Executive Summary
Choppie is a specialty butchery by South Africans for South Africans (and friends) located in New York. We are specifically based in Brooklyn, where our founder laid his roots after emigrating from South Africa many years ago. We serve a nationwide market. People travel great distances to visit Choppie because of the novelty of South African meat. We are more than a butcher shop; we are a community. Our mission is to connect everyone with a love for quality meat and an interest in the Karoo. Over the years, we’ve become a haven for expats, both far and wide. Choppie is a limited liability company founded and managed by Jan Erf and Adam Peters. Karoo lamb, and now beef and other protein, is popular worldwide. However, because Karoo lamb has to be grown in the Karoo, importing the meat from its home region is costly. Jan Erf is part of a primary farming family in South Africa, and therefore, Choppie has the advantage of paying the best rates for South African protein. This allows us to price our products attractively. We also have a niche outside our primary product—building an expat community. We have leaned into this by hosting an annual Braai in Brooklyn, which generates enough buzz to keep business booming until the next Braai. Our product offering and market positioning have given us an advantage over our competitors.
Choppie is seeking $120,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $340,000 | $490,000 | $660,000 |
| Gross margin | 58% | 58% | 58% |
| Net profit / (loss) | $26,800 | $64,700 | $108,000 |
Company Overview
Choppie is a butchery in Brooklyn, New York that provides high-quality free-range red meat to the surrounding areas. A chop is a cut of meat and is colloquially referred to as a “choppie” in Afrikaans. Our founder, Jan Erf, is a South African living in America. He is part of a farming family and has brought Karoo meat all the way to Brooklyn. Choppie is a haven for South African expats. Our famous biltong attracts everyone who knows what it is and hooks anyone who doesn’t. We have been operating for five years and have moved some of Erf Farm’s operations to America to facilitate meat sourcing. Choppie is registered as a limited liability company, and its ownership is split 60/40 between Jan Erf and Adam Peters, respectively. Adam is the American investor we needed to gain a foothold in this new market. Market and Customer Analysis Market and customer analysis helps you understand the business ecosystem your company is a part of and the industry's patrons. This knowledge is crucial in developing your business strategy.
Legal structure: LLC
Mission: To deliver exceptional specialty butcher shop services to clients in Brooklyn, New York, USA, building long-term relationships through quality, reliability, and deep expertise.
Objectives:
- Year 1: Establish operations, reach initial revenue target of $340,000, and build a loyal client base
- Year 2: Expand service capacity, grow revenue to $490,000, and hire additional staff
- Year 3: Achieve operational profitability, strengthen market position, and evaluate expansion opportunities
Market & Customer Analysis
The meat sector is the largest provider in the agriculture industry. Meat is a staple in nutritious diets, and people consume a lot of it. The American meat industry is worth over $130 billion and is only set to increase. The projected CAGR for the next four years is 4.39%. Small independent retailers have a small market share—just 13.06%. Specialty stores have an even smaller share—5.16%. The majority of the market share lies with hypermarkets and supermarkets—32.34% and 31.75%, respectively. As presented, entering the market as an independent specialty enterprise is difficult. The business must establish a loyal customer base and actively work to gain customers. This business needs to manage its objectives and provide value other than cost-effectiveness because larger establishments have an advantage when it comes to pricing.
