for a grooming business with a special niche in breeding and handling.

STATEMENT OF PURPOSE THE BUSINESS MARKETING FINANCIAL DOCUMENTS

STATEMENT OF PURPOSE Artistry Mobile Pet Salon will provide expert pet grooming, for Simi Valley, Conejo Valley, and the surrounding Southern California area. The physical address is 4840 Leeds Street, Simi Valley, California, 93063. The mailing address is the same. The business objectives are: To acquire 30% of the pet grooming market, in the Simi Valley, Conejo Valley and surrounding area within five years Sales of $100,000 in 2008 and $.5 million by 2013 Gross margin higher than 60% Net income more than 10% of sales by the third year The objectives will be accomplished by building a reputation for expertise in the grooming standards for most/all 87 dog breeds and 41 breeds of cats, by always meeting or exceeding the customer's expectations and going the "extra mile" with the best in expert customer service. In March of 2008, Artistry Mobile Pet Salon will apply for a loan from the Small Business Administration in the amount of $100,000.00. The $100,000 will be used to purchase the necessary grooming van, equipping the van and purchasing necessary equipment for onsite grooming when the site is not accessible by van and grooming must take place at the owners residence (i.e., apartment tower). Loan repayments will be made from the profits of the business. The loan will be secured with the mobile van, grooming equipment and inventory of the business.

THE BUSINESS

Business Description Artistry Mobile Pet Salon caters to pet clients by grooming their pet dogs and cats in a fully equipped, state-ofthe-art, climate controlled van at the clients home location. In addition to the efficiency and convenience of providing on-site grooming service, the Mobile Pet Salon streamlines grooming and eliminates the need for a pet to spend the day (in a cage) at a grooming salon, which is very traumatic to many animals. The mobile grooming van incorporates two preparation/drying stations, two grooming stations, and a two-station bathing area. The targeted geographic area is approximately 300 square miles and includes Ventura County: Bell Canyon, Camarillo, Leisure Village, Moorpark, Newbury Park, Oakbrook Village, Oak Park, Somis, Santa Susana, Simi Valley City, Thousand Oaks, and Los Angeles County: Agoura Hills, Lake Sherwood, and Westlake Village.

Legal Structure
Artistry Mobile Pet Salon will operate as a Sub Chapter S Corporation.

Business Type
Artistry Mobile Pet Salon is a service business providing pet grooming, to the Simi Valley, Conejo Valley, and the surrounding California area. SIC industry class is: Grooming services, pet and animal specialties - 0752.9901

Service Offered
Artistry Mobile Pet Salon will offer expert pet grooming and accessory products for pets. It is one of the few service companies in the local area that will provide client on site mobile service for grooming pets. Ms. Scribner is expert in grooming certain purebreds and also knows or has access to the grooming guides for each of the 87 breeds recognized by the American Kennel Club. Until staffing is expanded, Ms. Scribner will focus on the Bath and Brush dogs and add the more difficult and time consuming dogs that require hand scissor cuts and shaping later as more staff is justified.

Business History
Artistry Golden Retrievers: Founded in 1988 for breeding, boarding and showing Golden Retrievers, Artistry Golden Retrievers has become a premier kennel for champion Golden Retrievers in the United States. Requests for Artistry Goldens spans the United States and there is always a waiting list for Artistry puppies by other premiere breeders of Golden Retrievers. Dozens of Artistry Golden Retrievers have reached Champion status awarded by the American Kennel Club. Artistry Mobile Pet Salon: Ms. Scribner has developed a large following of dog breeders, handlers, and owners. Her reputation and reach into the realm of professional dog breeding and showing will give Artistry Mobile Pet Salon a jump start with this special populace for grooming and grooming referrals. Further, Ms. Scribner has an existing client base for grooming Golden Retrievers that she has developed over the past 18 years and an expanded client base of dog owners added since she initiated grooming to other breeds over the past five years.

Current Pet Market And Growth Opportunities

The steadily growing pet industry now tops over $35 billion dollars annually and is noted for being recession resistant. It has steadily grown from $16 billion in 1992. That's more than the candy industry ($24 billion) and the toy industry ($20.3 billion). The 2003/2004 National Pet Owners Survey found that there are 377.8 million pets in the United States -- and 290 million people. 62% of households in the United States own a pet up 10 million since 1992. The greatest expense for pet owners each year is veterinary care, followed by food, then supplies. Dogs or cats are found in at least 1 out of 3 households in the United States. More U.S. households have pets than children, 63% vs. 31%. Forty-five percent of households own more than one pet. More households own dogs than cats -- 44 million vs. 38 million -- but overall, there are more pet cats, 91 million, than pet dogs, 74 million. Pet owners - including the large number of baby boomers, whose disposable income is expected to increase as they age - are expected to increasingly take advantage of grooming services, daily and overnight boarding services, training services, and veterinary services, resulting in more jobs for animal care and service workers. As many pet owners increasingly consider their pet as part of the family, their demand for luxury animal services and willingness to spend greater amounts of money on their pet will continue to grow. Designer trends for pets are strong. Cosmetic manufacturer OPI Products, Gucci, Land's End, and Old Navy, these are just some of the companies that have expanded their markets to include the family pet. With a container of OPI's Yuppy Puppy Nail Pawlish selling for about $10 a bottle, or a pair of Land's End pewter dog dishes ranging from $50 to $90 a pop, there's no sign the industry's growth will slow soon. Pet Grooming Market Segment In 2005 $2.1 billion was spent on pet services such as grooming and boarding sales for pet services alone, up nearly 40 percent over the last five years. The pet manufacturers association says pet services will be this year's hottest trend in the pet industry, ranging from behaviorists and massage therapists to pet butlers who spend the day waiting on their finicky clients, pet hotel operators and pet travel agents who specialize in finding pet-friendly accommodations for owners vacationing with pets. "It's a healthy segment, no question about it," said Bob Vetere, the association's managing director. He attributes the strength to the so-called humanizing of pets by two growing groups: 1) baby boomers turned empty-nesters looking to fill a void in the home and 2) young professionals delaying marriage and children. "These are folks with a little more disposable income and they are looking to make sure their pets are well taken care of." The pet services market will continue to expand as the population of the area continues to grow. Both city and county populations have risen steadily since 1980. The cities population grew on average 27% and county population by 17%. Many local pet groomers have seen it all. Painted toenails, specialized haircuts, sensitive-skin shampoo and rhinestone collars are only a few examples of the care people take to ensure their pets are getting the best. It's a national trend that has the pet industry bucking almost all the signs of a slow economy. While most consumerbased markets are reporting little or no growth, businesses catering to pet owners are booming -- including locally. In 2005 2% of cat owners visited a groomer in the previous 6 months. In 2005 29% of dog owners visited a groomer in the previous 6 months. PetGroomer.com's research into Yellow Pages advertising by groomers and U.S. pet population studies indicates there were nearly 30,000 pet grooming businesses or other pet businesses offering ancillary grooming services in the U.S. in 2006.

