business plan on meat shop

7/26/2019 business plan on meat shop.

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live a healthy life

BUSINESS PLAN

BY

AZHER , MOHSIN(44) , SOYABULLAH

SUBMITED TO

SIR FAKHR E ALAM


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Acknowle!"en#

First praise is to ALLAH, the Almighty, on whom ultimately we depend for

sustenance and guidance. All praises to Allah for endowing us the strength and

ability to completing this report.

We would like to express our deepest appreciation to all those who provided us

the possibility to complete this report. We take this opportunity to express ourprofound gratitude and deep regard to our guideSir FAKHR-E-ALAMfor his

exemplary guidance, monitoring and constant encouragement throughout the

course of ntrepreneurship. !he blessing, help and guidance given by him time

to time shall carry us a long way in the "ourney of life.

#pecial thanks go to all the team membersAZHAR MUSTUFA,SOHAIB and

MOHSIN IQBALhelped to assemble the parts and gave suggestions about the

$usiness %lan. We also appreciate the guidance given by other teachers as well

in our $usiness %lan that has improved it to a great degree.


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$ONTENTS

E%E$UTI&E SUMMARY

Overview

The company

Products and Service

The Market

Competition

BUSINESS DES$RIPTION

General DescriptionIndustry Background

O!ectives

Mission

"eys to Success

Milestones

Competitive #dge

MARKETIN'

Market $nalysis Summary

Target Market Segment Strategy

Market Segmentation

Competitors

Strategy and Implementation

Marketing Strategy

OPERATIONS

Identi%ications

$dvantages

5-6

6-9

10-

17


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Ta&es

Production

Products

MANA'EMENT

Management Team

'egal Structure

Company Ownership

FINAN$E

(inancial planPro!ected pro%it and loss

Balance sheet ) income statement

Cash %lows

Breakeven analysis

Budgeting

$RITI$AL RISK

Prolems

$lternative O% $ctions

Critical Control Points

*educing the risk

HAR&EST STRATE'Y

MILESTONE S$HEDULE

Gantt chart

SUMMARY

18-

20

21-

23

24-

34

35-37


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38

39-40

41

Eec#*+e S""-.

O+e-+*ew

Meet + Meat, is a startup specialty utcher shop to e launched soon- It will sell

a wide menu o% meats to customers including medium. and high.income

residents o% town, as well as high.income residents o% neighoring towns, and

high.end caterers-

T/e $o"0n.

Meet + Meat is estalished a company owned y three co.%ounders-

The store will e managed and directed y, MO/SI0 $1/$* and SO/$IB

with e&perience in utcher shops, an e&perienced retail %ood.services- they

MO/SI0 will serve as the company2s C#O and as the company2s COO-

P-oc#1 n Se-+*ce

Meet + Meat will sell ee%, %ree.range o% goats meat, lam 3pon re4uest- The

products will e come %rom our own %arm to the store to have minimal impact

on the environment and to maintain product %reshness- Products will e

purchased as whole animals and utchered in the store y trained utchers- The


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sales sta%% will o%%er suggestions o% sustitutions or help customers %ul%ill their

orders through special orders in order to make sure all customers leave satis%ied-

T/e M-ke#

The meat industry is the largest segment o% Pakistan- meat

consumption was 556 red meat 7ee%, veal, lam, pork, and mutton8, 9-+6 %ish,

and :;-96 poultry in +


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Meet + Meat is a startup specialty utcher shop to e launched in the coming

year- It will sell aged ee%, %ree.range goat meats, 3pon re4uestand other

specially re4uested items- Customers will include medium. and high.income

residents as well as high.income residents o% neighoring towns, and high.end

caterers and restaurants-

The store will e managed and directed y $1/$*, SO/$IB

with e&perience in utcher shops and MO/SI0, an e&perienced retail %ood.

services- MO/SI0 will serve as the company2s C#O and as the company2s

COO-

INDUSTRY BA$K'ROUND

?The meat industry is uni4ue ecause it relies on live animals as its raw

materials- @ithin livestock production, there is a classic, livestock price cycle-

Prices rise and %all as producers raise more animals in response to high prices orlow supply, and then cease producing when livestock inventories ecome high

and prices %all- $t the low points in the livestock price cycle, some livestock

producers have called %or reviews o% meat packing industry structure to

determine i% the structure may e causing a price decline- #ach review has

%ound that industry structure is not to lame %or livestock prices- *ather, the

asic laws o% supply and demand most o%ten are the cause-?

