How to open a butcher shop

Butcher's financial model

Brief Investment Memorandum

Currently, opening a butcher's shop is a profitable and promising business. There are a number of reasons for this. First, the demand for meat products is constantly increasing. According to statistics, on average, one Russian annually consumes 61 kg of meat. Secondly, there is a low threshold for entering this business. Plus, it's easy to scale across regions and across the country. Thirdly, meat and related products are everyday commodities. As a result, the payback period of the project is 14 months, the break-even point falls on the 4th month of the project.

To open a shop, you need to find a room. The minimum area is 70 m2. You will also need to hire 12 employees.

The main revenues of the company are sales of fresh and chilled meat. On average, 2,500 kg of meat are expected to be sold per month. It is necessary to purchase products only at large and proven industries. The average product margin is 70%. Thus, the financial indicators of the project will be as follows:

Initial investment amount - 865,000 rubles

Monthly profit - 93 600 rubles

Payback period - 14 months

Break-even point - 4 months

Return on sales - 13%

Description of business, product or service

Meat is an everyday commodity. People are constantly in need of quality meat products. Even during the crisis, these products are in steady demand. Taking into account also the state policy on import substitution, the domestic consumer seeks to purchase Russian-made products. As a result, these factors open up great prospects for starting this business and a quick return on investment.

How to open a butcher shop interests many aspiring entrepreneurs. But not all of them represent the specifics of the meat trade. There are several reasons for wanting to do this business. Meat belongs to the products of everyday demand, it was bought and will be bought even in times of crisis. To start, you don't need big investments and expensive equipment. Where there is meat, there are always many buyers, and this creates a feeling of a kind of drive that many sellers like. So, let's see how to start starting a meat business?

Contents

Stages of opening

Having analyzed the statements of successful entrepreneurs who have achieved prosperity in this area, a beginner, even at the stage of thinking about an idea, should think about what he knows about meat.

The point is that selling meat is a specific business. Here you need to understand the product, know how to properly store it, cut it, evaluate what to do if it has not been sold for several days.

In addition, the markup for meat is low (30%). There won't be much profit at first. You will have to work hard, gain a name for yourself, build up a client base, "make friends" with regular customers. It is no coincidence and enlightened in this area of ​​business is a person who was engaged in animal husbandry, or has a negative experience of shopping in the market and wants to provide people with a fresh meat product.

If, having considered all aspects of the project, the entrepreneur is convinced of the correctness of the chosen direction, you can proceed to the opening. Step by step guide:

  • Market assessment and competitor analysis.
  • Choose an advantageous location for the future store.
  • Find suppliers.
  • Register a business.
  • Rent of premises.
  • Getting permission documents.
  • Hiring staff.
  • Advertising promotion.
  • Purchase of meat products.
  • Opening a store.

Types of butcher shops

Depending on the financial capabilities of the entrepreneur, you can choose the format for opening a butcher shop:

Things to know

To open a butcher shop, you first need to analyze the local market and competitors. This is necessary in order to further determine the range and price of the meat product. There is no need to take the time to gather information about what kind of meat they buy more often, at what price people would like to see it. Of particular value are information about suppliers of quality products, and about the nuances of the work of demanded stores. Taking into account new knowledge, it is already possible to draw up a detailed business plan.

When compiling a list of products sold, it is worth considering the preferences of the population. There is no need to dwell only on pork, beef, lamb, semi-finished meat products and even fish will help diversify the choice and attract more customers.

What you need to open a butcher shop

To open a store you need:

  • Have experience in this niche. This is optional, but highly desirable. In theory, you can start a business from scratch, but if you understand meat, its types and prices, this is a significant advantage. Otherwise, you can be deceived by suppliers by selling a low-quality product at an inflated price.
  • Find starting capital. The average cost of opening a small outlet for the sale of meat is 300,000 - 600,000 rubles. Depending on the location, format and other factors, this amount may vary in one direction or another.
  • Find a suitable place and rent it. The main competition for butcher shops is grocery supermarkets, which also sell meat products. But a specialized outlet has its advantages - usually there is a better choice and fresher products, and the seller can advise on the choice.
  • Register a business. Usually - in the form of IP. You also need to obtain all the necessary permits from the Sanitary and Epidemiological Supervision and the Fire Inspectorate.
  • Purchase equipment: refrigerators, display cases, meat cutting tools (axes, knives, etc.)
  • Hire staff. Usually, for a small store, two salesmen working in shifts, a butcher, an accountant and a cleaning lady are enough. If you will be selling prepared foods or making convenience foods, you also need a chef. It is important that sellers understand meat, be sociable and smiling.
  • Find suppliers. It is optimal to have two or three suppliers, because one of them can fail.
  • Carry out an advertising campaign. If the store is located in a residential area, it is usually enough to hang a bright sign, perhaps hand out flyers, make discounts for opening a store.

