The following plan is based on 16 years of experience, is highly focused and promises to follow a path of prosperity for its owners and staff. The projections are based on conservative sales figures. Actual sales may be higher. The projections contained herein are authentic and will be used as the budget for the business. Latheethen Feeds, Inc., is going to show a profit instantly and will increase sales each year.
Latheethen Feeds, Inc., an established custom feed store, is well-known. The company produces custom livestock and bird feeds, deer feed, along with 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 providing top-quality customer service, meeting delivery dates and controlling sales prices to meet 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., Pleasantville, Michigan. This privately-owned corporation has been in operation for almost 16 years. The store’s previous owners are still in the same neighborhood and plan to move into their retirement home in Northern Michigan as soon as they complete the business 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.
An estimated 14,695 farms and 20,434 hunters are located in six counties near Latheethen Feeds. Once delivery is possible, however the state remains open to all. Latheethen’s would then be able to compete for 53,315 farms’ business. USDA records show that these same farms are responsible for spending nearly $2 billion annually on Michigan 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 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.
To achieve these goals, Latheethen fields needs funding for two different phases of expansion. 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. The area’s premier equineboarding stable will be built in Year 2. We will need another, longer-term loan in the amount $135,000 during the second year. Mid-Town Meadows, in addition to being a revenue source, will also be a source for feed. Mid-Town Meadows will provide a relaxing and inviting environment for our horses and customers. The theme and decor will have log exterior walls and a formal private clubhouse that overlooks the enclosed arena. The feed store is already located at the main entrance, next to a cascading water fountain and company signs.
1.1 Objectives
Latheethen Feeds has five major objectives. These are the primary targets.
- Maintain 100% of existing customer base by consistent customer service.
- Our customer base will be expanded through referrals and aggressive direct sales.
- Based on customer demands, we will gradually expand our product line.
- Expand our custom feed mill to meet the growing sales market.
- As their needs are understood, we can offer more services to our customers.
1.2 Mission
Latheethen Feeds has been family-owned and operated since its inception.
We offer the finest premium products and service on the market to our customers. Latheethen’s offers all of our customers the direct personal attention they deserve. We guarantee 100% customer satisfaction through our commitment to customer service.
1.3 Keys to Success
These are the keys to Latheethen Feeds’ success:
- You can be sure of freshness and high quality.
- You can choose from many prices.
- To keep abreast of market trends, constant research is required in every industry.
- Management: Products delivered on time, professional service to customers, management of budgets.
- Regular evaluation of strengths, weaknesses and adjustments when necessary.