The Thousand Rand Challenge Edit

Name and Contact details of cliënt:

Kroli Phumlani 5 Mpela St Kwanonqaba Mossel Bay

Cell: 073 893 1706 / 021 868 1700

Description of the business Edit

What exactly is it that is going to be sold or done? I am going to sell frozen fresh meat and veg. to people in my community. I will make up meat packages in defferent money value e.g. R30,00 or R50,00 packages. I will also sell fresh frosen vegetabels in the packages and soja to add value. I will buy meat in bulk from meat suppliers as well as fresh vegetables and soja. I will re-package these to a nice MEAL-IN-ONE frozen package that will be easy for the housewife to buy and cook. I will add value by taking weekly orders and deliver the packages to my clients homes. My Business will be called MASANDE FROZEN MEAT AND FOODS.

What skills are needed to do this? Where is this taught and how much will it cost? Product knowledge and selling skills. I will need to be able to cut meat if the supplier does not do it, or do mince meat that is already pre-paired. I will need to work the vegetables until ready to freeze. I will need sell and marketing skills

What tools or equipment are needed? Where can they be bought, and how much will they cost? Freezer, weighing scale, cutting knives, packaging material, bicycle for deliveries, marketing pamphlets. These items are easily available. I will buy a good second hand freezer from one of the many second hand stores in town. I will buy a bicycle later as the business grows. Freezer R350 Small scale R50 Knife R30 Packaging material R30 Pamphlets R200 Stock to start R300

How much space is needed to work from? I can work from home from my kitchen table

Where will the space be found, and how much will it cost to rent? Work from home. No cost except we will use more electricity

What sort of people will buy the product? Who are they and where do they live? I will begin with all the people in my Neighbourhood, and surrounding area.

How much and how often will they buy? Will they come to the shop or will it be necessary to deliver? I will sell from home. I will tell and show people my products and do marketing. By doing this marketing and word-of-mouth people will come to buy from me. I will also deliver on order. Meat is in demand and people would like to eat meat every day but I think a weekly permanent order per household is possible.

Upstream Businesses Edit

A list of businesses and ideas that provide the services and products that this business needs.

  • Meat and vegetable suppliers
  • Packaging suppliers
  • Transport

Downstream Businesses Edit

A list of businesses and ideas that this business could provide products for.

  • Delivery services(out-source)
  • Distributing agents
  • Spaza shops

Competitors Edit

What major competitors will attract clients' spending away from the business' products? The area that I target do not have any competitors exept Spaza Shops. They are expencive and do not do a MEAL-IN-ONE. I will try and make spaza-shops my clients. They can buy from me and re-sell to their clients. I will work on the pricing to see how this can be a win-win situation

What prices and products do these companies have? Spaza-shops that sell frozen foods have a mark-up of about 20-30 % Above normal trading prices from wholesalers

What makes them popular / unpopular? Spaza-Shops have a clients base that are loyal to them. They are also close to people's homes.

What do they do to attract customers? Specials? Interesting marketing / advertising? Nothing I could see. They however relay on their clients loyalty

Which of the competitors stand out as being particularly good at what they do? I could not see one particular competitor that stand out.

What can be done to stand out against them? What can be done that is more exciting / more interesting? Go that extra mile and give people what they want. Do the packaging as they request it, on order. Quality products price right. The prices people will be pre-pair to pay is crucial in this business. If the price is to high the products will not sell.

Marketing the business to clients Edit

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)?

Anyone will be able to buy my products because I will be selling them the best-frozen meat. I will repack to their needs and make sure the prices are low enough for people to be able to buy from me.

How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)? Meat is everyday food and I think very much the same all year round.

Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)? The best quality at the best price. I would think that price will play a very important role.

How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest? I will call on client's homes and hand out pamphlets. Positioning advertising boards to the right places. Making specials on the products, Word-of-mouth will be very important

Do the clients want the same things sold in the same way, or do they want things to change all the time? Some people would like the same thing and quality all the time others would like changes and bigger choices to make from. I will learn the needs of clients as I go on

What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost? I will go from home to home and have specials on my products. Buy one product and get another for free. I will give 100% marketing to my business

The business inputs and outputs Edit

List all of the inputs (products that are required to produce the products): Fresh meat.(mince & blocks for stew, ect) Chicken pieces Ostrich meat Fresh Vegetables Soja Packaging material Spices

List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.): Lloyds Suppliers in Mosselbay Vredebest Packaging in Mosselbay for packaging material Lloyds Meat supplies, Mosselbay Fruit & Veg stores for vegetables Mostrich, Mosselbay for Ostrich Meat I will make contact with farmers in the area later when the business can handel bigger supplies and I could buy direct from the farmer. List all of your outputs (products created by your business): Item A: 250g beef mince meat + 500g vegetables + 100g Soja + small spices package all packed separately in one food box and frozen.(MEAL-IN-ONE A) Item B: 200g beef mince meat + 200g Ostrich mince + 100g soja + 1kg Vegetables + spices all packed separately in one food box and frozen (MEAL-IN-ONE B) Item C: 450g Beef chucks + 100g pork chucks + 500g vegetables + spices All packed separately in one food box and frozen.(STEW-IN-ONE C) Item D: 1kg Chicken pieces + 500g Vegetables + Spices + all packed separately in one food box and frozen( OVEN-BACK-IN-ONE D) The above is just some of the ideas at this stage. I will learn my clients need as I go on.