Yet thousands of professional groomer jobs are vacant year round, perhaps because there are over 4,000 dogs and cats for every U.S. grooming business. Demand for pet groomers will increase 12% by 2010*. * Growth figures
represent a ten-year period ending 2010. Source: "National Industry-Occupation Employment Matrix," a publication of The U.S. Bureau of Labor Statistics.

According to the Department of Labor in addition to replacement needs, employment of animal care and service workers is expected to grow faster than average for all occupations through 2014. The companion pet populationwhich drives employment of animal caretakers in kennels, grooming shops, animal shelters, and veterinary clinics and hospitalsis expected to increase.

California Pet Market

The California market is still in its infancy with plenty of room for new entrants and no barriers to entry. California 2001 Study Market for Pet Grooming Est. Grooming Businesses 1 Resident Population 2 Est. Grooming Businesses Per Capita 3 Est. Total Households 4 Est. Household With Pets (HWP) 5 Est. Households Per Grooming Business 6 Est. HWP Per Grooming Business 7 Targeted Cities Potential (2000 U.S. Census) Ventura County: Bell Canyon Camarillo Leisure Village Moorpark Newbury Park Oak Park Santa Susana Simi Valley Somis Population 23,622 57,077 3,984 31,416 36,327 2,320 49,011 111,351 2,946 Homes 8,192 21,946 2,136 9,094 12,558 754 16,638 37,272 979 Pets (60%) 4,915 13,167 1,282 5,456 7,535 452 9,983 22,363 587 L. A. County: Agoura Hills Calabasas Hidden Hills Lake Sherwood Thousand Oaks Westlake Village Total Potential Pets Population 20,637 20,033 23,644 18,724 117,005 8,368 Homes 6,993 7,426 8,849 7,888 42,958 3,347 Pets (60%) 4,196 4,456 5,309 4.733 25,775 2,008 112,217

Statistics 3,228 33,871,648 10,493 12,214,549 7,328,729 3,784 2,270

AKC Stats (2005) Ten most popular breeds in Los Angeles 1. Retrievers (Labrador) - Bath & Brush 2. German Shepherd Dogs - Bath and Brush 3. Retrievers (Golden) - Bath and Brush 4. Yorkshire Terriers - Scissor cut and Shaping 5. Bulldogs - Bath and Brush Business Hours

6. Poodles - Scissor cut and Shaping 7. Pomeranians - Scissor cut and Shaping 8. Pugs - Bath and Brush 9. Maltese - Scissor cut and Shaping 10. Shih Tzu - Scissor cut and Shaping

Business hours will be 8:00 A.M. to 5:30 P.M., Monday through Friday, and 8:00 A.M. to 4:00 P.M. Saturday. Closed on Sundays and major holidays. Operating hours expanded based on customer demand for our services.

Unique Aspects of the Artistry Mobile Pet Salon Business

Artistry Mobile Pet Salon brings the shop to the pet owners own driveway in the form of a fully rigged grooming van. The mobile dog grooming van is equipped with its own power generator, its own propane water heater, two full-sized bath tubs, warm running water, 2 grooming tables, 2 hair dryers, clippers and all other useful natural/homeopathic grooming supplies. Breeder runs the business and is knowledgeable in dog behavior, grooming, breed standards and able to show off the pets best features with specialized grooming techniques favored by dog and cat show judges. By using Artistry Mobile Pet Salon, owners can save themselves the hassle of transporting their pets across town. They will never have to fight traffic or the elements, and the appointment will be made to best fit their schedule, not the grooming shops. Owners will be able to check in on their pet periodically while it's being groomed, and offer input on the way their pet should be clipped. In a grooming shop, typically the pet owner will tell the groomer what is wanted before leaving and the pet owner will not be allowed back into the actual grooming area. One of seven mobile pet grooming services in the area offering client on site grooming. Able to groom pets when other stationary shop facilities have reached their maximum capacity. Some grooming shops run appointments on a strict drop off and pick up schedule. This means the client may be expected to drop the pet off at the shop by 8:00 AM and not come back to pick him/her up until the last hour of the shop's regular business hours. Although this streamlines things for the grooming shop staff, it means a lot of excess time spent in the grooming shop for the pet, and it can be stressful. The dog or cat will have to listen to the constant hum of dryers and clippers, and numerous other dogs barking and cats meowing all day. He/she will also have to be confined to a cage before and after his/her turn. If the dog or cat is nervous and doesn't like confinement, this can turn his/her grooming experience into a monthly nightmare. Artistry Mobile Pet Salon shortens the actual time the pet has to spend away from its comfortable home environment. The pet may still not enjoy being groomed, but it is only a few yards away from its owners at the time; so overall, the experience is far easier on the pet. Caters to the pets special needs. Artistry Mobile Pet Salon probably has more experience than anyone in handling difficult animals. If the dog or cat is nervous, aggressive, has seizures, is to old to stand, gets carsick, doesn't like anyone touching his/her nails, face, tail; even if the grooming shops refuse to do the dog or cat, Artistry Mobile Pet Salon has the experience to be able to take special care with the more difficult animals without traumatizing them. Artistry Mobile Pet Salon specializes in: Contour trimming, hand stripping, grooming special needs pets, grooming senior pets, grooming cats, working with large pets, working with fearful and rescued pets. Convenience-Artistry Mobile Pet Salon goes to the home! Personalized one-on-one attention for the pet, no tranquilizers used, to ensure quality and personalized service to the pet the number of pets groomed per day is limited, no need to leave pet at the grooming shop all day - just 1-2 hours for a full service groom, evening and weekend appointment availability, referrals are rewarded. Artistry Mobile Pet Salon is also more accessible to the pet owners. This gives the advantage of being able to check what the customer wants, resulting in a customized groom. A private basic behavior training session, at an hourly rate, is offered for the pet and family that may include housebreaking, obedience, agility, protection, etc. Through grooming the pet, the groomer will begin setting helpful boundaries, narrow down areas that need to be focused on, and offer proactive proven training methods. Artistry Mobile Pet Salon will apply for accepting credit card purchases with a local financial institution. Credit card purchases are expected to increase revenue by at least 40%.

