Meat Vending Business Plan Free Essay Example from StudyTiger

EXECUTIVE SUMMARY Business Name:WENDORS Meat Vending Business Address:BISU Bilar Campus - Zamora, Bilar, Bohol Nature of Business:Meat Vending Form of Ownership:Sole Proprietorship Proponents: Wendell Doria VISION A high quality business that forefronts in providing excellent services to the customers and to be one of the top most well known producer of meat not just in our town but all over Bohol and the Philippines. MISSION To satisfy the customers needs and keeping the strong relationship with the customers as well as improving the services we offer. GOALS 1.

Maintain the good reputation of the business. 2. To meet the reasonable net profit by the end of the year. 3. To meet the highest satisfaction rate from the customers. 4. To offer the best 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, bones 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 sources like veggies and beans.

Zinc helps your immune systems function properly while the B vitamins group helps regulate the immune systems an release energy. Pork is the edible flesh of domesticated hog or pig. It is the meat from the pig/swine/hog meant to be eaten fresh. Consumption of pork in moderate quantities is helpful in gaining energy. It is good for skin, eyes, nervous system, bones and mental performance. Intake of pork also ensures better immunity to body due to presence of essential antioxidants. The colours of the meat and the fat of pork are regarded as more appetizing, while the taste and smell are described 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 very popular source of food all through antiquity. Pork isn't fatty meat - in fact, it's 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 throughout 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 only. * Pork is highly enriched with Vitamin B6, Vitamin B12, Thiamine, Niacin, Riboflavin and Panatothenic Acid.

However, Vitamin A and Vitamin E are found in very small amounts. MARKETING ASPECT Market Situation Pork is in high demand especially in the school days since the target market are the restaurants, faculty and staff, students, canteen and household consumers in and out of the school campus. The restaurant owners are of high percentage of demand because the students prefer to buy viands in the restaurants and canteen in every 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 Needs

The project provides consumers quality pork and lechon that suit their daily intake. This aims to fulfil the benefits important to consumers. It will also provide quality, leaner and fresh pork as a staple food and delivers once a week to the target market that the venture would be a steady supplier Target 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 willing to buy and pay at a reasonable price. Target Demand Figure 1. Target Demand Supply of Raw Materials

The owner will purchase pig weighing 60-110 kgs for every slaughter from family backyard raisers and Carmen Public Market every week. To assure for a steady supply, the venture will find a steady supplier and purchase it three days before the operation. Supply of the Proposed Product The WENDORS vending 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 other parts. It will be deliver directly to the target market .

The main target markets are the restaurant owners and canteen, faculty and staff. It will also offers by-products of pork such as the head, intestines, liver and feet. Marketing Strategy The venture applies some strategy in marketing the product. The most risky of putting up this kind of business is the collection of sales. The business cannot assure of 100% 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 entertain 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 pricing in order to develop market. The customers who paid in cash bases can avail discounts of 10% for the pork and other part. The customers who apply credit and instalment basis will be given 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 next 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 display area or permanent location. * The supply of meat is seasonal. * High percentage of debt or in credit term. Opportunities * Few competitors Possibilities of good profit * High demand Threats * Shortage of raw materials at a given time * Increasing economic status * unfavorable government law * Swine deceases Channel of Distribution Figure 2. Channel of Distribution (Direct Selling) Table 1. Pricing Strategy Pork| Cash Basis (P)| Credit Basis(P)| Head| 100. 00| P110. 00| Meat with bones| 170. 00| 180. 00| Liver| 170. 00| 180. 00| Intestines| 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| May| | 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| | Note: the table represents the monthly demand for pork (averaging) where n = number of pigs q = no. of kilos Q = represents total demand for your product. Table 6 Projected Monthly Sales(P)| Months| sales| January| 36,396. 00| February| 24,264. 00| March| 24,264. 00| April| 24,264. 00| May| 24,264. 00| June| 24,264. 00| July| 24,264. 00| August| 24,264. 00| September| 24,264. 00| October| 36,396. 00| November| 36,396. 00| December| 48,528. 00| TOTAL| 351,828. 00|

Note: the above table represents the monthly sales TECHNICAL ASPECT Operation Strategy Since the proprietor had no experience about slaughtering a pig he decided to hire 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 agreed 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 costly, 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 butcher’s house. Since, the proponents 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. Position| Number| Monthly Salary (P)| Total Annual Salary(P)| Manager/Cashier| 1| 500. 00| 6,000. 00| Distributor/Canvasser| 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 Depreciation 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| TOTAL| | | P2,650. 00| | P1,850. 00| 154. 16| Table 4. Operation Schedule. Days| Time| Activities| Monday| 8:00 a. m. -10:00 a. m. | Slaughtering of pig| Wednesday| 3:00 p. m. -5:00 p. m. | Roasting| Note: The table above is the regular schedule of the operation. Table 2. Cost of Operation. | Monthly (P)| Direct Material| 17,100. 00| Direct Labor| 900. 00|

Transportation | 1,360. 00| Communication | 300. 00| Total cost of operation| P19,660. 00| Table 3. Administrative and Selling Expenses. | 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 Expense Description| Units| Unit Cost (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| Stapler| 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 between 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 lot 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 Talk N’ Text Network with an estimated monthly bill of P300. 00 load. Transportation The business earnings depend on the distribution and selling of the finish products. To reach the customer’s location or selling areas, the cost of transportation will be allocated. Good channel in the transportation of the products lies the business growth. It’s only delivering once a week and purchase 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)| Pork:Freight of the Purchased Pig 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| Head| 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. 00|

Meat/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 pork. On average, about 87% of a hog make it from the pen to the pan. A 70-kg hog will yield approximately 60. 9 kgs of retail cuts. Around 13% of a hog’s live weight is inedible 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 rail 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 same 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.

Tools 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 Statement ?| 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 Cash 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 | Ending 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. | Dec. | 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 Liabilities | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | ? | 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 years Break Even Analysis=F/CMuF / CMr =3,337. 16 / 33. 803,337. 16 / =98. 73klsPhp. 13,295. 46

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