Fruit and vegetable retailer
From Startup
The Thousand Rand Challenge Business Plan Template
This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.
All text in italics should be deleted (including these introductory paragraphs) for use as a template on newly created business idea pages. Please ensure that the new page you're creating really is a new idea. Check the front page for a current list of businesses, or perform a search.
This heading area should contain a brief outline of the nature of the business - change the heading at the top to list the type of business - e.g. Fish and Chips Frying
[edit] Description of the business
Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.
What exactly is it that is going to be sold or done?
I am going to sell fruit and vegetable:
- Apples
- Oranges
- Pears
- Babanas
- Tamatos
- Potatoes
- onions
- carrots
- Cabbage
- Peaches
Place your research into the business under each of the bold headings and delete the text in italics.
What skills are needed to do this? Where is this taught and how much will it cost?
Costing and pricing skills as well as communication skills
- Interpersonal skills so as to deal with customers, the client has those skills through experience
What tools or equipment are needed? Where can they be bought, and how much will they cost?
- Shelter R300 hardware store
- table own
- chair own
- shelves own
- Sail & poles R200
How much space is needed to work from?
Only a large area
Where will the space be found, and how much will it cost to rent?
- will sell from my home and from a street corner. Will not cost anything
- She will sell from her home and she will not be paying any rent.
What sort of people will buy the product? Who are they and where do they live?
- People with low income and everybody else from the location she lives in.
- The people of the community
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- People will come and buy everyday
- will come to me
[edit] Upstream Businesses
A list of businesses and ideas that provide the services and products that this business needs.
- Cold storage
- Fruit & vege City
- Vegetable Farms
[edit] Downstream Businesses
A list of businesses and ideas that this business could provide products for.
[edit] Competitors
What major competitors will attract clients' spending away from the business' products?
Fruit and vet stalls in the centre of Saldanha. Diazville no competitors Street Hawkers
What prices and products do these companies have?
- Apples R5 kg
- Oranges R8 a bag
- Pears R4.99 per kg
- Babanas R3.99 kg
- Potatoes R40 bag
- onions R8.00 kg
- carrots R7 bag
What makes them popular / unpopular?
Their fruit and vegetables are not always fresh
What do they do to attract customers? Specials? Interesting marketing / advertising?
Specials on their products
- notice boards
Which of the competitors stand out as being particularly good at what they do?
no one
What can be done to stand out against them? What can be done that is more exciting / more interesting?
- Will be friendly to people
- Try to have fresh products at low prices
- She will have a clean stall, have something to chase away the flies to keep the place clean.
- She will always keep clean water around.
- Competitive prices
[edit] Marketing the business to clients
What sort of people will buy the products and how important is product consistency to them (e.g. must every loaf of bread be identical)?
- all the people of my local community
- Clients always want fresh, good looking products
- Sick people
- People who are health concious and/or on a diet
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
Some fruit and vegetables seasonal
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
Clients buy high quality at the lowest possible price
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
- Other clients will tell them about products
- a sign board and good look display will attrack them
Do the clients want the same things sold in the same way, or do they want things to change all the time?
in season the same
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
stand at the street corner and display my products to them
[edit] The business inputs and outputs
List all of the inputs (products that are required to produce the products):
Fruit and vegetables
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
Local farmers Fruit and Vegetable city Vegas Vredenburg
- Clear plasstic bags for parkaging
List all of your outputs (products created by your business):
- Apples
- Oranges
- Pears
- Babanas
- Tamatos
- Potatoes
- onions
- carrots
- Peach
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
- Apples R4.99 kg profit R1.50
- Oranges R5.00 a bag profit R1.50
- Pears R8.00 kg profit R2.30
- Babanas R5.00 kg profit R1.00
- Potatoes R30 a bag profit R7.00
- onions R6.50 kg profit R2.00
- carrots R6.00 bag profit R1.80
Do the outputs have a shelf-life? Must they be sold within a specified time limit before they go off / can't be sold? Which ones?
Most will be fresh for 1 week
[edit] Setting up the business
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
Get a table, chairs etc and go to supplier and buy stock
How long will it take to get all of these things and how much will they cost to get?
1 day to a week. Transport R100 Stock R500
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Telephone R100
- Transport R200
- Salary R1200
Total amount for fixed costs: R________1500_______
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
later on one worker (R50)
- The client will work on her own
What training will they need, how long will it take and how much will it cost?
no training required
[edit] The manufacturing or production process
List every step, from start to finish, to produce the product
- Buy stock
- Check stock
- Price stock
- Put them on shelves
- sell it to client
- Write & put up notice boards
- inform target ,market about the business
- Buy poles & Canvas
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
Me and my husband will do everything
What possible problems may happen during each step of the manufacturing process?
- can buy fruit and vegetables that look good but are not good quality
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
Inspect products before paying for it
What is the maintenance program for all the equipment?
n/a
What safety requirements are important for production?
n/a
How will quality control and client feedback be handled?
- must buy good quality products
- if client complains same day refund
[edit] Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)?
- Oranges 14 bags per day 280 per month
- Pears 20 bags per day 400 per month
- Potatoes 14 bags per day 280 per month
- onions 20 bags per day 400 per month
- carrots 10 bags per day 200 per month
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
- all fruit and vegetables not always available
- but there will be always something to sell
What sort of pricing strategy will be chosen (cheapest or best)?
Best price my clients can afford
What profit margin will be chosen for the products
40%
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Apples R2.50 kg profit R1.50
- Oranges R3.50 a bag profit R1.50
- Pears R5.70 kg profit R2.30
- Babanas R4.00 kg profit R1.00
- Potatoes R23 a bag profit R7.00
- onions R4.50 kg profit R2.00
- carrots R4.20 bag profit R1.80
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
Yes
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
Per week
- 10 bags potatoes
- 20 bags onions
- 30 bags oranges
- 10 kg pears
- 10 bags carrots
Set out the products, costs, margins and selling prices:
|
Item |
Daily Target |
Monthly Target |
Cost Price |
Margin |
Selling Price |
Total per Month |
|
Oranges |
14 |
X x 20 number of working days in a month |
R 3.50 |
R 1.50 |
R 3.50 + R 1.50 |
= monthly target x selling price |
What trends are included in the projections?
sales will be always more or less stable
[edit] Running the business
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
Will start 7H00 with my stall (neatly pack shelves) and sell until 6H00
Who will act as backup should the person responsible not be there? What do they need to act as backup?
My son
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
Buy stock on a weekly, daily basis
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
Pay all the fixed expenses
What is the schedule for training and motivating staff?
commission on sales
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
If clients ask for somtthing new I will try to get it for the client
[edit] Before beginning
List some of the support services available (legal, business and other) that might be needed
WCBDC Red Door
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
[edit] Related articles
Insert links to articles on Wikipedia or other Wikis that may be useful (such as recipes, legal discussions, accounting articles, and so on)
[edit] External links
List links to outside websites that may be useful for anyone starting this business
[edit] Business Trials
List your name if you started a business based on this plan, where you started the business, and how you did Links to case histories - you are welcome to develop these and insert them in your personal page (create this by developing a personal profile)
- Polliena Louis PNF & V Store
- Roleen Cornelissen M &R Busy Corner
- Julia Mahluka Vuku-zenzele Julia Fruit and Vegs
