Meat Vending Business Plan

EXECUTIVE SUMMARY contrast NameWENDORS message Vending Business AddressBISU Bilar Campus Zamora, Bilar, Bohol Nature of BusinessMeat Vending do of OwnershipSole Proprietorship Prop wiznts Wendell Doria VISION A high superior seam that forefronts in providing fantabulous services to the customers and to be one of the top most well greetn producer of substance non entirely in our town but all over Bohol and the Philippines. MISSION To satisfy the customers needs and retentiveness the strong relationship with the customers as well as improving the services we offer. GOALS 1.Maintain the safe reputation of the business. 2. To decorous the reasonable make profit by the end of the year. 3. To meet the highest satisfaction rate from the customers. 4. To offer the high hat quality meat. Business overview Meat offers valuable nutrients including protein, iron, zinc and b vitamins. (according to the American meat institute. ) Your body needs proteins to build healthy muscles, finger cymbals and skin as well as produce hormones and synthesize vitamins . Meat provides you with home-iron a type of iron that is easier for your body to absorb and not found in non meat originations similar veggies and beans.Zinc helps your immune systems function properly while the B vitamins group helps regulate the immune systems an release energy. pork barrel is the edible flesh of domesticated hog or consume. It is the meat from the pig/swine/hog meant to be eaten fresh. usance of pork in moderate quantities is helpful in gaining energy. It is good for skin, eyes, nervous system, bones and mental per plaster castance. expenditure of pork also ensures better immunity to body due to presence of essential antioxidants. The colours of the meat and the fat of pork argon regarded as more appetizing, while the taste and smell argon set forth as sweeter and cleaner.It is also considered easier to digest. In rural tradition, pork is shared to celebrate important occasion and to form bonding. Pork is a choice of protein that can satisfy both the gourmand and diet-conscious consumer. Pork has been a truly popular source of food all through antiquity. Pork isnt fatty meat in fact, its one of the leanest meats available. Pork is also an important source of iron, zinc and protein. Pork is a food choice that is just as good for little ones as for adults and teenagers.Its high nutritional value contributes to kids higher need for proteins, minerals and vitamins passim their growth, and reinforces their immune system. Following are some the significant nutritional facts with regard to pork * Pork has a high mineral content of Phosphorus, Selenium, Sodium, Zinc, Potassium and Copper. * The two minerals which are present in good quantities are Iron and Magnesium, while Calcium and Manganese are found in traces lonesome(prenominal). * Pork is highly enriched with Vitamin B6, Vitamin B12, Thiamine, Niacin, hepatoflavin and Panatothenic Acid.However, Vitamin A and Vitamin E are found in very small amounts. MARKETING ASPECT foodstuffplace Situation Pork is in high demand especially in the school days since the physical object market place are the eating houses, faculty and staff, students, canteen and kinsperson consumers in and out of the school campus. The restaurant proprietors are of high percentage of demand because the students prefer to buy viands in the restaurants and canteen in all meal than cooking for their own. And because of that, they are in need of pork for their additional menu as their source of income as well. Market NeedsThe project provides consumers quality pork and lechon that suit their daily