BusinessHABChicken Retail Business: This document provides a template of headings for presenting any business idea.
The objective is to produce a step-by-step tool that illustrates every step of the business creation process.
It should be possible, by following the information, to produce a viable business.
This heading area should contain a brief outline of the nature of the business – change the heading at the top to list the type of business – e.g. chicken retail business.
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What exactly is it that is going to be sold or done?
You will be selling the following:
- Chicken pieces
- Whole chickens
- sausages
-Sell Cornish Hens
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2. Business skills:
What skills are needed to do this? Where is this taught and how much will it cost?
Good communicating skills and decision making skills.
Marketing Skills -Experience in the field.
3. Needed tools:
What tools or equipment are needed? Where can they be bought.
And how much will they cost?
- fridge (own)
- Carry bags
-Knife -Big Pot -A telephone to place orders
4. Space:
How much space is needed to work from?
only space for my fridge
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5. Business location:
Where will the space be found, and how much will it cost to rent?
I will be working from my home in Middelpos and it will cost R50 for electricity for my fridge.
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6. Business customers:
What sort of people will buy the product? Who are they and where do they live?
Every household in the community who want to buy chicken locally
7. Customer’s purchase:
How much and how often will they buy? Will they come to the shop or will it be necessary to deliver?
They will buy chicken pieces and sausages every day and whole chickens once a week.
8. Upstream Businesses
A list of businesses and ideas that provide the services and products that this business needs.
- Chicken Farms
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9. Downstream Businesses
A list of businesses and ideas that this business could provide products for.
- comsumption
- occasions
- parties
- home use
- gifts
- recreation centres
- hospitality industries
10. Competitors
What major competitors will attract clients’ spending away from the business’ products?
- Entokozweni spaza shop in Middelpos
- Mofokeng
- Ekuphumleni spaza shop
11. Price product
What prices and products do these companies have?
They have exactly the same products
12.How to popular
What makes them popular / unpopular?
They also stock other products (spaza shop)
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13. Marketing / advertising
What do they do to attract customers? Specials? Interesting marketing / advertising?
They play loud music. Clients favourite type of music
- They are well known in the community
- They sometimes have specials
14. Customer’s interest:
What can be done to stand out against them? What can be done that is more exciting / more interesting?
- You have to ensure good customer service
- You will have from time to time specials
- You will give something extra for the kids (sweeties)
- Good parkaging and less prices
15. Marketing the business to clients
What sort of people will buy the products and how important is product consistency to them.
Chicken and chicken pieces will be bought by the adults in the community and the sausage will mostly be bought by the youth.
- Customers from site 5
- Yes consistency is important to clients
16. Customer’s buying habits
How seasonal or fashion-dependent are their buying habits (do they buy only in summer, only over Christmas, etc.)?
They will buy continiously, no seasonal or fashion business.
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17. Get the best quality:
Do the clients want the products to be the cheapest or the best (low price / low quality or high price / high quality)?
They want the best quality at the lowest price
18. Advertising / promotions
How do the clients decide where to buy the products? What sorts of advertising / promotions attract their interest?
- They compare prices
- Look for the best quality
- need somebody with good customer service
- Neat and clean enviroment attract customers, as well as fresh and affordable chickens at affordable prices.
19. The business inputs and outputs
List all of the inputs (products that are required to produce the products):
Your inputs will be:
- Chicken pieces
- Whole chickens
- sausages
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20. Get the suppliers addresses and telephone numbers
List all the suppliers for the inputs and their addresses, telephone numbers, and sales terms (cash, 30 days, etc.):
Metro Cash and Carry Vredenburg Cartol Saldanha
21. List all of your outputs (products created by your business):
Yuor outputs will be:
- Chicken pieces
- Whole chickens
- sausages
- Live Chickens
- Knife
- Hot water
22. What sort of prices can be charged and how much profit will can be made on each item (a rough estimate)?
- Chicken pieces R15.75 profit R4
- Whole chickens R21.00 Profit R9
- sausages R8.73 Profit R2
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23. Setting up the business
List everything that needs to be done to prepare the business to be ready (list everything needed to have as well, both equipment and stock):
Equipment:
- Fridge
- Knife
- Pot
- Table client already owns everything
- Clear plastic bags for packaging
Stock
- Chicken pieces
- Whole chickens
- sausages
24. Start-up cost:
How long will it take to get all of these things and how much will they cost to get?
It will take not more than 2 hours and it will cost about #20,000
- To Prepare 20 live Chickens it will take 2 hours
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25. Business fixed costs
List all the fixed costs to be paid every month even if nothing is sold (things like rent, electricity, telephone, staff wages):
Electricity
Airtime
Transport
26. Staff strengths
How many staff will be needed.
And how much will each of them be paid (wages must be included in the fixed costs above)?
none
What training will they need, how long will it take and how much will it cost?
non.
Chicken Retail Business
27.Production process
List every step, from start to finish, to produce the product
- Buy stock from supplier
- Check stock
- Price stock
- Put in fridge
- Sell it to clients
Allocate each of the manufacturing steps to a process and a process to a staff member (e.g. all manufacturing steps A to process 1):
Everything will be done by yourself.
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28. Possible problems:
What possible problems may happen during each step of the manufacturing process?
Transport to town can be a problem.
29. Solutions:
What solutions can be identified for these problems? How much will they cost and how long will they take to fix?
Will hire reliable transport.
Chicken Retail Business
30.Maintenance program
What is the maintenance program for all the equipment?
- The client will wash her fridge once a week
31. Safety requirements:
What safety requirements are important for production?
I must lock my house at night or the fridge.
32. Quality control and client feedback
How will quality control and client feedback be handled?
