Parkdale Meats is a startup specialty butcher shop to be launched in the coming year. It will sell aged beef, free-range poultry, fresh pork and domestic lamb. Upon request, the store will sell wild game such as buffalo, alligator, kangaroo, quail, and other specially requested items. Customers will include medium- and high-income residents of Parkdale, as well as high-income residents of neighboring towns, and high-end caterers and restaurants.
The store will be managed and directed by Robert Suidae, a veteran butcher with fifteen years experience in butcher shops and Eryka Auroch, an experienced retail food-service manager. Auroch will serve as the company's CEO and Suidae as the company's COO.
Parkdale Meats is established as a limited liability company with 49% ownership by Robert Suidae and 51% ownership by Eryka Auroch. The partners will share in management responsibilities with final decisions falling to Eryka Auroch 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.
The following summary table shows the projected start-up costs over the three months prior to the store's opening.
Start-up expenses for Parkdale Meats 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.
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.
A significant amount of cash is required to fund the first year of operations until the business reaches break-even.