What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)? Item A: sell at R45,00 cost R25,00 = profit R20.00 Item B: Sell at R50,00 cost R30,00 = profit R20.00 Item C: Sell at R55,00 cost R35,00 = profit R20.00 Item D: sell at R55,00 cost R35.00 = profit R20.00 I want to keep things simple in the beginning and will work on an fixed profit per sale.

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, sold within 3-6 months. The shelf-life of frozen food. Frozen veg. also have a shelf live and I will see how things turn out.

Setting up the business Edit

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): Buy a freezer. Buy Stock, that is Meat, Soja, Vegetables, ect. Get cooking recipes and get them printed. Add these receipts to each products. Buy a small scale. Buy packaging material. Print pamphlets. Buy or rent a bicycle for deliveries (walk for a start). Start doing marketing

How long will it take to get all of these things and how much will they cost to get?

A few days to get started. One day planning and one day buying and a day to re-package and start marketing.

List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages): Electricity R100.00 p/m Telephone R 100.00 p/m Transport R100.00 p/m Other R 50.00 p/m

Total amount for fixed costs: R__350.00 p/m_____

How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)? I will do all myself for a start.

What training will they need, how long will it take and how much will it cost? I have the skills. Cut and pack meat and veg. Marketing skills will be leaned as time goes on.

The manufacturing or production process Edit

List every step, from start to finish, to produce the product Buy fresh meat and veg. Weigh meat in portions as per recipes and place in white polystyrene plates and plastic bags. Cut and pre-pair the veg. as if it will be cooked. Place in pot and hot water and cook for 1 minute, take out, cool, weigh and place in plastic bags (one type of veg. per bag.). Put spices in small plastic bag. Put soja in small plastic bag. Put all the bags needle in a food or meat box and freeze as a meal-in-one. Add recipes in box for cooking instructions.

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): I will do everything myself in the beginning and I will get someone to help me as the business grow.

What possible problems may happen during each step of the manufacturing process? I will have to plan carefully but I can't think of problems now.

What solutions can be identified for these problems? How much will they cost and how long will they take to fix? n/a

What is the maintenance program for all the equipment? n/a

What safety requirements are important for production? Working with food always requires a clean environment and working space. There is a health risk if things are not clean and properly kept clean at all times.

How will quality control and client feedback be handled? I will handle it myself and deal with them as they come up.

Costing and bookkeeping Edit

How many of each of the stock items can reasonably be sold each day (and month)? 5 meal-in-one packages a day for a start or up to 120 per month (6 days a week)

Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)? I think it will be more or less the same. Fridays (pay-days) will sell more than in the middle of the week.

What sort of pricing strategy will be chosen (cheapest or best)? Cheap but good value and quality

What profit margin will be chosen for the products To start with I will try to make R20 profit per package or Meal-in-one. Keep things simple

Write down the cost prices plus the margin for each stock item you will sell, and the selling price Item A: sell at R45,00 cost R25,00 = profit R20.00 Item B: Sell at R50,00 cost R30,00 = profit R20.00 Item C: Sell at R55,00 cost R35,00 = profit R20.00 Item D: sell at R55,00 cost R35.00 = profit R20.00

Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much? Yes, the prices are good. Frozen meat and other products are about 10-20% more expensive. My mark-up is low to make sure my clients can buy from me.

Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?

I would like to sell a least 5 packages (meal-in-ones) a day or get orders of 30 per week.

Set out the products, costs, margins and selling prices: See above


Daily Target

Monthly Target

Cost Price


Selling Price

Total per Month

Item A






= R5760.00

Item B






= R6000.00

Item C






= R6000.00

Item D






= R6600.00

What trends are included in the projections?

Running the business Edit

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.

Production: Buy meat and veg. Weigh meat and place in plastic bags. Cut and pre-pair the veg. as if it will be cooked. Place in pot and hot water and cook for 1 minute, take out, cool, weigh and place in plastic bags (one type of veg. per bag.). Put spices in small plastic bag. Put soja in small bag. Put all the bags in an food or meat box and freeze and a meal-in-one. Add recipe in box on cooking instructions. Put in freezer for 2 days to freeze properly.

Marketing and delivery: Go from house-to-house with frozen packages in cool-box and show the meals to clients and ask them to buy or to place an order for later the week. Maybe they can pay a deposit so long on an order. Leave a pamphlet with contact number, price list, etc for client.

Who will act as backup should the person responsible not be there? What do they need to act as backup? The business will be to small in the beginning to have employees. I will handle everything myself but have a family member who will be able to help me with shopping.

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required? The 3 major processes are Buying Stock, Re-package, Marketing & delivering

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required? I will do the financial planning and writing down of financial activities.

What is the schedule for training and motivating staff? n/a

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need? I will be responsible and I will speak to clients to see what they need and want.

Before beginning Edit

List some of the support services available (legal, business and other) that might be needed In this case I have my Mentor from the R1000 project to help me.

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)? I don't think that there is specific law now but as the business grow I will have to speak to the local Department of Health how will set guidelines. There will be certain Health regulations I will need to adhere to.

Related articles Edit

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External links Edit

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Business Trials Edit

List your name if you started a business based on this plan, where you started the business, and how you did


  • BUSINESS COACH: THERON GRABE, Boulevard Entrepreneur Academy, Mosselbay.

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