Your own business: how to open a sausage shop Types of sausages Prospects for the sausage business in Russia Opening a sausage shop Liliya Sysoeva. Sausage production: detailed business plan

High-quality sausages are produced not only at meat processing plants. Many entrepreneurs make homemade blood, liver, raw smoked and other sausages, which have excellent taste. Making sausage at home as a business brings them good profits. You will learn how to open such a mini-enterprise from this article.

Registration of activities

To prevent regulatory authorities from closing your company, you should officially register your business and fulfill all the requirements of the SES and Veterinary Supervision. In this case, the regulatory authorities will meet you halfway and help you solve all problems that arise during your activities.

First of all it follows. The choice of legal form depends on the size of your enterprise. If you want to organize sausage production at home, just register as a private entrepreneur.

In addition, you need to obtain certificates for finished products. This can be done through a declaration-statement, which is a guarantee that your company will produce only high-quality products that fully comply with all established requirements.

To obtain a certificate, you must provide the following documents to Rostest:

1. Statement;
2. Constituent documentation;
3. Documents for production premises;
4. A certificate issued by the SES;
5. Product range;
6. Documents confirming the quality of raw materials;
7. Examination results;
8. Product examples;
9. Certification agreement.

Before you start preparing the documents, you need to develop a business plan for a sausage production workshop, describe the technology and draw up a list of equipment.

Choosing premises for an enterprise

If you decide to open homemade sausage production as a business, you need, first of all, to choose the right premises. The success of your enterprise largely depends on this, so this stage should be given special attention. The workshop cannot be opened in a residential area, since veterinary control will immediately close it. This must be a separate building located at a certain distance from the house and outbuildings. To avoid mistakes, it is advisable to seek help from a specialist. He will help you develop a workshop design and give useful advice on equipment placement.

The most important condition that sanitary and epidemiological control puts forward is the competent distribution of flows of raw materials and finished products. They should not intersect anywhere. This is a very important point that should be taken into account when equipping the workshop. In addition, the room must be equipped with all communications (water supply, sewerage, ventilation, etc.).

Raw materials

Before purchasing raw materials from a supplier, be sure to ask them for all documents. Meat, shells, threads and other materials must have quality certificates. Verification of the authenticity of veterinary documentation should be entrusted to a sanitary doctor, who will be able to determine by the appearance of the meat whether it has undergone an examination. In addition, the specialist will find out where the products were brought from and where they were stamped.

Technological scheme for the production of boiled sausages, frankfurters and small sausages, meat loaves

If you purchase raw materials for sausage production in small quantities, you can carry out the examination in your own laboratory organized at the enterprise. Another option is to negotiate with a veterinary laboratory located in the market. Experienced specialists will perform all the necessary tests and stamp.

To purchase raw materials from abroad, it is necessary to obtain permission to import them into our country. It is issued by the chief state veterinary inspector or his deputies. But if you want to open a mini-shop for sausage production, such a document is unlikely to be needed.

Technological process

Now let’s look at the technology for producing sausage at home step by step:

1. Meat sorting. At the first stage, raw materials are separated by grade. The best meat for making sausage is lean. High-quality products are made from it. Lean meat contains only 30% fat. For homemade sausage of the first and second grade, semi-fat meat is suitable;
2. Processing of intestines. Small intestines are suitable for sausage production. They are processed immediately after removal. First of all, all the contents are removed from the intestine and placed in a bowl of cold water. After this, the shells should be washed well, turned inside out and scraped with a knife on a cutting board. After treatment with a solution of potassium permanganate, the cleaned intestines can be used to prepare boiled sausage. If you want to make raw smoked sausage, the casing should be soaked in salt water for 2-4 weeks;
3. Ground meat. To produce homemade sausage, different types of meat are usually taken. It is cut into large pieces and salted, after which it is left for a day to ripen. Next, you need to grind the meat into minced meat, add various spices, garlic and salt. Also don't forget to add chopped bacon;
4. Injection. One end of the intestine must be tied tightly with a thread, and the other must be secured to a special syringe or wide funnel. As the intestine fills, the minced meat falls down on its own. The most important thing is to prevent the formation of voids or air cavities. It is not advisable to stuff the intestine too tightly, as it may burst during heat treatment. This does not apply to smoked sausages, the volume of which decreases during cooking;
5. Draft. Stuffed and tied sausages should be hung in a cool, dry room to settle;
6. Heat treatment. In order for the air to escape from the sausage, it must be pierced with a needle in different places. Before frying, the product is dried in the oven. The finished sausage is cooled in a separate room, hanging.