Goals
To attain our objectives through customer satisfaction, diligence and positive, progressive customer relations.

One Year Plan Objectives

Break even by the end of 2008 Add second mobile grooming van by end of year one Add two workers when second van is purchased allowing President more time building other businesses (Breeding, Boarding, Training, Handling) Contract trainer by the end of year one Add specialized pet accessories i.e., Gentle Lead, Break-away collars, and selected safe toys for sale Sales of $100,000 in 2008 Gross margin higher than 60% Net income more than 10% of sales by the third year Gross sales of $.5 million by 2013 Offer Pet Photography Service Consistently train 8-10 obedience clients per week Add Contract Assistant Training Director to keep pace with client demand for services Increase boarding/grooming income 25% per year Employ 5 groomers and 5 bathers to keep pace with customer demand Add third mobile grooming van To acquire 40% of the grooming market, in the Simi Valley, Conejo Valley and surrounding area within five years Establish second location for training and boarding within targeted area Achieve national recognition as one of the top Golden Retriever breeders Achieve recognition as one of the top handling organizations in West

Five Year Plan Objectives

Management
Ms Scribner founded Artistry Golden Retriever Kennels in 1988 for breeding, kenneling and showing Golden Retrievers. It has become a premier kennel for champion Golden Retrievers in the United States. Requests for Artistry Goldens spans the United States and there is always a waiting list for Artistry puppies by other premiere breeders of Golden Retrievers. Scores of Artistry Golden Retrievers have reached Champion status awarded by the American Kennel Club. Ms. Scribner has developed a large following of dog breeders, handlers, and owners. Her reputation and reach into the realm of professional dog breeding and showing will give Artistry Mobile Pet Salon a jump start with this special populace. Further, Ms. Scribner has an existing client base for grooming Golden Retrievers and other purebreds that she has developed over the past 18 years and an expanded client base of dog owners added since she initiated grooming to other breeds over the past five years. She has a great love of pets, great knowledge of dogs and cats, strong interpersonal communication skills, an incredible ability to organize, prioritize, and maximize time, personnel, assets and equipment.

Personnel
In the first year of business Ms. Scribner will be the sole employee. In years two through five personnel will be cross-trained to perform all non-specialized jobs for grooming. The potential employee will have grooming experience and certification.

Methods of Record Keeping

Primary financial records will be maintained using Quicken Version 7.0. Quicken is a general-purpose accounting and financial program used by many small businesses for record keeping and analysis.

Artistry Mobile Pet Salon will also contract ______________________ Tax and Accounting firm, ____________________________, CA as our accountant. Keeping accounting data in the same software application that ___________________ uses reduces accounting costs for Artistry Mobile Pet Salon. Employee and administrative records will be automated, as well as payroll. Two sets of backup disks will be kept as a minimum, in separate locations. The computer used to maintain automated records will not be located within the mobile van and will only be accessible to the owner and manager through password protection. All automated systems will have a paper-and-pencil backup. Pet grooming records will be automated as soon as funding becomes available. Pet grooming records will be kept on paper at the start of the business.

Insurance
"Key Man" insurance policy will be purchased, sufficient to cover business liabilities. Artistry Mobile Pet Salon will be named as the beneficiary. Insurance premiums will be paid from the proceeds of the business. Fire, theft, injury, liability, etc. coverage will be in effect with ________ Insurance Company. Coverage will remain with ___________ unless better coverage at lower cost can be obtained elsewhere.

Security
Cash will be removed from the business and deposits made daily. No cash will be stored overnight in the mobile van. All financial and proprietary information will be stored outside of the van. Multiple copies of financial and proprietary data will be kept at separate locations.

MARKETING PLAN
The marketing plan is broken down into the same categories as the business itself. The primary and secondary current and target markets are addressed separately.

Target Markets Grooming

The primary target market is all small animal owners whose animals require bathing and grooming within a 30mile radius of Artistry Mobile Pet Salon. There is no secondary target market for grooming.

Training
The primary clients will be dog owners who want their dogs trained in on and off-leash group basic obedience training within a 30-mile radius of Artistry Mobile Pet Salon. Secondary clients will be dog owners within a 30mile radius of Artistry Mobile Pet Salon who want private basic obedience training.

Competition
There are 7 mobile pet grooming establishments listed in the local yellow pages in the targeted area. There are 14 grooming shops in the targeted area. Sample Prices below are for a Golden Retriever 70 lbs., Full Groom. Debbies Pet Grooming, Westlake village (On site only) Bath and blow-dry, Full coat trim, Nail trim - $58.00. Gentle Grooming, Newbury Park (On site only) Bath and blow-dry, no Ears, no Paws, no Nails - $50.00 - $65.00 depending on coat. Going To The Dogs Mobile Dog Grooming, Thousand Oaks Wellness check, Bath and blow-dry, Trim, Flea treatment, Nail trim - $75.00 plus service charges for: large dog, distance to home. Groomingdale's Mobile Grooming, Westlake Village Minimum service $75.00 Indiana Bones and the Temple of Groom, Thousand Oaks (On site only) Bath and blow-dry, no Trim, no Nails - $38.00 plus $ dog size, $ dog coat, plus $ nail trim.

