The snail's house

SNAIL’S HOUSE BUSINESS PLAN
IES MORAIMA Página 1
1) Business Plan Summary
After several alternatives studied and presented by the Comenius students:
cinema, water parks, a shopping centre etc ... the idea we have chosen for our
business project has been a snail farm, Snail's House. It is based on the breeding,
fattening and sale of that product.
Snail farming means raising the full life cycle of edible snails in open or closed
natural breeding. Production in Europe is very large. However, it does not cover
their requirements.
It is estimated that the current global consumption of edible terrestrial snails
exceeds 300,000 tons, and it is estimated that within twenty years will become
1,500,000 tons. Today, 90% of the snails consumed in Spain come from abroad,
mainly from Morocco.
To choose this idea, we have taken into account two main premises:
- There aren’t any snail farms in our city or in the nearby cities.
- This type of product can be attractive to all customers, children, young,
adults.

2) The Business
2.1 Description
BUSINESS: SNAIL’S HOUSE
BUSINESS STRUCTURE LIMITED COMPANY
BUSINESS LOCATION LOJA (GRANADA)
LICENCES ADN PERMITS - The individual entrepreneur does not
have specific legislation. His business is
subject to the general provisions of the
Commercial Code of 1885 in commercial
matters and the provisions of the Spanish
Civil Code on rights and obligations.
- Law 8/2003, 24th April related to Animal
Health.
- Royal Decree 497/2004, 26th March,
which regulates the register of livestock
farms.
- Law 19/1995, 4th July, modernization of
farms.
- Royal Decree 1144/2006, 6th October,
which regulates the conditions of feed
hygiene.
PRODUCTS AND SERVICES The products that we sell are live snails for food
use, without transformations or processes;
snails go directly from the countryside to the
restaurants.
BUSINESS OWNERS The company is formed by four owners, two are
only investors and the other two will also work
in the farm.
-Lucía Tortosa Padilla (worker)
-Natalia García Fernández (worker)
-José Miguel Sánchez Fernández (investor)
-David Moreno Campaña (investor)
REQUIRED STAFF - A cleaner
- An administrative
- A security guard
- Two farmers

2.2 Staff and organization:
2.3 Plant & equipment
The basic equipment and furniture required for the development of the
activities of this business will be composed of elements of different types:
 Metal and controlled breeding breeding tables.
 Cages with drain pan and stackable drawers.
 Greenhouses outdoor fattening.
 Leak-Mail.
 Protective wooden huts.
 Electric Shepherd.
 Leak-electrified fence.
 Food and water bowls, containers and cans for egg production.
 Occasional furniture (metal shelves, desks, chairs, etc.).
 Cold Rooms IQF.
 Electronic balance.
 Electric heater.
The cost for this item may be around € 8,700.00 (including VAT) for at least one
basic equipment. This amount will be much higher if more equipment is acquired
or the above elements are of special materials, etc.
Facilities needed:
The facility will consist of two parts, one closed and one open:
 Workshop 300 m2, which in turn is divided into:
- Reproduction room (75 m2).
- Board of incubation and breeding phase (50 m2).
- Room or second breeding phase (25 m2).
- Warehouse (50 m2).
- Office (20 m2), bathroom and packaging machines, hygiene and cleaning
utensils go in a parallel room (100 m2).
Administration
and Marketing
Farmers
Maintenance
and Cleaning
Surveillance

 Greenhouse outdoors for fattening (370 m2). It will consist of 12 lines of 1
meter wide and 20 meters long. It will also have to have a place, sector or
watertight container away from breeding enclosure waste.
Computer Equipment
For this type of business is advisable to have a full computer equipment: computer,
printer, fax ...
The cost of this computer has been estimated at over € 1,650.00 € 176.00 in VAT.
Transport Element
The need to incorporate a vehicle for the purchase of products arises and to supply
bars and restaurants and other businesses, etc. For all that is needed conditioned
vehicle.
The cost of this element depends on the characteristics of the vehicle you choose.
In this study, not raise too much initial investment, we suggest buying a used car at
an estimated cost of € 10,440.00 (including VAT)
3) The Market
3.1 Market research:
INDEX
1. OBTAINING INFORMATION THROUGH THE SURVEYS.
1.1. Delineation of objectives to be covered with the survey.
1.2. Understanding the structure of the questionnaire.
1.3. Preliminary testing of the questionnaire.
1.4. Questionnaire booklet.
2. DEVELOPMENT OF THE SURVEY
2.1. Selection and identification of the sample.
2.2. Developement plan.
2.3. Report about the field work.
3. ANALYSIS AND INTERPRETATION OF RESULTS.
3.1. Results of the survey.
3.2. Statistics used and interpretation of results.
4. OBTAINING INFORMATION FROM SECONDARY SOURCES.

