Table of contents [showhide] 1 Description of the business
- Selling of raw meat, chicken and eggs
- Sausage and cold meats
2 Upstream Businesses
3 Downstream Businesses
4 Competitors Khanya Store-Hem Drive Joe Slovo- Milnerton Thezi Cash Store-Nkomo Street
- Tuck shops in the neighbourhood, but the client will be the only one who will be selling from her home.
5 Marketing the business to clients
- She will have a buy and braai promotion when she opens the business and sell small pieces to braai.Then will give one a can of cool drink if they buy for e.g +-R30 a piece.
- Will drop invitations door to door, to notify people of her opening the business
Sell fresh meat inside the packets(trays) with low prices and to smile at customers.
6 The business inputs and outputs
- Inputs- She will be buying all the meat and chicken from the butcher and farm.
- Outputs-Raw meat,chicken and eggs to sell to customers
Freezer Clear Plastic Bags for Packaging
7 Setting up the business
- Will have to buy stock for specials
- She is working from home, she will therefore use the equipments that she already has
- Will buy red meat,chicken and eggs a day before starting to sell.
- Deliver notification to the community, prepare braai stands,wood,lighter to make fire.
Stock: Beef (16& R/kg)
Mutton (16&22R/kg) Sosage (16&22R/kg)
8 The manufacturing or production process
a) Call the supplier b) Fetch the order c) Pricing
9 Costing and bookkeeping
10 Running the business
11 Before beginning
12 Related articles
13 External links
14 Business Trials Description of the business
The business are going to sell off cuts of meat like: Afval, Sheep heads and livers
What tools or equipment are needed? Where can they be bought, and how much will they cost?
Table R200 Buckets R100 Dishes R100 Cleaning Material R20 Plastics R20 Gas Stoves R60 Client will buy tables, dishes and buckets from second hand stores and the rest from checkers or Pick'n Pay
How much space is needed to work from?
The client will run the business from her home in Middlepos and wont need much space for her business.
Where will the space be found, and how much will it cost to rent?
She will use her own house and will only need to pay for water (about R150 per month)
What sort of people will buy the product? Who are they and where do they live?
All the households of the local community will buy meat from the business. The people will mostly be from Middelpos and Hopland in Saldanha
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
Most clients will buy twice a week. I expect from them to come to my house, but I will do deliveries when required to keep my clients happy.
Upstream Businesses A list of businesses and ideas that provide the services and products that this business needs.
Downstream Businesses A list of businesses and ideas that this business could provide products for.
Competitors What major competitors will attract clients' spending away from the business' products?
There are three other ladies selling the same type of meat in the area: They are: Unice (Middelpos) Nohkaya(Middelpos) Thozama (Middelpos)
What prices and products do these companies have?
Afval R25 Sheeps Head R20 Livers R20
What makes them popular / unpopular?
These people are in business for a very long time
What do they do to attract customers? Specials? Interesting marketing / advertising?
Since there are other businsesses in the area, the customers can be attracted by the music they play for the shebeens.
The business will have specials from time to time to attrack new clients and to remind people about the business.
There will be no formal advertising. The business will only put posters at the community hall and public phone shops.
Which of the competitors stand out as being particularly good at what they do?
The one lady Nokhlaya is very good and popular
What can be done to stand out against them? What can be done that is more exciting / more interesting?
The owner of this business is going to do this: Italic textShe is going to ensure she provides fresh products Hygine is very important to her Good customer service
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)?
More traditional families (large families) The product will always stay more or less the same, the size will differ. Clients will always expect the same quality meat product
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
The demand will be higher in winter than in summer, but clients still buy meat in summer
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
Clients want the best quality products at the lowest possible prices.
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
They look for the best quality product and of course affordable prices.
Advertising will not be necessary (only in the startup fase). The client will have a signage board in front of her house.
Do the clients want the same things sold in the same way, or do they want things to change all the time?
Clients always want the samethings sold in the same way.
What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?
She will introduce her business by giving the first stock on credit. Advertising, put posters in taxis, informing community about the new business.
The business inputs and outputs List all of the inputs (products that are required to produce the products):
Client buys meat locally from Cartol: 1. Afval 2. Sheep heads 3. Livers
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
Only one supplier in Saldanha Cartol Meatmarket Saldanha Road Saldanha Tel. 022- Terms: Cash
List all of your outputs (products created by your business): After cleaning and packing the products the business will sell. Afval Sheep heads Livers
What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
Cost price Selling price Profit
Afval R10 R25 R15 Head R 7 R20 R13 Liver R15 R25 R10
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. The meat can not be sold after a week.
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):
The business will nead the following to start: Equipment: Gas, pot, bucket, table wood, mathes, or stove, plastic bags and cleaning material. Stock
How long will it take to get all of these things and how much will they cost to get?
It will take less than a day to buy everything. The cost wil not be mor than R500.
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
Water R150 Electricity R 50 Telephone R30 Transport R120
Total amount for fixed costs: R____200___________
How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?
No staff needed
What training will they need, how long will it take and how much will it cost?
The manufacturing or production process List every step, from start to finish, to produce the product
Buy stock Confirm the quantity/quality clean the product Place a selling price Sell the product to clients
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):
The client will do everything herself
What possible problems may happen during each step of the manufacturing process?
The biggest problem can be the unreliable transport, which will have a negative effect on the business.
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
The client will negosiate with fellow competitors, because all of us struggle to get transport, it will help if all of us can co-operate.
What is the maintenance program for all the equipment?
No maintenance necessary
What safety requirements are important for production?
Need to lock away all the equipments and stock A very hygine environment
How will quality control and client feedback be handled?
Quality control: Inspect meat after cleaning. Put purchase dates on product.
Client feedback: Will stay calm and patient. Always apologise when a client complain about product and exchange if necessary.
Costing and bookkeeping How many of each of the stock items can reasonably be sold each day (and month)?
20 afvalle per day 160 per month 20 Livers per day 80 per month 20 sheap heads per day 160 per month
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
yes, it is possible, no seasonal variation
What sort of pricing strategy will be chosen (cheapest or best)?
Best (highest that my clients can afford)
What profit margin will be chosen for the products
it will differ from product to product
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
Cost price Margin
Afval R10 R15 Heads R 7 R13 Livers R15 R10
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
Yes, it is still competitive
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
At least 10 of each item will be profitable
Set out the products, costs, margins and selling prices:
Daily Target Monthly Target Cost Price Margin Selling Price Total per Month
20 per day 20*20= 400 R 10 R 15 R 10 + R 15 = R25 = 400 x R25 = R 10 000
20 per day
R 7 R 13 R 7 + R 13 = R20 = 400 x R20 = R8000
20 20*20=400 R 15 R 10 R 15 + R 10 = R25 = 400 x R25 = R10 000
What trends are included in the projections?
Clients will always needs product
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.
The business will be open form 07H00 till 22H00 (home based) The owner will be responsible for each step of the business
Who will act as backup should the person responsible not be there? What do they need to act as backup?
The owners daughter will act as back up
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
Stock must be bought twice a week (mondays and thursdays)
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
The following must be paid on a monthly basis: Electricity, telephone and water
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?
The owner will communicate with the clients, because they are the ones that will be able to notice where she fails and they will be able to tell her if they want new products
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)?
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)
External links List links to outside websites that may be useful for anyone starting this business
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)
Business Name: African Meat Middelpos saldanha
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