Land of Paws, Simi Valley (On site only) Bath and blow-dry, no Trim, no Nail trim - $45.00-$50.00 depending on the coat. Marys Pet Salon, Thousand Oaks (On site only) Bath and blow-dry only, no Trim, no Nail trim - $45.00 to $55.00 depending on size and weight. Naturally Shear Heaven Mobile Grooming, Thousand Oaks Pampered Pets Mobile Dog Grooming, Thousand Oaks Bath and blow-dry, no Trim, no Nail trim - $75.00. PetSmart, Westlake Village (On site only) Bath and blow-dry, Full coat trim - $65.00. Plush Puppy, Newbury Park (On site only) Bath and blow-dry, Paws, Nail trim - $50.00. Westlake Mobile Dog Wash, Westlake Village

Method of Distribution
Artistry Mobile Pet Salon goes to the clients home. Clients call for an appointment. Drop-in calls are welcome on a space available basis. If pets cannot be groomed on a time space available basis, we attempt to reschedule the pet for grooming at a convenient time for the client.

Advertising
Artistry Mobile Pet Salon uses a multi-media approach to advertising. The local yellow pages will carry our advertisement under the categories of ""Pet Grooming," and "Kennels." We will distribute flyers on a regular basis announcing special dog and cat events and discounts in all facets of our operation. Word-of-mouth advertising from our customers will result in many new clients. We offer a referral rebate to a referrer and a discount for first time clients. Artistry Mobile Pet Salon will use newspaper advertising (Acorn Neighborhood paper, Penny Saver and Ventura County Reporter) to promote grooming. Artistry Mobile Pet Salon will distribute brochures detailing all of our services. Brochures are placed in strategic locations throughout the targeted area. We also distribute business cards to other businesses and breeders within the targeted area. Artistry Mobile Pet Salon advertises in industry specific publications such as "Golden Retriever Club of Los Angeles, Golden retrievers of California, "Dog World", and "Dog Fancy" for grooming and breeding. Artistry Mobile Pet Salon will become a member of the NDGAA National Dog Groomer Association of America and will list its web site in the all new 2006 version of Find A Groomer Directory. It's free. The 2003-5 versions were searched by over 100,000 pet owners, and the new 2006 is better than ever. New for 2006 is a separate section for Mobile Grooming Businesses!

Pricing
Grooming prices (See APPENDIX D) will be competitive with other mobile grooming services in the area. Grooming prices will be based on the size and breed of the pet, the type of grooming desired and the condition of the pet's coat. Physical exam, nail trimming and expressing of the anal glands will be included in the complete grooming prices. Prices for simple bathing and brush-out will be somewhat lower, but still based on size, breed and condition of coat. Pre and post groom consultation, pet record will be kept on all animals, luxury bathing, comb out, undercoat removal, nails trimmed & filed, ears flushed & cleaned, trimmed sanitary area, haircut and style all beginning at $75 depending on breed, plus a variable trip fee based on mileage, calculated at $.35/mile with gasoline at $3.50/gal, and appointment days.

Custom options upgrade to include: hand stripping and / or dematting $25 / per hour, teaching basic grooming techniques $15 per hour. Pedicure $15. Use of essential oils, cologne, de-skunking, flea and tick control, bows, glitter, nail polish, tick removal all for $5 each. Shampoo, comb, leash and collars $7 each.

Training
Our prices will be competitive with others in the area. Price is based on the length of the standard basic behavioral training contracted. Prices start from $40.00 for a one-time behavioral counseling session.

The Mobile Grooming Van

Capacity of 6-8 dogs or cats per day By purchasing the van and conversion in 60 months the van will be an asset worth $25,000 or more. Van payments are assumed at $800.00 to $900.00 a month. "Pet Pro" Wagin Tails Van Conversion 2006 Ford E-350 Super Duty Extended Van Shell * *Price includes $1500 Ford Incentive Rebate *Price includes $1200 Ford Commercial rebate to qualified buyers. $24,797.00 Standard Grooming Conversion with 7000 Onan Commercial Generator $33,323.00 Total Base Price $58,120.00 Conversion Includes the Following Items Marketing and Business Guide Six Gallon LP/Electric Water Heater with Electronic Starter Onan 7000 Commercial Generator with Year Warranty, 5 year Drive Warranty, Providing 20, 000 BTU LP Furnace w/Thermostat 58.3amps of Power High-Gloss White Formica Walls, Trim, and Two-Motor High Velocity Dryer (17 amps) Bulkhead 32" Fiberglass High Top (2" inch thick insulation) Two Storage Boxes Next to Tub with Hinged and Padded Seats Two Tinted Windows in Topper 13,500 BTU Roof mounted Carrier Air Conditioner Commercial Grade Flooring (15 Year Warranty) with Easy Clean Filters 4 1/2 ft. One Piece to Ceiling 16 Gauge Stainless 7.9 Gal. LP Tank Mounted Under Chassis Steel Tub Commercial Grade Sub Floor -(50 year warranty) 2- 50 Gallon Water Tanks- Fresh Water, Gray water LP, Water Tanks and Battery Monitoring Panel 1 x 2 14 Gauge Steel Stabilization Frame and Roof Reinforcement Backup Alarm Beeper Spiral Cell Auxiliary Battery R-11 Fiberglass Insulation Throughout 15' of Fluorescent Lighting with Custom Lexan 110 Volt Electrical Service with GFI Breakers for Covers Receptacles Marine grade vinyl accents in your choice of 18 Commercial Central Vacuum System with 15 Foot colors Reinforced Hose 110 Volt Converter with Battery Charger

Safety Wall with One Bi-fold Access Door Separates Cab from Grooming Area Hydraulic Grooming Table Huge Over the Cab Storage Compartment Chrome Single Lever Hot and Cold Water Demand Water System with 3.5 GPM R.V. Pump Insulated Plumbing System/Easy Disconnect Plumbing Dirty Towel Laundry Chute Located in Tub Two Power Cord Connections for Unit (Main and Air Conditioner) Extension Power Cord R.V. Tank Drain System Spare Tire Mounted and Secured Under Tub Eight Feet of Open Valance Shelving Storage Under Windows

Two Assist Handles for Easy Access Scissors and Brush Holder Lexan 16 Blade Holder Lexan Shelf and Clipper Holder 3-Speed Overhead Vent Above the Tub Fiberglass Running Boards Super Suds Bathing Unit w/3.5 GPM Pump Formica and Vinyl Topper Liner Deluxe Vent Cover Stainless Steel Back-up Mirror Walk Over Ramp (can also be a 2nd Table) Parts Kit Bug Shield Fire Extinguisher

FINANCIAL Summary of Financial Needs

Artistry Mobile Pet Salon requires approval of a Small Business Administration Loan in the amount of $100,000.00 to start the business.

