Meat Wagon Butchery Business Plan

 Industry Overview

Butchery business falls under the Meat, Beef & Poultry Processing industry and businesses
in this industry basically engage in the slaughtering of livestock to produce red meat. The
butchery business also produces fresh or frozen meat as carcasses and cuts, in addition to
by-products like rendered lard, tallow, pulled wool, bone, preserve and pack meat. It is
important to state businesses that primarily cut and pack meats from purchased carcasses
are also part of this industry.

In Namibia, to become a professional butcher, training is essential and short training

courses for a minimum of two weeks are available in Namibia. The training of butchery staff
is addressed in Occupational Health and Safety Act.

Even though meat consumption based on per capita income is expected to remain stagnant
in the next half a decade, economic woes before this period aggravated consumption drops.

Because of recovering consumer sentiment, population growth and strong export demand,
meat-processing revenue is projected to increase going forward. In spite of the stability of
consumer demand for meat-based products, unpredictable weather conditions and disease
outbreaks can cause instability in the revenue generated by industry players.

The butchery business in Namibia will continue to blossom because people will always want
to purchase fresh meat. Despite the fact that the industry seems over – saturated, there is
still room big enough to accommodate aspiring entrepreneurs who intend opening their own
butchery business in any part of Namibia.

In Namibia and of course, in all countries of the world, butchers are required to adhere to
stringent hygiene regulations and to undertake general cleaning tasks in the meat
preparation and serving areas. Professional butchers may require particular skills and
knowledge.

If you are looking towards leveraging on the beef, meat and poultry processing industry to
generate huge income, then one of your best bet is to start a butchery business. One thing
is certain about starting your butchery business, if you are able to conduct your market
research and feasibility studies, you are more likely not going to struggle to sell your meat
because there are loads of businesses (hotels, caterers and restaurants) and consumers
out there who are ready to buy from you.

Executive Summary
Meat Wagon Butchery is a registered butchery business that will be involved in the
slaughtering and retailing of fresh meat. Our slaughterhouse will be located close to one of
the largest residential communities in Namibia- northern part of Namibia. We have been
able to lease a warehouse cum storage facility that is big enough to fit into the kind of
butchery business that we intend launching and the facility is centrally located in the heart of
town with easy delivery network.

Meat Wagon Butchery will be involved in butchering of animals, producing cuts of beef,
lamb, pork, other red meats and selling by-products from the slaughtering process to a wide
range of customers.

We are aware that there are several butchery businesses all around Namibia that are also
into meat and beef retailing, which is why we spent time and resources to conduct our
feasibility studies and market survey so as to offer much more than our competitors will be
offering. We have a robust distribution network, strong online presence and modern storage
facilities and we are armed with the various payments options available in Namibia.

Much more than retailing meats, our customer care is going to be second to none in the
whole of Namibia- northern part of Namibia and our deliveries will be timely and highly
reliable. We know that our customers are the reason why we are in business which is why
we will go the extra mile to get them satisfied when they patronize us.

Meat Wagon Butchery will ensure that all our customers are given first class treatment
whenever they visit our butchery facility. We have a CRM software that will enable us
manage a one on one relationship with our customers no matter how large they may grow
to. We will ensure that we get our customers involved in the selection of the types of animal
to be butchered and also when making some business decisions that will directly affect
them.

Meat Wagon Butchery will at all times demonstrate her commitment to sustainability, both
individually and as a firm, by actively participating in our communities and integrating
sustainable business practices wherever possible. We will ensure that we hold ourselves
accountable to the highest standards by meeting our client’s needs precisely and
completely.

Meat Wagon Butchery is a family business that is owned by Toivo N Shilongo and his
immediate family members.
Our Products and Service Offering

Meat Wagon Butchery is in the butchery line of business to retail fresh meats and we will
ensure that we are involved in butchering a wide range of animals that are consumed in
Namibia. Our products and services offerings are listed below;

 Butchering animals
 Producing cuts of beef
 Producing cuts of lamb
 Producing cuts of pork
 Producing cuts of other red meats
 Selling by-products from the slaughtering process.

