Tasmanian Gourmet Venison Pty Ltd Business Expansion Plan

Amount of Finance Required

Tasmanian Gourmet Venison Pty Ltd is positioned as renowned wholesale butchery organization within Hobart which needs funds for expansion of business for making sure establishment of retail butcheries all through the Hobart and Launceston.

1.2. Amount of Finance Required

Tasmanian Gourmet Venison Pty Ltd needs finance around $500,000 for expansion of its business in order to start its butchery business. The finance is required by the organization in acquiring new equipment, for the working capital and for leasehold enhancements.

1.3. Employment of the Funds

For this new business, loan of around $500,000 will be acquired by the organization. Such fund will be employed in purchasing new plant and machinery, in order to pay wages and for marketing strategy advancement. The funds might be employed in establishment of new outlets of the organization. 

1.4. Advantages of Funds on Business

There are numerous advantages of the required funds within the strategy of business expansion of Tasmanian Gourmet Venison Pty Ltd. It will result in leasehold improvements in addition to interior decoration and introduction of walk-in cold store. Funds will also be employed within advertising that can provide the organization with advantages related to gaining attention of consumers in its new outlets. It will also provide with benefits of maintaining superior facilities and effective service for gaining attention of consumers.  

The name chosen for the new butchery business is Tasmanian Gourmet Venison Pty Ltd.

2.2. Business Structure

The business structure of the organization is to process and manufacture organic meat along with providing them in two major market segments such as retail and wholesale. By means of retail trade, the organization might promote its locations with providing consumers with better service. The new company will develop its business structure in a way that it has a convenient location, delivery service as well as an effective internet site.

2.3. Key Business Activities

Major business activity of the Tasmanian Gourmet Venison Pty Ltd will be to remain a profitable supplier of organic meat products to all the Tasmanian consumers. Dealing with the breeding along with grazing operation is deemed to serve as one of the major activities. The organization will center on integrating vertically all its meat supply operations through the retail and wholesale operations. Another major business conduct is to breed and process deer in the certified on-farm abattoir.

2.4. Facilities and Location 

Tasmanian Gourmet Venison Pty Ltd has found out a property within Hobart region to take a five years lease with several options of monitoring these leases for further two years duration. The location will have superior interior decoration in addition to walk-in old store. One more outlet will be positioned in Launceston once the outlet turns operational and gathers positive cash.

2.5. Elaboration of New Product, Consumers and Economic Trends

The organization will provide lean meat that is its new product for the health conscious target consumer market. This new meat product is deemed to be of low fat and cholesterol content in comparison to beef, pork, chicken and lamb that is in accordance to likes of Tasmanian consumers. The target consumer market for the organization will be specialty restaurants along with food markets. Evaluation of economic trends signifies that there is a high demand for healthy foods in the regions of Launceston and Hobart. In accordance to such trend, there are 47 restaurants, 18 specialist butchers and 21 food markets which provide health benefits within diet as well as the organic red meat products.

Employment of the Funds

2.6. Major Personnel

Two specialist game butchers are decided to be employed in Hobart outlet. These employees will be responsible in producing organic meat products meant for retail and the wholesale trade. In addition, four sales assistants working part time will be involved in giving casual rates. Moreover, their responsibilities will encompass organic red meat products selling to retail consumers over the counter. The Launceston outlet will appoint two sales assistants along with one specialist game butcher.  

3. Marketing Plan

3.1. Product or Service Advanced Features

Red meat organic food provided by the organization is observed to have numerous health advantages as it will have nutrients like polysaturates necessary for maintaining a healthy body. New venison meats provided will serve as low fat diets having just 207 calories in 100 grams along with high iron and protein quality which will be desired by Tasmanian customers.  

3.2. Target Market

Target market of the company will include health conscious customers within Hobart and Launceston region that will include specialty restaurants and food markets. Consumers those search for venison meat devoid of hormones and antibiotics are considered as target market for the company’s new red meat and venison goods.

3.3. Target Market Size 

Target market size is small for the company will produce products centered on health conscious consumers those look for organic low fat food. In such consideration, it can make sure that organic venison supply will remain of enough volume which can enable regular supply of products to target consumers.

3.4. Potential Consumers Attained in Trading Area

Potential consumers of the company include people in the Hobart and Launceston region those search for high quality organic red meat within competitive prices. In addition, the consumers that search the venison rump steak along with venison topside can also serve as its potential consumers.

3.5. Target Consumers for Product or Service

The company’s target consumer market is deemed to be the specialty restaurants along with food markets. In addition, health aware people within the selected regions will also be target consumers for organic lean meat of the company.  

The direct competitors for organic venison food provided by Tasmanian Gourmet Venison Pty Ltd is deemed to be one butcher of Launceston along with two butchers within Hobart for the reason that they previously purchased their organic venison from the company and is deemed to operate being wholesale customers.

4. Operations Plan

4.1. Plant

Tasmanian Gourmet Venison Pty Ltd has decided to take a property in Hobart on lease in five years agreement with having options of renewing the lease for the term of further two years. The plant is deemed to maintain efficient interior decoration that will have a walk-in old store. The building is deemed to be spread on sales area of 135 m2, cutting room of 12 m2 and 80 m2 of further space that remains recently unused for expansion. One more outlet will be positioned within region of Launceston once the outlet is operational and produces positive cash.

4.2. Processes

The processes that is followed by Tasmanian Gourmet Venison Pty Ltd is deemed to develop products by ensuring clean quality, eye-catching facilities with providing better-quality service. The company has decided to offer organic red meat by offering them these in specialty food markets and restaurants. The intention of product supply process will remain on ensuring regular supply, constant delivery service, well-situated location, effective quality in addition to wide-ranging internet site which can provide service within every market segments.

4.3. People

Two specialist game butchers will be selected as staff in Hobart outlet. These employees will be accountable in producing organic meat products in support of retail and the wholesale trade. In addition, four part time sales assistants that might be employed in providing casual rates long with their responsibilities will encompass selling organic red meat products to retail consumers over the counter. Outlet within region of Launceston will provide work for two sales assistants along with one specialist game butcher.

5. Financial Plan

Particulars	Amount (in $)	Amount (in $)
Current assets:
Cash		5,000
Accounts receivable		100,000
Inventory		150,000
Prepaid expenses		10,000
Total current assets		265,000
Non-current assets:
Plant and equipment	100,000
Accumulated depreciation	50,000	50,000
Buildings		150,000
Land		300,000
Total non-current assets		500,000
Total assets		765,000
Current liabilities:
Overdraft		20,000
Accounts payable		70,000
Provision for taxes		60,000
Accrued expenses		15,000
Total current liabilities		165,000
Non-current liabilities:
Term loan		50,000
Mortgage		150,000
Total non-current liabilities		200,000
Total liabilities		365,000
Owner’s equity:
Contributed capital		300,000
Retained earnings		100,000
Total owner’s equity		400,000
Total liabilities and owner’s equity		765,000

Particulars	Amount (in $)	Amount (in $)
Sales revenue		1,200,000
Cost of sales:
Beginning inventory	150,000
Purchases	700,000
Less: Ending inventory	120,000
Total cost of sales		730,000
Gross profit		470,000
Operating expenses:
Salaries		200,000
Wages		70,000
Marketing		100,000
Occupancy		80,000
Administration		50,000
Depreciation		50,000
Interest		15,000
Total operating expenses		565,000
Net profit before tax		(95,000)
Provision for income tax		–
Net profit after tax		(95,000)