The following plan, which draws on 16 years’ experience, is extremely focused and promises prosperity for its owners as well as its staff. It is based off conservative sales figures. However, actual sales may be greater. These projections are true and will be used for the business’ budget. Latheethen Feeds, Inc., which will make a profit right away, will continue to grow its sales and profits each subsequent year.
Latheethen Feeds, Inc., is a well-established custom food store. The company manufactures custom livestock feeds and bird feed, as well other animal products. Latheethen Feeds, Inc. expanded its production facility (custommill) recently and is well-positioned for marketing its workroom production to clients beyond its existing client base. The company is committed in providing excellent customer service, meeting all agreed delivery dates and keeping sales prices under control to keep them in line with market trends. This business plan’s main purpose is to identify future clientele, present our marketing strategy, improve internal processes, and secure the financing we need to expand.
Latheethen Feeds, Inc., Pleasantville, Michigan. The company is privately owned and has been in existence for nearly 16 years. They live next to the store and plan on moving to Northern Michigan after this transaction. The current owners and the new owners are actually family. They will still be available to help if they need it and visit the store bi-weekly.
In the six surrounding counties of Latheethen Feeds are estimated to be 14,695 livestock farms and 20,434 hunter. The state’s entire market is available for delivery. Latheethen’s would then be in the market to compete for the business of 53,315 farms. USDA records indicate that the same farms spend nearly a quarter of an billion dollars each year on Michigan’s feed. The current share of the market in which the company is located is less that 1%. The state’s total annual revenue was $140,000 established by the owners in the past. They achieved this without the need for advertising and outside sales. The new owners want to grow the business to increase their share of $260,000 annually.
This business plan will show after-tax profits of $22,806 for Year 1, and nearly $30,000 within three years.
Latheethen has two expansion phases and requires funding in order to reach these goals. We are seeking a $15,000, short-term loan that can be repaid in the next two years. This loan will enable us to purchase a delivery truck, a key element of our new sales and marketing strategy. To build the best equine board stable in the region, we will require a $135,000 long-term loan. This loan is due to us in the first year of Year 2. Mid-Town Meadows will be an additional source of revenue and a source of feed sales. Mid-Town Meadows will be a comfortable, inviting equine resort designed to make our customers and their horses feel as if they are enjoying VIP services in a world all to themselves. The decor and theme will be rustic (log exterior walls), yet formal (private club house overlooking the enclosed arena). The main entrance already has the feed store, which is located next to a water fountain and company signage.
Latheethen Feeds has five major objectives. These are the primary targets.
- To retain 100% of the existing customer base, you must provide consistent customer service.
- Direct referrals and aggressive sales can help us expand our customer base.
- We are expanding our product range gradually, depending on customer needs.
- Expand our custom feed mill to meet the growing sales market.
- As our customers’ desires are recognized, we can expand the variety of services available to them.
Latheethen Feeds is a family owned and operated company, dedicated to
providing our customers with the best premium products and services on the market. Latheethen’s gives each customer the personal attention and care they need. Our commitment to customer service ensures our customers are 100% satisfied.
1.3 Keys To Success
These are the keys to Latheethen Feedsâ€™ success:
- Freshness and quality of product.
- Variation and price
- To keep abreast of market trends, constant research is required in every industry.
- Management: products delivered on time, professional customer service, managing budgets.
- Continuous evaluation of strengths & weaknesses, with adjustments where necessary.