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Organic Meat Business Plan

Essay by   •  June 12, 2011  •  Business Plan  •  7,018 Words (29 Pages)  •  1,695 Views

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1.0 BUSINESS DESCRIPTION

HA Farm Valley is a startup specialty butcher shop to be launched in the coming year. It will sell organically produced food free from chemicals. For people who believe that organically produced food is essential to good health. HA Farm Valley offers an assortment of high quality certified organic meat and poultry that combines good taste with good nutrition.

1.1 Mission

The business mission is "to be acknowledged as number one organically produced food retailer in Johor Bharu."

1.2 Vision

To be the number one, the business proactively understands the needs and wants of the customers' through the strategy of differentiation.

1.3 Ownership

HA Farm Valley is established as an enterprise with 51% ownership by Hamdy bin Abdullah and 49% ownership by Rusida binti Mamat. The partners will share in management responsibilities with final decisions falling to Rusida binti Mamat where there are differences of opinion. The partnership agreement allows for one partner to buy out the other in the case that the partnership must be dissolved and sets predetermined methods to determine the company's valuation in that case.

1.4 Start-up Summary

The following summary table shows the projected start-up costs over the three months prior to the store's opening.

Start-up expenses for HA Farm Valley include initial insurance premiums covering both general liability and product liability, as well as business renter's insurance, rent for 1 month's security and 2 months to allow for build-out of the retail space, pre-launch marketing to cover flyers, a direct mail campaign, and advertisements in local papers, the development of a website with e-commerce capabilities to take orders and sell meats directly, and the normal legal expenses for consultation and permitting. The total of start-up expenses is RM 32,800.

Inventory on-hand at any given time must be low as all meats must be kept extremely fresh and so will be ordered on a weekly basis or even more often. Other current assets include office and store furniture, shelving, a computer, phone system, and tools. Long-term assets include the refrigerator unit for the shop, refrigerated display cases, window displays, store fixtures, a refrigerated delivery van and additional investments in improvements to the retail location. For this purpose, the business has incurred RM 182,000 for the start-up assets.

A significant amount of cash is required to fund the first year of operations until the business reaches break-even.

1.5 Location

Our store is located at Lot 25B, Ground Floor, Giant Hypermarket, JalanHiliran, 41300 Johor Bharu.

2.0 MANAGEMENT SUMMARY

The management of HA Farm Valley will consist of Hamdy bin Abdullah and Rusida binti Mamat.

The CEO of HA Farm Valley isHamdy bin Abdullah. It is felt that with his experience in processing and distributing meat products derived from specialty grown, identity preserved goat and sheep, he would have therequired knowledge and perspective required for success. Also, because of his key role as the organizer of the enterprise, he would be highly motivated to assure its success.

The COO will definitely report to the CEO. Rusida binti Mamat has been employed to fill this position. She has extensive experience both as a chef and manager of several upscale restaurants. She has a degree in institutional management from Iowa State University and is presently working towards her MBA with an emphasis in marketing. Her task, in addition to being responsible for sales and advertising, will be to identify new markets, be alert to new product trends and to maintain excellent customer relationships. She will also be responsible for keeping the independent producers involved in the marketing process as well as keeping them informed with respect to sales andproduct trends.

Two employees will initially include a full-time sales/operations clerk and one assistant butcher.

3.0 PRODUCTS

All products can be cut to the customer's specifications. HA Farm Valley will provide the following organic products on a regular basis.

3.1 Certified Organic Beef

Our beef are proudly dry aged two to three weeks. BSE or Mad Cow Disease is not a factor in our certified organic cattle, because animal byproducts have always been prohibited. We raise our cattle without hormones, antibiotics, appetite stimulants, animal byproducts, sewage sludge, GMOs or synthetic additives. We use no coloring agents, preservatives, fillers or additives of any kind in processing the meat.

3.2 Certified Organic Chicken

We purchase chickens raised on certified organic feed without antibiotics, arsenicals, or other mediations common in most fryer programs. To compensate for not using drugs, great attention is paid to the daily comfort of the birds. They are free ranged with plenty of room to move around, and cleanliness is extremely important.

3.3 Certified Organic Turkey

We purchase whole turkeys and turkey products from Yong Peng. The turkeys are fed a low fat vegetarian diet of corn and soybeans.

3.5 Certified Organic Lamb

We purchase locally grown lamb that is raised on pasture without confinement, hormones, or antibiotics. We have three growers in Terengganu that raise lambs specifically for our shop to our exact specifications. We sell whole or half lambs cut to your specifications, or lamb by the cut.

3.6 Organic Cheese

We carry a wide variety of certified organic cheeses from Organic Valley - an established organic brand from New Zealand over 25 years.

4.0 VALUE PROPOSITION

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