intake. This aims to fulfil the benefits important to consumers. It impart also provide quality, leaner and fresh pork as a staple food and de coloreds once a workweek to the target market that the take chances would be a steady supplier set Market The target market are those individuals who would like to eat meat . The possible customers are restaurant owners, canteen, faculties and staff, students, household customers who are volitioning to buy and pay at a reasonable price. Target Demand depict 1. Target Demand Supply of Raw MaterialsThe owner will purchase pig weighing 60-110 kgs for both tanning from family backyard raisers and Carmen Public Market every week. To assure for a steady supply, the go will take in a steady supplier and purchase it three days before the operation. Supply of the Proposed Product The WENDORS monger business will supply once a week to the target market like restaurant and canteen, specifically every Tuesday for regular schedule. The venture also accepts orders.. Product Offering The proposed meat vending will sell pork and separate parts. It will be de wearr directly to the target market .The principal(prenominal) target markets are the restaurant owners and canteen, faculty and staff. It will also offers by-products of pork such as the head, intestine s, liver and feet. market Strategy The venture applies some strategy in marketing the product. The most risky of move up this kind of business is the collection of sales. The business cannot assure of deoxycytidine monophosphate% cash even though that the venture will make a policy that it should be in cash basis. So the venture will allocate an amount in case of the delay of payment. Venture will fairly defend customers and practice a personalized service to its customers and try to believe on the aying customers are always right. . Marketing Mix The proposed business is comprised of the following approaches to product, price, place of distribution and promotion. Product. Pork and some parts of the pig such as the head, liver, intestines and feet are the main products to be offered to the potential target market. Pricing. It should have reasonable price in order to develop market. The customers who paid in cash bases can avail discounts of 10% for the pork and separate part. T he customers who apply accredit and instalment basis will be condition 7 days to pay. The pricing will greatly depend on average market price.Place of Distribution. The product can reach to the customers through direct selling. The product will be delivered to the possible target market in the scope area. Promotion. The venture will use posters and stickers. It will also engage in canvassing to the target market for the adjacent operation. SWOT Analysis Strengths * Presence of skilled workers * Right location * High demand * High quality meat * High level of personalized service Weaknesses * Limited current wholesale accounts. * No debunk area or permanent location. * The supply of meat is seasonal. * High percentage of debt or in credit terminal figure. Opportunities * Few competitors Possibilities of good profit * High demand Threats * Shortage of raw stuffs at a given time * Increasing economic status * unfavorable government law * Swine deceases Channel of Distribution blu eprint 2. Channel of Distribution (Direct selling) give in 1. Pricing Strategy Pork currency Basis (P) Credit Basis(P) walk 100. 00 P110. 00 Meat with bones 170. 00 one hundred eighty. 00 liver-colored 170. 00 180. 00 bowels 80. 00 90. 00 Feet 120. 00 130. 