Are you about starting a butchery business? If YES, here is a complete sample meat shop business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a meat shop. We also took it further by analyzing and drafting a sample meat shop marketing plan template backed up by actionable guerrilla marketing ideas for butchery businesses. So let’s proceed to the business planning section.
Why Start a Butchery/Meat Shop?
Meat is consumed by almost everyone and this makes it a big business for whoever intends to start this business. While no special skill or certification is needed to start this business, any entrepreneur going into this business must be innovative and possess the passion of providing customers with a better selection, better meat quality as well as better service than that which can be found in supermarkets and grocery stores.
Starting this kind of business will require that you have the necessary finance in order for you to get the right equipment, staff, conducive and accessible location. The meat business is a serious business and why you should be looking towards making your business attain the right publicity, you should be careful in ensuring that you maintain a high standard of hygiene so that no one can accuse you of food poisoning.
Another important factor that you must consider before starting your business is writing a business plan. Writing a business plan might not be easy especially when it comes to inputting the financial analysis and breakdown for a certain time period.
However, while you might hire a business plan writer to help you in writing one, you might also need to go online and get free business plan templates to use in writing a customized business plan for yourself. It is for this reason that a sample business plan is written below for you;
A Sample Butchery/Meat Shop Business Plan Template
- Business Overview
The meat sector though a very lucrative one is becoming increasingly difficult for businesses due especially to the increased competition from traditional retailers as well as the success of the nontraditional retailers. The revenue from this sector stands at $8 billion with an annual growth of 0.8% that was projected between the periods of 2011 and 2016. There are more than 9,000 butchery/meat shops in the United States of America.
As at 2012, the total meat and poultry produced reached more than 93 billion pounds and increased in 2013, as 25.8 billion pounds of beef, 23.2 billion pound of pork, 5.8 billion pounds of turkey, 38.4 billion pounds of chicken and 286 million pounds of lamb, veal and mutton were produced.
According to the 2010 Dietary Guidelines for Americans, to have a healthy and balanced diet, an individual was suppose to consume 5.7 ounces of meat per day, which when broken down means 29 cuts of beef, 6 cuts of pork and numerous poultry cuts that were lean and had fewer calories than a serving of 3-oz salmon.
As at 2013, more than 482,000 people were employed in the meat and poultry processing and packaging industries. The salaries of all those who worked in this industry amounted to $19 billion and impacted all the other sectors of the United States’ economy.
According to statistic, all the companies that are involved in meat production as well as suppliers of this meat, distributors, retailers, and other industries remotely associated with this industry employed more than 6.2 million people with a total of $200 billion in wages.
This industry generates 6% of the Gross Domestic Product (GDP) o the United States of America, with a ripple effect that amounts to $864.2 billion annually. The sales of meat and poultry as at 2013 amounted to $198 billion. Employees working in the meat processing plants earned an average of $32,700 annually including benefits whilst those in meat packing plants earned $26,400 annually including benefits.
As at 2014, the United States exported 1.7 billion metric tons of beef and beef variety meat. The export value of meat in the same year climbed to $807 billion. Japan, Canada, Mexico and Hong Kong are the top four markets where the United States exports its beef to. Exports in 2013 accounted for more than 21.5% of pork production and 10% of beef production.
Due to the fact that America produces its beef internally, it has seen its citizens spend less o meat and poultry specifically than citizens of other developed countries. Men in America ate on average 6.9 oz. of meat while females consumed 4.4 oz. of meat daily.
Butchery / Meat Shop Business Plan – Executive Summary
Don Mayor Butchery/Meat Shop Inc is a standard meat shop business that will be located in Montgomery – Alabama, here in the United States of America and will see us offering our various customers quality cuts of meat as well as other services in order to expand our offering to our target market.
Our vision is to ensure that we supply our customers with the highest quality of meats according to their specification, whilst also becoming the preferred butchery/meat shop for all the customers here in Alabama in three years, and we have laid down plans and structures to enable us achieve this feat.
Our facility is one that is up to standard as we not only abide by the industry’s regulations but have a high standard which we have set in order to ensure that we offer fair business practices and are known for that. We have secured permits from the relevant departments here in Montgomery – Alabama in order to achieve this.
We are willing to the extra mile as a company to ensure that we build a solid business structure where we can hire the best professionals who are competent enough to come and work for us. These professionals also know what it means to run a business from ground up to prominence and are willing to do all it takes to ensure this happens.
We will ensure that we strategize on publicity and promotion packages in order to ensure that create the right awareness in the minds of our customers and positively project our image to prospective and existing customers as well as other industry stakeholders.