Our Vision Statement

Our vision is to become one of the leading brands in the butchery line of business in the
whole of Namibia- northern part of Namibia.

 Our Mission Statement

Our mission is to establish a butchery business that will slaughter and sell a wide range of
animals at affordable prices to wholesalers and retailers in and around Namibia.

 Our Business Structure

Meat Wagon Butchery has no plans to start an unregistered butchery business; our
intention of starting a butchery business is to build a standard butchery in Namibia- northern
part of Namibia. We will ensure that we put the right structures in place that will support the
kind of growth that we have in mind while setting up the business.

We will make sure that we hire people that are qualified, honest, customer centric and are
ready to work to help us build a prosperous business that will benefit all our stake holders.

In view of that, we have decided to hire competent hands to occupy the following positions
that will be made available at Namibia- northern part of Namibia.

 Manager (Owner)
 Warehouse/Storage Facility Manager
 Merchandize Manager
 Sales and Marketing Manager
 Butchers
 Drivers/Distributors
Roles and Responsibilities

Manager/Owner

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies,
and objectives; assigning accountabilities; planning, monitoring, and appraising job
results; developing incentives; developing a climate for offering information and
opinions
 Creates, communicates, and implements the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the overall
organization’s strategy.
 Accountable for fixing prices and signing business deals
 Responsible for providing direction for the business
 Accountable for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Warehouse cum Storage Facility Manager

 Responsible for organizing the safe and efficient receipt, storage and dispatch of
slaughtered animals and byproducts
 In charge of planning, coordinating and monitoring the receipt, order assembly and
dispatch of slaughtered animals and byproducts
 Responsible for using space and mechanical handling equipment efficiently and
making sure quality, budgetary targets and environmental objectives are met
 Responsible for keeping stock control systems up to date and making sure
inventories are accurate;
 Ensures that proper records of goods are kept and warehouse does not run out of
products
 Ensures that the slaughterhouse facility is in tip top shape and meets the health and
safety requirements
 Controls meat, beef and poultry meat distribution and supply inventory
 Supervises the workforce in the butchery floor.

Merchandize Manager

 Manages vendor relations, farm cum market visits, and the ongoing education and
development of the organizations’ buying teams
 Responsible for the purchase of cows, goats, pigs, turkeys and chickens et al directly
from farmers for the organization
  Responsible for planning sales, monitoring inventory, selecting the merchandise, and
writing orders for vendors
 Ensures that the organization operates within stipulated budget.

Butchers

 Responsible for butchering animals

 Responsible for cleaning the slaughterhouse before and after butchering of animals
 Handle any other duty as assigned by the manager (owner)

Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of information to
retain the organizations’ best customers and attract new ones
 Models demographic information and analyze the volumes of transactional data
generated by customer purchases
 Identifies, prioritizes, and reaches out to new partners, and business opportunities et
al
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of
development projects.
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps increase sales and growth for the company

Accountant/Cashier

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex proposed
projects; conducts market research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for the organization
  Serves as internal auditor for the organization

Distribution Drivers

 Assists in loading and unloading live cows, goats, pigs and birds et al and also
slaughtered animals
 Maintains a logbook of their driving activities to ensure compliance with federal
regulations governing the rest and work periods for operators.
 Keeps a record of vehicle inspections and make sure the truck is equipped with
safety equipment
 Assists the transport and logistics manager in planning their route according to a
distribution schedule.
 Local-delivery drivers may be required to sell meat, beef and poultry et al or services
to stores and businesses on their route, obtain signatures from recipients and collect
cash.
 Inspects vehicles for mechanical items and safety issues and perform preventative
maintenance
 Complies with truck driving rules and regulations (size, weight, route designations,
parking, break periods etc.) as well as with company policies and procedures
 Collects and verifies delivery instructions
 Report defects, accidents or violations

Butchery Business Plan – SWOT Analysis

Our plan of starting our butchery business in Namibia- northern part of Namibia is to test run
the business for a period of 6 years to know if we will invest more money, expand the
business and then open our slaughterhouse in major cities in Namibia.