4. 1. Location of the information.
5. SUMMARY REPORT OF THE MARKET STUDY RESULTS.
5. 1. Market study's conclusions.
6. DECISIONS ON BUSINESS ACTIVITY.
6. 1. Realization of the activity and services.
6. 2. Objectives and input parameters for the project.
7. INTERVIEW WITH ENTREPRENEURS
1. OBTAINING INFORMATION THROUGH THE SURVEYS.
1.1. Delineation of objectives to be covered with the survey.
We will carry out a questionnaire to a number of 100 persons, chosen at random
and aged between 18 and 70 years. Our aim is to know the opinion of potential
customers about the services we offer in our business.
The main objective is to obtain all possible information through the survey, in
order to obtain all possible data about potential future customers and their
opinions about the product.
1.2. Understanding the structure of the questionnaire.
The questionnaire will be carried out on a sample of 100 people aged between 18
and 70 years: parents, teenagers, young adults and to elder people. In short, all
potential customers since we want to know their tastes and opinions so as we can
offer them everything they need and are looking for when the buy a product
similar to the one we offer.
The questionnaire is made of eight questions, focused on getting to know their
needs and preferences when it comes to consuming our product and also on
knowing their opinion about the services we include in our company and whether
we should include some more.
1.3. Preliminary testing of the questionnaire.
We conducted a first trial of the questionnaire in order to check if there is any
mistake in the survey, if a question presents any degree of difficulty to be
answered and if it allows us to obtain and extract information in an easy and
accurate way.
After this test, we found that the survey gave us relevant information about our
potential customers.
1.4. Questionnaire booklet.

Dear Sir or Madam:
May we introduce ourselves. We are managers of a new company dedicated to
ecological farming snails called Snail's House. We would like to set our firm in the
current market.
Therefore, we decided to survey our potential customers so as we can know the
tastes and preferences of our future customers in order to be able to provide them
all the services required to influence their choice.
Thank you for your feedback!
1. Age of the respondent. ...............
2. Gender of the respondent.
Woman Man
3. What is your opinion about an ecological snail farm as a business?
4. Do you eat snails?
Yes No
5. Would you be willing to work in our company?
Yes No
6. Do you think that our business plan has a future?
Yes No
7. As a customer, what would you demand to our company?
8. Would you purchase in our store?
Yes No
2. Development the Survey
2.1. Selection and identification of the sample
The questionnaire will be carried out at a maximum of 100 people, aged between
18 and 70 years. The reason is that the services we offer are valid for both younger
customers to the older ones.

We must take into account that according to the age, the characteristics of a service
will be different.
The survey will be carried out face to face, via email and social networks. We will
follow this process: 50 people in the street (city center and public market), 20
people via email and 30 through social networks.
Specialized staff in the registration and assessment of data will be required.
2.2. Developpement plan.
As mentioned above, the survey will be carried out face to face with de
respondents, via email or through social networks.
In order to carry out the survey we will hire staff specialized in the following
services:
Two workers to survey in the street.
Two workers to survey via email and social networks.
The deadline for completion of the survey is 20 days.
The respondents will be chosen by nonrandom sampling since their ages must be
between those mentioned above.
In face-to-face surveys, we will follow a few guidelines: checking the time and date
of the survey and identification of respondents.
2.3. Report about the field work.
The surveys were carried out within the established deadline and in the way
descripted. The result has been satisfactory and with a positive assessment, which
will help us in the market research.
Thanks to the surveys we will have all the information in order to know what is
more advantageous for our business and how we should set it to getting better
results.
3. Analysis and interpretation of results.
3.1. Results of the survey.
- Obtained data
The data we have obtained are as follows:

PEOPLE WHO LOVES OUR SERVICES
PEOPLE WHO LIKE OUR SERVICES
Ni % xi xi·ni Ni
Between 18-25 30 20 27’5 220 8
Between 25-35 20 22’5 42’5 382’5 17
Between 35-45 15 20 57’5 460 25
Between 45-55 25 22’5 72’5 652’5 34
Between 55-70 10 15 87’5 525 40
TOTAL 100 100 2.240
• Arithmetic mean
Calculation:
2.240/40=56
• People who like our services are 56 years old.
• Median
Calculation:
The median interval 25-35; 30/2 = 15
ME = 25 + ((15-8) / 9) * 10 = 32'77. We round and it's 33.
• People who like the most our services are 33 years old.
• Mode
Calculation:

Modal interval; of 25-35 more Hi = 0.9
MODE= 25+(0’8/(0’8+0’8))*10=30
Most people who use our services are 30 years old.
Graphing
3.2. Statistics used and interpretation of results.
As already described above, the aim of the survey was to obtain information about
the potential customers who purchase and enjoy our services, as well as to get to
know their tastes, preferences and the impression these services may cause on
them and their acceptance.
Once the survey has been finished, one of the questions was analyzed so as we can
obtain the arithmetic mean, median and mode and, therefore, to obtain the results,
a sample of the population has been obtained , done not randomly, depending on
the age of the respondents.
Through this analysis we have been able to proof that the organic snail farm has
been appreciated by all people, regardless their age.
4. Obtaining information from secondary sources.

4. 1. Location of the information.
We have first made a previous market survey in order to improve the idea, whose
information comes from different sources.
The first one has been through primary sources carrying out a survey to the
inhabitants of Loja (Granada). The information collected through is enough to
determine the viability of our company.
Thanks to the survey in our population, we can get a rough idea about our closest
competitors, and those who can most affect our business. We also have an
approximation on the prices of services offered to the public.
4. 2. Relevant data and conclusions.
As already explained in the previous section the information that we have obtained
comes from primary sources.
We have also found information about offers and promotions from the company's
competitors to their customers and the services they offer.
Analyzing all the information obtained, we reach the following conclusions:
• 1st Possible viability of our project, since in Loja, organic trade is an
important factor to bet high; moreover the inhabitants think it may be an
interesting, innovative and original project.
• 2nd Another conclusion is that the idea of ecological breeding of snails will
succeed with the best value for money for the services offered.
We expect quite favorable economic growth thanks to the different factors that
influence when purchasing products.
5. Summary report of the market study results.
5. 1. Market study's conclusions.
The conclusion that we have reached is that this project is being carried out with
good expectations, and everything will come out in a favorable and cost-effective
way.
Regarding the market in general, we think that competitors will not suppose a big
deal, since they are located several kilometers away from our business.
6. Decisions on business activity.
6. 1. Realization of the activity and services.
After analyzing the results got through the evidences regarding the market we
have reached the conclusion that the project we want to set is going to be viable, so
we can affirm that all the works and constructions necessary to setting the organic

farm of snails will be carried out.
6. 2. Objectives and input parameters for the project.
We should keep in mind that in order to carry out this project we must have goals
and clear market ideas. These ideas will be fulfilling the needs of our customers,
both in quality and in price.
• Expectations about the business acceptance.
• According to the expectations about the results obtained through the
different studies carried out, the acceptance of our company is expected to
be very good. This is because people accept the project as something
innovative and eco-friendly, so it is expected to be successful.
• Expected growth.
At the beginning we expect a medium/low catchment of customers, due to the
already existing businesses in the market.
But the company advertising will be based on informing the kind of product we
will offer. In addition we will distribute brochures with a price list.
We expect a high growth in a short-term which will affect us in very positive way
in sales and, therefore, in the benefits we expect to obtain.
7. Interview with entrepreneurs
In this part of the project we include the interview made to another company
dedicated to the same sector of activity in which we want to specialize.
Some of the questions were:
1. Your company specializes in the production of fat snails. Why? Is the little snail
more problematic?
- Well, what I exactly do is the first phase of this breeding. My product is not
the snail for sale. I what I do is nearly at 100 percent snail breeding to make
possible a fast and easy fattening.
2. Then, are your customers snails farms themselves?
-They can be farms dedicated to the heliciculture in exclusive or farmers who have
plots that want to make them profitable and set it as another type of cultivation.
3. Is your activity as profitable as the one of the already bred snails?
-No. We are the first step of a production cycle. Profitability is much bigger as the
cycle progresses. The producer per kilogram of snail has a larger margin.
4. What are the facilities like?