In his previous report on the Meat Aalue Chain it was shown that the Meat

Sector is essentially a i.product o% the dairy sector- Pakistans consumption o%

meat has declined %rom a very modest kgs per person to + kgs per person in

the last %ive years- This consumption is %ar less compared to the international


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average o% over 5


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Ke.1 #o Scce11

Meet + Meat must %ollow these principles in order to achieve success in its

market>

- Maintain high 4uality standards %or its suppliers and continuously monitor

this 4uality-

+- Preserve meats in optimal conditions to maintain %reshness while in the

store-

:- Maintain e&cellence in the skill o% utchering meats through hiring,training, and supervision o% sta%%-

- 'isten care%ully to customer needs and respond with custom.cut products,

whether in person, over the phone, or through Internet orders-

M*le1#one1

MO/SI0 will manage all marketing and sales activities- $s discussed earlier,

the usiness2s wesite must e completed month2s e%ore opening to provide

in%ormation %or those who see %lyers and ads prior to the launch- Search engine

marketing will e an ongoing e&pense a%ter the launch, and usiness prospecting

y MO/SI0 will e continued as needed to estalish a %oundation o% restaurants

and caterers to sell to-


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$o"0e#*#*+e E!e

Meet + Meat will estalish its competitive edge through the e&pertise o% its

%ounders- $1/$* ) MO/SI0 rings with him e&isting relationships with the

est suppliers o% cattle2s as well as an understanding o% the cra%t o% utchering-

/e has trained a numer o% assistant utchers who have gone on to take head

positions at grocery stores and utcher shops- Coupled with SO/$IBunderstanding o% %ood service management, sales record in usiness to usiness

sales, and %inancial acumen, the pair will have an edge over the town2s other

utcher shops and grocery stores within its niche market-

MARKETIN'

M-ke# Anl.1*1 S""-.2

In his previous report on the Meat Aalue Chain it was shown that the MeatSector is essentially a i.product o% the dairy sector- Pakistans consumption o%meat has declined %rom a very modest kgs per person to + kgs per person inthe last %ive years- This consumption is %ar less compared to the internationalaverage o% over 5


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China, %or e&ample, has increased its consumption o% meat %rom +


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T-!e# M-ke# Se!"en# S#-#e!.

Market segmentation %or Meet + Meat is ased on the speci%ic market

opportunity in our town area- @hile low.income households are per%ectly

content with purchasing the meat options at local grocery stores and ig o&

retailers, households with a greater level o% disposale income are interested in

e&panding their options %or home cooked meats- (urthermore, these customers

entertain in their homes to a greater e&tent than low.income households and

pre%er to o%%er high.4uality or rarer meat options atthese events-

It is e&pected that customers %rom neighoring towns will e more likely totravel to our town i% they have higher levels o% disposale income to allow %or

the time and gas e&pense o% this travel- (or this reason, high.income

households will e targeted at %irst in neighoring towns-

Caterers, especially those serving high.end corporate and private events, and

upscale restaurants seek high.4uality specialty meats at wholesale prices Meet +

Meat will sell in ulk to catering usinesses and restaurants at a sustantial

discount %rom retail prices, while still allowing %or margin- Caterers andrestaurants will e re4uired to order in advance to allow %or specialty orders o%

meats and not deplete the products availale at the retail location %or immediate

purchase

M-ke# Se!"en##*on

Meet + Meat potential customers are divided into the %ollowing groups as shown

in the market analysis tale>

H*!/6Inco"e Ho1e/ol12


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Monthly household income o% over *s


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Sales

High-Income Households:

Medium-Income Households:

