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The Thousand Rand Challenge Business Plan Template Edit

Name and Contact details of cliënt: Zandisile Arthur Komani 33 Munyu St Kwanonqaba Mossel Bay 6506

Tel: 044 693 3426 Cell: 083 4939 125


Description of the business Edit

What exactly is it that is going to be sold or done?

Frozen Meat, buying and repacking mince meat with beef mince, Soya, vegetable or rice

What skills are needed to do this? Where is this taught and how much will it cost?

Knowledge and communication and basic skills on frozen foods

What tools or equipment are needed? Where can they be bought, and how much will they cost?

Second hand deep freezer: R380, 00 Pawn Shop Round division tray : R8, 15 x 10 at A&S Catering wholesalers Breyqni mixed spice : R34, 62 kg at A&S Catering wholesalers Plastic dispensary wraps: R63, 01 for 1kg also at A&S wholesalers

How much space is needed to work from?

Enough working and storage space

Where will the space be found, and how much will it cost to rent?

Will work from my house, there is enough space

What sort of people will buy the product? Who are they and where do they live?

Housewife's, bachelors, mother's etc.

How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?

It depends on client, I do deliveries as well


Upstream Businesses Edit

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

  • Butchery's like: Bartelsfontein butchery, Vosburg, Bartenhorst butchery
  • Pick and Pay
  • Checkers and Shoprite


Downstream Businesses Edit

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

  • Small businesses
  • Private sector
  • Everyone is welcome

Competitors Edit

What major competitors will attract clients spending away from the business products?

There aren't exactly any competitors at this moment because I would be the only one in this market of frozen meats But the closes would be butchery's

What prices and products do these companies have?

They have expensive products with constant prices They charge R235.00 per packet of frozen food staffs.

What makes them popular / unpopular? They are well known and situated in busy areas

What do they do to attract customers? Specials? Interesting marketing / advertising?

They advertise locally and are well known with the community

Which of the competitors stand out as being particularly good at what they do?

Highway Park Butchery

What can be done to stand out against them? What can be done that is more exciting / more interesting?

I'm going to bring my product and electric services closer and stay focused

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)?

Prices would be consistent and affordable; every package will have the necessary stamps, date and labels

Everybody is welcome to make use of my services and it is not necessarily focused on anybody in specific

How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?

Throughout the year

Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?

They want the best high quality products that tastes good

How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?

Constant marketing and advertising by means of pamphlets, local newspaper and other forms of media Your business should be ideally situated to lock clients and you should offer excellent services and products Make specials to keep customers close

Do the clients want the same things sold in the same way, or do they want things to change all the time?

The product should stay the same but the price can change.

What can be done to attract the first clients (the most important and most difficult to get)? How much will it cost?

Start to attract neighbors and kids Advertising and opening specials Have meat stalls at matches.

List all of the inputs (products that are required to produce the products):

Milk, spices, cheese, frozen Meat, braai wood etc.

List all the suppliers for the inputs:

Checkers or other suppliers

List all of your outputs (products created by your business):

Ready cooked stews and meat ready for the freezer Ready made packages for self-braai use Buying and repackaging of mince meat with either beef mince, Soya, veg. or rice (prices differ)

What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?

Product: Selling Price: Total Cost: Profit:

Per round division that they will be quality packed: R40.00 40 percent of each item and 60 percent for the product.

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, they have to be deep freeze and the others have expiry dates. If not kept in order it goes bad.

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):

Draw pamphlets Do printing cards Advertise on the radio and in newspapers Door to door sales to attract everyone in the community

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

It would take me about two working days to start and I would need about R620, 00

List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):

Rent : R100, 00 Electricity : R50, 00 Cell : R30, 00 Helper : R65 Container : R400, 00

Total amount for fixed costs: R645, 00

How many staff will be needed and how much will each of them be paid (wages must be included in the fixed costs above)?

One person, R65, 00 per day

What training will they need, how long will it take and how much will it cost?

