La Lardé’s Meat Shop

Business Plan

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 Table of Contents

1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.1 Business Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1.2 Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.0 General Company Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.1 Name of the Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.2 Type of Legal Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.4 Significan Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
2.5 The Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.0 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
4.0 Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.0 Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
6.0 Team – Management & Organization . . . . . . . . . . . . . . . . . . . . . . . . .7
7.0 Marketing Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
8.0 Operational Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9.0 Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
9.1 Start-up expenses and capitalisation. . . . . . . . . . . . . . . . . . . . . 9
9.2 Projected Profit and Loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
9.3 Projected Cash Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
9.4 Projected Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
9.5 Break-even Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
10.0 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.1 Advertising materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.2 Map and photo of location . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
10.3 Detailed lists of equipment to be purchased and other
materials needed to support the assumptions in this plan . . . 17
10.4 List of assets available as collateral for a loan . . . . . . . . . . . . . .21

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1.0 Executive Summary

The La Lardé’s Meat Shop will be offering all-time fresh raw products such as beef,
chicken and pork meats including packed toccinos, hams, bacons and embotidos as
an innovative approach of making the business remarkable for it also offers innovated
goods and not just the usual raw meats.

The shop will be family owned and operated by Pilardo Estrellas. He has over 10+
collective years of experience in the business industry.

Estrellas will be building a new facility on a privately owned property located at Tetuan,
Zamboanga City beside Yubenco Star Mall which is an existing customer center place.
The site is securely fenced and has no any infrastructure but just a plain land. It is a
good spot for a business to build on because it is along the road where people can
easily pass by and see the shop. Though Yubenco Star Mall has already a lot of
operating stores leased and ran by different lessors, it is still a great advantage to
stand up the business because no one among them sells raw meats even their own
grocerry.

Total start-up costs will be P9, 879, 200.00, P4, 879, 000.00 of which will be
contributed by the owner and the remainder will be secured through a proposed bank
loan.

1.1 Business Objectives

The primary objectives of the business plan for the shop are below:
• To be the consumer-friendly meat shop in Tetuan, Zamboanga City
• To provide fresh meats and quality goods at reasonable prices with exemplary service
• To achieve reasonable profit
• To achive long-term business relationship with customers or clients

1.2 Mission Statement

To provide products that best for cooking in homes and restaurants. We will strive to
achieve this goal by: 1) by providing fresh meats and quality products at reasonable
prices, and 2) we will be mindful of the well being of our customers and staff– treating
each and everyone with dignity and respect – just like we would at our own home!

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2.0 General Company Description

2.1 Name of the Business

La Lardé’s Meat Shop

2.2 Type of Legal Entity

La Lardé’s Meat Shop will be organized as a sole proprietorship, wholly owned and
operated by Pilardo Estrellas.

2.3 Ownership

The shop will be owned by Pilardo Estrellas. Pilardo began his career at the age of 15
working in a farm to help in their family business where animals like cows, chickens
and pigs are slaughtered and sold in the market. He earned a degree as a Bachelor of
Science in Education Major in Technology and Livelihood Education and currently
teaching in a public secondary school. Though Pilardo is in teaching career, he is still
eager to engage in business industry for he wants to utilize his knowledge and skills in
operating a meat shop.

2.4 Significant Assets

Estrellas owns a plain 2, 300 square meters private property.

Other needed non-cash assets:
 Property, Plant and Equipment
1. Building for the market
2. Warehouse for Storage
3. Factory Farm
 Machinery
 Tools and equipment
 Delivery Truck
 Appliances
 Technology

2.5 The Industry

The La Lardé’s Meat Shop will be located at Don Alfaro Street, Tetuan, Zamboanga
City. The shop will serve a variety of raw meats and packed goods for homes and
restaurants.

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The shop will be open 6 days a week with hours as follows:

Monday 9:00 AM – 8:00 PM

Tuesday 9:00 AM – 8:00 PM
Wednesday 9:00 AM – 8:00 PM
Thursday 9:00 AM – 8:00 PM
Friday 9:00 AM – 8:00 PM
Saturday 10:00 AM – 6:00 PM

3.0 SWOT Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

 Huge product  Lack of brand  Demand for raw  Competitors
line identity meat is high  Government
 Cost efficient  Product is  Sponsoring ads Requirements
production Common to promote  Health
 Position in  Lack of product Conscious
Location experience in Critics
 Customer Care handling a  Substitute
business Products

Analysis

a. Strengths –

 Huge Product Line – different variety of raw meat and quality packed goods
such as toccinos, hams, bacons and embotidos are offered for sale.
 Cost Efficient Production – the business has its own factory farm for the
operation in production of raw meats and other packed goods which leads to a
lower cost compared to buying from another entity.
 Position in Location – there are no direct competitors in the location of the
business, we gain the advantage in dominating in earning money and
generating high net profit.
 Customer Care – we do not allow self-service in our shop. Respective
employees serve the customers at its appropriate service.

b. Weaknesses –

 Lack of Brand Identity – it is a raw meat shop and it lacks the vibe of having its
own identity
 Product is Common – raw meat is a common product in the city

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  Lack of experience in handling a business – they have experience in
farming, poultry and handling of customers but lacks experience in handling a
business such as planning and budgeting costs of production.

c. Opportunities –

 Demand for raw meat is high – there will be always a high demand in raw
meat because it is a primary ingredient in making a food.
 Sponsoring ads to promote product – ads could help somehow create an
identity for the business and its uniqueness in serving good quality raw meats
and other packed goods

d. Threats –

 Competitors – there are different wide competitors in Zamboanga city that sells
raw meats with different strategies such as low prices or selling raw meats in
highly dense areas.
 Government Requisites – the government forces business to pass and to
meet requirements for a meat shop to operate such as sanitary work place,
pass legal requirements and etc.
 Health Conscious Critics – because of such critics, it decreases the demand
of raw meats.
 Substitute Products – certain factors such as prices, religion, and product
quality affect customers’ affordability and decision to buy raw meats. They find
substitute products such as vegetables, canned goods or raw meats from
another entity.