00 Demand and Supply Analysis Monthly Demand June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April whitethorn n 2 2 2 2 3 3 4 3 2 2 2 2 90 90 90 90 90 90 90 90 90 90 90 90 Q 180 180 180 180 270 270 360 270 180 180 180 180 check the table represents the monthly demand for pork (averaging) wheren= figure of speechofpigs q=no. of kilos Q=representstotaldemandforyourproduct. Table 6 Projected Monthly Sales(P) Months sales January 36,396. 00 February 24,264. 00 March 24,264. 00 April 24,264. 00 whitethorn 24,264. 00 June 24,264. 00 July 24,264. 00 alarming 24,264. 00 September 24,264. 00 October 36,396. 00 November 36,396. 00 December 48,528. 00 centre 351,828. 00Note the supra table represents the monthly sal es technical foul ASPECT Operation Strategy Since the proprietor had no experience active slaughtering a pig he decided to assume an expert person in this field . The proponent had talk to Mr . Edie Mangayaay to help us in this matter. He is the one to slaughter the pig with the agree salary of P5. 00/kg of live pig. It is not necessary to build our own slaughter house because it is quite expensive and time addressly, we have agreed that the operation will be done in proponents house . The place is so appropriate for slaughter because of its abundant water supply and large area.The proponents will directly deliver the product to the target market once a week. . Production Process Buying . The venture will first purchase live pig as a raw material for operation. The purchaser will go to the suppliers every week and negotiate the price per kg. of live weight. Then it will be transported for slaughtering and roasting. Slaughtering. It will be done in the butchers house. Since, the p roponents are not expert in this activity the venture will hire an expert slaughterer. Packing. After slaughtering the pig, it will be chopped in any cuts as what the orders required.It will be packed in plastic cellophane after weighing. Distribution. The packed pork will be delivered and distributed to the target market according to their order and suggested cuts and part of pig. Figure 3. Production Process Table 2. Total Labor Requirement. rank Number Monthly Salary (P) Total Annual Salary(P) Manager/Cashier 1 500. 00 6,000. 00 Distributor/ headcounter 1 400. 00 4,800. 00 Purchaser/Collector 1 400. 00 4,800. 00 Total 4 P 2,500. 00 P15,600. 00 (note operation is twice a week) Table 3. Fixed Investment and wear and tear Charges Equipment/tools Qty. Price/unit (P) Total (P) Life Span depreciation cost (P) Monthly depreciation Weighing Scale 1 1,200. 00 1,200. 00 3 400. 00 33. 33 Styrofoam box 2 500. 00 1,000. 00 1 1,000. 00 83. 33 Good knife 1 450. 00 450. 00 1 450. 00 37. 50 TO TAL P2,650. 00 P1,850. 00 154. 16 Table 4. Operation Schedule. Days Time Activities Monday 800 a. m. -1000 a. m. Slaughtering of pig Wednesday 300 p. m. -500 p. m. Roasting Note The table above is the regular schedule of the operation. Table 2. salute of Operation. Monthly (P) Direct Material 17,100. 00 Direct Labor 900. 00 window pane 1,360. 00 chat 300. 00 Total cost of operation P19,660. 00 Table 3. Administrative and Selling write offs. Monthly(P) Depreciation of operating equipment 154. 16 Supplies 133. 00 Total selling and administrative expense P 287. 16 Table 7. Supplies for the whole year outlay Description Units Unit monetary value (P) Total Cost (P) Journal, Ledger, Record book 4 packs 35. 00 105. 00 Calculator 1 pc 150 150. 00 Ball pens 15pcs 5. 00 75. 00 Pencils 6 pieces 6. 50 39. 00 Bond Paper-Short 1ream 220. 00 220. 00 fastenr 1 pc 72. 00 72. 00 Staple Wire 5 boxes 12. 0 60. 00 Liquid Eraser 3 pieces 40. 00 120. 00 Plastic Cellophane 25 packs 30 750. 00 Total P1,591. 