Treats Pet Resort

Treats Pet Resort, an upscale dog and cat resort offering long and short-term boarding, web-cams, ceiling fans, TV and other amenities, opened in Louisville in 2007. Despite experiencing sales that beat the business’ initial forecast, the building, equipment and payroll costs ran over budget resulting in severe cash flow problems within the first two years of operation.
Despite paying extra each month on past-due accounts, Treats Pet Resort could not climb out of the hole, and in 2010 banks began threatening foreclosure.
As a last-ditch attempt to save their business, the Halbleibs contacted the Louisville SBDC and requested assistance. Under the SBDC’s expert guidance, Treats Pet Resort began using the SBDC’s cash flow tool and meet- ing with consultants on a weekly basis. SBDC consultants also used Profit Cents, South Dakota software and RMA Annual Statement Studies to develop a budget, find opportunities for financial improvement and identify industry benchmarks for the client.
Within 30 days, the Halbleibs were able to contact the federal, state and local tax authorities and work out pay- ment plans. The Halbleibs also chose to cut payroll expenses and increase prices on boarding by 10 percent. Treats Pet Resort did not lose one customer from this increase and the additional revenue and expense reductions allowed them to pay down other past-due bills. As of September 2010, the Halbleibs are caught up with nearly all past-due bills.

The dedication the SBDC gave in meeting with us every single week for nearly a year was awesome. Honestly, if it were not for the SBDC I don’t think we would still be open for business. The SBDC was the best tool that we have used since we opened three years ago.

– Mike Halbleib, owner

In addition to debt management assistance, the SBDC also helped Treats Pet Resort implement a new marketing plan that has further increased revenue while keeping expenses in check. Today the Halbleibs continue to work closely with the Louisville SBDC and expect to pay off nearly all debts by June 30, 2011.

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