Customer analysis:
Our potential customers can be divided into segments of households and establishments. Choppie’s residential customers typically come from middle and high-income households in and around Brooklyn. Most of these households are classified as dual income with no children. The outliers in this segment are people who have an emotional attachment to our offering - i.e., South Africans who live in other parts of the country - who travel to visit our establishment a few times a year. We’ve connected with restaurants in the area that specialize in Karoo meat. These high-class restaurants need a stable supplier of this meat, and Choppie is exactly the business for that. Forty percent of our sales are attributed to our partnerships with restaurants. Sales and Marketing Plan Every business’s main objective is to conduct sales. Sales are how the business makes money and need to be planned well in advance. The sales plan ensures that the business’s revenue can be estimated, allowing other business activities to be planned. Marketing is a business's driving force. It gets the word out there and entices people to spend money at your establishment. It is also a key factor in establishing a loyal customer base, which is crucial for longevity.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Fleisher's Craft Butchery | Established brand, wide reach | Higher price point, less personalised |
| The Meat Hook | Strong marketing, national presence | Generic offering, less specialist focus |
| Marlow & Daughters | Competitive pricing | Lower service quality, limited expertise |
Choppie's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
We have two distinct customer segments and different sales plans for each. Our retail sales are conducted the same way that all butcheries do. Most meat purchases are done in person for good reasons, so in-person sales are the only way we conduct business with residential clients. However, clients value the convenience of pre-ordering goods, so we allow them to phone or email us with their orders and then pay upon collection. There are three-floor clerks in the store at all times. One manages online order collection and payments, and the other two manage walk-in sales. The butchers on duty prepare a selection of cuts daily to ensure that only fresh meat is sold. Special requests must be made one day in advance. Our stock is delivered once a week. Our system is delicate because a portion of our meat is imported. We are looking to reduce the number of imports while maintaining quality because we are committed to lowering our negative impact on the environment. The founder and owner, Jan Erf, will monitor every step of the sales process. Choppie is a small business, and he can perform this function without impacting his ability to perform the rest of his duties as CEO. Choppies’ primary goal is to increase sales revenue by $200,000 this year. This will put us at the $1 million mark, which has been a goal for the past three years. Our sales to restaurants are conducted a bit differently. The truck that delivers our meat each week will collect and deliver the cuts requested by our restaurant clientele. This means that their orders must be placed two weeks in advance to ensure we have adequate stock to serve them.
Pricing strategy: Pricing is set to be competitive within the Brooklyn, New York, USA market while reflecting the quality and specialist nature of the services delivered. All pricing is reviewed annually against market benchmarks.
Marketing channels:
- Digital presence (website + SEO) — professional website with content marketing to attract organic search traffic from clients searching for specialty butcher shop services in Brooklyn, New York, USA
- Social media — active presence on relevant platforms to build brand awareness and engage prospective clients
- Referral programme — incentivised referral programme for existing clients; target 30% of new clients via referral by end of Year 2
- Local networking and partnerships — attendance at industry events and partnerships with complementary businesses in Brooklyn, New York, USA
- Google Ads — targeted paid search campaigns for high-intent keywords during launch phase
Marketing budget Year 1: $27,200 (8% of projected revenue)
Additional marketing notes:
Choppie has been in business for three years now. Because of our specialty—connecting with South African expats—a large portion of our marketing is online. Before our launch, we ran a massive campaign to garner interest in the business. The launch day was such a success that we’ve made it an annual event. The marketing for that is different from our everyday marketing and consists of the following:
- Social media pages on three platforms with posts about different meat cuts, farming methods, recipes, and fun facts
- Advertisements in the newspapers circulating high-income neighbourhoods
- Posts in expat groups
- Posters in the vicinity of the butchery
- Activity on our website Our regular marketing plan is a less intense version of the above. We post on social media and have weekly specials posted in our window. We’ve found that the activity of the annual event trickles throughout the year. This is a welcome development because that annual marketing rollout is costly. We utilize a marketing agency for our annual marketing campaign, but our store clerks, in rotation, complete the day-to-day activities.
Operating Plan
Personnel Department Task Deadline Jan Erf Operations Maintain customer experience by managing floor N/A Jan Erf Sales Increase sales revenue by $200,000 by signing two more restaurant clients and increasing walk-ins by 10% through marketing. End of Q4
Staffing plan:
| Role | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Jan Erf (Owner / Director) | Full-time | Full-time | Full-time |
| Operations / Senior Staff | Part-time | Full-time | Full-time |
| Support / Junior Staff | — | Part-time | Full-time |
Legal & compliance:
- All required licences and permits for specialty butcher shop operations in Brooklyn, New York, USA
- Professional liability and general liability insurance
- Data protection compliance in accordance with applicable laws
- Health & safety policies and risk assessments in place before trading begins
Management Team
Jan Erf, Founder and CEO: Jan is a South African expat living in Brooklyn. He was raised on a farm and managed the family business for six years before he moved to the US. He has a Business Management degree and worked in corporate for his first three years in America. He noticed a gap in the market for South African meat and decided to open Choppie three years ago. Jan currently performs most of the management functions. The rest of the management falls on his business partner, Adam Peters.