00 Note The above office supplies are to be used for one year. Communication (Cellular Phone) This is necessary to maintain good connection with the customers and the proprietor itself so that there will be a good relationship betwixt them. It is one of the best asset of the venture in enhancing their customer service and personalized relationship with the customer because this will help a vision in achieving their goals and aside from that it will help a lot in communicating each employees. This would help customers and the owners in the distribution of the products. The venture will used talking N Text Network with an estimated monthly bill of P300. 00 load. ecstasy The business earnings depend on the distribution and selling of the finish products. To reach the customers location or selling areas, the cost of transportation will be allocated. Good channel in the transportation of the products lies the business growth. Its only delivering once a week and purcha se raw material once a week. Table 8. Transportation Expense Transportation Expense Rate per kg. nd head (P) Kgs and no. of person Weekly Expense (P) Monthly Expense (P) PorkFreight of the Purchased hogget for slaughter 1. 00 90 kgs 90. 00 180. 00 Transportation of the Purchaser 150. 00 1 150. 00 300. 00 Distributors/Collectors Transportation 100. 00 1 100. 00 200. 00 TOTAL P340. 00 P680. 00 Table 9. Projected Monthly Sales of Pork Sales of a 70 kgs. of pig Pork Percentage Weight, kg. Price/kilo (P) Weekly Sales(P) Monthly Sales(P) Meat w/ bones 65% 45. 5 P170. 00 P7,735. 00 P30,940. 00 wit 8% 5. 6 100. 00 560. 00 2,240. 00 Liver 3% 2. 170. 00 357. 00 1,428. 00 Intestine 5% 3. 5 80. 00 280. 00 1,120. 00 Feet 6% 4. 2 120. 00 504. 00 2,016. 00 TOTAL 87% 60. 9 P9,436. 00 P37,744. 00 Sales of a 100 kgs. of Pig pork Percentage Weight kgs. Price/kilo(P) Weekly sales(P) Head 8% 8 100. 00 800. 00 Meat /bones 65% 65 170. 00 11,105. 00 Liver 3% 3 170. 00 510. 00 Intestine 5% 5 80. 00 400. 00 Feet 6% 6 120. 00 720. 00 TOTAL 87% 87 kg. 13,535. 00 Sales of a 80 kilos of pig Pork % Weight kg Price per kilo(P) Weekly sales(P) Head 8% 6. 4 100. 00 640. 00Meat/bones 65% 52 170. 00 8,840. 00 Liver 3% 2. 4 170. 00 408. 00 Intestine 5% 4 80. 00 320. 00 Feet 6% 4. 8 120. 00 576. 00 Total 87% 71. 2 kg. 10,784. 00 Sales of a 90 kilos of pig Pork % Weight kg Price per kilo(P) Weekly sales(P) Head 8% 7. 2 100. 00 720. 00 Meat/bones 65% 58. 5 170. 00 9945. 00 Liver 3% 2. 7 170. 00 459. 00 Intestine 5% 4. 5 80. 00 360. 00 Feet 6% 5. 4 120. 00 648. 00 Total 87% 78. 3kg. 12,132. 00 Purchases Months Purchases January 25,650. 00 February 17,100. 00 March 17,100. 00 April 17,100. 0 May 17,100. 00 June 17,100. 00 July 17,100. 00 August 17,100. 00 September 17,100. 00 October 25,650. 00 November 25,650. 00 December 34,200. 00 TOTAL 247,950. 00 Note the following are the purchases of live pig every month P95 per kilo. Proportion of a Live Hog Not all of the pig is edible p ork. On average, about 87% of a hog make it from the pen to the pan. A 70-kg hog will yield almost 60. 9 kgs of retail cuts. Around 13% of a hogs live weight is unpalatable product removed during the slaughter and dressing procedure bringing our 70 kgs. live hog to 60. kgs. dressed. The other internal organs, hair, blood, and other inedible products account for most of this loss. Once the carcass is sanitarily dressed, it is hung on a prepare and placed into a cooler where it is quickly chilled after cutting. ORGANIZATIONAL ASPECT Legal Form The proposed business will be in a sole proprietorship form. It is a business in which the owner is also the employees at the selfsame(prenominal) time. And because of multi task the proprietor hires an part time employee. The duties is