How to open your own store: important nuances

If you have no experience in the meat business, it is very important to quickly learn all the nuances and hire a good butcher.

Butchering meat is extremely important. It is important that the butcher knows how to cut carcasses, not only in a culinary way. Not knowing all the tricks of cutting for sale, you can lose 10 to 20 kilograms of meat from each carcass, because of which you will incur significant losses. If you cut off a piece incorrectly, you get a different proportion of fat and bones - for the buyer, such a piece will not be of any value, and its price will decrease significantly.

It is also very important to provide a beautiful layout and competently tell the client about the product. If the meat is cut correctly, and the seller knows how to communicate with customers, half the job is done.

Also, according to the experience of businessmen working in this niche, it is important to allocate time for development and solution of strategic issues. It is important to promptly resolve problems with suppliers and employees. You can sell the meat yourself - most likely, sales will be an order of magnitude higher, but in this case the businessman will not have the opportunity to develop and scale the business.

Finding a room for a butcher's shop

Choosing the right location is a key factor in your store's success.

Where to start

Meat is a product of daily demand, so a business based on its sales is not a bad idea. Of course, incomes, like those of oil and gas tycoons, cannot be achieved here, but you can earn good money, and most importantly, there is an opportunity to expand and grow. You always have to start somewhere. It is not at all necessary to form an entire trading network at once, financially few people can do it. Start with one store - small investments. So you will understand whether this is your life's work and whether it is worth continuing.

Market research is the most important preliminary stage of every business. First, decide in which area of ​​the city your store will be located. This is important for its range and price level of products. Walk around the shops and markets that exist in the area, observe what meat products are in demand, how much certain categories of goods cost, whether there are associated products and in what volume. Entering each store or shop, look not only at the products, but also at the seller. Act as buyers. Many of the salespeople willingly make contact and tell interesting details that will be very useful to you later.

After studying sales, we turn to suppliers. This is also an important point in this business, because meat and meat products must always be fresh, otherwise you will lose to competitors and be left without buyers.

Look for meat suppliers in villages and farms located not very far from your butcher's shop.

So the supplier (or you yourself) will not spend a lot of money on transportation, and accordingly, you will not have to raise prices, and the meat will always be fresh, even in hot weather. When negotiating supplies, it is necessary to discuss (and then write in the contract) a few key points:

  • Purchase price for different types of meat.
  • Weight preferences and product restrictions (up to 250 kg).
  • Age categories of the animal (preferably up to 1.5-2 years).
  • Veterinary health confirmation.
  • Frequency of shipments and number of carcasses in each.

After that, you need to select a room, equip and hire personnel. For one store, 3 people are enough: a seller, a meat cutter and a cook for semi-finished products (if necessary). It is better to hire a cleaning lady under a contract with a cleaning company. At first, the entrepreneur himself can act as an administrator and accountant.

Investment volume

The initial turnover costs will consist of a number of factors, among which the main ones are: rent, equipment and purchase of meat.

The initial turnover costs will consist of a number of factors, among which the main ones are: rent, equipment and purchase of meat.

Rent and equipment

Equipment, including a freezing and refrigerating chambers, a refrigerated display case, a meat grinder, tools for chopping and cutting meat, scales, a cash register, will cost about 300,000 rubles. Rent depends on the city, district and area of ​​the premises. On average, it costs 100-300 thousand rubles. The purchase of meat per carcass of 200 kg will cost about 40,000 rubles.

A business plan for opening a butcher shop is required

Download free business plans from a special catalog: "BEST FREE RUNET BUSINESS PLANS"!

Attention! The free business plan offered for download below is an example. The business plan that best suits your business conditions needs to be created with the help of specialists.

Kirill Nabokov, an entrepreneur from the Voronezh Region, is the owner of a small butcher shop. Kirill opened a popular and lucrative butcher shop on a 20 m² lease area. At the moment, it has about 300 regular customers and several exclusive suppliers.

Business idea and business plan for selling meat

Start

It all started with the fact that I got tired of traveling far for good and fresh meat, I am constantly outraged by the lack of a good store not only in our area, but also a meager choice in the city as a whole.

I had to go to a neighboring village and stock up there constantly. I took it not only for myself, but for friends, relatives and colleagues, and it was cheaper in bulk.

Once I saw an advertisement in the grocery department of a shopping center about the lease of retail space. Here, you know, how it happens, and the light came on.

In general, I phoned the owner, found out everything. I thought I would bring the meat tomorrow and start selling it. But I decided to call a friend who owns a chain of pastry shops, and he cooled my ardor with such a thing as a business plan.

Seriously opening a butcher shop, meat business in general

It's simple, but really serious

Upon meeting, he praised my idea and said that he would be happy to be the first and regular customer in my butcher shop. He also told about various papers, permits, registrations, and, of course, about the most important thing - BP.

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