Karma Revenue Project

This project examines the revenue trends for the pet sitting business Karma Pets LLC. All datasets were compiled by the owner using Time to Pet pet sitting business software. Datasets were created in excel. The following data will show the anuual revenue for the business in years 2016-2023.

summary(Karma_Annual_Revenue)
##       year       year_revenue   growth_percent   
##  Min.   :2016   Min.   :29721   Min.   :-0.6178  
##  1st Qu.:2018   1st Qu.:38719   1st Qu.: 0.1678  
##  Median :2020   Median :62016   Median : 0.3316  
##  Mean   :2020   Mean   :59710   Mean   : 0.2887  
##  3rd Qu.:2021   3rd Qu.:79421   3rd Qu.: 0.3726  
##  Max.   :2023   Max.   :89457   Max.   : 1.2262  
##                                 NA's   :1

Years in Review

This summary illustrates each year’s revenue as well as the percentage of growth between each year. Note the change between years 2019, 2020, 2021 as a result of covid restrictions in 2020.

Explanation of Revenue

Karma Pets LLC was started in the year 2016. This is their inital year of service. As new clients came to the business, revenue gradually increased through to 2019 when the company had it’s highest gross revenue at the time. Unfortunately, due to covid in 2020 there was a massive drop in revenue that didn’t fully recover its previous 2019 achievement until after 2022 where the company once again exceeded its record for revenue. Growth continued into 2023.

Monthly Revenue for 2023

This line graph plots the revenue by the month in the year 2023. These fluctuations in revenue are caused by travel habits, school holiday calendar, and an increase in travel during the end of the year holidays during Thanksgiving and Christmas.

As you can see, revenue is particularly low in February. This is typical. Pet sitting business has a snowball effect throughout the year. Revenue begins a steady increase during spring break, which is often in the month of April. As the temperatures rise and school lets out for the summer, travel habits increase along with the revenue throughout the year.

Predictions for 2024

Accounting for revenue trends similar to the 2023 line graph, Karma Pets LLC can expect to increase revenue in the year 2024. By averaging the percentage of growth through previous years, we can assume that that average will apply to 2024.

*a note about this calculation. Percentage of growth rate formula does not include calculations for 2020 or 2021 as these growth rates were not typical for the usual business flow. I have excluded 2020 -0.617 and 2021 1.226 from this formula to avoid bias in the result.

  df<-data.frame(percent=c(0.331,0.401,0.343,0.257,0.059))
  mean(df$percent)
## [1] 0.2782

The average percentage of growth for years 2016, 2017, 2018, 2019, 2022 & 2023 is 0.278 or 28%. If the Karma Pets LLC business performs as it has in previous years it can expect the 2024 to be at or near $114,504.

A Personal Note

Thank you for taking the time to review my project and observe this data. It is with a heavy heart that I am closing Karma Pets LLC, therefore those 2024 revenue calculations will not come to pass. I am furthering my career in the field of data analytics. This project was a little goodbye to the company, staff, clients, and pets that have made the last 8 years so memorable.