Jan Erf — Founder & Director
Advisory support: The business will engage an experienced accountant and a business mentor through the local enterprise support network to provide financial oversight and strategic guidance during the first three years of trading.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $1,000,000 $1,000,000 $1,200,000 Direct Cost of Sales $540,000 $540,000 $565,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $540,000 $540,000 $565,000 Gross Margin $460,000 $460,000 $635,000 Gross Margin % 46% 46% 52,9% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $60,000 $64,000 $68,000 Advertising/Promotion $8,000 $8,000 $8,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $68,500 $72,500 $76,500 General and Administrative Expenses
General and Administrative Payroll $100,000 $120,000 $122,000 Depreciation $5,000 $5,000 $5,000 Dues and Subscriptions $200 $200 $200 Professional Fees $0 $0 $0 Rent $28,000 $28,000 $28,000 Software Purchases $0 $0 $0 Insurance $9,000 $9,000 $9,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $4,000 $4,000 $4,000 Miscellaneous $0 $0 $0 Payroll Taxes $10,000 $12,000 $12,200 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $152,200 $174,200 $176,400 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $220,700 $246,700 $252,900 Profit Before Interest and Taxes $239,300 $213,300 $382,100 EBITDA $239,300 $213,300 $382,100 Interest Expense $2,000 $980 $1,400 Taxes Incurred $41,000 $32,000 $23,000 Net Profit $137,300 $180,320 $357,700 Net Profit/Sales 23,7% 18% 29,8%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $1,000,000 $1,000,000 $1,200,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $1,000,000 $1,000,000 $1,200,000 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $1,000,000 $1,000,000 $1,200,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $220,700 $246,700 $252,900 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $41,000 $32,000 $23,000 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $540,000 $540,000 $565,000 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $801,700 $818,700 $840,900 Net Cash Flow $198,300 $181,700 $359,100 Cash Balance $198,300 $379,600 $738,700 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $198,300 $379,600 $738,700 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $198,300 $379,600 $738,700 Long-term Assets $75,000 $75,000 $75,000 Accumulated Depreciation ($5,000) ($10,000) ($15,000) Total Long-term Assets $70,000 $65,000 $60,000 Total Assets $268,300 $444,600 $798,700 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $0 $0 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $0 $0 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings $137,300 $180,320 $357,300 Earnings $137,300 $180,320 $357,300 Total Capital $167,300 $210,320 $387,300 Total Liabilities and Capital $167,300 $210,320 $387,300 Net Worth $268,300 $444,600 $798,700
Wrapping up the Butcher Shop Business Plan
And just like that, we’ve reached the end of the butcher shop business plan template. That was quick, right? Luckily for you, this quick read will help you create the perfect business plan. With all these examples and explanations, there’s no way you can go wrong. Try it out, and you’ll be pleased. If you need a more personalized approach, you can always seek help.
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $340,000 | $490,000 | $660,000 |
| Product and food costs | $142,800 | $205,800 | $277,200 |
| Gross profit | $197,200 | $284,200 | $382,800 |
| Gross margin | 58% | 58% | 58% |
| Salaries and wages | $74,800 | $107,800 | $145,200 |
| Marketing and advertising | $27,200 | $39,200 | $52,800 |
| Rent and utilities | $48,000 | $48,000 | $50,400 |
| Other operating costs | $20,400 | $24,500 | $26,400 |
| Total operating expenses | $170,400 | $219,500 | $274,800 |
| Net profit / (loss) | $26,800 | $64,700 | $108,000 |
Break-even analysis:
- Estimated fixed monthly costs: $11,900
- To cover fixed costs, Choppie needs to generate approximately $20,500 in monthly revenue
- Break-even is projected to be reached in Month 5 of trading
Key financial assumptions:
- Revenue growth of 44% in Year 2 and 34% in Year 3 based on planned capacity expansion and marketing investment
- Product and food costs estimated at 42% of revenue throughout the forecast period, consistent with industry benchmarks
- Staffing costs set at 22% of revenue, scaling incrementally with new hires in Year 2 and Year 3
- Marketing budget fixed at 8% of revenue; reviewed quarterly and adjusted based on channel performance
- No bad debt assumed; payment terms enforced from day one
Funding requirements:
Choppie is seeking $120,000 to fund the following:
| Use of funds | Amount |
|---|---|
| Equipment and fit-out | $48,000 |
| Working capital (6 months) | $42,000 |
| Marketing launch | $18,000 |
| Legal, licences, and professional fees | $12,000 |
| Total | $120,000 |