We intend to ensure that we pay our employees adequately so that they could remain committed and motivated to see us attain our objectives. We have other welfare packages in mind that will allow us not enhance our workers but allow them increase productivity for our business as well.
We know how valuable our customers are and to this effect, we intend to ensure that we pay the utmost attention to the needs of our clients. We will give discounts to our most loyal customers and also to those who refer us to others; this is all in a bid to retain at least 80% of our customers.
Finally, our Chief Executive Officer, Don Mayor has over 20 years experience in this sector of the industry and so will not only bring the necessary finance and business insight but also brings a wealth of experience that will be brought to bear in the success of this business.
- Our Products and Services
Don Mayor Butchery/Meat Shop Inc is one that deals in all forms of quality meat cuts to its various customers here at Montgomery – Alabama.
However, because we intend to create a sustainable business, we are looking towards creating multiple sources of income in line with our core business concept so as to generate profit and grow our bottom line as permissible under the laws of the United States of America and within our ambition.
Therefore some of the products and services we intend to offer are;
- Sale of meat products such as boerewors, cold meat products, biltong and pickled meat
- Sale of pork, poultry, mutton, veal and other meat products
- Advisory services
Our Vision Statement
Our vision is to ensure that we supply our customers with the highest quality of meats according to their specification, whilst also becoming the preferred butchery/meat shop for all the customers here in Alabama in three years.
- Our Mission Statement
In order for us to achieve our vision, we will ensure that we get the right equipment, location and facility and business structure. We will also ensure that our meat preservation methods are done in conditions that are optimal.
- Our Business Structure
Even though a butchery/meat shop business might seem like a basic kind of business that doesn’t require much work to be done except meat cutting training, we intend to build a business that is of high standard and in order to do so we will ensure that we get it right from the beginning by building a solid business structure.
We intend to ensure that we go the extra mile in getting hardworking and competent employees to occupy the various positions in our company and also handle the various responsibilities and tasks that these positions will bring so that we will be able to handle our corporate goals and objectives.
Due to the fact that we would not be running a conventional butchery/meat shop, we would be employing more than is expected to run Don Mayor Butchery/Meat Shop Inc here at Montgomery – Alabama. Below is the business structure we intend to build for Don Mayor Butchery/Meat Shop Inc;
- Chief Executive Officer
- Human Resources and Admin Manager
- Butchery/Meat Shop Supervisor
- Sales and Marketing Team
- Quality Inspector
- Customer Service Executive
Roles and Responsibilities
Chief Executive Officer
- Makes the decisions and overall strategies for organizational direction
- Ensures that organizational policies and decisions are duly implemented
- Negotiates with high level clients on behalf of the company
Human Resources and Admin Manager
- In charge of sourcing for and recruiting the right employees for the organization and giving them proper orientation
- In charge of employee welfare and incentive packages
- In charge of ensuring that the administrative tasks are performed smoothly
Butchery/Meat Shop Supervisor
- In charge of ensuring that the meat is cut according to customer specifications
- Ensures that the right parts are cut
- Is knowledgeable about industry trends and how it might affect the company
Sales and Marketing Team
- Conducts market research in order to determine more target markets for the organization
- Drafts effective marketing strategies that will generate revenue for the organization
- Conducts one-on-one marketing on behalf of the organization
- Ensures that all financial information and statements are duly prepared as at when due
- Prepares tax documents so as to submit to the tax authorities
- Ensures that inflow and outflow are properly accounted
- Ensures that the facility is up to standard in accordance with industry regulations
- Carries out inspection on every carcass gotten from the vendors in order to ensure all is well
Customer Service Executive
- In charge of taking orders, enquiries and requests from various customers on behalf of the organization
- Keeps an updated customer database for the organization
- Ensures that customers complaints are quickly attended to
- Ensure that the premises are kept clean at all times
- Carries out any other duties as might be determined by the human resources manager
- In charge of driving supplies to major customers
- Ensures that the correct stock is taken to accurate destination
- Carries out light maintenance on the vehicle when necessary.
Butchery / Meat Shop Business Plan – SWOT Analysis
Due to the fact that we intend to run a butchery/meat shop that is of high standard, we have engaged the services of the finest business consultants here in Montgomery – Alabama to look through our business concept critically so as to ascertain if we have what it takes to be able to start and run a standard butchery/meat shop business.
