Latheethen Feeds

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Feed and Farm Supply Business Plan

Company Summary

Latheethen Feeds is a mid-Michigan based farm and feed store dedicated to providing our customers with professional services and high quality feed products. Latheethen's offers only the best feed and products in the industry. Latheethen's also offers our customers the option of a custom made feed. Our mill enables us to provide high levels of quality products that are always fresh and available. Latheethen's primary focus is on keeping our customers satisfied. Professional and reliable service, competitive pricing, and a knowledgeable staff will provide for continued growth in the years to come.

Latheethen's was founded in 1989 by Chris and Steve Latheethen. Their hard work and dedication has proven to be successful, as Latheethen's is now one of the area's premier feed stores and the only one specializing in custom-made feed.

The future of Latheethen's is looking bright with younger family members taking over ownership. Our focus is on the core products, our sales and promotions emphasize our history and reputation for quality and customer service. With the addition of new energy and enthusiasm from younger owners, we will increase sales and the bottom line. Even though the new owners have the time, energy, interest and knowledge to invest in an already successful family business, our greatest asset will be our committment and pride in protecting and growing the business.

In the past, Latheethen's has been just a feed the future Latheethen's will grow to become not only a larger provider of quality feeds, but also a boarding stable and resource for customer with inquiries about all areas of pet care.

2.1 Company Ownership

Latheethen Feeds, Inc. is a privately-held Michigan corporation. Chris Latheethen, Latheethen Feeds, Inc.'s founder, and her husband Steve Latheethen are the two current owners. 

The new owners will share 50/50 ownership and they are as follows: 

  • Dennis Latheethen
  • Kay Latheethen

2.2 Company History

Latheethen Feeds was founded in 1989 as a privately held corporation registered in Midland County, owned and operated by Chris and Steve Latheethen. It was originally a retail company that sold feed and supplies to local customers.

Chris and Steve recognized the need for more variety in products and more competitive pricing. Eventually this idea generated the need for a feed mill, which has greatly increased the success of the business. Producing custom feeds reduces the costs to almost 80% less than it costs to purchase a name brand feed. The custom-made feed has been Latheethen's best seller because of quality and price.

The past performance table and chart show the increase in sales over the past three years. By adding a point of sale inventory and accounting system, we will be able to better track our best sellers and highest margin items, to increase net revenue. while our cost projections are accurate, the current owners have not tracked sales categories in as much detail as we will.

The previous year shows a large increase in the value of assets. This represents both the value of the acreage on which the business stands (contributed to the business by the current owners), and the recent purchase of the point of sale system which will be used to better track orders.

Past Performance
FY 2002 FY 2003 FY 2004
Sales $141,550 $143,200 $144,522
Gross Margin $37,314 $39,930 $28,695
Gross Margin % 26.36% 27.88% 19.86%
Operating Expenses $34,497 $33,896 $28,940
Inventory Turnover 0.00 0.00 23.66
Balance Sheet
FY 2002 FY 2003 FY 2004
Current Assets
Cash $1,179 $1,378 $527
Inventory $2,198 $2,198 $8,904
Other Current Assets $0 $0 $75,463
Total Current Assets $3,377 $3,576 $84,894
Long-term Assets
Long-term Assets $39,625 $39,625 $170,000
Accumulated Depreciation $38,603 $38,603 $39,089
Total Long-term Assets $1,022 $1,022 $130,911
Total Assets $4,399 $4,598 $215,805
Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $0 $0 $0
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $0
Long-term Liabilities $0 $0 $0
Total Liabilities $0 $0 $0
Paid-in Capital $1,000 $1,000 $1,000
Retained Earnings $584 ($2,436) $205,465
Earnings $2,815 $6,034 $9,340
Total Capital $4,399 $4,598 $215,805
Total Capital and Liabilities $4,399 $4,598 $215,805
Other Inputs
Payment Days 0 0 0