Sources and Uses of Funds Statement

The Small Business Administration will disburse the loan funds as follows:

$58,000 of the loan will be used to obtain a mobile fully equipped grooming van. The remaining $47,000 will be used to purchase grooming inventory, office (Business Stationary/Cards, Laptop computer, Brochures, advertising and grooming supplies ($25,000.00) and to pay for licenses, formation of business, accountant consulting, business plan financials and review, and business ledger set-up fees ($12,000.00) the remaining $5,000 will be used for other business start up expenses.

Forecast and Assumptions

MAY 1st Groom 1st repeat Addt'l Repeat Total Sales Revenue $80/pet 36 2880 45 3600 65 5200 85 6800 36 JUN 45 JUL 60 5 AUG 75 10 SEP 80 20 5 105 8400 OCT 90 15 8 123 9840 NOV 100 15 15 130 10400 DEC 110 10 20 140 11200 JAN 115 10 25 150 12000 FEB 110 10 20 140 11200 MAR 100 15 25 140 11200 APR 90 15 20 125 10000 TOTAL 1060 125 138 1323 52920

Each work day has 9 hours Grooming will be done 6 days a week. There are 50 workweeks (52 weeks minus 1 week vacation and 1 week holidays) in a year. Times 54 hours/week equals 2,700 hours per year. One grooming van can handle 6 pets per day. There are 300 days at 6 pets per day, which equals 1,800 pets per year. Average charge is $80 per pet = $400 per day. Revenue is figured at $2,400/week to equal $120,000 per year.

Profit and Loss

CATEGORY SALES Cost of Sales ($4/unit) Other May 2880 144 Jun 3600 180 Jul 5200 260 Aug 6800 340 Sep 8400 600 Oct 9840 492 Nov 10400 520 Dec 11200 560 Jan 12000 600 Feb 11200 560 Mar 11200 560 Apr 10000 500 Total 102720 5316 1stQtr 35640 1780 2ndQtr 39200 1960 3rdQtr 43100 2150 4thQtr 47440 2370 Total 165380 8260

Total Cost of Sales Gross Margin OPERATING EXPENSES Adv./Promo(2%) Misc. (5%) Cell Phones/WIFI Payroll Expense Insurance

144 2736

180 3420

260 4940

340 6460

600 7800

492 9348

520 9880

560 10640

600 11400

560 10640

560 10640

500 9500

5316 97404

1780 33860

1960 37240

2150 40950

2370 45070

8260 157120

55 140 100 4300 800

70 170 100 4300 800 1300 1000 7740

100 250 100 4300 800 1300 1000 7850

130 325 100 4300 800 1300 1000 7955

160 390 100 4300 800 1300 1000 8050 -250

190 460 100 4300 800 1300 1000 8150 1198

200 490 100 4300 800 1300 1000 8190 1690

210 500 100 4300 800 1300 1000 8210 2430

230 570 100 4300 800 1300 1000 8300 3100

210 530 100 4300 800 1300 1000 8240 2400

210 530 100 4300 800 1300 1000 8240 2400

190 475 100 4300 800 1300 1000 8165 1335

1950 4830 1200 51600 9600 15600 12000 96780 624

630 1690 300 19500 2400 5850 3000 33370 490

650 1860 300 19500 2400 5850 3000 33560 3680

670 2050 300 19500 2400 5850 3000 33770 7180

680 2250 300 19500 2400 5850 3000 33980 11090

2630 7850 1200 78000 9600 23400 12000 134680 22440

Payroll Burden (30%) 1300 SBA Loan Total Oper. Exp. Earnings Pretax Interest Short Term Interest Long Term Taxes Incurred (15%) Net Profit Net Profit Percent 1000 7695

-4959 -4320 -2910 -1495

GROOMING INVENTORY Item Art Work Boards, Bulletin, Large Boards, Bulletin, Small Cabinet Cabinet, Filing 4dwr Lg Cabinet, Filing, 3 Cube Calculator Cart, Rolling Computer Lap Top Dryer, Cage Equip, Groom, Hose Leash/Collar Library Machine, Washing Pot, Coffee, W/Acc Rack, Filing, Metal Ribbon Rinse, Creme Rinse, Creme, Blow Dry Shampoo, Cone, 5 Gal Shampoo, Cone, Mr Crystal Shampoo, Mixed Bottles Smocks, Grooming Table, Folding Table, Grooming & Arm Mobile Telephones Towels Towels, Show TOTAL GROOMING SHOP INVENTORY 1 1 1 30 17 7 1.33 5 130 7 1 1 2 75 15 18 10 Qty Price Ea 5 2 9 1 1 1 1 2 1 40.00 25.00 10.00 650.00 250.00 60.00 25.00 25.00 200.00 0.00 5.00 10.00 0.00 125.00 50.00 50.00 5.70 1.29 5.00 75.00 35.00 1.00 20.00 50.00 131.75 110.00 4.00 5.00
(Rounded)

Total 200.00 50.00 90.00 650.00 250.00 60.00 25.00 50.00 1000.00 200.00 1500.00 90.00 100.00 500.00 125.00 50.00 50.00 171.00 21.93 35.00 150.00 175.00 130.00 140.00 50.00 131.75 220.00 300.00 75.00 $6,600.00