This is a traditional scheme for producing sausage at home. Depending on the recipe, minor changes can be made.

Staff

To organize sausage production as a business, you need to hire appropriate personnel, since one person cannot physically do all the work.

First of all, you will need a professional technologist who will control the quality of the products and compliance with the sausage preparation technology. In addition, the technologist develops new recipes for meat products. You also need to hire two butchers for deboning carcasses, an accountant and a forwarder. This is the minimum staff of workers who can service a small sausage production mine.

Equipment

Before opening, you need to make sure that it brings good profit. To do this, you first need to carry out careful calculations. To quickly return the initial investment, you need to produce at least 200 kg of finished products per day.

What equipment do you need to purchase for making sausage at home?

To work you will need:

• Meat deboning table;
• Knives;
• Electric meat grinder;
• Machine for kneading minced meat;
• A special syringe designed for filling sausages;
• Bake.

The most important unit in the workshop is the furnace. The quality of the product largely depends on its functional characteristics. At the start, to save money, you can purchase used domestic units. Imported sausage production equipment is expensive, but it has many convenient features and is highly productive.

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Costs and profits

When drawing up a business plan for sausage production, you should include the following mandatory expenses:

• Registration of an enterprise and registration of permits – about $700;
• Equipment – ​​from 10 thousand dollars;
• Refrigerators – from 4 thousand dollars;
• Purchase of raw materials – from 1.5–2 thousand dollars;
• Rent of premises – 1 thousand dollars.

In total, at the start you will need about 15 thousand dollars. In addition, you will have to spend money monthly on:

• Renting premises;
• Communal payments;
• Workers' salaries;
• Purchase of raw materials.

To increase turnover, you can learn and engage in livestock farming. In this case, you can significantly save on the purchase of raw materials. Experts believe that it can bring good profits. If you combine it with sausage production, you can earn a decent monthly income. Making dumplings as a business at home is another effective way to increase the profitability of the enterprise. Such products are always in demand, so you can earn good money making dumplings. You can also additionally engage in the production of other semi-finished products: dumplings, cutlets, pancakes.

This is a completely feasible type of business activity that will pay for itself within six months, it is profitable, the minimum price for it will be up to 12,000 USD. No one will be left without customers, since there will always be a demand for home-made sausage.

• Step-by-step opening plan
• What equipment to choose for a mini sausage factory?
• How much can you earn
• How much money do you need to start a business?
• What is OKVED for business?
• What documents are needed to open
• Which taxation system to choose for a sausage shop
• Do I need permission to open?
• Production technology

To begin with, you should have a special room or rent it for a mini workshop for the production of sausages. It is prohibited to use equipment for the production of sausages in premises used for housing, in saunas, baths, buildings of former kindergartens, boarding houses, and sanatoriums. You need to check exactly how the area you want to rent is decorated.

Step-by-step opening plan

When starting a business, you need to be prepared to obtain licenses and permits. Since the production and sale of food products are subject to strict and mandatory certification at different stages of the process.

Steps to opening a mini-factory for making sausages:

1. Selection of premises that meet sanitary and fire safety standards. With the possibility of zoning and placing equipment for a workshop.
2. Agreements with reliable suppliers of raw materials.
3. Personnel selection.
4. Organization of the production process.
5. Advertising and sales of products.

What equipment to choose for a mini sausage factory?

In order for the work to be organized and the production line not to stand idle, the following is required:

• The presence of at least several chambers for freezing. The first chamber for storing raw materials and maturing minced meat products. The second will be a place to store finished products for sale.
• The presence of two workshops: for and for raw materials.
• Low temperature chamber for storing raw materials.
• Territory for heat treatment of sausages, such as sausages, frankfurters, smoked sausages.
• Area for deboning work with meat carcasses.
• A room that will be intended for storing bulk products.
• Availability of household premises.

But there are also ready-to-use mini workshops, which are a solid monoblock. It fully complies with all mandatory conditions and sanitary standards. The operation of such a workshop is profitable and convenient in that it does not require a separate room and the owner does not need to seek help from consultants who will help organize the work. This option is most suitable for those who are able to allocate part of the land for production.

