generic busines plan

7/27/2019 Generic Busines Plan

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The Opportunity of the Nutrition Club Concept

o Herbalife is poised for phenomenal growth in the US alone due to the introduction of the

Nutrition Club Concept. In recent years, Herbalife has opened the doors for its

distributors to operate Nutrition Clubs. A Nutrition Club is a type of retail outlet where

customers will come to enjoy a Formula 1 Shake (shake) which is similar to a smoothie,

receive a free personal Wellness Evaluation, and purchase additional Herbalife products.

The American people are focused on health and longevity and are using nutritional

supplements more and more to meet their goals. The demographics of(your town) and

the outlying markets are prime for the products and services provided by a Nutrition Club.

o Nutrition Clubs were started in Mexico on a lower scale level in homes and in low-rent

areas several years ago. The growth of Nutrition Clubs has propelled Mexico to surpass

the US in sales within Herbalife and have made Mexico the #1 country worldwide for the

company. There are currently 50+ Americanized Clubs in the US in areas including but

not limited to Hope, AK; San Antonio, TX; Kansas City, MO; as well as select towns in

Virginia, Oregon, and North Dakota. The projections and estimates made in this Business

Plan are based on the average results of many of the Clubs in the US but primarily focused

on the clubs in Kansas City. It should be noted that the estimates are based on the lower

end of actual sales and volumes produced.

o The club will be providing several different services:

A place for people to purchase a healthy breakfast or lunch a Formula 1 Shake

and an Herbal tea for $4.50 - $5.50

Free Personal Wellness Evaluations including a free ShapeScan which will

evaluate an individuals daily caloric needs, BMI body mass index, and resting

metabolism

Personal Consultations to develop a nutrition plan to help the customer achieve

their health and/or weight management goals

A retail outlet for the entire Herbalife product line

Customer follow-up and feedback to ensure they are reaching their goals.

Group Wellness Seminars and Weight Loss Challenges

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Financial Analysis

o Analysis based on 50% profit margin which is the standard in the company. It is based

on a club entry fee (cost of the shake and tea) at $5.00. Potential earning is based on a

monthly calculation with the Club being open 21.5 days per month on average based on a

Monday thru Friday work-week.

The club will generate an estimated 25-50 entries per day during the first 90 days

of opening, expanding beyond that in following months. The profit is $2.70 per

entry.

25 entries = $1,451.25

30 entries = $1,741.50

35 entries = $2,031.75

40 entries = $2,322

45 entries = $2,612.25

50 entries = $2,902.50

Estimated retail sales of Herbalife Products per day

200 volume points ($200 in sales) = $4300 in total sales = $2,150

profit

400 volume points ($400 in sales) = $8600 in total sales = $4,300

profit

600 volume points ($600 in sales) = $12,900 in total sales = $6,450

profit

800 volume points ($800 in sales) = $17,200 in total sales = $8,600

profit

1,000 volume points ($1000 in sales) = $21,000 in total sales =

$10,500 profit

o The Start-up costs will vary from Club to Club depending on the location:

1-month rent to secure space approx. $2,000

Possible tenant improvements to the property. Ideally this will be

included in the lease terms and not be an out-of-pocket expense.

Estimated range from $0 - $8,000

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Inventory of Herbalife Products $2,000

Blenders, kitchen utensils, etc. $300

Furniture $2,000

Dcor & Accessories $500

Total Start up Costs $7,000 - $15,000

o Insert Financing Here: ex: GBI will borrow the start-up costs necessary from an

Equityline with available credit of $$$ from the owners. GBI is borrowing the money from

a local bank. The owners of GBI have the money ready to invest in opening the Nutrition

Club, etc.

Marketing and Advertising Plan

o There is an extensive training and support structure in place in the US to facilitate the

sharing of successful business building practices in the Nutrition Club groups currently in

operation. Leaders in the Nutrition Club group provide weekly conference calls as well as

local, regional, and national training events.

o Business cards/coupons will be circulated inviting individuals in for a Free Shake, Tea,

and Health Evaluation. Generating business will come from several areas:

Current Herbalife Customers

10 personal invites per day

Referrals of existing customers

Drive-by traffic & signage on location

Advertising opportunities including newspaper and direct mail to

households and businesses in the immediate zip code

Drawing boxes left at other business such as gyms and salons

Operations Plan

o

The Club will be open from 7am to 5pm Monday through Friday (insert hours here).Depending on the location, earlier or later hours may be developed as well as Saturday

hours. The busy times of the day will be during breakfast and lunch hours when people

will come in for their healthy meal. Individuals can walk-in or schedule an appointment

to get a ShapeScan, complete a Wellness Evaluation, and receive a one-on-one

consultation. The Club owners will recommend the program and products to help them

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reach their optimal health. The Club will also be used to facilitate group classes such as

Wellness Workshops and Weight Loss Challenges.

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Duplication Plan

o The plan for expansion is to use their Club as a prototype and training hub and to recruit 5

new Distributors to open their own Clubs in the area within six months. They plan to

expand to 30 Distributors with Clubs in their organization within 18-24 months. The

marketing plan with Herbalife pays the upline Supervisor, in this case GBI, a 5% royalty

on all business produced by the supervisors in an organization. The income potential

based on duplicating the Club concept is remarkable:

5 clubs generating $15,000 each = $3,750 royalty check



o In addition, a Production Bonus will also be earned at certain levels elevating these

incomes even higher. The above amounts are based on volume generated each month and

are received monthly.

Management Team/Club Owners

o Tell a little bit about yourself here

Projections

o

After the Club has officially opened for business, the projection is to have at least 20 clubentries per day, as well as over $10,000 in sales the first month. The profit estimated the

first month alone is $5,946. Within 90 days the Club is estimated to generate between 30-

50 club entries per day and over $15,000 in retail sales. The income generated from this

projection ranges from $8,919 to $9,810. (These estimates are based on the 50+ clubs

currently operating in the US previously mentioned).

o By finding other distributors to open 5 new Clubs in the subsequent 6 months the

income will increase to over $12,500.

o By having 30 Clubs in the organization, the income will be in excess of $30,000 permonth.

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