Neighboring o!n High-Income Households

#$%erers & 'es%$ur$n%s


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$o"0e#*#o-1 2

Competitors %or Meet + Meat %all into the %ollowing categories>

Grocery Stores

Big o& retailers

Butcher shops 7*ed2s Meats and Bay $venue Butchers8

Meat one

khaas meat

Grocery stores provide asic meat options at relatively low prices- They are

chosen y customers interested in uying meat along with all o% their grocery and

%ood needs, and not traveling %ar %rom their home- These customers will sacri%ice

some 4uality and options %or price and convenience-

Big o& retailers serve clients interested in the lowest price and ale to sacri%icesome convenience 7longer waits and longer travel times8 %or the lowest price-

They o%%er meats o% the same range o% options and 4uality as grocery stores-

Indirect competitors 7and also potential competitors8 include restaurants, as

consumers interested in specialty meats may choose to eat out instead o% cook the

meal themselves-

S#-#e!. n I"0le"en##*on

To implement its plan, Meet + Meat will attempt to>

- #stalish its retail location y signing a lease once %unding is secured-


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+- Begin y targeting high.income residents o% our town and the surrounding

towns, as well as medium.income residents o% our town and usiness

customers 7upscale caterers and restaurants8-

:- Business customers and retail customers will e grown as separate

revenue streams, ut will rein%orce each other-

M-ke#*n! S#-#e!.

The marketing strategy o% Meet + Meat is to estalish anticipation o% the store2s

opening in the community so that it can hit the ground running with retail sales

immediately upon launch- To that end, the %ollowing tactics will e used>

Direct mail o% %lyers to a select list o% 5,


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#mail newsletter descriing developments in meat o%%erings to usiness

customers and certain households-

Sle1 S#-#e!.

The sales strategy %or the usiness includes oth retail sales and usiness sales

strategies-

*etail sales will e ased on the marketing o% the store and its location,

e&plained in the marketing plan section- $t an operational level, orders will e

taken in person y clerks working the %loor o% the store 7two on duty at any

given time8, or y the o%%ice clerk over the phone or Internet- Orders %or

speci%ic cuts will e transmitted %rom these clerks to the utchers on duty who

will prepare the cuts- They will e packaged, priced, and prepared %or sale y

the %loor clerks-

Customers will e greeted with a standard greeting and served to meet their

satis%action with the greatest care taken to provide 4uick service to walk.in

customers- $ machine will give numers to waiting customers so they can e

served in an orderly %ashion- @aiting customers will have a %ew seats in the

store to sit in while waiting-

The usiness sales strategy relies on prospecting y MO/SI0 IKB$' to

estalish sales to caterers and restaurants- /e will research, contact, and present

to these usinesses, drawing on her past sales e&perience- $s a partner o% the

usiness, /e will work to ma&imiFe this revenue stream to increase pro%its,

rather than ecause o% commissions on sales-


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Sle1 Fo-ec1#

The sales %orecast tale represents the usiness scaling up sales 4uickly in the

%irst year as the community recogniFes the high 4uality o% its products and as in.

roads are made with the doFens o% area caterers and restaurants-

*etail sales will e the greatest driver o% sales growth and represents the est

margins %or the usiness, with a


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OPERATIONS 2

IDENTIFI$ATIONS

Meet + Meat is a startup specialty utcher shop to e launched in the coming

year- It will sell aged ee%, %ree.range goat meats, 3pon re4uestand other

specially re4uested items- Customers will include medium. and high.income

residents as well as high.income residents o% neighoring towns, and high.end

caterers and restaurants-

The store will e managed and directed y $1/#*, SO/$IB

with e&perience in utcher shops and MO/SI0, an e&perienced retail %ood.

services- MO/SI0 will serve as the company2s C#O and as the company2s

COO-

AD&ANTA'ES

$o"0e#*#*+e E!e

Meet + Meat will estalish its competitive edge through the e&pertise o% its

%ounders- $1/$* ) MO/SI0 rings with him e&isting relationships with the

est suppliers o% meat as well as an understanding o% the cra%t o% utchering- /e

has trained a numer o% assistant utchers who have gone on to take head

positions at grocery stores and utcher shops- Coupled with SO/$IB

understanding o% %ood service management, sales record in usiness to usiness

sales, and %inancial acumen, the pair will have an edge over the town2s otherutcher shops and grocery stores within its niche market-


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Te1

government apply ta&es on all the activity occurs in production units and sells-the ta& which we have to pay is near aout 56 to +56 o% the activity-