How much can you earn

Gross income for the month is 17,000. At the same time, expenses for:

1) purchase of raw materials – 9 thousand USD

2) salary fund - 2200 USD

3) communal - 700 USD

4) rent - 300 USD

As a result, the profit of the sausage shop will be about 5 thousand dollars. per month. If you work two shifts, your income will increase. Production profitability is 25-30%. Payback on the initial investment will occur in the sixth month of activity.

How much money do you need to start a business?

But if you are planning a mini sausage shop from scratch, you should also make sure that production is profitable. According to rough estimates, in order for it to quickly pay for itself, it is necessary to produce at least 200 kg of finished sausages per shift.

What equipment is needed for a mini sausage shop:

1. meat deboning table;
2. special knives that are used for cutting meat carcasses;
3. meat grinder;
4. apparatus for mixing different types of minced meat;
5. apparatus for kneading minced meat from boiled types of sausages into pates;
6. syringe for filling sausage casings with minced meat;
7. oven for smoking sausages with a smoke generator.

The quality of the products produced depends on the functional characteristics of the furnace. It must have a whole range of functions that will increase the turnover of the enterprise. Domestic equipment can be purchased much cheaper than foreign analogues. And it will cost up to 10,000 USD. They come in different types and differ from each other in a number of convenient functions.

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The starting cash investment for home sausage production will consist of such cost items as paperwork, equipment, workers' wages and rent. On average it will cost 16,200 USD.

Workshop area and size requirements

It is necessary to properly organize the working area, which should be about 55 m2. Where do these values ​​come from? In fact, you should start from the dimensions of the equipment itself, and then you need to allocate enough space at each workplace for the safe work of employees. Therefore, based on the standards, we obtain the following data.

On average, for one year you will need about 360 USD. to pay for rented premises for a sausage shop. As a rule, such a workshop can produce 200 kg of finished sausages per day. If you want to increase production volumes, then the area will also need to be expanded.

What personnel is needed for this enterprise?

If you approach this issue wisely, you will need the following employees:

• technologist who will be responsible for sausage processing technology;
• several butchers to cut up the carcasses;
• accountant to calculate the income and expenses of the workshop;
• forwarder;
• general workers.

Production personnel.

But since modern technologies make it possible to replace work processes with automatic machines, the number of personnel may be less, since one person will be able to occupy more than one position. However, with all this, the most important thing will be thoughtful business tactics, since if neglected, a business can quickly become an unprofitable enterprise.

It wouldn’t hurt to have a business plan tailored specifically to your budget and the goals that the mini workshop will fulfill. We must not forget that the salaries of specialists directly depend on their qualifications. Also an expense item is the accompanying safety of the work process and special clothing for personnel. It is worth remembering that comfortable working conditions will provide not only high work turnover, but also a consistently high income. In the future, you can expand production or open another small sausage shop.

What is OKVED for business?

The production of sausages belongs to the manufacturing industry, respectively, the main code 10 is responsible for the production of food products. Namely, for the processing and canning of meat - 10.1, as well as the production of products from the meat of slaughtered animals and poultry - 10.13.

What documents are needed to open

You can register both an individual entrepreneur and an LLC. You will need a passport, an application for state registration, a receipt for payment of the state duty, and a copy of the TIN certificate. If you plan to register an LLC, you will need: an application, the Charter in 2 copies, a decision on establishment (if there is one participant). Protocol of founders' meetings and agreement on the foundation of the company, if founded by several members of the company. Then a receipt for payment of the state duty.

Which taxation system to choose for a sausage shop

The following taxation systems are possible: UTII (unified), simplified tax system (simplified).

Do I need permission to open?

You will also need to register with social security and pension funds. It is mandatory to obtain a business permit from the SES, veterinary inspection, fire inspection and ROSTEST. A product for sale must be certified and bear the manufacturer's marking. Certification of a food product is possible according to the GOST R System and using a declaration application.

For GOST R certification, you must submit: a certificate of the manufacturer or quality system, a hygienic certificate, a test report of the product in a laboratory (specialized and accredited), a veterinary certificate.

Through a declaration statement, certification occurs in this way. An application is submitted to ROSTEST with the following attachment: constituent documents and documents for renting premises (we recommend reading: “”), a scanned copy of the SES permit for activity, the range of manufactured products indicating the regulatory and technical base. As well as copies of technical documentation for new types of product, approved by the trade authority, sanitary and epidemiological control and taken into account by the All-Russian Scientific Research Institute “Standard”. Then he also encloses a hygienic certificate, confirmation of the production of physical-chemical control. product indicators independently or an agreement with a special laboratory. And also certification of raw materials and packaging for safety, test samples, agreement on product certification, veterinary certificate.