1 1000.00

APPENDIX A Bank Affiliates of the Small Business Administration

I have attached the list of lenders we discussed. These lenders are all active throughout our service area that is Los Angeles, Ventura and Santa Barbara counties. Thanks, Rick Kresser Business Development Officer Los Angeles District Office (818) 552-3228 For information regarding SBA Programs and Services in Los Angeles, Ventura and Santa Barbara counties, please visit us on the Web at: http://www.sba.gov/ca/la/index.html

Los Angeles District Office 330 North Brand Blvd., Suite 1200 Glendale, California 91203 (818) 552-3215 FAX: (818) 552-3260 Most Active SBA Lenders at Los Angeles District Office FY 04

Bank of America, N.A. TEL. (800) 263-2055 www.bankofamerica.com

Comerica Bank Gloria Miller, Vice President 301 E. Ocean Blvd., Suite 1800 Long Beach, CA 90802 TEL. (562) 590-2529 www.comerica.com Nara Bank James Kim, Vice President 3701 Wilshire Blvd., Suite 302 Los Angeles, CA 90010 TEL. (213) 427-6340 www.narabankna.com Pacific Union Bank Ryan Shin, Vice President 933 S. Vermont Avenue, 2nd Floor Los Angeles, CA 90006 TEL. (213) 386-5168x12 www.pubbank.com

Alliance Bank J. Justin Moon, Vice President 100 Corporate Pointe, Suite 100 Culver City, CA 90230 TEL. (310) 258-9348 www.allbank.com United Commerical Bank David Wang, Head of Business Banking Group 199 S. Los Robles Avenue, Suite 780 Pasadena, CA 91101 TEL. (626) 685-7221 www.unitedcb.com

California Bank & Trust Steve Herman, Vice President 1940 Century Park East Los Angeles, CA 90067 TEL. (310) 407-6172 www.calbt.com Center Bank Jason K. Kim, Vice President 4301 W. 3rd Street Los Angeles, CA 90020 TEL. (213) 637-9622 www.centerbank.com Citibank (West), FSB Heather M. Endersen, Director 320 N. Harbor Blvd. Suite A Fullerton, CA 992832 TEL. (714) 525-8967 www.citibank.com Hanmi Bank Steve K. Park, Senior Vice President 3660 Wilshire Blvd., Penthouse F Los Angeles, CA 90010 TEL. (213) 382-2200 www.hanmi.com

Banco Popular, North America Erik W. Daniels, Vice President 11101 La Reina Avenue Downey, CA 90241 TEL. (562) 622-9716 www.bancopopular.com Wells Fargo Bank Doug Rozsa, Senior Vice President 333 S. Grand Avenue, Suite 820 Los Angeles, CA 90071 TEL. (213) 253-3325 www.wellsfargo.com U.S. Bank, N.A. Robert R. Flores, Senior Vice President 500 N. Brand Blvd., Suite 100 Glendale, CA 91203 TEL. (818) 548-7400x217 www.usbank.com Wilshire State Bank Sung Soo Han, Senior Vice President 3200 Wilshire Blvd., 7th Floor Los Angeles, CA 90010 TEL. (213) 427-6595 www.wilshirebank.com

APPENDIX B SBA Loan Cover Letter

SAMPLE
Mr. _______________ SBA Loan Officer _____________Bank _________________ Avenue Los Angeles, CA 90020 Dear Mr. _________ This SBA-backed loan request is for financial assistance to start a mobile pet grooming business in a very prime locations of Simi and San Pedro Valleys, CA. Demand for Pet Groomers will increase 12% by 2010 (Source: "National Industry-Occupation Employment Matrix," a publication of The U.S. Bureau of Labor Statistics). There are over 4,000 dogs and cats for every U.S. grooming business. The U.S. pet industry is a $32 billion a year business noted for being recession resistant. It has steadily grown from $16 billion in 1992. PetGroomer.com's research into Yellow Pages advertising by groomers and U.S. pet population studies indicates there were nearly 28,000 pet grooming businesses or other pet businesses offering ancillary grooming services in the U.S. in 2003. Executive Summary The enclosed business plan outlines the planned launch of Artistry Pet Salon Mobile Grooming, a full-service mobile pet grooming business. The plan recognizes the necessity for capital planning and calculates the cash flow required for success, including projections for the venture's 12-month cash flow. The business plan details the financial plan for the venture, which requires $100,000 in start-up funding. Start-up funds will be utilized to pay for mobile van, equipment and supplies; advertising; administrative costs; and inventory for the first six months. The business is expected to generate break-even earnings in the sixth month of the first year. Artistry Mobile Pet Salon caters to pet clients by grooming their pet dogs and cats in a fully equipped, state-ofthe-art, climate controlled van at the clients home location. In addition to the efficiency and convenience of providing on-site grooming service, the Mobile Pet Salon streamlines grooming and eliminates the need for a pet to spend the day (in a cage) at a grooming salon, which is very traumatic to many animals. The mobile grooming van incorporates two preparation/drying stations, two grooming stations, and a two-station bathing area. The targeted geographic area is approximately 300 square miles and includes Ventura County: Bell Canyon, Camarillo, Leisure Village, Moorpark, Newbury Park, Oakbrook Village, Oak Park, Somis, Santa Susana, Simi Valley City, Thousand Oaks, and Los Angeles County: Agoura Hills, Lake Sherwood, and Westlake Village. The Artistry Mobile Pet Salon capitalizes on a low number of competing mobile pet grooming in the same geographic area, a growing family-oriented population with higher-than-average household income in the region located within a 15-mile radius.

March 16, 2008

The Artistry Mobile Pet Salon is positioned as a high-value, come-to-your-home quick pet grooming service offering grooming by an expert breeder, handler and show person for the past nineteen years. The Artistry Mobile Pet Salon caters to clientele who want expert grooming for their pets, with at-home service but wont sacrifice quality. Artistry Mobile Pet Salon is a true "baby boomer" concept that features "Come to you" pet grooming for those thousands of recent retirees too busy with their new life style to do the mundane things like taking their pet to a grooming shop and either waiting or having to return hours later to pick up their pet. Financial Objectives For comparison purposes, the owner is benchmarking operating statistics against the industry average, based on the U.S. Pet Grooming and Supplies data. With initial start-up capital of $100,000, the Mobile Pet Salon is forecasting $103,000 in gross sales in the first year of operations, increasing to $165,000 in the second year of operations. Net profits are forecasted at <$1,000 in the first year and $22,400 in the second year. Please review the enclosed business plan and loan proposal, and of course feel free to ask for any additional information or explanations you may want. I will call you the last week in March to arrange an appointment so that we can discuss the loan in person. I look forward to a mutually profitable relationship with the ____________ Bank.