PRODU$TION

P-oc#1

Meet + Meat will provide the %ollowing products on a regular asis>

Bee%>

(ilet

"ea

salami

Porterhouse Steak

*i.#ye Steak

*oast Bee%

Shell

*is

Sirloin

Skirt


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Strip

T.Bone

Domestic 'am>

Chop

(lank

'eg

(ree.*ange o% Goat>

Chop

Put

'eg

"ea

$ll products can e cut to the customer2s speci%ications-

The products will e purchased %rom a known and reliale suppliers to have

minimal impact on the environment through trucking costs and to maintain

product %reshness- Products will e purchased as whole animals and utcheredin the store y trained utchers- They will e sold while %resh- @hile products

may e replenished within a %ew days, there is the possiility o% certain items

running out ecause o% high sales and going out o% stock until new shipments

may arise- The sales sta%% will o%%er suggestions o% sustitutions or help


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customers %ul%ill their orders through special orders in order to make sure all

customers leave satis%ied-

MANA'EMENT

MANA'EMENT TEAM

To provide the est services o% our customers Meat + Meat have the

management team to complete the re4uired task y the giving time in a e%%icient

manners- the team lead y the three %ounders o% the shops-

Mr- $1/#* will manage all the activity o% %arms- Mr- SO/$IB will manage all

the work o% shops he will responsile %or all the activities and he will design

the store's floor plan, plan, order and install all equipment purchases,

establish operations procedures, train butchering staff and operations

staff, and establish relationships with all suppliers.Mr- MO/SI0 IKB$'will manage all marketing and sales activities- $s discussed earlier, the

usiness2s wesite must e completed month2s e%ore opening to provide

in%ormation %or those who see %lyers and ads prior to the launch- Search engine

marketing will e an ongoing e&pense a%ter the launch, and usiness prospecting

y MO/SI0 IKB$' will e continued as needed to estalish a %oundation o%

restaurants and caterers to sell to-

LE'AL STRU$TURE

Company Ownership


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Meet + Meat is estalished as a limited liaility company with e4ual ownership

y three %ounders - The partners will share in management responsiilities with

%inal decisions- The partnership agreement allows %or one partner to uy out the

other in the case that the partnership must e dissolved and sets predetermined

methods to determine the company2s valuation in that case-


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O?NERS

$EO

MANA'ERS

SHOP MANA'ERS FARM MAN'ER

SUPER&ISORS SUPER&ISOR

SALES MAN BU$HTERS

LABOUR STAFF LABOUR STAFF

$LERK $LERK


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FINAN$IAL STATEMENTS

(inancial Plan

The usiness will grow a%ter startup %rom its own cash %low- Signi%icant growth

is possile in the initial target markets e%ore there is a need to take on

additional sta%% or move to a larger %acility- These are possiilities a%ter the %irst

three years, as is opening an additional retail location in an area that will not

compete with Meet + Meats2 locations-

Interest rates and the ta& rate re%lect the current economic environment that

Meet + Meats will operate within.

Pro!ected Pro%it and 'oss

$dditional direct cost o% sales re%lects the costs o% packaging, gas %or deliveries,

credit card transaction %ees, and other direct costs o% the meat preparation and

order %ul%illment processes- Gross margins are ased on the industry markup %or

utchered meats-

Marketing e&penses will e higher in the %irst year to announce the opening o%the %irm and will drop a%ter that- Most e&penses will show small increases each

year as the usiness will remain in the same location over the %irst three years-

Pro%it will rise sharply over the %irst three years as sales are spread over these

relatively stale e&penses-


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Meet to Meat

alance sheet

as on dec : +


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$llowance %or dep- 7;


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Marketing e&p- +


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Meet to Meat

alance sheetas on dec : +


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Meet to Meat

Income statement%or the year ended +


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Meet to Meat

alance sheet

as on dec : +


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:=;=;9

:=;=;9

Meet to Meat

Income statement

%or the year ended +


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Cash %low Statement

cash %low statement

Meet + Meat


Cash receive %rom customers 5=+


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cash %low statement

Meet + Meat


Cash receive %rom customers ;


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cash %low statement

Meet + Meat


Cash receive %rom customers =;:+


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Break.even $nalysis

Due to the monthly reak even in sales, overall company reak even is e&pectedin the seventeen month o% operation-