Having verified the authenticity of the documents, Gosnadzor inspects the workshop and issues a certificate of successful inspection, and based on it, a certificate of conformity.

Production technology

Technologically, the sausage manufacturing process consists of the following stages:

1. Butchering of carcasses;
2. Separation of pulp from bones, veins from meat (boning and trimming);
3. Grinding, salting and maturing of meat;
4. Second grinding of meat;
5. Making a mass of minced meat;
6. Injection, i.e. filling the shells with mass;
7. Binding and curing of sausages;
8. Heat treatment: frying then cooking, semi-smoking, smoking, raw smoking of sausages;
9. Cooling and storage.

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Producing sausage at home as a business is a promising idea, which is confirmed by numerous arguments. The main one is the decline in the quality of products from large meat processing plants. Introduction of additives into products that reduce the taste and benefits of consuming the product. In addition, interest in natural food is increasing due to the promotion of a healthy lifestyle, proper nutrition, and rational diets.

Feedback from an entrepreneur: After a severe allergic attack, the child was forbidden to eat literally everything. What was possible, my daughter, who does not have a good appetite, refused to eat herself. Our salvation was farm sausage, for which my husband drove 42 km from the city every morning. Gray, not pink, with a delicate aroma, Masha immediately liked it. And for me, because not a single spot, not a millimeter of flaky skin appeared after using it. By the way, the price is quite reasonable, not much higher than the factory “chemicals”.

Victoria Romanova, Petrozavodsk.

1. Where to start?

First of all, you need a premises that meets the requirements of Rospotrebnadzor and sanitary and epidemiological services. It is prohibited to produce anything in a city apartment, so this type of business is suitable for owners of their own separate buildings - country houses, dachas, etc.

They must be equipped with stationary ventilation systems, water supply, electrification and powerful hoods. In addition, regulatory authorities will regularly check the condition of the air and soil for contamination by food waste. To register your business, a potential entrepreneur must contact the administration (local, regional, municipalities). They will provide a list of documents required for preparation and approval. It varies from region to region, but always involves obtaining certificates from Veterinary Supervision, Rospotrebnadzor, and the Ministry of Emergency Situations (for compliance of premises with fire safety standards). The next stage is obtaining certificates for products. Simultaneously with submitting the application-declaration, you must submit a package of documents:

1. Constituent.
2. Confirming ownership (lease) of the premises.
3. Range.
4. Documentation for raw materials.
5. Data from the examinations carried out.
6. Samples of finished products.

The meat business industry is represented by different types of products. Sausage in any form does not lose its popularity among consumers with different material incomes. But quality and prices do not always satisfy the population, which arouses interest in new manufacturers who may satisfy their expectations. Therefore, the meat products segment opens the door to young entrepreneurs who are interested in how to open a sausage shop from scratch. The business is profitable, but requires serious financial and physical investments. Where to start a sausage business? Is the meat business profitable for a novice entrepreneur in the face of serious competition? The step-by-step instructions in the article will give answers to your questions.

Summary

Opening a sausage business involves two investment options, which depend on the financial situation of the entrepreneur:

1. A small workshop equipped with automated equipment, with a productivity of up to 200 kg per shift. Does not require large areas for placement (up to 50-70 sq. m). To launch a sausage shop, investments from 500 thousand to 1 million rubles are required. The assortment is minimal; there is no need to spend money on developing a recipe until the workshop begins to make a profit. Relevant for farmers who decide to expand the scope of livestock farming and independently process poultry, pork, and beef.
2. Automated sausage line designed for a capacity of 500 kg of product per shift. Requires powerful equipment, which requires a room of 100 square meters. m. A small business can grow into a large supplier of sausages if it organizes its activities correctly. Investments of 5 to 10 million rubles or more will be required.

Regardless of what business idea a novice entrepreneur has, you need to go through stages that are the same for both a small sausage shop and a production complex:

• Writing a business plan with detailed calculations and analysis of the selected segment.
• Selecting a form of activity, registration with the Federal Tax Service.
• Collection of documents for opening a sausage production.
• Search for premises that meet the requirements of the inspection services and the conditions of the project. Repair and equipment of the sausage production workshop.
• Selection of raw material suppliers (if necessary).
• Promotion of products on the market.
• Making a profit, analyzing the work performed.