We are quite aware that there are several butchery businesses all over Namibia and even in
the same location where we intend locating ours, which is why we are following the due
process of establishing a business. We know that if a proper SWOT analysis is conducted
for our business, we will be able to position our business to maximize our strength, leverage
on the opportunities that will be available to us, mitigate our risks and be equipped to
confront our threats.

Meat Wagon Butchery employed the services of an expert HR and Business Analyst with
bias in the meat, beef, and poultry processing industry to help us conduct a thorough SWOT
analysis and to help us create a business model that will help us achieve our business
goals and objectives.
This is the summary of the SWOT analysis that was conducted for Meat Wagon Butchery;

Strength:

Our location, the business model we will be operating on, varieties of payment options,
healthy environment, latest butchery equipment and our excellent customer service culture
will definitely count as a strong strength for Meat Wagon Butchery. So, also our
management team are people who have what it takes to grow a business from startup to
profitability with a record time.

 Weakness:

One major weakness that may count against us is the fact that we don’t have our cattle
ranch and we don’t have the financial capacity to compete with leaders in the industry for
now.

 Opportunities:

The fact that we are going to be operating our butchery business in Namibia- northern part
of Namibia which happens to be one of the provinces with high purchasing power provides
us with unlimited opportunities to sell our fresh meats to a large number of wholesale
distributors and retailers.

We have been able to conduct thorough feasibility studies and market survey and we know
what our potential clients will be looking for when they visit our butchery house; we are well
positioned to take on the opportunities that will come our way.

 Threat:

Some of the threats and challenges that we are likely going to face when we start our own
butchery business are global economic downturn that can impact negatively on household
spending, bad weather cum natural disasters, unfavorable government policies and the
arrival of a competitor within the same location where we have our butchery house.

MARKET ANALYSIS

 Market Trends

In recent time, consumers are become conscious or what they eat especially as it relates to
meat. Those advocating for healthy eating are against the consumption of meat especially
red meat. With that, it takes extra effort for those in the butchery business to canvass such
people to patronize them especially those who are under a nutritionist.
The truth is that slaughtering of animals for food has been in existence for as long as
humans started trading goods, but one thing is certain, the meat, beef and poultry
processing industry is still evolving. The introduction of technology has indeed helped in
reshaping the industry.

It is now a common phenomenon for butchery houses to leverage on technology to

effectively predict consumer demand patterns and to strategically position their business to
meet their needs; in essence, the use of technology helps businesses like slaughterhouses
to maximize supply chain efficiencies.

 Our Target Market

The meat, beef and poultry processing industry has a wide range of customers; a large
chunk of people on planet earth consume different types of meat or poultry products and it
is difficult to find people around who don’t.

In view of that, we have positioned our butchery business to serve consumers in and
around Northern part of Namibia and every other location we will cover all over Namibia.
We have conducted our market research and we have ideas of what our target market
would be expecting from us. We are in business to engage in the sale of freshly butchered
meats to the following businesses;

 Households
 Restaurants
 Hotels
 Caterers
 BBQ joints
 Retailers of meat
 Grocery Stores
 Super Markets
 Wholesale Distributors of meats

Our Competitive Advantage

Meat Wagon Butchery is launching a standard butchery business that will indeed become
the preferred choice of consumers, retailers, wholesale distributors, grocery stores and
supermarkets et al in Northern part of Namibia.

One thing is certain; we will ensure that we have a wide range of freshly butchered meat
available in our warehouse facility at all times. One of our business goals is to make Meat
Wagon Butchery a one stop butchery. The fact that our output is sold to incorporate long-
term sales contracts, and that we enjoy upstream vertical integration (ownership links) and
economies of scale gives us an edge over our competitors.
So also, our excellent customer service culture, neat and healthy environment, timely and
reliable delivery services, online presence, and various payment options will serve as a
competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among
the best within our category in the industry meaning that they will be more than willing to
build the business with us and help deliver our set goals and achieve all our objectives. We
will also give good working conditions and commissions to freelance sales agents that we
will recruit from time to time.