divided according to their expertise/stability and have equal input to major decisions.The venture is owned by Wendell B. Doria. Organizational social structure Figure 4. Organizational Structure Responsib ility Matrix Position Qualifications Responsibilities Owner * Formulate short term and long term plans, * develops strategies to guide employees towards attaining goals and objectives, *makes major decisions concerning the operations, *implement policies assigns tasks to be accomplished by employees * the owner is the same time the cashier and bookkeeper Distributor- * hardworking and industrious * deliver the products to the target market Canvasser/Purchaser . * hardworking, * know to negotiate other people, * physically fit * canvass orders for the next operation and * purchase raw material Collector-. * industrious *hardworking * know basic Mathematics * collect receivables Butcher/Labor- Mr. Edie Mangayaay * physically fit, *hardworking, expert on slaughtering and roasting, * has experience on the said activities * slaughter the pig * roast the pig, * cut the pork and roasted pig Table 14. Project Timetable Activities Days 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Preparing Business Plan getting funds Securing Business set aside Purchasing of equipment and supplies Purchasing of raw material Start of operation establishment and Legal Requirements The following are the fees to the government for the permits clearances Table 15. Licenses and Permit Type of business license/permit/registration Fees (P) Mayors Permit 800. 00 Police Clearance 100. 0 Barangay Clearance 100. 00 TOTAL P 1,000. 00 FINANCIAL ASPECT Financial assumptions 1. Revenue all revenue are derived from the sale of meat 2. Cost of raw material, supplies salaries remains constant throughout the period. 3. Labor Transportation expense will depend on the number of kilos slaughtered 4. The business assumes cash basis but also accept credit within a limited period. Project Cost I. Pre-Operating Expense Business Plan Preparation1,000. 00 Business Permit and Licenses1,000. 00 Total Pre-Operating Cost 2,000. 00 II. F ixed Assets RequirementTools and Equipment 2,650. 00 Total Fixed Assets Requirement 2,650. 00 III. Working Capital Requirement-1 month operation Transportation 680. 00 Communication 300. 00 Supplies Expense 133. 00 Salary Expense 2,500. 00 Purchasing of Pigs 90 kgs. X 2 Live weight 95 kgs. 17,100. 00 Labor Expense 900. 00 Total Working Capital 21,613. 00 TOTAL PROJECT COST P 26,263. 00 Income description ? June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. April May TOTAL Sales 24,264. 00 24,264. 00 24,264. 00 24,264. 00 36,396. 00 36,396. 00 48,528. 00 36,396. 00 24,264. 00 24,264. 00 24,264. 00 24,264. 00 351,828. 00 Less cost of goods sold 17,100. 00 17,100. 00 17,100. 00 17,100. 00 25,650. 00 25,650. 00 34,200. 00 25,650. 00 17,100. 00 17,100. 00 17,100. 00 17,100. 00 247,950. 00 Gross Profit 7,164. 00 7,164. 00 7,164. 00 7,164. 00 10,746. 00 10,746. 00 14,328. 00 10,746. 00 7,164. 00 7,164. 00 7,164. 00 7,164. 00 103,878. 00 Less Expenses ? ? ? ? ? ? ? ? ? ? ? ? 0. 0 Sell Admin Exp. 4,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 2,633. 00 33,596. 00 communi 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 300. 00 ? Depreciation 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 154. 16 ? Transpo expense 680. 00 680. 00 680. 00 680. 00 1,020. 00 1,020. 00 1,360. 00 1,020. 00 680. 00 680. 00 680. 00 680. 00 9,860. 00 Labor Expense 900. 00 900. 00 900. 00 900. 00 1,350. 0 1,350. 00 1,800. 00 1,350. 00 900. 00 900. 00 900. 00 900. 00 13,050. 00 Total Expenses 6,667. 16 4,667. 16 4,667. 16 4,667. 