If you are looking for a sample frozen food business plan template, here is a guide for starting a frozen foods shop and free feasibility study to use.
You do not need to focus on an abstract business idea in order to establish one. There are simple businesses you can consider.
However, you should go for those which you have the passion for. We are not going into a study of what type of business to do, but will concentrate on the frozen food business. This frozen food business plan sample was written with the inexperienced entrepreneur in mind.
Interested in small frozen food business planning tips? If YES, here is a practical guide on frozen food shop business.
Setting Up Profitable Frozen Food Business Ideas and Opportunities
Are you thinking about starting frozen food business? Are you into frozen food business and you are looking for means to improve the services you are providing your customers, thereby growing your frozen food business from home? If so, then this article is solely for you.
The concept of frozen food has been around for a while, at least since the 1800s. Freezing food is a great preservation method that keeps your food fresh without adding preservatives or other additives.
This is because the microbes responsible for food spoilage cannot multiply at that freezing temperature. Commercially done, freezing food is actually a very profitable business to embark on.
Frozen food business involves sale of frozen food to customers. The most popular frozen food sold by those who run frozen food business is meat. This includes fish, beef, goat meat, chicken, turkey, pork among others.
Due to the freshness of the food that is retained when frozen, in addition to eliminating the stress of killing and getting fresh meat, most people opt for frozen food. This is why a business like this is highly profitable.
So, what does buying a frozen business for sale entail? What does it take to start a frozen food business, and how can you ensure it turns out really well and gives you high returns on investment? Here, are some things to take into consideration….
Do Some Research
If you are interested in going into frozen food business, it does not hurt to do a little research on how to handle this business. You might be thinking, all I am doing is freezing stuff, why would I need training or research for that? But then, a frozen food business model involves way more than just freezing food for sale.
For example, fresh fish and chicken should not be frozen together as most customers do not like the smell. Another important aspect is how to know when the meat you are about to refrigerate is fresh or not, as it is always best to freeze while still fresh.
Have a Business Plan
The first thing to consider when starting a frozen food business is having a plan. Your plan helps you define your business targets and gives it direction. It sets things in place and how they should go, defines your marketing strategies, and the operations and management of your homemade frozen food business.
The capital for your frozen food business should be the next thing to consider. It is important to note that you could start raising money for the items you absolutely need before buying others.
For example, a frozen food products supplier could budget for three freezers which do not have to be brand new, an alternative source of power (such as a generating set), scales for measurement, rent for the store you would use for your frozen food business (if you are renting) and of course, furniture, knives, chopping board and other necessary items.
Another important aspect to consider when it comes to frozen food business is the location. Now, most people feel a frozen food business would fare well in a location that has a constant supply of power. But then, this might not be the case as residents of such areas might buy in bulk and freeze themselves.
Another aspect to consider when it comes to location of frozen food business is the environment. People are always sensitive to the hygienic condition of a place where they buy food items. Hence, it is important your frozen food business should not be located close to swampy areas or dirty areas.
It should also be easily accessible in terms of parking spots, and then close to areas such as housing estates, shops, busy bus stops or a major road. Your location also determines the type of frozen food you would sell. In some areas, residents would prefer poultry while some would prefer beef and other forms of meat. This is all dependent on the residents on such areas.
The next thing you should concern yourself with when it comes to frozen food business, and that is where you get your supplies from. The best would be to get from a slaughter house. This is because, frozen foods are better off when they are frozen as fresh as possible and this is easily achievable if you can get your meat supply from a slaughter house.
People have been into frozen food business for a long time and the only way you could make a break into it is when you have something that makes you stand out. You could decide to offer delivery services to clients with a little charge added to it. You could also offer discounts to long time customers and other benefits.
You could also take your frozen pizza food business online so that people can order frozen food online.
This is a good way to set your business on the right path as well as advertise your business.
So there it is, important things you need to know when it comes to starting frozen food business.
FROZEN FOOD BUSINESS PLAN SAMPLE PDF / DOC
Lots of businesses have folded up due to several reasons. One of the main reasons is the absence of a good business plan. This sample seeks to help you understand the process as well as offer guidance to enable you put together a solid plan.
