Butcher shop business plan with calculation

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Meat is considered a sought-after product that is constantly in demand, even during a crisis. But, like other entrepreneurial activities, trading should be started after getting acquainted with various subtleties. You also need to draw up a business plan. How to open a butcher shop step by step? This procedure is described in the article.

Market Analysis

Butcher shops usually sell fresh and chilled meat, semi-finished products, packaged products, sets of offal. We also sell frozen products. Opening such a store is perfect for aspiring entrepreneurs. This is due to the following reasons:

1. Easy business entry.
2. It is possible to use small attachments.
3. Meat is considered a permanent commodity.
4. No strict requirements.
5. You can change the assortment based on demand.

People need this product all the time. The imposition of sanctions on some meat is also an advantage. This prompts the Russianmanufacturers to increase production. And consumers themselves prefer to buy meat and semi-finished products of domestic production.

Before opening a shop, you should familiarize yourself with the structure of the market in a particular city. Each federal district has its own situation. For example, more than 50% of the production of sausages falls on the Central and North-Western districts. The minimum rate in the North Caucasus District is less than 1%.

Each type of product should also be considered. One product may be especially in demand, while another, on the contrary, fades into the background. Adjustments should be made during store development.

Business plan

It is necessary to draw up a business plan for a butcher shop to justify business development planning. The document will allow you to evaluate the possibilities of the idea. Make a plan for 3-5 years: 1 year with detailed trading activities and larger for the rest of the period.

A business plan for a butcher shop should include a description of the outlet, its capabilities, idea evaluation, and marketing data. It is desirable to fix the probable risks in it, in other words, it shows that they are taken into account and measures to reduce them are determined.

Register

The business plan for opening a butcher shop includes all the necessary information for the business to begin to develop actively. First, registration of a legal entity is required - IP, LLC. You will need to go through the standard stages when performing state registration.

All you need for a butcher shop isregister as an individual entrepreneur and conduct activities using preferential taxation. But if you wish, you can open an LLC. OKVED codes: 52.22.1, 52.22.2.

Choose a room

How to open a butcher shop in Moscow? A business plan should be drawn up in such a way that it takes into account the nuances of choosing a suitable premises. The profitability of the business depends on the right location. Therefore, often entrepreneurs start doing business with the choice of premises. It is necessary to consider not only isolated objects, but also options for installing an island in a grocery store. The main requirement is considered to be a high traffic of buyers.

You should not look for a large retail space. Extra space increases rent, and the savings can be invested in the purchase of goods. The minimum area is 10 sq. m. If a large room was found, then in addition to expanding its range, you can open other departments. With additional product categories, you can attract more customers.

Documentation

It is also indicated in the business plan, how to open a butcher shop from scratch. Documents are required to start doing business you will need:

• certificate of registration with the tax service;
• lease or property papers;
• permits from the SES and the Fire Inspectorate;
• contracts on the export and disposal of waste;
• contracts on disinfestation, disinfection, deratization;
• disinfection contractsventilation and air conditioning;
• sanitary records for employees;
• product references;
• notifications to Rospotrebnadzor.

The selected object must be approved by the Fire Inspectorate. Then you need to contact the SES and Rospotrebnadzor. In the latter, a sanitary certificate is issued, which allows the processing of meat to create semi-finished products.

To trade in the market or in a store, documents for the maintenance of the premises and permission from the Fire Inspectorate are not required. All you need is a lease agreement. Products purchased from suppliers must have a veterinary certificate indicating the absence of diseases in animals. All employees must have he alth books. They also need to undergo a medical examination in due time.

Equipment

How to open a butcher shop? The business plan must include the question of purchasing equipment. At first, you will need some equipment to work. To wash meat, you need a washing bath. Meat is stored in refrigerators and freezers. Scales are needed: for weighing the products sold, when creating semi-finished products and for acceptance. To cut carcasses, you need a deck and axes, and a set of knives is used for cutting and butchering.

To create minced meat you need a meat grinder. And in order to make payments with customers, you need a cash register. This set will suffice at first, and everything else can be purchased as the business develops.

Employees

How to open a butcher shop in the market? Business plan for thisactivities will be the same as that of the shop. In both cases, you need a seller. It is desirable that he has experience. Then the employee will be able to advise customers on the choice of products. The specialist will not let the goods stale and will help increase the turnover of the store. Sellers should be interested in a premium for good sales. They need a special uniform.

Another important employee is the cutter. Butchering should be done by a professional who is experienced in this area. Due to errors in this work, the appearance of 10–15 kg of hard-to-sell meat with a non-marketable appearance and many bones is likely. It will be difficult to sell these goods, and it is not profitable for anyone to work at a loss. If there is no butcher, then you can negotiate with suppliers to bring cut meat.