The business consultant therefore took stock of our strengths, weaknesses, opportunities and threats and used this to determine what we were likely to be exposed to here in Montgomery – Alabama. Below is a preview of the SWOT Analysis that was conducted for Don Mayor Butchery/Meat Shop Inc;
Our strength lies in the fact that we intend to offer several services – sale of meat and other meat products as well as services – to our wide range of customers. Our facility is one that is up to standard and has a large storage capacity that can meet the daily demands of our customers, no matter how high that demand might be.
We also have the best employees who not only understand the sector and business thoroughly but are also attuned to our corporate goals and objectives and are determined to ensure that we are able to achieve our desired goals and objectives.
Finally, our Chief Executive Officer has had over 20 years of experience in this sector of the industry and so not only brings the necessary finance and business insight but also brings a wealth of experience that will be brought to bear in this business.
As a new company, we have several weaknesses which are that we do not have enough finance and staff strength to be able to compete effectively against already established butchery/meat shops here in Montgomery – Alabama.
People are daily consuming meat regardless of their income or faith, which means that various opportunities continue to abound for us in this sector.
The threats we will face in this business are similar to that which every business faces, which are the arrival of a major competitor offering same services as ours in the environment and stringent governmental policies.
Butchery / Meat Shop Business Plan – MARKET ANALYSIS
- Market Trends
The meat market is one that is constant no matter what as many people love taking meat or giving it to their dogs and other pets to eat. However, while a butchery/meat shop offers basic services; many more are beginning to add other services in order to be able to distinguish themselves from their competitors.
Most have started offering customers information about what kind of meat there are and how nutritional each part are in order to ensure that customers have the right information to make informed purchases.
Another trend is the fact that as a butcher or meat shop owner, you will need to know the yield you are likely going to get from a carcass. This might involve you getting the needed training in meat cutting that will allow you get the right knowledge in order to be able to control your operations.
Even though meat is consumed by everyone, certain customers (Jews and Muslims) prefer their meats prepared in certain ways. Also, in running this kind of business, you would need to know that several seasons such as the Lenten period might affect the sale of meat as more people prefer to eat fish during this period.
- Our Target Market
Even though vegetarians seem to increase daily, there are still a huge number of uncountable people that take meat and meat products. Even though we can easily restrict our target market to just a group of people, it would be wrong for us not to know for sure by carrying out a market research.
The aim of carrying a market research is to ensure that we have an idea of what the market will be expecting from us and what we are to expect from them as well. It would also allow us be able to draft suitable strategies in order to attract the right target market for our business.
From our result, we are in the butchery/meat shop business in order to be able to cater to the following groups of people;
- Dog owners
- Fast food restaurants
Our Competitive Advantage
Don Mayor Butchery/Meat Shop Inc just like every other business has been established to make profit by selling choice meat cuts and other meat products to its customers, and also being the preferred butchery/meat shop in Montgomery – Alabama, here in the United States of America. In order to achieve this however, it is vital that we come up with competitive strategies that will help us to compete favorably against our competitors in this sector of the industry.
Firstly, we are the first few butchery/meat shop that offers our customers enough information on the various parts of meat up for purchase, thereby allowing them to make the best informed information. Our shop is also one that is highly hygienic and adheres to standards set by the industry and also our personal standards as well, especially as we thrive on such high business practices.
Even though the butchery business does not require individuals with a high skill set, we are proud of the fact that we have assembled a management team that has a vast experience and thoroughly understand how to make a start-up grow and become a force to be reckoned with locally and nationally. Our management team not only understand our core values, they are also committed to ensure that all is implemented that will allow us achieve our goals and objectives.
Finally, we place a high value on employee, by ensuring that they are well paid with the best welfare package across similar start-ups not only here in Montgomery but all over Alabama as well. We understand that employees being well taken of and working in a conducive environment will more than enable us to not only achieve our goals and objectives but also compete favorably against our competitors.
Butchery / Meat Shop Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Don Mayor Butchery/Meat Shop Inc is every shoppers delight because not only are we established with the sole aim of making profit but of also ensuring that we are able to offer various services to all our various customers here in Montgomery and all over the state of Alabama as well.
Therefore, the areas where Don Mayor Butchery/Meat Shop Inc generates income are from the following;
- Sale of meat products such as boerewors, cold meat products, biltong and pickled meat
- Sale of pork, poultry, mutton, veal and other meat products
- Advisory services
The meat business is one recession proof business because no matter how bad the economy turns, people will always buy meat and other meat products.
Our business is located in Montgomery – Alabama, which is a very strategic area because there are a lot of households, hotels and restaurants here. This fact has left us quite optimistic in reaching our goal of not only generating enough income but also gaining enough profit within the first six months of our operations that will not only sustain our business but grow it as well.
