1. SUMMARY OF THE PROJECT
The essence of the project is the opening of a mini-cheese factory in the city of Samara. The cheese factory will include a mini cheese factory and a small company store during production. Cheese will be produced in a craftsmanship according to old French and Italian recipes, as well as copyright recipes. Due to the uniqueness of the format, the lack of competitors in this segment, low opening costs, the project has high chances for further development.
The produced integral indicators allow us to speak about the high efficiency of the project (shown in Table 1). The development region also has great potential: Samara is the center of the region’s solvent audience, a densely populated city with more than 1 million inhabitants.
Table 1. Integrated performance indicators
Discount rate (r-year), %
Discount rate (r-month), %
Payback period (PP), months
Discount payback period (DPP), months
Net present value (NPV), rub.
4, 047, 311
Return on Investment (ARR), %
Internal rate of return (IRR), %
Profitability Index (PI)
2. DESCRIPTION OF THE INDUSTRY AND COMPANY
The project considered in this business plan involves the creation of the production of elite soft and semi-hard cheeses and their retail sale through a company store and small wholesale. The mini-workshop and its own sales point will be located on one of the central streets of the city (Kuibyshev street) in a rented building.
Samara is a large city in the Russian Federation, in the Middle Volga region. regional center of the Samara region. Samara is a large economic, transport, scientific, educational and cultural center with a population of more than 1.17 million people (according to early 2016). The city has developed such industries as engineering, oil refining and food processing. All these facts indicate a high level of well-being of residents of the city.
On August 7, 2014, a ban was introduced in Russia on the import of certain types of agricultural dairy products, including cheese, from the countries of the European Union, as well as Norway, the USA, Canada and Australia. Before the ban, according to estimates of the Federal Customs Service, the share of imported cheeses accounted for 50% of the market (2013). Sanctioned countries accounted for up to 70% of imports, due to which an active process of import substitution began. According to Alto Consulting Group, in 2015 more than 581 tons of cheese and cheese products were produced in Russia, which is 17.6% higher than the previous year.
Positive dynamics are also observed in 2016. So, in January-April, more than 184 tons of cheese were produced, which is almost 3% more than in the same period of the previous year. At the same time, the share of imported products only in 2015 fell by 51%, and Belarus occupied key positions among importers (78.3% of all supplies). Nevertheless, despite the process of import substitution, domestic producers and the remaining suppliers could not completely replace not only ordinary hard cheeses, but also the so-called noble elite cheeses from Europe. This segment remains very promising for domestic business. In addition, there is a tendency to a general deterioration in the quality of cheese and its falsification with vegetable fat, which is actually not cheese, which means that quality cheese will certainly find its buyer.
Given the prevailing market conditions and the shortage of cheese products, forecasts for the development of this area can be described as restrained optimistic.
Cheese production will occur in a craft-like manner, following the traditions of European family cheese producers, thereby avoiding the cost of expensive lines that are used in large enterprises. Small production volumes (up to 16 tons per year) will be offset by the uniqueness of the product. Soft and semi-hard cheeses based on cow and goat milk according to traditional French and Italian recipes will be produced at the mini-cheese dairy. Virtually no alternative is currently presented to them in the city’s grocery chains. Also, much attention will be paid to their own unique recipe with the addition of various unusual seasonings.
Sales are proposed to be carried out through a company store at the cheese factory, as well as through small-scale sales to restaurants in the city. Tables will be set inside the store so that customers can enjoy cheese right on the spot and pick up good wine for it if desired.
The advantage of the project lies in the low level of starting investments. The main investments will require the purchase of equipment and installation, as well as the repair of the premises. Investments in the project will amount to only 840 thousand rubles. The project will be implemented at the investor’s own funds.
Table 2. Investment costs of the project
Repair of the premises of the shop and store
Set of production equipment
3. DESCRIPTION OF GOODS
The company's product will be elite soft and semi-hard cheese from 1 to 3 months of aging. Due to the location of production and the place of sale in one building, the product will be available to middle-income people. The cost of production will make it possible to establish more affordable margins than in retail chains and restaurants that have cheeses of this type in their menu. Table 3 shows the product nomenclature.
Table 3. Nomenclature of goods and variable costs
COSTS UNITS, rub.
TRADING VALUE, %
UNIT COST, rub.
Cow's milk cheeses
Original Caccotta 100g.
As can be seen from the nomenclature, two main types of goods are distinguished: cheeses based on goat and cow's milk. Given the uniqueness of the offer on manufactured products, a fairly high margin is set, which does not depend on the competition's offer. Pricing is influenced by factors such as the recognition of the type of cheese, its taste, production costs, the solvency of the local population, the location of the cheese factory in the city center.
Cow and goat milk are used as raw materials, the suppliers of which are two farms located outside the city limits. On one of the farms goats are kept, on the other cows. Both farms are located in ecologically clean rural areas adjacent to the city. Thus, it is possible to achieve low cost of cheese production and minimize transportation costs. All cheeses are packed in original packaging: in cardboard paper, plastic containers and gift bags with the logo of the cheese factory.