Semi-finished products must be created with the help of a professional chef. But if at the initial stage only meat and minced meat will be sold, then you can do without it. Cleaning and bookkeeping can be outsourced or part-time workers involved. Administrative activities, including purchasing, are first performed by the business owner. Later, it is handed over to a specially hired specialist.

Buying meat

This issue should also be included in the business plan. Opening a butcher shop and making it successful will only be possible with the purchase of suitable products. The store owner is responsible for its quality. If consumers are not sure about the freshness of the product, then their trust will be lost, and the work will be at a loss.

When the meattransmitted by suppliers, it is necessary to control that the brand is present on the carcasses. A veterinary certificate is also required. First, you should find 2-3 private and farm enterprises that will bring products 1-2 times a week. Sometimes the purchase of large quantities of goods is more profitable, but it is important to consider that chilled meat has a presentation for only 3-4 days. During this period, it should be sold.

The butcher's business plan must include an assortment. At first, 20–25 items of goods will be enough. It is necessary to give preference to popular varieties of meat - beef, pork, lamb, rabbit meat. Of poultry, buyers demand chicken, goose, turkey.

It is necessary to focus on the structure of consumption of meat products: poultry is in demand - 40%, followed by pork - 35% and beef - 20%. Rare types of meat - rabbit, lamb, horse meat account for only 5%, but these figures differ markedly depending on the region.

The assortment should include sets of semi-finished products - minced meat, chops, shish kebab, sets for soup, sausages for frying. Gradually, you can increase the range, for example, sell smoked goods. In large cities, they sell nutria meat, horse meat, and ostrich. Exotic goods do not lead to a strong increase in sales, but they give the store a reputation as a place where you can buy any meat.

Marketing and advertising

The business plan for a butcher's shop indicates how to advertise. You need to advertise the store before opening. There is an attractive sign above the entrance. On the sidewalkplace 1–2 ground advertising structures.

Residents of houses in the area should be notified about the opening of the shop by posting or posting leaflets in mailboxes. Advertising in elevators has a positive effect, especially if discounts and promotions are offered.

You should not spend money on expensive advertising on TV and radio, as its effectiveness in this case does not match the cost. It is advisable to promote the store on the Internet and social networks. Thanks to the competent maintenance of the VKontakte page, you can achieve a positive result at a minimum cost.

Online

All the nuances mentioned in the article should be included in the business plan. Opening a butcher shop in this case will be easier. Additionally, small-scale wholesale trade of quality products in the nearest cafes and restaurants can be carried out.

To increase profits, you should familiarize yourself with the idea of opening additional trading shops and combining them into your meat network. If premium products are sold or the range is expanded, then an online store can be founded. Now this type of business is popular.

Nuances

There are several risks that can be in this business:

1. Wide range. This can lead to losses. Products should be selected based on the location of the shop. In a place where the elderly live, there will be one demand, and where young families - another. It is necessary to constantly control the assortment.
2. Unattractive design. This is the mistake many entrepreneurs make. Profitability is reduced due to the poor appearance of the store.
3. Very expensive equipment and decoration. It is not always necessary to purchase expensive display cases. It's one thing when the institution is located in an expensive area, but quite another if it's in a bedroom. Moreover, you can buy used equipment with a beautiful view and technical characteristics at a more affordable price.
4. Inadequate hygiene, odors and dirt. It is important to monitor the cleanliness of the facility, the operation of the hood, and the hygiene of personnel.
5. Low ad spend. Some businessmen prefer not to do this work. It is important not to spare money on advertising.
6. Seasonality. In the summer, the demand for meat decreases, but during this period, kebabs are in demand. Stable demand for sausages. Products are in demand before the New Year.
7. Competition. If a successful point has been opened, then you should expect a competitor to appear nearby.

Financial part

Business plan for a butcher shop with calculations allows you to evaluate the profitability of trade. Here are some examples. The main costs include:

• rent - 60 thousand rubles;
• advertising - 15 thousand rubles;
• salary - 136 thousand rubles;
• cost of goods - 1 million 154 thousand rubles;
• accounting - 9 thousand rubles;
• transport services - 25 thousand rubles.

It turns out that a total of 1 million 399 thousand rubles is required. Every day, a small shop sells about 25 kg of various meats, bones, and bacon. The approximate profit is 50 thousand rubles. It turns out that the monthly profit is 1 million 500 thousand rubles.

Expenses are deducted from the profit, and it turns out 101 thousand rubles. The tax is 15,150 rubles, and the net profit is 85,850 rubles. The profitability is 5.72%. The business pays off within 11 months.

Thus, the butcher shop business plan presented free of charge with calculations allows you to estimate the income and expenses of the activity. This will help determine if the trade is worth it.