However to b able to arrive at such conclusion, we took a critical examination of the meat sector in the food industry in order to accurately analyze our chances in the industry using several assumptions and data. We were able to come up with an accurate sales projection based on the information and reliable data we got not only from similar start-ups such as ours but also from other already established butchery/meat shops here in Montgomery – Alabama.
Below therefore are the sales projections for Don Mayo Butchery/Meat Shop Inc based on certain assumptions and data;
- First Fiscal Year-: $300,000
- Second Fiscal Year-: $550,000
- Third Fiscal Year-: $1,150,000
N.B: The above based projections were done based on what was obtainable in the industry and with certain assumptions such as no arrival of any major competitor in the same location within the period stated and strong economic period, so that more people could have funds to purchase meat and meat products. It should however be noted that should there be a change in the above conditions either positively or negatively, it could lead to an increase or decrease in the figures stated above.
- Marketing Strategy and Sales Strategy
Marketing is a very serious aspect of any business because not only do you get to generate revenue that will grow and expand your business, you also get to create awareness for your business, allowing more people to know your business and what it stands for.
Marketing is very important which is why a marketing budget is often set aside and strategies drafted in order to determine the best ways by which the company can generate revenue for itself and compete favorably against its competitors.
In view of this, we have engaged the services of a reputable marketing consultant who understands the kind of business we are into and the location where we are operating from, so as to conduct a market survey that will allow us understand what our target market wants from us and how best we can understand them. Also, the market survey will help us determine how best to penetrate the market in all the state we intend operating from.
The marketing consultant we have hire will help us draft marketing and sales strategies and will modify and also remove strategies that are bound to fail or be ineffective in the short and long run. We have empowered the marketing consultant to ensure that our corporate sales and marketing goals as a company are delivered in order for us to be able to win a large percentage of the available market here in Montgomery – Alabama.
Finally, our marketing executives have also devised several means to ensuring that we are able to gain a large share of the market via the use of technology. A powerful website has been created and our team will ensure that products and its prices are constantly updated. Also, our marketing team is in charge of our social media platforms and will try to win more customers from there.
In summary, the following marketing and sales strategies are what we intend to achieve at Don Mayor Butchery/Meat Shop Inc in order to sell our products;
- Ensure that we formally introduce our butchery/meat shop to stakeholders, merchants and important customers here in Montgomery – Alabama
- Throw a unique launching party in order to generate interest and capture the awareness of our target market
- Ensure that we advertise our butchery/meat shop in local newspapers, and on radio and television stations
- Use our official website to vigorously promote our butchery/meat shop
- Engage in direct marketing and sales to our target market
- Ensure that our business is listed in online and offline directories
Butchery / Meat Shop Business Plan – Publicity and Advertising Strategy
Creating the right awareness for our business is very important especially as we are running a business that is a highly stringent and delicate one due to the fact that if run in a bad way could affect our business adversely. Also, publicity for a business does not only ensure that more people are aware of the business, it also allows us to be able to generate revenue for our business whilst positively projecting our brand.
Because we understand how delicate how kind o business is and how important it is for us to create the right awareness, we have engaged the services of a brand consultant who understands our kind of business thoroughly and who knows the environment we are operating from well and will therefore draft the right publicity and advertising strategies that will push our business to the level that we want it to.
Therefore, the publicity and advertising strategies that will be used to promote Don Mayor Butchery/Meat Shop Inc are;
- Distribute colorful handbills and fliers in target areas
- Ensure that our staff members wear Don Mayor Butchery/Meat Shop customized wears and overalls
- Ensure that we place flexi banners in strategic locations in order for customers to start patronizing our products
- Use our official website to promote our activities especially times when we give discounts
- Place adverts in local newspapers, as well as on radio and television stations here in Alabama
- Use social media platforms such as Facebook, Instagram and Twitter to actively promote our butchery/meat shop business
Our Pricing Strategy
Setting the right price for our different products is very vital because not only would we need to settle on a price that is fair and affordable to our customers but one that also gives consideration to our business and ensure that we are not running at a loss. There are also other factors that we would take into consideration when determining the prices for our products, such as size of the product and what our competitors are offering.
In order to however attract enough customers to our business and also increase awareness for our business, during the first three months of starting our butchery/meat shop business, we would give all our clients a discount in prices. This we believe will also increase our patronage as most will refer us to others. Looking critically at these periods in question, we have come to the conclusion that even though we would have low profit during this period, we would not however be operating at a loss.
