This plan, which is based upon 16 years of experience and is very focused, promises to lead to prosperity for both its owners and employees. The projections are based on conservative sales figures. Actual sales may be higher. These projections are accurate and will serve as the budget for your business. Latheethen Feeds, Inc. is expected to make a profit immediately and increase its sales each 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. just expanded its production facility (custom-mill) and is now well-positioned in order to market its workroom product beyond its current client base. The company strives to provide the best customer service and meet the agreed delivery dates. It also keeps the prices in line with current market trends. This business plan focuses on identifying future clients, explaining our marketing strategy, improving internal procedures, and obtaining the financing required to expand.
Latheethen Feeds, Inc. is located in Pleasantville, Michigan. The company is a privately owned corporation and has been operating for nearly 16 years. The former owners, who live right next to the store, plan to move to Northern Michigan when this transaction is complete. However, since the current owners and new owners are in fact family, the current owners will be around if needed and to visit on a bi-weekly basis.
The six counties surrounding Latheethen Feeds contain an estimated 14,695 livestock farms, and 20,434 hunters. However, the entire state is an open market once delivery to customers is an option. Latheethen’’s would then have the opportunity to compete with 53,315 farmers for this business. USDA records indicate that the same farms spend nearly a quarter of an billion dollars each year on Michigan’s feed. The company has a less than 1% share in the nearby market. On an annual basis, the company has established $140,000 of the state total. They achieved this without the need for advertising and outside sales. The new owners are focused on growing the business to gain a greater share, $260,000 annually, of the state total.
The marketing research and tailored marketing strategy described in this business plan will result in after-tax profits of $22,806 in Year 1 and increasing to nearly $30,000 in after-tax profits within three years, despite significant new advertising and renovation expenses.
Latheethen needs funding to fund two phases of expansion in order to achieve its goals. A $15,000 short-term loan is needed, which must be repaid in 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. The addition of “Mid-Town Meadows” will not only be another source of revenue, but also another source of feed sales. Mid-Town Meadows is a luxurious, comfortable equine resort that will make our customers feel like they are in their own private world. The theme and decor will have log exterior walls and a formal private clubhouse that overlooks the enclosed arena. You will find the feed store at the main entrance. It is next to a waterfall and company signs.
1.1 Objectives
The success of Latheethen Feeds is measured by five main objectives:
- With consistent customer service, maintain 100% of your customer base.
- Our customer base will be expanded through referrals and aggressive direct sales.
- Our product line will be expanded gradually, according to customer requests.
- To meet the increasing demand for our custom feed mill, we have expanded.
- Expand the types of services offered to our customers, as their desires are identified.
1.2 Mission
Latheethen Feeds was established in 1998 by a family.
We offer the finest premium products and service on the market to our customers. Latheethen’s provides all our customers with the personalized attention they deserve. Our committment to customer service and satisfaction assures us that our customers are 100% satisfied with our products and services.
1.3 Keys to Success
The primary keys to the success of Latheethen Feeds are as follows:
- Product freshness and quality.
- You can choose from many prices.
- Constant research of industry to keep knowledgeable of market needs.
- Management: products delivered on-time, professional customer service, and managing budgets.
- Continuous evaluation of strengths & weaknesses, with adjustments where necessary.
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