Mini Butcher
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?
- Will slaughter and sell meat
What skills are needed to do this? Where is this taught and how much will it cost?
- The client has experiece, she doesn't need training
What tools or equipment are needed? Where can they be bought, and how much will they cost?
- Knifes -R9.00 at the spaza shop
- Blades- R100 at plastic warehouse
- Crates-she already has
- Drum-she already has
- Table-she already has
- Fridge-she already has
How much space is needed to work from?
- A big space, like a garage
Where will the space be found, and how much will it cost to rent?
- She will work from home she will not be paying rent
What sort of people will buy the product? Who are they and where do they live?
- Family, friends, Neighbours,everyone in the neighbourhood
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
- Every week they will come and collect.
[edit] Upstream Businesses
A list of businesses and ideas that provide the services and products that this business needs.
[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?
- There is a butchery, P.B Butchery close by and there is another person operating form home.
What prices and products do these companies have?
- They have all types of meats
- Their prices are similar to the client's
What makes them popular / unpopular?
- They are popular because they sell fresh meat
- Unpopular because of the bad packaging,they wrap their meat with paper.
What do they do to attract customers? Specials? Interesting marketing / advertising?
- Advertise their specials(Butchery)
Which of the competitors stand out as being particularly good at what they do?
- P.B Butchery, they have been in business for many years and have modern machinery.
What can be done to stand out against them? What can be done that is more exciting / more interesting?
- Good Parkaging
- Neatness
- Specials
[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)?
- People around, her in the neighbourhood
- Customers are very particular about the freshness and size it is important to be consistant.
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
- It is a all year long business, but the business sells more faster in winter
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
- The customers want good quality, but the prices must also be cheap
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
- They decide to buy at a place where they get respect
- A word of mouth and flyers also work
Do the clients want the same things sold in the same way, or do they want things to change all the time?
- They like the same things
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
- Advertising:
- Boads
- Word of mouth
- Door to door
[edit] The business inputs and outputs
List all of the inputs (products that are required to produce the products):
- Money to buy stock
- Transport
- Plastic packs
- Fridge
- Table
- Plastic pack
- Knives
- Crates
- Blates
- Drum
- Wood
- Advertising board
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
List all of your outputs (products created by your business):
- Meat, cut and packed according to size
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
- R10-R20 a piece
- Profit=+-R200 for the whole
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?
- Yes, two weeks.
- What is not sold is refrigirated.
[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):
- Advertising
- Informing customers about specials, the specific time of availability
- Fetch the Pig from the supplier
- Slaughter it
- Cut it and package it
How long will it take to get all of these things and how much will they cost to get?
- 2 days
- Advertising board R30
- Transport (petrol) R20
- Tools (Knives=R0,Blades=R9,Wood=R15,Drum=R0)
- 3 Assistants=R20 a day each=R 60
- Pig R400
- Cutting The pig R100
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
- Electricity R50
- Wages (3xR20x4weeks)=R240
- Pig x1=R400
Total amount for fixed costs: R____650___________
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
- 3 non-permanent staff
- R20 each time they come=20x3=R60 a week
What training will they need, how long will it take and how much will it cost?
- No training required, they are experienced
[edit] The manufacturing or production process
List every step, from start to finish, to produce the product
- Phone the supplier to comfirm availability
- To inform the assistants to prepare water
- Slaughter
- Take it to the butcher for cutting
- Price it piece by piece
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):
- All the staff members are involved from the begining to the end.
What possible problems may happen during each step of the manufacturing process?
- Transport may not be available
- The butchery may be busy and cannot cut
- May not get the same assistance at all times
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
- Hire another car, it can cost R100
- Can go to another butcher who is distant from the client's place of work
- Will hire other assistants
What is the maintenance program for all the equipment?
- Fridge-weekly cleaning
- Knives-weekly( and all other tools)
- Car-Every 15 000km
What safety requirements are important for production?
- Carry water carefully so that it does not spill on anyone.Therefore he will hire sober-minded assistants
How will quality control and client feedback be handled?
- Quaility is controlled by cutting at the butchery, storing in the fridge to ensure freshness
- Any complaints will be listened to carefully and be solved in a friendly and acceptable manner
[edit] Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)?
- 4xfull portion a month i.e. 4 pigs a month. 1 weekly
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
- summer=4xfull portion (4 pigs) 1 every week
- In winter=6-8xfull portion(6-8 pigs) will slaughter and sell 2 per week
What sort of pricing strategy will be chosen (cheapest or best)?
- The best price
What profit margin will be chosen for the products
- R400=Cost (Pig)
- R200=Mark
- R100=Transport
- R60=Wages
- R12.50=Electricity
- R572.50 Total cost
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Yes,no need to adjast
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
- 4x full portion/month
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
Set out the products, costs, margins and selling prices:
|
Item |
Daily Target |
Monthly Target |
Cost Price |
Margin |
Selling Price |
Total per Month |
|
Item A |
X |
X x number of working days in a month |
R y.yy |
R z.zz |
R y.yy + R z.zz |
= monthly target x selling price |
What trends are included in the projections?
[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.
Who will act as backup should the person responsible not be there? What do they need to act as backup?
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
What is the schedule for training and motivating staff?
What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?
[edit] Before beginning
List some of the support services available (legal, business and other) that might be needed
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) Retrieved from "http://startup.wikicities.com/wiki/TRC_templates"