You have to apologies to complaining clients and replace stock if necessary
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33. Costing and bookkeeping
How many of each of the stock items can reasonably be sold each day (and month)?
- Chicken pieces 7 per day 140 per month
- Whole chickens 10 per week 40
- sausages 14 per day 240 pm
34. Seasonal variation
Will sales volumes be a similar number of each item each month, or is there seasonal variation (cold months, hot, or festivals)?
Always more or less than the same.
35. Pricing strategy
What sort of pricing strategy will be chosen (cheapest or best)?
The best price my clients can afford.
36. Business profit margin
What profit margin will be chosen for the products will vary.
Write down the cost prices plus the margin for each stock item you will sell, and the selling price
- Chicken pieces Cost
- Whole chickens Cost
- sausages Cost
Is this competitive? Will customers pay this much? Do the margins need to be adjusted? By how much?
yes, still competitive.
Chicken Retail Business
37.Set a target:
Now, set a target. How many items for each product need to be sold on a daily (and monthly) basis to be profitable?
- Chicken pieces 7 per day 140 pm
- Whole chickens 10 per week 40 per month
- sausages 14 per day 280 per month
Set out the products, costs, margins and selling prices:
| Item | Daily Target | Monthly Target | Cost Price | Margin | Selling Price | Total per Month |
| Chicken pieces | 7 | 7 x 20 number of working days in a month | R 11.75 | R 4.00 | R 11.75 + R 4.00 | = 140 monthly target x R15.74 selling price |
What trends are included in the projections?
Demand almost always the same
38. Process for running the business
What is the process for running the business on a typical day? Who will be responsible for each step? Link this back to the production process.
Open from 7H30 till 22H00
Who will act as backup should the person responsible not be there? What do they need to act as backup?
Your husband, wife and children
What weekly processes need to be performed? Who is responsible, who is backup and what tools are required?
Buying stock
What monthly processes need to be performed? Who is responsible, who is backup and what tools are required?
You need to pay monthly expenses. My husband will run the shop
39. Before beginning
List some of the support services available (legal, business and other) that might be needed
WCBDC Red Door
What major laws concern the business, and which government departments should be called to keep up to date (list phone numbers)?
40. Business Regulations
The first step in selling retail chicken is to understand the regulations.
When selling any meat, there are regulations for:
- slaughtering
- processing
- labelling
- handling
- transporting
- storing
- marketing
Compliance with regulations gives the customer confidence in the product.
It also gives producers the security of knowing that they are doing everything required to provide a quality product.
Know the regulations and follow them
Chicken Retail Business
41. Safety Best Practices
Food safety is critical to the success of any agricultural business.
Farm direct marketers of poultry products should:
- Practice a recognized on-farm food safety (OFFS) program.
- Establish quality criteria to ensure that a consistent, high-quality product leaves the farm gate every time.
- This could include service guarantees, product quality, food safety program for production, processing and marketing.
- Follow a recommended prerequisite program.
- Prerequisite programs provide the basic environment and operating conditions that are necessary for the production of safe food.
- Provincial prerequisite program guidelines are described in the document Meat Facility Standards, while federal prerequisites are outlined in the Food Safety Enhancement Program (FSEP).
- Talk to each processor about their food safety program.
- Choose a processor with the Food Safety Enhancement Program, Meat Facilities Standards or another good prerequisite program in place.
Chicken Retail Business
42. Finding Customers
The best way to find new customers is by word of mouth.
Where a customer tells a friend how great the chicken was and where to find it.
Having customers do the advertising is the best testimonial around.
Other strategies include:
- Use a personal network to identify new customers. Talk to family and friends; inform the local church community; showcase products at community functions; distribute flyers and price lists to colleagues, suppliers, and community groups; and, attract new customers through draws and contests.
- Maintain a customer database detailing purchase preferences and contact information.
- Look beyond the familiar community for new customers.
- Retired producers are a source of potential customers.
- They may simply miss eating quality chicken and are looking for someone to supply the needs of their own family, or they may have a list of former customers looking for a new chicken supplier.
- Try advertising freezer chicken in classified ads or flyers.
- The advertising must reach target customers.
- That means finding out from existing customers not only what they like about the product, but also what the best way to communicate with them is.
- Where are they located? What type of advertising appeals to them?
- What products are they looking for? How often do they buy?
- Use flyers, business cards, price lists and grocery bag stuffers to get the word out.
Chicken Retail Business43. Defining Product Quality
Bird weight, breast size and age all play a role in market readiness.
Are customers looking for 4 lb. or 9 lb. chickens?
Find out and grow the birds they want.
Producers should talk to customers about what they like about the producer’s chickens.
What else are they interested in that the producer can provide?
Talk to the processor for advice on what his customers buy.
Understanding birds and how they perform is critical to defining any production changes that are to be made to make to meet customers’ needs.
Chickens are typically slaughtered at between nine and 10 weeks of age, older than the commercial industry standard of 42 days.
Tenderness is affected if the bird is stressed before slaughter or if the carcasses are not properly handled.
Be sure to handle the birds carefully.
Talk to the processor about how you want the chickens handled.
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Conclusion
Selling retail chicken takes more time than most producers expect.
It can be very rewarding to market products to customers who are glad to buy retail chicken and who let the seller know how much they enjoy it.
Their feedback helps the producer do a better job producing birds that meet customer needs.
Be sure to ask buyers their comments. Survey them, provide an easy card for them to fill out and mail back, or simply talk to them.
Take feedback as it is intended – a means to better understand customers and improve the product.
Streamlining procedures helps reduce the time commitment.
However, selling retail chicken will always be more time consuming than marketing the birds to the commodity processor.
That is why it is important to plan in advance how to make it profitable.
BusinessHAB