Executive Summary
Americans love pets, and it is common to find a pet in one of every two households. It is estimated that over 60 percent of American households have a pet and spend at least 6 percent of their average household income on pet care (Applebaum et al., 2023). Amerix Pet Care Services will have its headquarters in Charleston, West Virginia. Data from the World Population Review (2024) noted that 49.6 percent of households in West Virginia own dogs, and 37.7 percent own cats. Amerix Pet Care Services will offer a wide range of differentiated pet care services at an affordable price to gain a competitive advantage in the market. In the first year of operation, Amerix Pet Care Services has an ambitious plan to grow its market share in the pet care industry in West Virginia to over 30 percent.
Business Entity Description
Amerix Pet Care Services will be a partnership business. According to Seetharaman (2020), a partnership is a business entity formed by two or more parties that formal agree to operate and manage a business and share its profits. Amerix Poet Care services will have three partners who will start, operate, manage, and share the business profits, obligations, and debts. All the three business partners will be family members. The reason why Amerix Pet Care Services will be a partnership is because it is relatively easy to form. Partnerships do not require lengthy formal and legal procedures. Thus, the start-up cost for partnerships is also relatively low. The most critical formal procedure in a partnership is an agreement between the partners which can be done orally or by signing a partnership deed. Operating a partnership is also easy for it is the partners who take part in the business operations and decision-making. In the event of any changes in the structure and size of the partner’s ownership in the business, it can be done by consent among the partners (Olson et al., 2021). Since the partners in a partnership contribute the business capital and share profits and all other liabilities, the level of risk in a partnership business is also minimal, for it is shared among the partners.
Legal Steps Needed to Start Amerix Pet Care Services.
The first critical legal document for a –partnership business is a partnership deed. According to Rexhaj (2022), a partnership deed is a written legal document that stipulates the terms of operation between the business partners in a partnership business. The partnership deed also explains the size and structure of business ownership of each partner and the roles they play. All legal businesses in West Virginia have a business license acquired from the state business authorities. Thus, Amerix Pet Care Services will acquire a valid trading license before starting its operations. In America, pet care is a professional service that those in the industry must be certified by the Professional Animal Care Certification Council (PACCC). Thus, Amerix Pet Care Services will also seek certification from the Professional Animal Care Certification Council (PACCC) before the inception of the business. Amerix Pet Care Services will offer its services to clients through legal service contracts. The service contract is a legal document that will stipulate the nature of services to be offered, time, and payments. Handling pets has its associated risks. Thus, the business will also create a liability waiver document. A liability waiver is a legal document that waives the business any responsibility in the event of an accident while handling pets. Amerix Pet Care Services will employ employees and contract other service providers for specialized pet services not directly offered in the business. Employee agreements will be used to hire employees. The employees will also sign confidentiality and non-disclosure agreements to legally protect the business trade secrets. Vendor agreements and contractors’ agreements are legal documents that will be used to enter business relations with suppliers and contractors of other services not directly offered in the business.
Recommended Written Agreement for Amerix Pet Care Services
Amerix Pet Care Services will be a partnership business and all three partners will be family members. Legally, partners in a partnership business can enter an agreement in writing or orally. Since all partners are family members, it is likely that oral agreements would be most preferred. However, it is recommended that partners of Amerix Pet Care Services enter a written agreement (partnership deed). Legally, a partnership deed indicates each partner’s share or percentage of ownership in the business, roles, rights, and duties of each partner. It also clearly stipulates how the partners will share profits and losses. One of the strengths of signing a partnership deed is that in case of any disagreement, the partners have a point of reference they can refer to and solve the disagreement. According to Rexhaj (2022), through the partnership deed, Amerix Pet Care Services shall run smoothly in its early and formative stages.
Ethical Considerations
In the United States, animals are protected by the Animal Welfare Act (AWA) (Garner, 2020). Amerix Pet Care Services will be a strong advocate of animal rights. Currently, in West Virginia, there is no state law on animal rights. Amerix Pet Care Services will through its media adverts focus on highlighting the rights of animals using pets as an example. By advocating for animal rights, Amerix Pet Care Services will be perceived by the population as a brand focused on animal care. Amerix Pet Care Services will also advocate for “Green” efforts. It will particularly advocate for the use of green packaging for pet feeds and supplies. Amerix Pet Care Services will specifically buy pet supplies from manufacturers that have adopted green packaging. Amerix Pet Care Services will engage in offering a free pet wellness clinic every quarter as a way of giving back to society. In the free pet wellness clinic, pet owners in West Virginia will have free health consultations for their pets. The free pet clinics will reinforce the people’s perception that Amerix Pet Care Services is a brand focused on animal care and health. It is expected that animal advocacy, green efforts, and free wellness clinics will positively impact the environment and people and also improve the business’s bottom line.
Termination of the Business
Since all the partners in the partnership are family members, levels of disagreements are expected to be relatively low. However, if a disagreement arises between the partners that the business cannot continue operating, the business can be dissolved through an agreement between the partners. According to Leonard et al. (2020), partnerships are created through mutual agreement between the partners. When the parties cannot agree to operate the business, they agree to dissolve the business. The state of West Virginia has no stipulated legal laws guiding the dissolution of partnerships. Thus, it is the partners who will come together and agree to dissolve the business. During the dissolution, all business liabilities and debts will be settled before each partner takes his remaining share of the business asset as per the size of ownership stipulated in the partnership agreement.
References
Applebaum, J. W., Peek, C. W., & Zsembik, B. A. (2023). Examining US pet ownership using the General Social Survey. The Social Science Journal, 60(1), 110-119.
Garner, R. (2020). Animal rights and captivity in a non-ideal world. Neuroethics and nonhuman animals, 191-204.
Leonard, T., Pakpahan, E. F., Heriyati, L. K., & Handayani, I. G. A. K. R. (2020). Legal review of share ownership in a joint venture company. International Journal of Innovation, Creativity and Change, 11(8), 332-45.
Olson, E. M., Olson, K. M., Czaplewski, A. J., & Key, T. M. (2021). Business strategy and the management of digital marketing. Business Horizons, 64(2), 285-293.
Rexhaj, E. (2022). Partnerships: The basics of an agreement. BDJ In Practice, 35(6), 39-39.
Seetharaman, P. (2020). Business models shifts: Impact of Covid-19. International Journal of Information Management, 54, 102173.
World Population Review (2024). Pet Ownership Statistics by State 2024. Available online at: https://worldpopulationreview.com/state-rankings/pet-ownership-statistics-by-state
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