Ms. Rebecca Scribner Artistry Mobile Pet Salon 4840 Leeds Street Simi Valley, California 93063 Phone: 805-526-1873

APPENDIX C Fictitious Business Name Statement (If Required For A Corporation) The following person is doing business as: 1. Artistry Enterprises, 2. Artistry Mobile Pet Salon, 4840 Leeds Street, Simi Valley, CA, 93063. This business is conducted as a California corporation. The registrant has not yet begun to transact business under the fictitious name or names listed herein. BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B & P Code 17913). /s/ Rebecca Scribner, President, Artistry Enterprises, Artistry Mobile Pet Salon.

APPENDIX D Initial Grooming Services Price List

We will offer a 10% discount for first grooming. These are our starting prices according to breed. A starting price means average size according to breed, average coat according to breed and coat in good condition (minimal matting, minimal to average amount of dead undercoat, no de-skunking needed). A service charge for going to the clients home will be determined at $.35/mile. Pre and post groom consultation, physical exam, luxury bathing, comb out, undercoat removal, nails trimmed & filed, ears flushed & cleaned, trim the sanitary area, haircut and style. Up to 15 minutes of brushing/ dematting is included in the starting price, with additional charges applying thereafter. A variable trip fee is added based on mileage at $.35/mile. Also, upon request, we will do hand stripping of rough-coated breeds. The price of hand stripping will be $45/hour. Full Scissors Cut (use of hand scissors instead of clippers) $25 extra. Teaching basic grooming techniques, private training lessons, or massage therapy $15 per hour. Pedicure with polish $15. Use of essential oils, cologne, de-skunking, flea and tick control, bows, glitter, tick removal all for $5 each. Shampoo, comb, leash and collars $7 each. A service charge for going to the clients home will be determined at $.40/mile. Full Groom Airedale Terrier Akita Alaskan Malamute American Eskimo Australian Cattle Dog Australian Shepherd Bassett Hound Beagle Bedlington Terrier Belgian Malionois Bernese Mountain Dog Bichon Frise Border Collie Boston Terrier Bouvier des Flandres Boxer Brittany Spaniel Bull Terrier Bulldog Bullmastiff Cairn Terrier Cavalier King Charles Spaniel Chihuahua Chinese Shar-Pei Chow-Chow Price* $95 $95 $95 $85 $85 $95 $85 $75 $95 $95 $95 $95 $85 $75 $135 $85 $85 $85 $85 $95 $85 $85 $75 $85 $125

Clumber Spaniel Cockapoo Cocker Spaniel Corgi Dachshund Dalmatian Doberman Pinscher English Mastiff English Setter English Springer Spaniel German Shepherd German Shorthaired Pointer Giant Schnauzer Golden Retriever Gordon Setter Great Dane Great Pyrenees Greyhound Irish Setter Irish Terrier Keeshond Kerry Blue Terrier Labrador Retriever Lakeland Terrier Lhasa Apso Maltese Miniature Pinscher Miniature Poodle Miniature Schnauzer Newfoundland Old English Sheepdog Pomeranian Portugese Water Dog Pug Rhodesian Ridgeback Rottweiler Rough Collie Saint Bernard Samoyed Schipperke Scottish Terrier Shar-Pei Shetland Sheepdog

$85 $85 $85 $85 $75 $85 $85 $95 $85 $90 $85 $85 $125 $85 $85 $85 $145 $85 $85 $85 $80 $95 $85 $85 $95 $85 $75 $55 $85 $135 $115 $85 $95 $75 $85 $85 $95 $115 $125 $85 $85 $85 $85

Shih Tzu Siberian Husky Smooth Collie Smooth Dachshund Smooth Fox Terrier Smooth Jack Russell Terrier Soft Coated Wheaten Terrier Springer Spaniel Standard Poodle Standard Schnauzer Tibetan Terrier Toy Poodle Vizsla Weimaraner Welsh Corgi Welsh Terrier West Highland White Terrier Whippet Wire Fox Terrier Yorkshire Terrier Additional Services Hand Stripping/Dematting Scissor Cut no Clippers Medicated Shampoo & Conditioner Hot Oil Treatments Color Reinforce (Brightens and Enhances Natural Hair Color) Furminator De-shed Treatment Skunk Odor Removal Deoxidizing Treatment (Eliminates Yellow Staining) Chemical Flea Dips Tick Removal Nail Polish Teeth Brushing Vet. Prescribed Treatment Add-on CATS Full Groom Full Groom Full Groom Pedicure/Polish

$85 $85 $85 $75 $75 $75 $75 $90 $125 $125 $85 $75 $85 $85 $85 $85 $85 $75 $80 $85 $45/hr $25.00 extra
$15.00 $25.00 $10.00 Starting at $25.00 for small dog $30.00 plus bath $10.00 $5.00//Gallon $25.00 per 20 minutes $5.00 $10.00 $8.00

Long Hair Short Hair

$110.00/up $95.00/up $7.50

Medium Hair $100.00/up

Artistry Mobile Pet Grooming

Physical Exam and Grooming Sheet For
__________________________________________________(name)

Implanted Chip # or Tattoo____________________________ Date and Time

COAT: Smooth, thick, shiny
coat. Free of tumors, ticks, fleas, greasiness, dandruff and bare patches. ACTIVITY: Pet is not showing signs of stiffness, pain or limping when walking. NOSE: The nose is moist and free of discharge and sores. EARS: Ears are clean and free of odor, discharge and ear mites. EYES: Bright and clear. No signs of discharge, irritation, discoloration, tearing or cloudiness. The white of the eyes show no signs of veins, ulcers or sores. MOUTH: The mouth looks pink and healthy. TEETH: No evidence of excessive tartar buildup. Pink gums with no redness or swelling, bad breath, sores or growths. HEAD, LIMBS,TRUNK: no signs of deep wounds, sore patches or any hair loss

DISCHARGE: No vaginal
discharge noted ATTITUDE: No changes in responsiveness and interaction, no signs of confusion, disorientation or lethargy. LUMPS: Checked his/her paws and underside for any lumps, bumps and unusual skin problems such as red and raised skin.

