BUSINESS PLAN

I. Introduction
A. Areylusna meat shop is a start-up retail business that will sell fresh meat for an
affordable price. We come up to create this business because its owners has a pig
farm that can supply meat. We found out that the market value is high because of
the high demand of meat. We know that meat is one of the most buyable food in
the market, for the people loves to eat meat because aside of its delicious taste, it is
also a protein-rich viand. People also loves to buy meat because meat can be
cooked, prepared and served in so many ways. That is why meat shop is a very
perfect business to come up.
B. Areylusna business plan contains the factors on how we build up the business. We
had some researching, experimenting and solving to come up with the operating
cost, cost price, mark on, mark up, mark down margin, mark up rate, margin rate
and selling price.

II. Factors affecting the success or failure of the business.

A. Cost
Raw materials Price/unit
1 Pig=50 kilos 150 per kilo

B. Operation of our business and its cost.

Operation Cost
Labor P300 per day
Electricity P84 per day
Transportation P200 per day
Total: P584

C. Selling price
 During normal days the selling price of our product:
Cost per unit Markup and Mark up Percentage Selling price
margin rate margin
P161.68 P40.42 25% 20% P202.10
 Mark on:
Original selling Mark on rate Mark on New selling
price price
P202.10 10% P20.21 P222.31
 Mark down:
Original selling Mark down rate Mark down New selling
price price
P202.10 10% P20.21 P181.89
 D. Profit and revenue
Goods Number of sales Expenses
everyday
Pig 1pig=50kls P7,500
Total P7,500
 During normal seasons:
Revenue: P10,105
Profit: P2,605
 During holidays:
Revenue: P11,115.5
Profit: P3,615.5
During low demand and perishable times
Revenue: P9,094.5
Profit: P1,594.5

III. Summary
To summarize the business monetary transaction and operation. We
decided to come up a 25% markup rate because the 15% will go to the
savings of the business. This savings will serve as a capital for branch
extensions in the future and the 10% will serve as the money for the business
for future transactions. During holidays, the demand is higher do we decided
to add mark on. Since the business had its own supply of meat the raw
materials was cheaper. In order to sell the goods, we need to determine our
operation of our business and its cost. For our labor we need men to sell our
goods. For our electricity the factors affecting this aspect are the usage of
freezers, lights and etc,. For the transportation, we need to transport the
goods from the pig farm to the butcher house and then to the market. During
low demand of our goods we decided to plan on our mark down. Upon
starting the business we plan to sell 1 pig per day for the first 1 month.