Computer studies basics Municipality offers the training for free Only transport fare that is R160 a month

The manufacturing or production process Edit

What possible problems may happen during each step of the manufacturing process?

When stock is not controlled, stock loss. When purchasing is not properly done. Wrong pricing. Wrong labeling. Bad record keeping. Miscounting and overcounting. No electricity. Bad meat. Products went bad. Insect infestation. Pests

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

Stock control. Know your stock. Pack right. Price right. Make sure you label right. Good record keeping. Storage (cold)

What is the maintenance program for all the equipment?

Housekeeping after hours everyday. Stock need to be checked everyday. Expiry dates need to be controlled. The equipment need to be thoroughly cleaned and mashines in good working order.

What safety requirements are important for production?

The prevention of insects. Security systems. Theft All staff members need to be clean and hygenic. Workplace must be clean and fresh. Electricity back-up.

How will quality control and client feedback be handled?

Make contact with people immediately. Be friendly with customers. Complaints need to be honestly attended. Service customers with dignity. Listen to the needs of the market.


Costing and bookkeeping Edit

How many of each of the stock items can reasonably be sold each day (and month)?

Beef well packed = selling price =R18.00 1kg = 60 x month = R1080.00 Mutton =R25.00 1kg = 80 x month = R2000.00 Spices =R10.00 packed = 80 x month = R8000.00 frozen veg. =R5.00 plastic bag = 150 x month = R750.00 Soya =R15.00 packet = 125 x month = R1875.00

Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?

Yes, all year round. Cooking in winter, braais in summer.

What sort of pricing strategy will be chosen (cheapest or best)?

It will be the best pricing strategy, cheaper but profitable.

What profit margin will be chosen for the products?

Average cost would be +- R150, 00 Profit would be R200, 00 this would amount to 60% of every sale

Write down the cost prices plus the margin for each stock item you will sell, and the selling price

Beef well packed = selling price =R18.00 1kg = 60 x month = R1080.00 Mutton =R25.00 1kg = 80 x month = R2000.00 Spices =R10.00 packed = 80 x month = R8000.00 frozen veg. =R5.00 plastic bag = 150 x month = R750.00 Soya =R15.00 packet = 125 x month = R1875.00

Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?

Yes, the market would accept this price. There is no need for adjustment

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

R100 packages, per day

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

Mutton: Cost price = R15.00/Mark up = R10.00/Selling price: R25.00

Beef: Cost price = R10.75/Mark up = R7.25/Selling price: R18.00

Veg.: Cost price = R2.00/Mark up = R3.00/Selling price: R5.00 per pack


Item

Daily Target

Monthly Target

Cost Price

Margin

Selling Price

Total per Month

Beef

2

60

R10.75

R7.25

R18.00

= R1080.00

Mutton

3

80

R15.00

R10.00

R25.00

= R2000.00

Frozen veg.

6

150

R2.00

R3.00

R5.00

= R750.00

Soya

5

125

R10.00

R5.00

R15.00

= R1875.00


What trends are included in the projections?

Purchasing prices can change Transportation costs also vary Loan payment in consideration Sales increases especially on December People buy more meat for braai's and potjie kos More specials with profit considered.

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.

Start early in the morning to make sure there is enough stock for the day, wait intill my assistant comes to work and everything is in order

Who will act as backup should the person responsible not be there? What do they need to act as backup?

My brother if I am not there. Cash sale and taking of orders Safe keeping of stock. Record keeping of sales.

What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?

Stock control must be made regularly, I would be responsible for my own responsibilities and problems which might happen in my business

What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?

Marketing and rendering an advisory to the community, promoting my business to the public and making them aware of my services. Back-up, responsible brother. Tools - record keeping books.

What is the schedule for training and motivating staff?

Positive thinking. Motivated staff Upgrade their staff, skills, and technology Teach the staff business principles and discipline.

What processes are required for maintenance and new product creation? Who is responsible and what tools do they need?

Not applicable, work alone. I will always look for the best prices from the suppliers and keep regular stock updates.


Before beginning Edit

What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?

Department of agriculture. Business development industry. Local municipality.

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