Let's look at each stage in more detail.

Preparation for the project

A business begins with a project that reflects an idea and methods of implementation. A competition analysis is carried out. This is an important indicator in sausage production. Depends on the region in which the opening of the workshop and further sale of products are planned. If there are only a few local producers and they do not interfere with attracting the required number of target audiences, then it makes sense to enter the local market. In another situation, you will have to look for customers in other regions or make products more attractive to buyers than those of competitors.

Starting a business without analyzing the market and consumer demand is risky. You can invest money and not get the desired income. The conclusions are included in the business plan to understand whether the idea is profitable or whether it is better to choose a different direction.

The second point at this stage is the choice of the legal form of entrepreneurship. Two forms are suitable for a sausage shop:

• An individual entrepreneur, if there is only one owner and plans only to wholesale his products, without opening personal outlets for the sale of sausages, frankfurters, and meat. Registration requires a smaller package of documents and finances.
• Limited liability company, if the sausage shop is opened by two or more founders. Relevant for large-scale production, where large investments in equipment, premises, and promotion are needed, but this is beyond the capabilities of one person.
• A peasant (farm) enterprise, if an entrepreneur living in a rural area and having a plot or premises for placing sausage equipment has decided to open a sausage shop. Beneficial for individuals who breed animals or poultry and who decide to independently process meat into sausage and sell it to the consumer.

Which form of activity registration to choose depends on the specific case, but you always need to weigh the pros and cons and find the most favorable conditions. At this stage, it is worth studying the requirements for preferential taxation so that taxes are feasible at the promotion stage.

Paperwork

The meat business involves visiting regulatory agencies. They issue documents for premises and communications. Confirm the possibility of placing specific equipment. They check whether the meat meets the requirements of the veterinary service and the quality of the products.

The list of documents for opening a sausage shop and further delivery of goods to store shelves contains the following items:

• Documents for the premises (rent or ownership, technical conditions, sanitary condition). We receive them from the BTI, SES, and fire department. The room must be spacious to accommodate a workshop, a warehouse for storing raw materials and the final product.
• Sanitary book for each workshop employee.
• A veterinarian's opinion on the quality of the meat and the suitability of the conditions for cutting the meat.
• License for sausage products, recipes for each type, laboratory tests.
• Trademark registration.

If the documents are not fully collected, no retailer will be willing to enter into a contract for the supply of sausage. The opportunity to earn money is postponed indefinitely.

Advantages and disadvantages

The cost of starting a business depends on the condition of the building chosen for production, the distance from the electricity line, water supply, and sewerage. Sausage production has both positive and negative sides for a novice businessman. The profitability of a sausage shop depends on many conditions, but with the right approach it is 25-30%.

The pros and cons must be taken into account at the stage of preparing a business plan. The advantages include the following points:

• Constant demand for products.
• Large chains are interested in purchasing products from local producers.
• You can start a sausage shop as an extension of your own livestock farm.

There are also disadvantages:

• There is a lot of competition, it is difficult to reach consumers and gain their trust.
• Paperwork can drag on and delay the launch of the sausage shop.
• Constant monitoring by the veterinary service, SES, Rospotrebnadzor, the need for laboratory confirmation of product quality. Without this, there is no way to sell products to retail chains.
• Reputation depends on the quality of raw materials; finding good suppliers if you don’t have your own livestock farm is not so easy.

Eventually

There is always a demand for sausages, but competition in the industry is quite fierce. If there is an opportunity (a special recipe, meat at a favorable price, or personal farming) to produce sausage that will attract the target audience by price, taste, quality, then there are no obstacles to the implementation of the plan. We recommend that you read the business plan for a sausage shop with calculations on our portal to get more information for thought.

The demand for sausage products does not fall under any economic conditions. Sausages, sausages, and boiled sausage are in the refrigerators of many families. All manufacturers find their regular customers if the products meet their requirements in terms of price and quality. Competition in sausage production is high, but newcomers also have chances. Therefore, it makes sense to write a business plan for a sausage shop in order to assess what investments production requires. How long will it take to make a profit? Are there any chances for coexistence with large and small competitors? To do this, you need a business plan for a sausage shop with calculations, which we will consider as an example for novice entrepreneurs.

Object characteristics

Activities: production of assorted sausages.

Object location: regional center outside the city limits.