SALES AND MARKETING STRATEGY

 Sources of Income

Meat Wagon Butchery is in business to engage in slaughtering animals and retailing fresh
meats and byproducts. We are in the business to maximize profits and we are going to go
all the way out to ensure that we achieve or business goals and objectives. In essence, our
source of income will be;

 Butchering animals
 Producing cuts of beef
 Producing cuts of lamb
 Producing cuts of pork
 Producing cuts of other red meats
 Selling by-products from the slaughtering process

Sales Forecast

The truth is that when it comes to butchery business, if your business is centrally positioned
coupled with a reliable supply of healthy animals and good distribution network, you will
always attract customers cum sales and that will sure translate to increase in revenue for
the business.

We are positioned to take on the available market in Northern part of Namibia and we are
quite optimistic that we will meet our set target of generating enough income from the first
six months of operation and grow the business and our clientele base.
We have been able to critically examine the meat, beef and poultry processing industry, we
have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projections are based on information gathered on the
field and some assumptions that are peculiar to startups in Namibia.

 First Fiscal Year: N$200,000

 Second Fiscal Year: N$550,000
 Third Fiscal Year: N$900,000

N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any major
competitor offering same products and home delivery services as we do within the same
location. Please note that the above projection might be lower and at the same time it might
be higher.

 Marketing Strategy and Sales Strategy

Prior to settling for a location to launch Meat Wagon Butchery, we conducted a thorough
market survey and feasibility studies in order for us to penetrate the available market and
become the preferred choice for households, wholesale distributors, retailers, grocery
stores and supermarkets in and around northern part of Namibia.

We have detailed information and data that we were able to utilize to structure our business
to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the industry to help us develop
marketing strategies that will help us achieve our business goal of winning a larger
percentage of the available market in and around northern part of Namibia.

In summary, Meat Wagon Butchery will adopt the following sales and marketing approach
to win customers over;

 Open our business in a grand style with a party for all

 Introduce our business by sending introductory letters alongside our brochure to
households, restaurants, hotels, caterers, BBQ joints, wholesale distributors,
retailers, grocery stores, supermarkets and other key stake holders in and around
Northern part of Namibia
 Ensure that we have a wide range of meat in our butchery business at all times
 Make use of attractive hand bills to create awareness of our business
 Position our signage / flexi banners at strategic places around northern part of
Namibia.
 Create a loyalty plan that will enable us reward our regular customers
Publicity and Advertising Strategy
In spite of the fact that our butchery business is well structured and well located, we will still
go ahead to intensify publicity for the business. We are going to explore all available means
to promote the business.

Meat Wagon Butchery has a long-term plan of opening distribution channels all around
northern part of Namibia and key cities throughout Namibia which is why we will deliberately
build our brand to be well accepted in Namibia before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers
over but to effectively communicate our brand. Here are the platforms we intend leveraging
on to promote and advertise Meat Wagon Butchery;

 Place adverts on community based newspapers, radio and TV stations

 Encourage the use of word of mouth publicity from our loyal customers
 Leverage on the internet and social media platforms like YouTube, Instagram,
Facebook, Twitter, LinkedIn, Google+ and other platforms to promote our business.
 Ensure that our we position our banners and billboards in strategic positions all
around northern part of Namibia
 Distribute our fliers and handbills in target areas in and around our neighborhood
 Advertise our butchery business in our official website and employ strategies that will
help us pull traffic to the site
 Brand all our distribution vans/trucks and ensure that all our staff members wear our
branded shirt or cap at regular intervals.

Our Pricing Strategy

Meats are sold in Kilograms in Namibia. Our pricing system is going to be based on what is
obtainable in the butchery line of business, we don’t intend to charge more and we don’t
intend to charge less than our competitors are charging in Namibia.

Be that as it may, we have put plans in place to offer discounts once in a while and also to
reward our loyal customers especially when they refer clients to us or when they purchase
over N$5000 worth of meat per time.

The prices of our meat will be same as what is obtainable in the open market and it will be
based on miles covered and time.