16 5,457. 16 5,457. 16 6,247. 16 5,457. 16 4,667. 16 4,667. 16 4,667. 16 4,667. 16 61,955. 92 Net Profit 496. 84 2,496. 84 2,496. 84 2,496. 84 5,288. 84 5,288. 84 8,080. 84 5,288. 84 2,496. 84 2,496. 84 2,496. 84 2,496. 84 41,922. 08 Note The table shows the monthly net income Ca sh Flow ? Pre Op June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May CASH INFLOW ? ? ? ? ? ? ? ? ? ? ? ? ? Owners Equity 26,263. 00 ? ? ? ? ? ? ? ? ? ? ? ? Cash Sales ? 24,264. 00 24,264. 00 24,264. 00 24,264. 00 36,396. 00 36,396. 00 48,528. 00 36,396. 00 24,264. 00 24,264. 00 24,264. 00 24,264. 00 Total cash Inflows 26,263. 00 24,264. 00 24,264. 00 24,264. 00 24,264. 00 36,396. 00 36,396. 00 48,528. 00 36,396. 00 24,264. 00 24,264. 00 24,264. 00 24,264. 00 CASH OUTFLOW ? ? ? ? ? ? ? ? ? ? ? ? ? Pre Op. 2,000. 00 ? ? ? ? ? ? ? ? ? ? ? ? Fixed Asset 2,650. 00 ? ? ? ? ? ? ? ? ? ? ? ? Purchase ? 17,100. 00 17,100. 00 17,100. 00 17,100. 00 25,650. 00 25,650. 00 34,200. 00 25,650. 00 17,100. 00 17,100. 00 17,100. 00 17,100. 00 Labor exp. ? 900. 00 900. 00 900. 00 900. 00 1,350. 00 1,350. 00 1,800. 00 1,350. 00 900. 00 900. 00 900. 00 900. 00 Selling and admin ? 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 2,933. 00 Transpo ? 680. 00 680. 00 680. 00 680. 00 1,020. 00 1,020. 00 1,360. 00 1,020. 00 680. 00 680. 0 680. 00 680. 00 Total Cash outflow 4,650. 00 21,613. 00 21,613. 00 21,613. 00 21,613. 00 30,953. 00 30,953. 00 40,293. 00 30,953. 00 21,613. 00 21,613. 00 21,613. 00 21,613. 00 ? ? ? ? ? ? ? ? ? ? ? ? ? ? Net Flow cash 21,613. 00 2,651. 00 2,651. 00 2,651. 00 2,651. 00 5,443. 00 5,443. 00 8,235. 00 5,443. 00 2,651. 00 2,651. 00 2,651. 00 2,651. 00 Add. Beg. balance 21,613. 0 24,264. 00 26,915. 00 29,566. 00 32,217. 00 37,660. 00 43,103. 00 51,338. 00 56,781. 00 59,432. 00 62,083. 00 64,734. 00 determination cash balance 21,613. 00 24,264. 00 26,915. 00 29,566. 00 32,217. 00 37,660. 00 43,103. 00 51,338. 00 56,781. 00 59,432. 00 62,083. 00 64,734. 00 67,385. 00 BALANCE SHEET ? Pre-op. June July Aug. Sept. Oct. Nov. D ec. Jan. Feb. Mar. April May Cash 21,613. 00 24,264. 00 26,915. 0 29,566. 00 32,217. 00 37,660. 00 43,103. 00 51,338. 00 56,781. 00 59,432. 00 62,083. 00 64,734. 00 67,385. 00 Fixed Asset 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 2,650. 00 Depreciation ? (154. 16) (308. 32) (462. 48) (616. 64) (770. 80) (924. 96) (1,079. 12) (1,233. 8) (1,387. 44) (1,541. 60) (1,695. 76) (1,849. 92) Total current assets 24,263. 00 26,759. 84 29,256. 68 31,753. 52 34,250. 36 39,539. 20 44,828. 04 52,908. 88 58,197. 72 60,694. 56 63,191. 40 65,688. 24 68,185. 08 Pre operating exp. 2,000. 00 ? ? ? ? ? ? ? ? ? ? ? ? Total assets 26,263. 00 26,759. 84 29,256. 68 31,753. 52 34,250. 36 39,539. 20 44,828. 04 52,908. 88 58,197. 72 60,694. 56 63,191. 0 65,688. 24 68,185. 08 Liabilities and owners equity ? ? ? . ? ? ? ? ? ? ? ? ? Total Liabili ties ? ? ? ? ? ? ? ? ? ? ? ? ? Owners Equity 26,263. 00 26,263. 00 26,759. 84 29,256. 68 31,753. 52 34,250. 36 39,539. 20 44,828. 04 52,908. 88 58,197. 72 60,694. 56 63,191. 40 65,688. 24 Income ? 496. 84 2,496. 84 2,496. 84 2,496. 84 5,288. 84 5,288. 84 8,080. 84 5,288. 4 2,496. 84 2,496. 84 2,496. 84 2,496. 84 TOTAL LIABILITY AND CAPITAL 26,263. 00 26,759. 84 29,256. 68 31,753. 52 34,250. 36 39,539. 20 44,828. 04 52,908. 88 58,197. 72 60,694. 56 63,191. 40 65,688. 24 68,185. 08 RETURN ON INVESTMENT ROI = NET INCOME/TOTAL INVESTMENT x 100 =41,922. 08/26,263. 00 =1. 665 x 100 =160% PAYBACK PERIOD PP = Total Investment /Annual ave. Income =26,263. 00/41,922. 08 =0. 63 old age Break Even Analysis=F/CMuF / CMr =3,337. 16 / 33. 803,337. 16 / =98. 73klsPhp. 13,295. 46