Budgeting


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$RITI$AL RISK2

@e assess risk y putting together two %actors>@8 T/e c/nce #/# #/e /- w*ll occ-8

:8 T/e 1e+e-*#. o5 #/e e55ec# w/en /- oe1 occ-8

In meat retailing the risk varies according to the scale and scope o% yourusiness-

Thinking aout scale, the more you make, the more chance %or something to gowrong-

PROBLEMS

The risk in your usiness model comes %rom three main %actors>

@8 P-oc# -n!eN the more products we make, the greater the chance %or

haFards to enter the %inal product-

:8 How .o 1ellN slicing to order into a plastic ag means the %ood willproaly e eaten within a day or two N not enough time %or the haFard to growto a level which will in%ect the consumer- But i% you vacuum pack meats thecustomer may keep them %or some weeks, giving the target haFard,Listeria,

plenty o% time to grow-

8 Yo- con1"e- 31eN some customers are less ale to withstand in%ectiony the acteria you are targeting- They are the very young, the aged, pregnantwomen and people whose immune response is low- $nd i% you supply your localhospital, aged care %acility or school the risk to your usiness increases greatly-


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Al#e-n#*+e O5 Ac#*on1

Cleaning procedures %or M##T TO M#$T

There is a sa%e water supply-

H (ood contact sur%aces are kept in good, clean condition-

H Cross.contamination %rom insanitary o!ects is prevented-

H /and washing, hand sanitiFing and toilet %acilities are availale and kept clean-

H (ood packaging materials and %ood contact sur%aces are protected %romadulteration with luricants, %uel, pesticides, cleaning compounds, sanitiFingagents, condensate and other chemical, physical and iological contaminants-

H To&ic compounds are stored and used sa%ely-

H #mployee health is monitored and controlled-

H Pests are e&cluded-

H @astes are con%ined and disposed o% sa%ely-

These elements are to prevent the contamination o% materials and %inal productswith micro.organisms 7germs8 %rom people, e4uipment and the workplaceenvironment-

$-*#*cl $on#-ol Po*n#1

Temperature control

- Carcases are delivered warmer than =C on their sur%aces-

+-Theres a long power outage-

:- @hile youre oning odies and pieces o% meat in the shop-

- I% you let meat uild up in the trim ucket-


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$llergen control

H /ave good procedures to control allergens-

H 'ael products correctly-

H Provide advice i% they have any douts-

Jou can reduce risk y doing allergen.%ree products %irst thing, when all youre4uipment is clean-

H Grind minced meat %irst up so theres no carry.over o% sulphite %rom sausagemeat-

H 'ael your marinades properly . satay will contain peanuts and maye soy-

H Tell customers i% you put dairy or cereal products in your value.added meats-

Grinding chopping

I% you hear a Qping %rom the mincer it tells you a piece o% metal is %loatingaround- Or, when you dismantle the grinder %or cleaning you may %ind a piecehas roken o%%, it means metal is in the product- Jou will need to discard that

atch-

Rec*n! #/e -*1k

-Slice and vacuum pack once a week when no raw meat is in the room-

+-Clean the room and e4uipment-

:-Clean clothing-

-Spray all working sur%aces with antimicroial-

5-Spray the outside o% each product with antimicroial-

/arvest strategy


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In addressing this 4uestion we look at the #&it Strategy as a de%inition o% our

usiness vision and goals, as well as a contingency in the event the usiness is

unsuccess%ul- @e have addressed this 4uestion at several levels-

#&pansion as a Business Goal@e have set multiple %inancial goals to grow the success o% the Meet + meat,

and compound the pro%it return %or Investors-

- #&pansion 7Option 8> Our overall goal to maintain the 4uality a uni4ueness

o% product- Based on our services, the usiness has captured market share y the

end o% the %irst year- In addition Jear + rings an increased sales and pro%it

margin to sustain the addition o% a %ull.time General Manager- By second

4uarter o% Jear +, the owners will look to launch third outlet - This is not a

chain, ut another uni4ue outlet o% Meet + Meat with strong growth potential-#&pansion will e considered with our (inancial ackers and Investor partners-

