The business idea of creating a small but profitable meat processing enterprise, at first glance, seems too complicated for a small business. High competition in the production of meat products seems obvious if you go to any supermarket.
However, this opinion changes when visiting small shops, especially in small towns and rural areas. A high margin on finished products, a constant demand for meat products, modern technologies for processing meat and making sausages — all this makes the business of the meat processing plant profitable and promising.
The profitability of his enterprise can only be ensured by the owner who acts deliberately and systematically.
Creating your own meat processing plant should begin with marketing research and the preparation of a business plan . The study should provide information on the level of demand and competition and become the basis for preliminary profitability calculations. A business plan will help not only to avoid unnecessary losses, but also to obtain credit funds if necessary.
Investments in the creation of a meat processing plant are really significant, even if it has the form of a small sausage shop. First of all, the production of food products must have the appropriate permits from the supervisory authorities, and for this it is necessary to select the appropriate premises. However, the requirements for such a room are quite strict.
The best option for creating a meat processing plant for a novice businessman would be to purchase a ready-made sausage shop complex, which will allow you to deploy production in any former warehouse.
Such a complex is a single monoblock, in which all technological and sanitary requirements for the production of sausages have already been met. The cost of such equipment depends on the production capacity and ranges from 6.5 to several tens of thousands of dollars.
Such an investment requires a responsible business approach, but the purchase of individual equipment modules will certainly require even more investment. So, for example, to organize the production of sausages, you will need equipment for the primary processing of raw materials — cutting, deboning, trimming; equipment for grinding and cooling minced meat; equipment for the formation of loaves and subsequent heat treatment. And all this needs to be mounted and brought together in a single technological cycle.
The implementation of the business idea of a meat processing plant in the form of a single monoblock seems to be more profitable from an economic point of view, unless, of course, we are talking about large-scale production.
Thus, the initial costs of creating a meat processing plant can be reduced to bringing the premises in line with sanitary and fire standards, installing a ready-made equipment complex, providing sufficient power consumption, obtaining permits from supervisory authorities and registering an enterprise.
Operating costs will consist of rent, utility bills, debt servicing (if any), staff salaries, raw materials purchases and transportation costs.
The profitability of the meat processing plant, as a business, allows you to recoup the initial investment within 2-3 years. However, a quick profit, especially in cases where borrowed funds are involved, is possible only with a clear planning of expenses and income.