Somehow got logged out and have to re-type this whole post. Sorry if it seems broken up. grumble grumble.
I want to start up my own small scale meat shop. I don't have any college experience, just a high school degree. I'm wondering if it's even possible to start a meat shop without any business experience. Will all the net/gross jazz be too overwhelming? I need a space where my ideas can equal profit instead of just being ignored by old men too set in their ways to pay attention to them.
The things that I'm having trouble with are finding price quotes on equipment, renovation of a space to make it suitable, and filling that space with product. How many different licenses do I need, certifications, etc? I'd like to just have a small meat shop that I can do all the cutting in and maybe hire a part time person to watch the front end and run the register.
If anyone here has ran their own meat shop from the beginning, please post your story. I'm very interested to hear how everyone got started - any information you can give would be very much appreciated! Thanks!
if you live in the U.s. and you got the capital to start it up go for it. this america you don't need experience or a degree to start your own company. now if you live in some other countries that might be another story... you want to start out with used equipment. try ebay, try repo auctions in your area and try craigslist.
The thing is I'm about $20k in debt right now. I'm told by the bank manager that most people don't hire anyone, and don't even draw a salary for the first year in business. So the only way I can imagine this could work would be if I took out a larger loan, paid off my debts, covered the business expenses and then had enough left over to support myself for a year. Does that sound right?
they wouldn't give you a loan like that even if you weren't 20k in debt. you have to beable to show that you can make money to get a business loan i would get a crap job and save every penny for a couple years then start picking up equipment then find a cheap shop to rent and start small don't get a loan that would just screw you in the long term
-- Edited by fdarn on Sunday 14th of August 2011 05:06:15 PM
I did a class on writing a buisness plan. There are loans out there but like fdarn said you have to save some money cause they want some of your money down to show you are serious. I wanted to open a small deli/cookie shoppe. Its doable but you need some cash at least 3 to 4 percent for some of the goverment loans. But start looking for used equipment too thats a always a good idea. I even looked into the price of rent form a place I thought was ideal for my buisness. I have 4 kids and I put my plans on hold for now. But good luck to you! I took my buisness plan writing class from the local vocational school it was only 30 bucks and I got some great information.
I hear ya Dalth. Last year I was in the works on starting my own tobacco shop last. Had an investor set up for $10,000, this would have covered my register, counter, shelf, and about three months worth of rent. Had a city figured out, and a few locations in mind. My brother-in-law (who owns one tobacco store and a tobacco / grocery store) and I investigated competition down there. It was going to be extremely easy to take business away from them. Pretty much everything I needed for the besides inventory. When it came to inventory I talked to a vendor about a start-up credit. With tobacco the start-up credit would around $60,000. When you figure a carton of Marlboro's is $55 bucks a pop it adds up quick. Got all my paperwork in, and never received a call back. I tried to inquire with the vendor on several occasions, but everytime I told them my name I just got, "he is out right now."
The truth of the matter is they want to see you sitting on huge amounts of cash. I had about $2,000 in the checking of my own money, but never though to put down my savings account also. But it would have been futile. They want to see tens of thousands of dollars. Hence why the rich keep getting richer.
I will tell you first hand the money to open a shop up is going to be extremely high. And used equipment is questionable. Just like in my case. The slicer my brother in law bought was junk, there is $500 dollars gone. The meat case he bought is not functioning properly so there is another $1500 gone. Tenderizer was a grand, another slicer was a grand, grinder was probably around a grand. We bought a 5 ft freezer the other day for $2,000. 3-compartment since was $800. Freezer was $500. And if you're wanting a walk-in cooler you are figuring about $10,000.
Then you figure in if you buy a commercial building you could be out anwherefrom 30,000-200,000 depending on the area.
Depending on local codes, you may not be able to renovate yourself. You may have to have a contractor do that, and depending on the repair that needs to be done could be anywhere from $2,500-who knows what.
Start-up inventory will probably be about $1,000-$1,500 bucks. The complete opposite of a tobacco store.
And from what I've seen the days of the local butcher shop is numbered. People want convenience. If they're going to buy a steak they want the seasonings, the bbq sauce, the bread, the butter, the potatos, everything in one spot. Hence why in our town there is no stand-alone butcher shop.
As far as certifications(vary from state to state), more than likely you will need a business certificate from the state, a tax number, health department certification. These will be like $200-$300 bucks.
To be considered for a loan you will have to type up a business plan basically explaining to them financials, your business, outlook, and the like.
And you're credit score is a huge factor, as well as collatoral.
What does you're credit score look like? Do you have a home you own outright to fall back on. And would you be willing to lose such home?
2 out of 3 business fail.
And 1 year of working in the red seems highly unlikely. Most business work 2 - 3 years in the red before they start turning a profit.
Not ball busting, just trying to hit you with the facts brother.