- Executive Summary
The growing need for fresh and frozen foods has led to the opening of Food Preserve LLC. We are a business that seeks to redefine how foods are being stored and preserved in their fresh state and sold. We will be selling our products to our primary market in Jacksonville, Florida. This is only for the short term as we expand our frozen food business outlets across Florida and beyond.
Our products include a cold room with a supply of seafood, fish, and beef in addition to poultry products. Others will include dessert toppings, shrimps and more. We will be focused on serving a large market using large equipment such as industrial scale cold rooms among others.
- Our Products
While providing quality frozen products, we also will explore other frozen food services needed by our target market. We have a research team that is focused on developing these additional frozen food related services. Our products will include beef, shrimps, seafood, and dessert toppings. We will also have a rich supply of fish as well.
- Vision Statement
At Food Preserve LLC, we are focused on building a reputable frozen food brand. Our target is to grow our business through franchising. We will open our franchising arm 3 years into the establishment of the business. Our vision is to build a franchise that will be among the top 10 frozen food franchises in the state of Florida.
- Mission Statement
We are committed to providing only the best frozen products. We have a reputation to build and protect, hence, we are committed to achieving just that. We are open to new ideas and innovations in customer service and will not spare the opportunity of achieving just that. This is where our research department will be most effective. They will be saddled with the responsibility of improving our product and service delivery.
Our frozen food business is capital intensive. This will require raising the needed amount for equipment purchase, rental and running costs among other things. To meet our financial needs, we will be accessing a bank credit. The sum of $500,000.00 is being sourced at a monthly interest rate of 1.5% with the principal payable in 5 years.
- SWOT Analysis
Our analysis has been revealing to say the least. We have made important discoveries about the state of health of our business. This knowledge has afforded us the opportunity of taking the right steps in streamlining our services to achieve maximum impact. What are these areas?
The frozen food businesses within the Jacksonville area are performing below their potential. This has resulted in weak competition. We are coming to provide a better deal within this area. Our determination to establish a strong brand is our greatest strength.
Location is important to business success. Our chosen location is not so great. Although it will mean lesser rent costs, patronage is not expected to attain its highest peak. The location of our outlet is considered to be very temporary as we are identifying some of the best possible places.
The frozen food market in Jacksonville is not yet saturated. We see this as an advantage to expand. The best part is that research has shown a growing demand for frozen food products. We are using this information to capture the market. In addition to this, other frozen food businesses within this area are relatively small.
Our seafood and fish products face the greater danger. This is because there has been a growing health concern over micro plastics ingested by sea animals. This has largely been blamed on the release of plastics into the sea. These are not biodegradable and find their way into our food chain which will eventually end up being consumed by humans.
This presents a health risk and could lead to a drop in sales. However this seems unlikely in the short term but a possibility.
- Sales Projection
People love frozen foods and this has created a large market. The demands has been analyzed and used in arriving at projected sales figures as shown by the chart below;
- First Financial Year $100,000.00
- Second Financial Year $300,000.00
- Third Financial year $500,000.00
- Competitive Advantage
We consider the frozen food businesses within the Jacksonville area as not being competitive enough. We are coming with a lot of enthusiasm and passion to change the way things are being done. We have identified major areas such as branding and quality of service as needing improvement. Providing these in addition to a wide variety of products will enhance our chances of capturing the market.
- Sales and Marketing Strategies
For our marketing strategies to be effective, we seek to understand the frozen food needs of the market. We will be increasing the variety of our frozen food stock as well as providing adequate advertising. Also, fliers containing all our products and services will be distributed. This will be in addition to mounting our billboards at strategic locations.
- Target Market
We have a wide target market. As long as people live, they must eat. Therefore our target market will include households, restaurants, individuals, lovers, tourists, and residents of Jacksonville. We will expand our target market once we identify these as well as their needs.
There you have it! This frozen food business plan sample has disclosed several vital elements every plan must have. It is only for demonstration purposes and does not represent any real business. Using this, you can have a general idea of what your plan should look like.