 Payment Options
The payment policy adopted by Meat Wagon Butchery is all inclusive because we are quite
aware that different customers prefer different payment options as it suits them but at the
same time, we will ensure that we abide by the financial rules and regulation of the
government of Republic of Namibia

Here are the payment options that Meat Wagon Butchery will make available to her clients;

 Payment with cash

 Payment via credit cards / Point of Sale Machines (POS Machines)
 Payment via POS machines
 Payment via online bank transfer

In view of the above, we have chosen banking platforms that will enable our clients make
payment for meat, beef and poultry purchase without any stress on their part. Our bank
account numbers will be made available on our website and promotional materials.

 Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a
detailed budget of how to achieve our aim of establishing a standard butchery business in
northern part of Namibia. We know that no matter where we intend starting our butchery
business, we would be required to fulfill most of the items listed below;

 The total fee for incorporating the business in Namibia – Name reservation
application costs N$50 and company registration N$250
 Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – N$3,000.
 Marketing promotion expenses for the grand opening of Meat Wagon Butchery the
amount of N$3,000 and as well as flyer printing (1,000 flyers at N$0.05 per copy) for
the total amount of N$3,050.
 The cost for insurance (general liability, workers’ compensation and property
casualty) coverage at a total premium – N$2,400.
 The cost for payment of rent for 12 months at R1.76 per square feet warehouse
facility in the total amount of N$40,000
 The total cost for facility remodeling (construction of drainages et al) – N$10,000.
 Other start-up expenses including stationery (N$500) and phone and utility deposits
(N$2,500).
 Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– N$60,000
 The cost for Start-up inventory – N$70,000
 Storage hardware (bins, rack, shelves, food case) – N$3,720
  The cost for store equipment (cash register, security, ventilation, signage) –
N$13,750
 The cost for the purchase of distribution vans– N$30,000
 The cost of launching a website – N$600
 Miscellaneous – N$10,000

We would need an estimate of Three hundred and fifty thousand Dollar (N$300,000) to
successfully set up our butchery business in northern part of Namibia.

Generating Startup Capital for Meat Wagon Butchery

Meat Wagon Butchery is a family business that is owned and financed by Toivo Shilongo
and his immediate family members. They do not intend to welcome any external business
partners which is why he has decided to restrict the sourcing of the startup capital to 3
major sources.

These are the areas we intend generating our startup capital;

 Generate part of the startup capital from personal savings

 Source for soft loans from family members and friends
 Apply for loan from my bank or SME government loan

N.B: We have been able to generate about N$70,000 (Personal savings N$45,000 and soft
loan from family members N$25,000) and we are at the final stages of obtaining a loan
facility of N$150,000 from our banks. All the papers and documents have been signed and
submitted, the loan has been approved and any moment from now our account will be
credited with the amount.

Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity
and competence of their employees, their investment strategy and business structure. If all
of these factors are missing from a business, then it won’t be too long before the business
closes shop.

One of our major goals of starting Meat Wagon Butchery is to build a business that will
survive off its own cash flow without injecting finance from external sources once the
business is officially running. We know that one of the ways of gaining approval and winning
customers over is to retail/distribute our meat, beef and poultry a little bit cheaper than what
is obtainable in the market and we are prepared to survive on lower profit margin for a
while.
Meat Wagon Butchery will make sure that the right foundations, structures and processes
are put in place to ensure that our staff welfare are well taken of. Our company’s corporate
culture is designed to drive our business to greater heights and training and retraining of our
workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best
hands we can get in the industry; they will be more committed to help us build the business
of our dreams.

Check List/Milestone

 Business Name Availability Check: Completed

 Business Registration: in progress
 Opening of Corporate Bank Accounts: in progress
 Securing Point of Sales (POS) Machines: in progress
 Opening Online Payment Platforms: in progress
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: in progress
 Purchase of Insurance for the Business: in progress
 Leasing of butchery facility and remodeling the facility: In Progress
 Conducting Feasibility Studies: Completed
 Generating capital from family members: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In Progress
 Design of The Company’s Logo: Completed
 Printing of Packaging Marketing/Promotional Materials: In Progress
 Recruitment of employees: In Progress