BODY CONDITION: Can

easily feel the bony part of each rib, Can clearly see a defined waist behind the ribs, Can clearly see a defined abdomen tucked up behind his/her rib cage,

Issues found:____________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

APPENDIX F Artistry Start Up Check List

Business Start Up Direction

File a DBA (Doing Business As) with the correct authorities. Obtain a business license. Register with the Secretary of State. Apply for a federal tax identification number, also known as an Employer Identification Number (EIN), with the IRS. Comply with professional, environmental, disability and other regulations specific to Artistry business. Comply with sales and use tax requirements, particularly if you plan on selling goods in a state with sales tax. Obtain workers' compensation insurance. Fill out an I-9 form for you as a worker. Fill out a W-4 form for you as a new employee. Withhold the correct amount of taxes and social security from your paychecks and deposit the withholdings with the IRS. Comply with OSHA.

Business Type
File corporate or limited liability company papers with the Secretary of State's office. If you decide to become an S-Corporation, make sure your attorney or CPA elects "S Corporation Status" by submitting the correct paperwork to the IRS, otherwise you will be taxed as a C-Corporation.

Federal EIN Number

Apply for an Employer Identification Number (EIN) with the IRS. You can apply for an EIN by phone, online, or by mail. (The online application is not yet available for all types of businesses.) Applying by phone or online is recommended as the IRS has a policy of providing the number immediately. To find the phone number for California, visit Where to Apply for an EIN on the IRS's Web site. To apply online, go to the online application. If you would like to apply for an EIN by mail, download form SS-4.

Fictitious Name (DBA)

You may have to register the fictitious name (Artistry Enterprises, Artistry Mobile Pet Salon) with the county, city, or state. The bureaucratic term for creating a fictitious name is "Doing Business As," or "DBA," for short. Ventura County and the State of California require you to publish your DBA in the local paper. However, because a corporation is considered a separate entity from its owners, this regulation typically doesn't apply to a corporation doing business under its own corporate name, or to professional partnerships practicing under a partnership name. Check with your city or town hall or your local chamber of commerce for requirements. Also check with your state government.

Special Licenses
Since you plan on running a business that sells or uses things, those things typically will determine what types of licenses and permits you will require. In order to find out which regulations you must comply with, call the local city hall, civic center, or chamber of commerce and consult with your lawyer. They should be very helpful in explaining local requirements to you. Another great source of information are similar businesses located in the same area. Talk to the owners of other pet grooming services already established there. For specific state requirements, start by visiting the SBA's list of state links. If you don't find what you're looking for, check State of California Web site and California Department of Consumer Affairs' Web site. Most cities and towns have strict zoning laws that determine what types of commerce may and may not take place in specific locations. If you have any questions about zoning, call the Simi Valley city hall or the Simi Valley chamber of commerce. Since you will work out of your home, the licenses you are required to have are often determined by your business mailing address. Since you plan on hiring employees, you enter into a whole new world of federal, state, and local requirements.

Insurance
You should consider Key Man insurance for the business. You need to have insurance to cover the mobile van as a vehicle and as a facility with assets. You also need standard business insurance (liability, flood, fire, theft, etc.).

Workmans Compensation
Check with your Insurance Agency or the California board of workers' compensation for information and assistance to see if you will need workers Comp. In most states, businesses above a certain size are required to carry workers' compensation insurance in case of on-the-job accidents In obtaining workers' compensation insurance, shop around and compare quotes from several brokers. Also, be sure the occupational codes used to characterize your employees based on their type of work are correct. Insurance rates vary depending on what code is chosen. Visit the Occupational Safety & Health Administration for information about federal safety requirements. Also check with California state government for additional requirements. Visit the Department of Labor's Employment Standards Administration Wage and Hour Division to find out about federal minimum wage, overtime, and child labor laws.

Register Trademarks
If there are any names, words, or phrases you want to protect as a trademark or service mark, it may be a good idea to clear your use for conflicts with others' marks and to register the trademark with the federal government. To find out more visit the United States Trademark Electronic Business Center.

Finding Financing
Since you're a woman, there are many organizations that have been set up to help get minority businesses off the ground. Some organizations may offer special financing deals. The first effort should be seeking a SBA Loan from one of the banking institutions listed in APPENDIX A. Many foundations and government agencies offer grants or incentives to small businesses that meet specific requirements. Some grants are offered as part of an entrepreneurial award. Check with Simi Valley City Hall or Ventura County government for more information.

Taxes
When, what, and how often you file your taxes will depend on your individual business and on the type of organization you decide to become.

Overall, there generally are three broad types of taxes that many small businesses face: taxes on business profits, taxes on payroll, and sales and use taxes. In determining your requirements, a good place to start is the IRS. Visit the Small Business/Self-Employed Section of the IRS Web site. The IRS also offers a very helpful, free Small Business Resource Guide CD. For information about state tax requirements, visit the California government's homepage. Go to FirstGov, the U.S. government's official Web portal, to find links to state government homepages. For information about local requirements, visit Simi Valley city hall or civic center. It is highly recommended that you consult with a tax professional about your business' individual tax requirements Keep detailed records of all business expenditures. When it comes time to file your taxes, the IRS will only grant you the expenditures you can document. If you use your car in the course of doing business, track your mileage using a log book. Better yet, if you use QuickBooks Pro edition you can track your mileage in the Mileage Tracker tool. Consult a tax expert to find out what deductions your business qualifies for. Most importantly how many years you can write down the mobile van for taxes (5 years?).

OSHA
Check OSHA regulations that may apply to a service business using a mobile van.