Starting a Meat Shop Business
I will never forget the time when I attended a real estate marketing seminar. It was a long time ago and the speaker was a top seller in the company, and he said that we should try to sell real estate to meat shop owners. It surprised all of us listening then that those in that line of business were making so much money.
It turns out that a meat shop business is not only very profitable, it is also practically immune from recession. Even in times of hardship, people still have to eat. Meat is consumed daily, which means that there are no lean times for the biz – except perhaps, Lent. The profit margins from meat products are also higher compared to other commodity items.
Here is an overview of what it would take to set up your own meat shop:
• Gather sufficient funds for starting the venture. Back then, you can probably get by with a little more than a weighing scale, a butcher’s knife, and a cutting board; but putting up a meat shop now will cost almost a million pesos. A meat shop franchise from a well-known brand will even cost you over three million pesos today.
• Get an ideal location. The best location for a meat shop is usually an area where there is a high density of residences. Locations inside wet markets are a good choice but the rights are very costly. If it will be a stand-alone shop, make sure it is far from competitors that sell meat on the cheap. And since you are selling a food item, it is crucial that not only the store space and its immediate surroundings have nothing that will affect the hygienic image of your shop.
• Have the proper facilities. If it is outside a wet market, it is essential that you have a meat display chiller in order to attractively display your products. They can cost around a hundred thousand pesos each, depending on the brand and capacity (as of June 2011).
• Have the proper equipment. Some of the major items you need to maximize the productivity of your shop include the following: the band saw (which may cost up to half a million pesos), weighing scales, meat grinder, knives, and upright freezers.
• Know the impact of holidays on meat purchases. Since it is very important for you to accurately predict demand to avoid product spoilage, you must take note of the dates where there are unusual events that will affect your sales. For example, during the Lenten season, sales of pork, beef, and poultry are weak, while the demand for fish will shoot up.
• Be careful in buying cheap meat from unknown suppliers. Never ever try to make extra profit by buying from questionable sources. Always presume that there is a problem if the meat has not gone through the normal inspection channels.
• Know the yield you will get from a carcass. One of the most important things to learn is to know how much sellable meat you can obtain from an animal’s carcass. Get actual hands-on training on meat cutting. This knowledge will enable you to exercise better control over your operations.
A meat shop is one of the best business choices for those who want to be entrepreneurs. It is simple, the demand is stable, and the profit margin is better than most retail outlets.
Want to learn more about this promising business? BusinessCoach, Inc., a leading business seminar provider, conducts seminars on how to start your own meat shop.
Click here to view details of the training program on: How to Start and Operate a Meat Shop Business »
*Originally published by the Manila Bulletin. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.