-They are closed facilities in a kind of a 200 square meters industrial unit, where
the breeding, selection and fry incubation phase is developed and a first kick-off
phase. them constantly.
And, then, the outdoor area, consisting of a garden of about 4. 000 meters where
they are fattened. We think that, according to contact maintained with several
customers, we need a minimum volume of players in order to supply them
constantly.
5. Tell us about the investment you had to made to start the business.
-The whole project supposes 240.000€. 30 % is financed by “Leader founds”. Then
I'm in conversations with some other partners and which will contribute with
another part, and the rest is my own funds.
6. Do this activity generate much employment?
- It is expected to provide full-time employment to six people when the business
will be working full speed. But only in the reproduction. We must take into account
that the recollection is made by hand as well as the fattening tasks.
More or less 3. 000 square meters dedicated to fattening suppose what is called
half-UTA (agricultural work unit), which is more or less 4 hours a day, so 6. 000
square meters occupies one person the whole year. As our production in a first
phase may supply to 20 or 40 hectares for fattening, we may have about 100
people dedicated to a thing which is not established yet in the region.
3.2 Target market
The market to which our product is directed can be very varied, since we have a
good quality- price product and can be consumed by people of all ages, children,
youth and adults.
We will sell our products to individuals or other companies that may be interested
in our products. They would buy our products because they are cheap and have a
good quality.
3.3 Target Customer
It seems that people older than 30 years are more liable to be interested in our
products, though restaurants in our area are our target customers.
3.4 Market targets
Our company will manage its market to people of all ages in the town of Loja
where we will set the farm, but we will also try to expand our business to nearby
towns so than our business can draw its maximum benefits.

3.5 S.W.O.T. analysis
Strengths Weaknesses
1. The product is traditionally
accepted and currently well
established.
2. Food with excellent nutritional
properties.
3. Proliferation of presentations,
business forms, recipes,
applications ...
4. Growing demand for the
product.
5. Real and potential revenues
and positive economic
performance.
6. The initial investment does not
involve excessive financial
outlay for partners
7. The domestic market is ideal
for the breeding of snails and
they do not have competition in
the area.
8. The international market is also
expanding and can give us great
opportunities
1. Lack of legal framework and
appropriate management
measures for sustainable
development
2. Lack of professional,
technological and business
structure.
3. Amateurism and intrusiveness
that generates a complex
problem.
4. Lack of public and private
investment in research and
development of our sector.
5. there is not a socioeconomic
organizational structure capable
of favoring their promotion and
competitiveness.

Opportunities Threats
1. The number of companies in
the market is positive, no farms
that offer our services in Loja
or region. No competitors.
2. The product is not new, but we
will be the first local company,
so offers and marketing
campaigns may help us to
publicize and sell our product
to local customers.
3. The place where our company
will be set is very accessible
and near the town. So our
customer will have no problem
to come and park there.
4. New technologies can help us
improve our business. We use
advanced information
technology to improve the
functioning of our company.
5. Caring for the environment is
crucial for us, and we
collaborate in the development
of measures to enhance their
care in our town.
1. Possible problems related to the
opening for business: licences,
permits, legal requirements.
2. Compliance with laws that are
within the scope of our business
to avoid legal problems, penalties,
etc.
3. Severe economic crisis that causes
fewer products are sold, less
earnings, less money to invest,
etc. Besides, our product is not a
primary need one. Possible weak
product demand due to the poor
economic situation that we suffer
4. Entry of competitors with greater
demand and our business best
deals.
5. The capital invested will be
recovered in an indefinite time
period and this could jeopardize
the viability of our project.
3.6 Your competitors
In this case, our company doesn´t have any competitors, something which is very
favourable and positive because there is not any company that offers products like
us. Most of the snails come from Morocco nowadays, so we expect people will be
happy to have local products.
3.7 Advertising & promotional strategy
A publicity plan will be crucial to present our company. It will be composed of
radio publicity, billboards, local press advertisements, a facebook page and later on
a website.
Our marketing plan is aimed at all our potential customers and our main objectives
will be:

- To report on the opening of trade in our town and in nearby villages.
- To create an image of our company in the minds of our consumers.
- Get the loyalty of our customers and this way, good results are also
obtained with publicity by word of mouth.
We will divide our publicity plan in two important parts:
Introduction campaign. The goal is to become known in the world of
our local commerce. The methods and means will be:
- Traditional mailshot in town and nearby towns.
- Radio ads for a few weeks before the opening.
- Facebook page and our own website (www.snailhouse.com) with the
description of our business, products, prices, etc.
- The opening day will invite our clients to taste snails cooked by one of the
restaurants in our town.
Maintenance campaign.
This campaign should use communication means and instruments which can
maintain our customers’ fidelity and increase the numbers of new customers if
possible. The following methods will be used:
- Catalogues and brochures with descriptions of our products and offers.
They will be at disposal in our shop and they will e in our area.
- We will pay for several ads in local newspapers and radios, at least once a
week for the first six months.
- Billboards with monthly offers.

Examples of brochures and billboards:
GET THE BEST SNAILS IN OUR PROVINCE!!!
OPENING OF A NEW SNAIL FARM
45 MOLINILLOS ROAD

SNAIL FARM
45 MOLINILLOS ROAD
COME AND TASTE OUR WONDERFUL DISHES
PREPARED BY ONE OF OUR BEST COOK IN TOWN!!!
24TH FEBRUARY
3.8 Sales & marketing objectives
 Sales team and techniques
The responsible of the marketing and sales policy will be the owners on the advice
of our administrative or an expert if required.
Promoting sellings should be one of our main aims at the beginning of our
business. Therefore, in order to increase the number of customers who come to
our shop, we must find the way to attract their attention and make them come and
buy our best quality product. Some possible strategies to get this can be:

- As our company is newly opened, the first year we have to make ourselves
known. We use a penetration strategy which will consist of initially entering
the market with low prices to gain an advantage over potential competitors.
Later on, once our business is established, we move on to a maintenance
strategy consisting of price stabilization according to market levels.
- Free samples to present the product.
- To give extra product to our first customers.
- Discounts based of purchase for our regular customers.
- Cover letters to present our product to important stores and restaurants in
town.
 Selling forcast
The sales network will cover the area where our farm has been established,
Loja, and surrounding towns.
In the selling forcast, we will make an estimate of sales during the first year
and the next five years.
The sales forecast is determined in the following ways:
- Monthly sales of the year
PRODUCT SELLING DURING THE FIRST YEAR
PRODUCT HELIX ASPERSA HELIX POMATIA
JANUARY 1880KG X 4,95€ = 9306,00€ 50kg X 4,00€ = 200 €
FEBRUARY 1880KG X 4,95€= 9306,00€ 50kg X 4,00€ = 200 €
MARCH 1880KG X 4,95€ = 9306,00 50kg X 4,00€ = 200 €
APRIL 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
MAY 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
JUNE 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
JULY 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
AUGUST 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
SEPTEMBER 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
OCTOBER 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €

NOVEMBER 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
DECEMBER 1880KG X 4,95€= 9306,00 50kg X 4,00€ = 200 €
22.560 Kg – 111.672,00 € 900 Kg – 3600 €
- Summary table sales: Total revenue Total products sold each month.
First year Second year Third year Fourth year Fifth year
Estimated
sales
126.799,20€ 130.844,90€ 148.689,20€ 167.322,68€ 200.132,66€
Output VAT 12.679,92€ 13.084,49€ 14.868,92€ 16.732,26€ 20.013,26€
Total 139.479,12€ 143.929,39€ 163.558,12€ 184.054,92€ 220.145,92€
4) The Future
4.1 Vision statement
We think that our company in the future will become a landmark for snail farming
in our area, attracting more and more local and nearby customers. We think our
customer will be happy to buy local products with quality and prestige.
4.2Mission statement
Our goal is to offer local products with good quality, produced in a farm that our
customer can visit and buy snails bred in a clean and safe place.
4.3 Goals/objectives
Our short-term goal is to achieve balance between revenues and expenses, in the
medium term to constantly increase revenue and in the long term reinvest profits
to upgrade equipment and be the first on the market to introduce the latest
innovations. We will keep pace with the needs of our customers to provide the
services they wish , maintaining moderate prices
5) The Finances
5.1 Start-up costs
1. CERTIFICATION OF COMPANY NAME
The courier cost comes to about: Record 17€ + Messenger 13€ =
€ 25.88

2. WRITING AND REGISTRATION OF ARTICLES OF ASSOCIATION
(Includes wording of the statutes and signature notarized)
The cost of the notary for a limited society about 3,006 Euros investment is
210.45 € on notice. It depends on the amount of share capital and
number of partners.
3. SETTLEMENT OF stamp tax
Transfer Tax and Stamp Duty Tax.
It is 1% of Social Capital for a Limited Company of Social Capital 3,000 euros would
be € 30.
4. REGISTRATION IN THE TRADE REGISTER
Approximately 150.25 € (this figure may vary depending on the
characteristics of the company).
5. AUTHENTICATION AND SEALING OF BOOKS ON TRADE REGISTER
Instance at Registry = 0.30 €
Journal and partners = € 30.10
Legalization of books in trade register = € 19.52
APPROXIMATE TOTAL COST = € 440.09 (for a society of 30000 Euros)
The market research is costless because the information are found in the Internet
and at the tourist offices.
5.2 Equipment and plan cost
CONCEPT PURCHASE PRICE
FURNITURE 533,00€
MACHINERY 14.050,00 €
TECHNICAL INSTALATION 2.500,00 €
COMPUTERS AND TECHNICAL
EQUIPMENT
1.500,00 €
COMPLUTER APPLICATIONS 550,00 €

MATERIAL 538,00 €
TOTAL: 19.671,00 €
5.3 Financial needs:
About 21.000, 00 € for the fixed assets and 57.100 € for current assets (cash for the first
expenses, such as goods, labour wages, etc.)
FINANCIAL NEEDS
FIXED ASSETS ------------------------------------------------------ 21.000,00 €
CURRENT ASSETS ------------------------------------------------------ 57.100,00 €
TOTAL ------------------------------------------------------ 78.100,00 €
5.4 Funding
The four partner will provide 15.000,00 € as equity, while other 18 .000 € will be obtained by
European Union grants and benefits for young entrepreneurs and a bank loan if needed.
5.5 Profit and loss forecast
CONCEPTS 2015 2016 2017
PERIOD
SALES REVENUES 139.500,00 € 143.930,00 € 163.600,00 €
VARIABLE COSTS 52.900 € 54.000,00 € 56.000,00 €
GROSS COST 123.915,00 € 137.929,00 € 182.000,00 €
FIXED COST
ADVERTISING 3.750 € 3.750 € 3.750 €
SELLING
PROMOTION
2.000 € 500 € 500 €
PUBLIC RELATIONS 2.500 € 250 € 250€
GENERAL COSTS 52.920, 00€ 52.920, 00 € 52.920, 00 €
ACCOUNTING 255 € 255 € 255 €
TAXES 18.734,68 € 20.085,32 € 30.322,98 €
NET PROFIT 43.714 € 56.199,07 € 71.689,00 €

6) FINAL CONCLUSION
According to our study and revision of the project, we expect positive results and a net profit
from the first year on, so we think our business can be profitable and we could recover our
initial inversion in a period of no more than five years. Certainly, it could be a feasible proyect,
suitable for our town and conditions.
By the Comenius students of IES MORAIMA,
With the help and guidance of two great
Teachers: Carlos Herrera (History teacher)
and Luciano García (Business and
management teacher)

The snail's house

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