4.0 Strategy

 The focus of the business is both on broad mass market and specific niche. The
shop aims to supply raw meats to different homes, markets and restaurants.
 The business will succeed for it is the only business that sells raw meats and
and its own packed goods in the consumer center place of Tetuan which is the
Yubenco Star Mall. Even though the mall has its own grocerry, raw meats are
not sold there so it is a major advantage of the business because most
consumers will buy from them.
 There are also other stores that sell raw meats but it will be quite hassle for the
consumers, especially of Tetuan, for they still need to travel a longer distance.
The business becomes unique because it is the only shop that sells raw meats
in the targeted area. It is more convenient to buy in a nearer meat shop and that
makes the business different because the buyers of Tetuan do not have to travel
long. In the case of which buyers are not from Tetuan, they will be guaranteed of
the fresh raw meats and quality goods.

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  The business aims to be a supplier of the dirty market for raw meats since
vendors of such sell there too.

5.0 Business Model

 The sources of revenue will be from the sale of raw meats and other packed
goods such as toccinos, hams, bacons and embotidos.
 The major costs involved in generating the revenue are the costs production:
direct material, direct labor and factory overhead.
 The investment required to get the business up and running is P 10, 000, 000.00
 The critical success factors and assumptions for making the profit model work
are:
1. Increase market share through current customers
2. Be service-oriented when working with our customers, and
3. Align incentives and rewards with employee roles for increased satistaction.

6.0 Team – Management & Organization

 La Lardé’s Meat Shop expects to hire 25 employees. Pilardo will personally

select each candidate. They’ve adopted an effective interview process
designed to staff the shop with highly qualified people for each position. Each
applicant will be rated and evaluated according to a pre-defined set of standards
designed for each position.
 The shop will be owned Pilardo Estrellas. Pilardo began his career at the age of
15 working in a farm to help in their family business where animals like cows,
chickens and pigs are slaughtered and sold in the market. On a day-to-day, after
his classes, he will go to the shop to evaluate the everyday performance of the
production and sale of the business.
 An organizational chart showing the management hierarchy and responsibility
for key functions:

Pilardo Estrellas
(Top Management)

Operation/Production Supervisor Shop Supervisor

Raw Meat Packed Goods Cashier Security Bagger

Personnel Personnel (3 Employees) (3 Employees)
(10 7.0
Employees) (5 Employees)
Marketing Plan

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  Raw meats are valuable for customers because it is a consumption as food
made by people in order to live.
 The shop will be near the road where people pass by so they can easily
perceive the products of the business.
 The pricing strategy with specific price points is listed below:
1. Beef – P200.00 per kilo
2. Chicken – P160.00 per kilo
3. Pork – P200.00 per kilo
4. Toccino – P280.00 per 500 grams pack
5. Ham – P190.00 per 350 grams pack
6. Bacons – 120.00 per 150 grams pack
7. Embotidos – P110 per 200 grams pack
 The sales and distribution channel of the business will be its own built shop for
the convenience of the customers. Delivery is also available if pick up for mass
orders are not possible.
 The promotion strategy:
1. Location- the target market of the business is the consumer center place
of Tetuan which is beside Yubenco Star mall since in that area, there are
no any other competitors selling raw meats.
2. Online Existence – we will create a social media page influencing the
existence of the business and its products since most of the people
nowadays are into their newsfeeds. In this way, they can easily know and
contact us for inquiries.
3. Tarpaulins – for people to easily recognize the business and its direction,
tarpaulins will be posted directing the location of the business.

8.0 Operational Plan

 The production team will slaughter its own well-taken care animals of the factory
farm to produce raw meats. They also formulate the recipe and process the
making of toccinos, hams, bacons and embotidos. After these are processed,
respective ratios will be stored inside the warehouse for storage and in the shop
for the sale of the products.
 All the necessary skills and materials will be sourced inside the business.

9.0 Financial Plan

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9.1 Start-up expenses and capitalisation

Total start-up costs will be P9, 879, 200.00, P4, 879, 000.00 of which will be
contributed by the owner and the remainder will be secured through a proposed bank
loan. (All amounts are in Philippine Pesos)

9.2 Projected Profit and Loss

The profit and loss demonstrates modest increases in revenues over the three
expected years with adjustments for inflation. (All amounts are in Philippine Pesos)

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9.3 Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of the business. (All
amounts are in Philippine Pesos)

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9.4 Projected Balance Sheet

A projected balance sheet at start-up and at the end of years one to three. (All amounts
are in Philippine Pesos)

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9.5 Break-even Analysis

Total fixed costs associated with the shop are P258, 670.00. Based on the calculation,
the breakeven revenue then is P388, 111.62 or 2, 132 in units This is further depicted
in the Table Below and the Graph that follow:

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10.0 Appendix

10.1 Advertising materials

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10.2 Map and photo of location

Location of the business

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10.3 Detailed lists of equipment to be purchased and other other
materials needed to support the assumptions in this plan

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10.4 List of assets available as collateral for a loan

 House
 Automobile
 Land

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