4. SALES AND MARKETING
Sales of products will occur at retail through its own company store, as well as small wholesale in several restaurants in the city, including elite cheeses in its menu. The final consumers are men and women from 18 to 65 years old, mostly middle aged 30-45 years, with income levels of "average" and "above average".
Given the small volume of production, the duties of a sales representative are performed by an individual entrepreneur. He is engaged in market research, negotiates with potential customers, concludes supply contracts and more. He also carries out work on training employees of the company store, who are the face of the whole company. Their responsibilities will include not only the sale itself, but also communication with the client.
The Russian consumer does not have the habit of treating cheese as a constant component of his diet, is not familiar with the traditions of handicraft cheese making and often has very vague ideas about goat cheese. Given this, the seller will act as a consultant, talking about the differences in the types of cheese, its compatibility with various products and drinks. In addition, free cheese tastings will be held for guests of the cheese factory. If desired, the visitor will be able to accommodate and taste the cheese at the table, ordering a glass of wine to it. The concept of the company will include a benevolent attitude towards each client, maintaining an atmosphere of hospitality and family comfort. The city already has experience in private cheese making, however, serious competition in this direction has not yet been observed.
5. PRODUCTION PLAN
A mini cheese production workshop will be located in the center of Samara, on Kuibyshev Street, in a rented room. Under the workshop, an area of 22 square meters will be involved. meters, under the company store, a bathroom and utility room - 24 square meters. meter. The room has cold and hot water supply, sewage, ventilation and heating, so the cheese factory meets the typical requirements for food production facilities.
Since the format of the handicraft cheese factory has been chosen, similar to the Italian family cheese producers, expensive equipment is not used in the production of cheese. For cooking, you need a pasteurizer and a press table, as well as special containers, cheese molds and cold rooms for storage and ripening. The production technology includes processes for preparing milk for coagulation by adding special substances, heating, processes of formation and aging of cheese, and then its packaging and sale.
Given the productivity of 50-60 kg of cheese per day, up to 1320 kg of cheese can be cooked per month at 22 days of work. Since about 10 kg of cheese is obtained from 10 liters of milk, the daily supply will amount to 500-600 liters. Before starting production, the business owner will need to train employees in all the necessary processes and recipes.
If we assume that the cheese factory will not work at full capacity, but only at 30% load (taken as the basis for calculating the business plan), then the monthly income from the sale will amount to 760 thousand rubles. Net profit will be about 164 thousand rubles. With such indicators, the cheese factory is able to reach a payback by 5 months of work.
6. ORGANIZATIONAL PLAN
As the legal form of business, IP was chosen. Managerial functions are entrusted to the entrepreneur. His responsibilities, in addition to management, will include participation in the cheese making process, as well as cooperation with suppliers and wholesale customers. To work in the cheese factory, two additional people are needed. A company store will require the hiring of another 3 employees. You will also need your own accountant. Thus, 7 people will enter the cheese factory (the staffing table is presented in Table 5). The delivery of raw materials from farms will also require the services of a hired driver-forwarding agent.
Table 5. Staffing and payroll
Number of people
Cheese factory worker
Social Security contributions:
7. FINANCIAL PLAN
The financial calculations of this business plan are designed for a three-year period of operation of the cheese factory. It reflects investment costs, variable and fixed costs, and tax liabilities.
The investment structure includes the repair of premises for the production and trading shop (200 thousand rubles), the purchase of necessary equipment (350 thousand rubles), as well as intangible assets (90 thousand rubles).
The fixed costs of the dairy will include rent, advertising costs, utility bills, business and management expenses, transportation costs and fuel and lubricants. Depreciation costs are calculated linearly for a period of 15 years. The structure of fixed costs of the enterprise is presented in Table. 6. A detailed financial plan is presented in Appendix 1 of this business plan.
Table 6. Fixed costs of the enterprise
AMOUNT PER MONTH., Rub.
Transportation and fuel costs
8. EVALUATION OF EFFICIENCY
The indicators presented in Tab. 1, allow us to argue about the effectiveness of the project. The payback period of the project is 5 months, the discounted payback period is equal to it. The NPV (Net Present Value) ratio is 4, 047, 311, which significantly exceeds the level of starting investments. The profitability index exceeds 1, and the internal rate of return (IRR) exceeds the discount rate, which also indicates the investment attractiveness of the project.
9. RISKS AND WARRANTIES
The main risks of the project can include:
1. Creation of cheeses: a long stage of preparation is necessary before the start of production, the selection of the most successful options and ingredients.
2. The influence of seasonal factors on product quality. The quality of cheese directly depends on milk, the biochemical composition of which is constantly changing, since animals eat various herbs in different seasons. To do this, you need to carefully approach the choice of suppliers that carefully monitor the diet of their animals.
3. Failure to fulfill sales plans. Active work is needed to search for new sales channels, establish feedback with the end consumer, clarify his preferences and wishes, and competent interaction of sales consultants with customers.
Among the advantages of the project can be attributed a favorable location, which allows you to rely on a constant flow of customers, the absence of competitors in the market, which allows you to set high margins, as well as liquidity of tangible assets, which can guarantee a quick return on investment.
Three-year production plan and key financial indicators
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