Butcher Shop Business Plan

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Parkdale Meats

Financial Plan

Forecast

Key Assumptions

Our key assumptions are: 

  • Families appreciate nourishing meat
  • People are willing to pay for premium meats 

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

Our uses of funds are: 

Legal ………………………………………………. $10,000

Stationery etc. ……………………………….. $1,000

Insurance ………………………………………. $2,000

Rent ……………………………………………….. $4,800

Pre-Launch Marketing …………………. $5,000

Website Development …………………… $10,000

TOTAL START-UP EXPENSES ………. $32,800

 

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

• Initial insurance premiums covering both general liability and product liability

• Business renters insurance

• Rent for one month’s security and two months to allow for build-out of the retail space

• Pre-launch marketing to cover flyers

• Direct mail campaign

• Advertisements in local papers

• Website development with E-commerce capabilities to take orders and sell meats directly

• Standard legal expenses for consultation and permits.

Inventory on-hand at any given time must be low to keep all meat extremely fresh. It will be ordered on a weekly basis or more often if necessary.  Other current assets include office and store furniture, shelving, one computer, phone systems, and other 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 its break-even point.

Sources of Funds

Our funds are from: 

Robert Suidae $65,000

Eryka Auroch $65,000

Initial funds are from Robert Suidae and Eryka Auroch for $65,000 each.

Parkdale Meats will also get a credit line of $100,000 from the bank using the owner’s houses and land as collateral. If everything goes according to plan, all debt will be paid off by year three.  In year four, the shop will start giving Robert and Eryka back their $65,000 in owner’s dividends.

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $346,480 $450,800 $564,400
Operating Expenses
Salaries & Wages $179,400 $182,988 $186,647
Employee Related Expenses $35,880 $36,598 $37,329
Marketing $8,640 $8,640 $8,640
Promotions $6,696 $6,696 $6,696
Rent $30,000 $30,000 $30,000
Utilities $4,200 $4,200 $4,200
Insurance $2,700 $2,700 $2,700
Amortization of Other Current Assets $0 $0 $0
Interest Incurred $3,984 $2,839 $984
Depreciation and Amortization $8,000 $8,000 $8,000
Gain or Loss from Sale of Assets
Income Taxes $10,047 $25,221 $41,881
Total Expenses $809,267 $984,082 $1,173,677
Net Profit $56,933 $142,918 $237,323

Projected Balance Sheet

Starting Balances 2020 2021 2022
Cash $110,000 $87,234 $155,789 $375,437
Accounts Receivable $15,457 $12,209 $15,286
Inventory $2,000 $112,700 $141,100 $141,100
Other Current Assets $20,000 $20,000 $20,000 $20,000
Total Current Assets $132,000 $235,391 $329,099 $551,822
Long-Term Assets $80,000 $80,000 $80,000 $80,000
Accumulated Depreciation ($8,000) ($16,000) ($24,000)
Total Long-Term Assets $80,000 $72,000 $64,000 $56,000
Accounts Payable $4,800 $23,674 $29,212 $29,212
Income Taxes Payable $9,200 $6,340 $10,485
Sales Taxes Payable $0 $0 $0
Short-Term Debt $45,861 $62,406 $8,993 ($10,944)
Prepaid Revenue
Total Current Liabilities $50,661 $95,280 $44,546 $28,754
Long-Term Debt $34,139 $27,978 $21,502 $14,694
Long-Term Liabilities $34,139 $27,978 $21,502 $14,694
Paid-In Capital $160,000 $160,000 $160,000 $160,000
Retained Earnings ($32,800) ($32,800) $24,133 $167,051
Earnings $56,933 $142,918 $237,323

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $56,933 $142,918 $237,323
Depreciation & Amortization $8,000 $8,000 $8,000
Change in Accounts Receivable ($15,457) $3,248 ($3,077)
Change in Inventory ($110,700) ($28,400) $1
Change in Accounts Payable $18,874 $5,538 $0
Change in Income Tax Payable $9,200 ($2,860) $4,145
Change in Sales Tax Payable $0 $0 $0
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received
Dividends & Distributions
Change in Short-Term Debt $16,545 ($53,413) ($19,937)
Change in Long-Term Debt ($6,161) ($6,476) ($6,808)
Cash at Beginning of Period $110,000 $87,234 $155,789
Net Change in Cash ($22,766) $68,555 $219,647
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