Premises: sausage production requires space that can accommodate several rooms for storing raw materials, cutting them, mixing ingredients, preparing and storing products; staff premises. It is planned to launch a small production complex on the territory, the area of ​​which is 100 square meters. m. The building complies with the requirements of the SES, Rospotrebnadzor, and the veterinary station, but requires cosmetic repairs.

Ownership: the building for production is rented.

Mode: daily, around the clock. Employees work in two shifts.

Service list

• Purchasing animal meat and poultry from local farmers.
• Boiled sausage from different types of meat.
• Smoked, semi-smoked sausage from different types of meat.
• Production of sausages, sausages, jellied meat, ham and other meat products.
• Sales of sausage products to wholesale customers.

Legal form: LLC.

Preferential taxation system: simplified tax system (income - expenses).

OKVED codes:

• “Food production” (No. 10).
• “Production of products from slaughtered animals and poultry meat” (No. 10.13).
• “Wholesale trade in meat products on one’s own behalf” (No. 46.32).

Collection of documentation

To start sausage production, you will need to collect a substantial package of documents, because the food industry is associated with raw materials, which require serious checks for permission to use:

• Permission from the veterinary service for the suitability of meat for sausage production.
• Technical conditions of the sausage shop, storage facilities.
• Recipes for sausage products in a full range, which need to be approved by Rospotrebnadzor.
• Technical instructions for a sausage shop.
• Veterinary certificate of compliance of production departments.
• Conclusion of the SES.
• Permission to operate from ROSTEST.
• Product certification and trademark registration.
• Technical passport of the premises with a legal version of the internal and external layout.
• Lease agreement for premises.

Financial stage of the project

The costs of a sausage shop are determined by several items:

• Repair and equipping of the entire premises with the necessary communications, from the administrative building to warehouses and workshops.
• Equipment for a sausage shop.
• Preparation of design documentation, services of designers and installers.

We will display all possible costs in the table for greater clarity:

Equipment of production areas	price, rub.
Refrigeration chamber for storing meat raw materials	400 000
Refrigeration chamber for storing sausage products	450 000
Cutting table	25 000
Boning table	30 000
Table for forming sausage products	22 000
Meat grinder	200 000
Apparatus for mixing minced meat	310 570
Vacuum filler for all types of sausages	170 000
Trolley-chan for transporting minced meat and other raw materials	16 000
Freezing container trolley	22 000
Sausage frames for heat chamber (2 pcs.)	19 000
Knife sterilizer	12 000
Set of knives and tools for cutting meat	60 000
Trolley for sausage boxes (3 pcs.)	15 000
Washing tub (2 pcs.)	18 000
Thermal smoke chamber	300 000
Manual injector	35 000
Machine for applying information to packaging	367 000
Delivery, installation, line launch	270 500
Total	2711070

In the first table we indicated the costs of equipment in the sausage shop. We note additional investments in the following table.

Type of procedure	Rub.
Registration as a legal entity	21 500
Architect's finishing work	140 990
Purchase of finishing materials, work of craftsmen	598 970
Projects and installation of light, water, toilet, showers, sewerage, heating, ventilation, alarm	485 330
Purchase of furniture, computer, office equipment	650 000
Visiting departments for approvals to launch the project	70 000
Promotion of sausage products, enterprises	250 000
Creation of recipes, certification, branding, packaging	150 000
Expenses due to force majeure.	300 000
Raw materials for production (meat, spices, wood chips)	500 000
Grand total	3 166790

According to preliminary calculations, 5,877,860 rubles need to be invested in sausage production. The amount may change at the time of renovation work on the premises and purchase of equipment. There are many manufacturers, so you can choose the best offer. At the initial stage, funds will be required to maintain the operation of production, because the sale of products requires a certain time. Finding partners may take a month or more. We will include an additional 1,300,000 rubles in the business plan.

The cost estimate has been drawn up and is equal to 7,177,860 rubles. Please note that these are preliminary calculations that may change by the time the project is implemented.

Can't do without workers

The sausage shop must operate on the principle of a conveyor belt so that the final product meets the declared quality and the requirements of regulatory agencies. The following employees must be hired:

Staff category	Quantity	Salary, rub.	Salary, rub.
Director of General Affairs	1	60000	60000
Wholesale Customer Specialist	1	29300	29300
Forwarder	2	19800	39600
Technologist	1	28750	28750
Warehouse Senior	2	21250	42500
Accountant	1	14200	14200
Meat cutter	4	20000	80000
Equipment Setup Master	2	15000	30000
Line Operator	2	17250	34500
Helper worker	4	15000	60000
General Fund Salary	20		418850
Taxes			125655
Expense per month			544505

To achieve profitability, production will operate in two shifts, providing up to 500 kg of sausage products per day. One shift lasts 8 hours with a lunch break for employees of the day and night teams.

