Ahead of the PACK

Every business looks for ways to set themselves apart from their competitors. Most focus on a particular aspect like pricing or service. But occasionally, a business will look to introduce a completely new approach which sets a new benchmark for their industry.

That’s what Rob and Carole Ellis had in mind when they set up Pets in the City in 2008. Two years on, they’ve succeeded in setting new standards for the New Zealand pet care industry. Open from 7am to 7pm to cater for busy owners, Pets in the City is New Zealand’s first city pet hotel and day spa, a luxury facility for family pets. With options ranging from doggy day care to hydrotherapy programmes, Rob says Pets in the City is unlike anything else in the country – and Auckland pet owners are taking to the concept in their droves.

Rob and Carole had previously owned a traditional boarding kennels and cattery on the outskirts of Auckland, but while it was a successful operation, they were convinced there had to be a better way.

“For a start, most kennels and catteries in Auckland are a long way from where people live, so it’s a hassle for owners,” says Rob. “And while more and more dogs are living inside the home, especially toy breeds, when they go to traditional kennels they spend quite a bit of time outside. In Auckland it rains – a lot – so the dogs get wet and dirty. That wasn’t great for the dogs or for us, as we spent a lot of time washing and grooming them.”

Research showed that in the United States in particular, indoor facilities were becoming more and more popular. Many of these offered a far higher level accommodation and care than New Zealanders are used to. What’s more, while most New Zealand facilities are situated outside urban areas, in the U.S. many are sited in urban areas, close to where pet owners live.

Rob and Carole visited a number of facilities in the U.S. and became convinced the concept would work here. They took the plunge, sold their existing business, and started planning to make their ‘Pets in the City’ concept a reality.

“One of the things that really helped us in the early stages was the ‘Big Help’ CD from The National Bank,” says Rob. “It helped us understand and think through all the different things we had to plan for – and there were a lot! In fact, we created our entire business plan for Pets in the City off the ‘Big Help’ CD – everything from marketing, to staffing, to budgeting, including our set-up budget.”

Rob and Carole found suitable premises in a good location – but that also led to the first test of their resolve. “We had to commit to the premises in order to apply for resource consent. But because we were the first facility of our kind “in the city”, the resource consent process took about four months – much longer than we expected. And since we’d also had to import two container loads of equipment from the U.S, it was a bit scary for a while with a lot of money going out and nothing coming in.

“We actually lived on site in a caravan for a year while we got the premises ready, and then for a while after we opened, until we could afford staff. It was a testing time for us and some of our friends thought we were crazy – but we got through it. What kept us going was really our belief that what we were doing would work, plus our desire to be the first – and the best.”

The hard work is paying off. The business has grown rapidly, with Rob and Carole now employing seven staff. That includes a nightshift, which has allowed them to get their life back. They’ve moved out of the caravan and back home – and they’re starting to work more on the business, instead of focusing all their energies on the day to day running.

Part of that is drawing up manuals for every aspect of the business, from ‘checking in’ their guests to how dogs are grouped in the play areas (the right mix is important to ensure a happy environment). Their aim is both to ensure consistent standards but also to provide the ability for licensing or franchising arrangements in the future.

“It’s been wonderful to see our idea come to fruition,” says Rob. “I suppose it was a risk, but it was a calculated one. We did a lot of research into what our customers really wanted (rather than what we thought they wanted). The response shows we’ve certainly tapped into a demand. The challenge now will be to keep raising the bar and setting new standards.”

Rob and Carole Ellis’ five key tips for business success

We asked Rob and Carole about the lessons they’ve learned from their experience in creating Pets in the City. They identified five key things that helped them succeed:

1. Plan, plan, and plan some more
“We put an awful lot of effort into planning for Pets in the City and it was worth every minute. There’s so much you need to think about and taking the time to work through all those issues before you get into it gives you a lot of confidence, which really helps when things get tough. That’s where The National Bank’s Big Help CD was so helpful. Understanding our customers was key too – that’s helped us come up with a service that no-one else was offering that really met their needs.”

2. Marketing is everything
“A great idea is nothing unless you can sell it. Once people come and see what we offer, they’re sold – so we try to always look for ways to keep ourselves in front of customers and create that interest. For example, we’re the first boarding facility to advertise on billboards – it’s not a traditional approach but it’s certainly worked for us. Internet marketing is also key. When we ask customers how they heard about us, the majority of times it’s through the Internet. So we’ve put a lot of effort into our website, including optimizing it so it has a high ranking on search engines. Another thing that’s worked well for us is advertorials in newspaper supplements.”

3. It’s about money – but it’s not all about money
“Of course you’re in business to make money, but I think you have to also enjoy what you do. Carole and I have always loved animals so for us there’s a real passion in what we do. That’s what drove us to open Pets in the City, because we wanted it to be the best. Without that passion and enjoyment I think it’s really difficult to succeed.”

4. Choose a good business bank
“We’ve had a lot of support from The National Bank over the years – much more than just financing (though that’s obviously important). Our Business Banking Managers have all been great sounding boards and helped us think through our goals. They’ve also provided some extremely valuable resources. We’ve attended several of their Business Workshops including one on “Finding and retaining staff”, which showed us how important it is to get the right people and how to minimise the risks. They’re able to get ideas across in non-technical language which is so helpful. Having that level of support from our bank has made a big difference to us.”

5. It’s not all about you
“We felt it was very important that the business didn’t revolve around us as owners. That’s unsustainable for us, but it also puts the business at risk. You need to know that customers will get the same quality experience no matter who is looking after them. It also means we can work on the business rather than in it – and that’s the key to staying ahead.”

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