+- #&pansion 7Option +8> Throughout our usiness plan we have stayed %ocus

that Meet + Meat would e success%ul as a larger venue, with greater sales

capacity and revenue potential- we will start reeding o% cattle2s to ma&imiFe the

pro%it-

Trans%ers O% $ssets

Meet + Meat committed to our concept and its viaility- @e step into this

venture with con%idence and the success o% our respective prior usiness e%%orts-

0o one attempts a usiness anticipating %ailure, however sometimes ventures do

not %ul%ill their promise-

In the event that our venture cannot achieve pro%itaility and retire the

encumrances, we will %irst attempt to sell the operation and use the proceeds to

clear all outstanding alances- I% we are unale to sell the operation %or

su%%icient proceeds we will %orced to de%ault wherey the loans will e in senior

standing- $ny %urther outstanding alances will e orne y the investors on a

weighted percentage asis o% the total amounts due-


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MEET 2 MEAT

MI'#STO0# SC/#D3'#>

Mr- $1/#* will manage all the activity o% %arms which includes %arms in%rastructure

uying animals and completation all the work so that the %arm will provide satis%actory

!o- Mr- SO/$IB will manage all the work o% shops he will responsile %or all the

activities to e done- and Mr- MO/SI0 IKB$' will manage all marketing and sales

activities- $s discussed earlier, the usiness2s wesite must e completed month2s e%ore

opening to provide in%ormation %or those who see %lyers and ads prior to the launch-

Search engine marketing will e an ongoing e&pense a%ter the launch, and usiness

prospecting y MO/SI0 IKB$' will e continued as needed to estalish a %oundation o%

restaurants and caterers to sell to-Task Name

Registration work

Legal process

Start

Date

11/01/15

11/05/15

End

Date

11/05/15

11/10/15

Duration

5d

5d

% Complete

100%

100%

As

Marketing work 11/01/15 12/0/15 2!d "!% M

website development work 11/01/15 11/0/15 d 100%

design !l"ers and ad 11/01/15 11/05/15 5d 100%

Making o! #$ 11/01/15 11/1&/15 10d 100%

'irect mail campaign 11/0(/15 11/10/15 d 100%

)ewspaper ad campaign 11/0(/15 11/0(/15 1d 100%

*earch engine marketing 11/0(/15 1&/0+/15 &1d 50%

Deeloping &arm 11/01/15 11/1'/15 15d ''%

*etting !arm 11/01/15 11/0(/15 (d 100%

,-rchasing o! cattle 11/0/15 11/11/15 d 100%

All the remaining work has to be

done

11/1&/15 11/1/15 5d 100%

*ample Milestone 11/1/15 11/1/15 0

M2M )utlet

*ite selection

Legal doc-mentation

11/05/15

11/01/15

11/05/15

12/1*/15

11/05/15

11/0/15

+2d

5d

d

55%

100%

100%

*hop interior design work has tobe done

11/05/15 1&/1(/15 0d 50%

,-rchasing installation o!

e2-ipment3s !or shop

11/05/15 11/&5/15 15d 0%

4inal inspection

,6)7)8

1&/15/15

01/01/1(

1&/1/15 +d 0%


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T/# S#C/3D'# IS GIA#0 B#'O@ >

'ANTT $HART2


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Summary

Meet + Meat, is a startup specialty utcher shop to e launched soon- It will

sell a wide menu o% meats to customers including medium. and high.income

residents o% town, as well as high.income residents o% neighoring towns, andhigh.end caterers-

Meet + Meat is estalished a company owned y three co.%ounders-

The store will e managed and directed y, MO/SI0 $1/$* and SO/$IB

with e&perience in utcher shops, an e&perienced retail %ood.services- they

MO/SI0 will serve as the company2s C#O and as the company2s COO-

Meet + Meat will sell ee%, %ree.range o% goats meat, lam 3pon re4uest- Theproducts will e come %rom our own %arm to the store to have minimal impact

on the environment and to maintain product %reshness- Products will e

purchased as whole animals and utchered in the store y trained utchers- The

sales sta%% will o%%er suggestions o% sustitutions or help customers %ul%ill their

orders through special orders in order to make sure all customers leave satis%ied-

business plan on meat shop

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