Time frame for the project

To set up production, a certain period of time is required, which depends on the completion of the following work:

	Oct.	Nov.	December	Jan.	Feb.	March
Registration with the Federal Tax Service, Pension Fund, Social Insurance Fund	+
Preparing the premises for renovation, coordinating the project with the architect and engineers	+
Ordering technical and engineering projects		+
Purchase of materials for cosmetic finishing. Start of renovation		+
Completion of repairs, laying of communications and engineering structures. Ordering equipment for a sausage shop, warehouse, shower, staff rest room, dressing room, administration			+
Development and approval of recipes, brand and range of sausage products. Certification			+
Delivery, setting up equipment, assembling furniture, equipping utility rooms				+
Coordination with inspection authorities				+
Search for suppliers of raw materials, purchase of products			+	+
Sausage production staff				+
Marketing campaign		+	+	+	+
Launch of a trial batch of sausage products				+
Search for sales channels, conclusion of contracts			+	+	+	+
Full start of production, shipment of the first batch					+	+

It will take 5 months to organize the opening of a sausage shop. The first shipment is scheduled for February-March. This depends on the quality of the products and access to wholesale buyers.

Final product price

The range of sausage production will gradually expand due to the production of smoked meat, bacon, jellied meat and other related meat products. The cost of one kilogram of sausage will depend on purchase prices from suppliers, transportation costs, and product recipes.

Income indicators

Let us assume that at the initial stage, production will not produce the entire list, but only the following types:

We have displayed the amount of revenue for one month. But it’s worth taking into account the costs of purchasing raw materials, utilities, rent, wages and other expense items to determine the profitability of sausage production:

Let's calculate the net profit for the month and find out how long it will take for the company to reach profitability and whether the profitability will be sufficient:

Considering that the average production profitability is 1,670,000 rubles, we can calculate how long it will take for the business to break even. The total investment is equal to the amount of 7,177,860 rubles. In 6-7 months, the enterprise will reach self-sufficiency and begin to bring net profit to the owner.

Let's make some clarifications on the business plan:

1. When calculating daily income, not the entire list of products was taken into account and the average cost per 1 kg of product was taken. Perhaps the product line will be wider and the amount of revenue will be higher or lower than that specified in the project.
2. The production plan for a shift or month will depend on the conclusion of contracts for the supply of products to retail chains. Therefore, monthly income may be higher or lower than the obtained figure.
3. The optimal goal is to reach the shelves of online clients. But there is a risk of downtime if there are no personal funds for further circulation. Networkers often enter into an agreement on terms of deferred payment for up to 30 days and ask for discounts for cooperation. This cannot but affect monthly revenue.
4. The return on investment may take not 6 months, but a whole year if buyers buy products in small quantities.

Fight against competitors

Competition in the sausage production industry is fierce. Any grocery store or supermarket presents a large number of manufacturers from different parts of the country.

• Therefore, it is necessary to pay attention to finding local suppliers of raw meat in order to be able to buy fresh meat at an affordable price. This will allow for competition in pricing policy. Without adding flavorings and other taste-masking ingredients, you can earn the trust of customers. Townspeople and villagers have great confidence in local products.
• You need to evaluate your position based on the conditions of the local market. It will take time to expand to other regions. Sometimes it is more profitable to look for sales on the side. It is worth analyzing the situation.
• Work closely on the recipe and production technology to understand what you can save on and what you shouldn’t.
• Arrange tastings of your products in large grocery stores to interest consumers.
• Register a personal page on the Internet so that potential clients can evaluate the scale of work and conditions for sausage production.
• Promote sausage products on social networks, on advertising platforms, in order to be visible not only to local customers, but also from distant regions.
• Participate in exhibitions of local manufacturers so that more people learn about new products.

Eventually

Competition in the sausage industry is serious, but consumers are not against buying products with a new name. Perhaps a young sausage manufacturer will be more interesting than the advertised brands. For some, price plays an important role. If you don’t inflate the cost of products at the initial stage, you can hope for big sales.

Serious investments are required, but with a rational approach they will be quickly worked out and begin to generate constant income.