- Payment Options
Don Mayor Butchery/Meat Shop Inc intends to cater to all kinds of customers and due to this we intend to have different payment options that will cater to all our various customers and ensure that none is inconvenienced when it comes to payments.
Therefore the payment options we intend to use that will be made available in all our outlets are;
- Payments via cash
- Payment via Point of Sale (POS) Machine
- Payment via online payment portal
- Payment via check
The above payment options were deliberately chosen by us because of its convenience and ease of use for our customers as well as our business.
- Start – Up Expenditure (Budget)
Starting a standard butchery/meat shop business needs a good amount of finance and also allocating the finance to the right channels. There are certain aspects of the business where one is expected to spend the bulk of capital on in order for the business to be able to run successfully.
Therefore we intend to spend the bulk of our capital in procuring equipment, getting a vehicle and also paying employee salaries as well as utility bills for a defined period of time. Below are the key areas where we will spend our start-up capital;
- Total fee for registering a butchery/meat shop business in the United States of America – $750
- Obtaining of licenses, permits, accounting software and other legal expenses – $1,250
- Cost of hiring business consultant – $2,000
- Insurance coverage (general liability, health liability and workers’ compensation) – $2,000
- Operational cost for the first six months (employee salaries and utility bill payments) – $150,000
- Marketing promotion expenses for general business activities as well as for grand opening of our butchery/meat shop – $3,500
- Cost of purchasing equipment for use (slicing machines, knives and refrigerated display units) – $7,000
- Other start-up equipment (Disposable supplies such as plastic wrap, dish soap, butcher block paper, and Styrofoam trays, packaging materials) – $2,000
- Administrative start-up expenses (stationery, phones, computer and furniture) – $2,000
- Cost of getting beef from meat vendors and suppliers – $2,000
- Other start-up expenses (cash register, ventilation, signage and security) – $2,000
- Cost of leasing a facility for at least 2 years and carrying out renovations – $15,000
- Cost of purchasing a fairly used van – $3,000
- Cost of launching a website – $500
- Cost of throwing a launching party – $2,000
- Miscellaneous – $5,000
From the above breakdown, we would need the sum of $200,000 if we intend to start and run a butchery/meat shop that is not only successful and up to standard but sustainable as well here in Montgomery – Alabama. It should please be noted that the above amount will cater for the salaries of staff for at most six months as well as payment of utility bills. The amount also includes purchase of equipment for use, a vehicle as well as a facility to be leased for at least two years.
Generating Funding / Startup Capital for Don Mayor Butchery/Meat Shop Business
Don Mayor Butchery/Meat Shop Inc is a business that is owned and run by Don Mayor and his family. The butchery/meat shop has been in the family for years and so they would not like to welcome any external investors into the business. To this end, it has been decided that sourcing of the capital be restricted to few sources.
Therefore the areas where we intend to generate our start-up capital from are;
- Generate 30% from personal savings
- Generate 70% from bank
N.B: We have met our intention of generating $200,000 for our business as we got $30,000 from our personal savings. The bank agreed to our loan of $170,000 to be repaid at the end of 7 years at a 3% interest rate. The document approving this loan has been signed and we have been told that the money would be credited to our business account before the end of the week.
Butchery / Meat Shop Business Plan – Sustainability and Expansion Strategy
No one opens a business with the intention of having it fail in the end, which is why serious entrepreneurs lay plans that would ensure that the business remains sustained for as long as they want it and also expands as well. There are several factors that every entrepreneur should look into if they intend to run their business for a long time, and such factors include; building a solid business structure, ensuring a high retention of customers as well as having a solid re-investment strategy.
Building a solid business structure is very vital to the growth of the business and as such we will ensure that we go all out to get the right employees with the right skill set to work in the various positions and handle the different responsibilities that will be assigned to them.
We will ensure that our employees are well paid and have several incentive packages aimed at motivating and ensuring that they put in their best for us. We will also carry out periodical performance appraisals in order to ensure that hardworking employees get promoted. Also, we will ensure that all our employees project the image of our company positively at all times.
Without our customers, we will not be able to generate the needed revenue that will help our business grow and due to this we intend to ensure that all our customers are well treated in such a way that will cause us to retain a high amount of customers to our business and allow us be the preferred butchery/meat shop here in Montgomery – Alabama. We will also ensure that we reward loyal customers with discounts especially those who refer others to patronize our products and services.
Because we took a loan in order to be able to run our business, we will put in place effective strategies that will see us plough back a percentage of our earnings into our business in order to ensure that we have a solid financial base and bottom line and grow from there. We believe that the above three factors will be suitable for our expansion and efforts at sustaining the business for as long as we want it.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed