BUSINESS PLAN

Glow Wellness Bar

www.glowwelness.com

Authentic Green Fresh

Richland, WA

AUGUST 2021

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 DISCLAIMER
Quite a number of the statements contained in this Business Plan include
information consolidated by references, future expectations and strategically
schemed out plan that would result into financial success gathered by the
management, which is believed to be ultimately revelatory. Those statements are
bound to be prone to uncertainties, unforeseen circumstance, and other
uncertainties which could be beyond the management control.

Important factors that may cause the actual results to differ from those expressed
within may include, but are limited to:

• The failure of the company to keep up with effort that can make its services
successful.

• The effect of changing legislation and government regulation as this plan has
put all that into consideration.

• The company’s ability to maintain substantial level of returned customer and

a booming referral base.

However, the assumptions disclosed herein are those that management believes are
significant to the growth of the company.  

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 CONFIDENTIALITY AGREEMENT
The undersigned reader acknowledges that the information provided by Glow
Wellness Bar, LLC in this business plan is privy; therefore, reader agrees not to
disclose it without express written permission of Glow Wellness Bar, It is
acknowledged by reader that the information to be proposed in this business plan is
in all respect confidential in nature, other than information which is in the public
domain through other means and that any disclosure or use of same by reader, may
cause serious harm or damage to Glow wellness bar.

Upon request, this document is to be immediately returned to the Glow Wellness

Bar.

Signature ………………………….

Name (typed or printed),

...th August 2021

Date

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 Contents
DISCLAIMER.................................................................................................................................1
CONFIDENTIALITY AGREEMENT............................................................................................3
I. INDUSTRY OVERVIEW.......................................................................................................6
II. EXECUTIVE SUMMARY..................................................................................................8
i. Our Mission and Vision Statement.......................................................................................9
ii. Objectives.............................................................................................................................9
iii. Keys to Success...............................................................................................................10
III. COMPANY SUMMARY...................................................................................................11
i. Our Products and Services..................................................................................................11
iii. Organizational Structure.................................................................................................12
iv. Job Roles and Responsibilities........................................................................................12
 Chief Executive Officer – CEO......................................................................................12
 Bar Manager....................................................................................................................13
 Baristas............................................................................................................................13
 Accountant / Cashier.......................................................................................................13
 Customer Service Agent / Table Attendant....................................................................13
 Cleaners...........................................................................................................................14
IV. SWOT ANALYSIS............................................................................................................15
i. Strength...............................................................................................................................15
iii. Opportunities...................................................................................................................15
iv. Threat..............................................................................................................................16
V. MARKET ANALYSIS..........................................................................................................17
i. Market Trends.....................................................................................................................17
ii. Our Target Market..............................................................................................................17
iii. Our competitive advantage.............................................................................................18
VI. SALES AND MARKETING STRATEGY........................................................................19
i. Sources of Income..............................................................................................................19
ii. Sales Forecast.....................................................................................................................19
iv. Publicity and Advertising Strategy.................................................................................21

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 v. Our Pricing Strategy...........................................................................................................22
VII. FINANCIAL ANALYSIS..................................................................................................24
i. Startup Expenditure (Budget).............................................................................................24
ii. Startup Primary Requirements............................................................................................25
iii. Important Assumptions...................................................................................................25
iv. Projected Cash Flow.......................................................................................................26
v. Key Financial Indicators.....................................................................................................28
vi. Break-even Analysis.......................................................................................................28
vii. Projected Profit and Loss................................................................................................29
viii. Sustainability and Expansion Strategy............................................................................32
ix. Check List / Milestone....................................................................................................32

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 I. INDUSTRY OVERVIEW

The Juice and Smoothie Bars industry which combines the wellness bar has come a long way
and it is still evolving with loads of smoothie drink makers bringing in creativity in terms of
flavors and packaging into the industry. Smoothie drinks have been around for many years, but
they are becoming more popular in recent time due to the health benefits that comes with it.

This industry consists of businesses that basically make and retail smoothies and fresh-made
juices. A smoothie is a blended, sometimes sweetened beverage primarily made from fresh fruit
or vegetables combined with ice, frozen fruit or other frozen ingredients. Some juice and
smoothie bars give their clients option of add-ins, such as soy milk, whey powder, green tea and
herbal or nutritional supplements and even more.

Smoothie drink is one commodity that is consumed in all parts of the world and of course those
that are in the business of producing smoothie drinks are known to generate sales year in year out
if the business is well – managed.

As a matter of fact, economic downturn hardly affects the consumption of smoothie drink simple
because it is a commodity that is as affordable and considered a healthy substitute for soft drinks
and other processed juices etc.

No doubt, The Juice and Smoothie, Wellness Bars industry has grown steadily over the last five
years as juice and smoothie bars have adapted to the rapidly changing consumer preferences and
lifestyle. In recent years, the perceived high sugar content of some smoothies and juices has
forced the industry to adapt its offering.

Because of this reason, cold press juice, which is made by hydraulically chopping and crushing
produce such as spinach, kale and ginger without using heat, thereby yielding highly nutritious
juice, has risen to prominence.

The Juice and Smoothie, Wellness Bars industry is a thriving sector of the economy of the united
states of America and they generates a whooping sum of well over billion annually from more
than 1,435 registered and licensed juice and smoothie bar companies scattered all around the
United States of America.

The industry is responsible for the employment of well over 35,861 people. Experts project The
Juice and Smoothie Bars industry to grow at a 2.9 percent annual rate. Smoothie King and Jamba
Inc. are the leaders in the Juice and Smoothie Bars industry; they have the lion market share in
the United States of America.

With this kind of business, if you want to start on a small scale, you can choose to start servicing
a school around you or even the whole of your local community. All you would need is contacts,
packaging, networking and good marketing and customer service skills.

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However, if you intend starting it on a large scale, then you should consider spreading beyond
your local community to state level and even national level with adequate structure for chains of
outlets and distribution networks.

If you are contemplating starting your own juice and smoothie drink business in the United
States, you should ensure that you carry out a thorough market survey. If you get some key
factors wrong before starting your own smoothie drink business, then you are likely going to
struggle to stay afloat.

Over and above, juice and smoothie drink business is indeed a profitable line of business and it is
open for any aspiring entrepreneur to come in and establish his or her business; you can chose to
start on a small scale servicing a community or you can chose to start on a large scale with
several outlets in key cities all around the United States of America.

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 II. EXECUTIVE SUMMARY

Glow Wellness Bar, will be is a licensed and standard LLC, a smoothie and wellness bar
business that will be in Richland-Washington, USA; a business that covers a wide range of
clients both domestic and corporate clients. We are a unique Wellness Bar brand simply because
we do not just sell assorted smoothie drinks, we strive to preserve its nature and keep your good
health but also100% organic vegan wellness bar offering fresh cold press juices and smoothie
bowls as well as grab and go salads and wraps.

Because of our corporate business goal of becoming the top five juice and smoothie bar
companies in the United States of America, we are willing to go the extra mile to invest in some
of the finest professionals we can find and also we have set plans in place to acquire the best of
equipment when it comes to setting up a standard Wellness bar.

Our bar and will be customized to fit into the kind of ideas we have of how a first class wellness
bar should look like. When it comes to hygiene, we have put plans, process and structures in
place that will ensure that we are always at the top of our game when it comes to that. We have
been able to secure permits from all relevant departments in Washington.

Glow Wellness Bar, LLC is set to redefine how juice and smoothie bar business should be run,
not just in Richland-WA, but also in the whole of the United States. This is why will put plans in
place for continuous training of all our staff at regular interval and also liaising with stake holder
in the industry to contribute our quotas in the way smoothie and juice making equipment should
be designed and fabricated to meet the ever changing demand of the industry.

No doubt the demand for fresh juice and smoothie and more is not going to plummet any time
soon, which is why we have put plans in place to continue to explore all available market around
the cities where our chains of wellness bars are going to be located and ensure that we create a
wide range of distribution channels. With that, we know that we will be able to maximize profits
in our business.

Our strongest selling point is the unique taste of the different types of fresh juice and smoothie
that we sell. There is hardly any customer that will taste any of our products who would not want
to come back and make more purchase – we take delight in welcoming repeated customers over
and over again. Glow Wellness Bar will at all times demonstrate her commitment to
sustainability, both individually and as a firm, by actively participating in our communities and
integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our
client’s needs precisely and completely. We will cultivate a working environment that provides a
human, sustainable approach to earning a living, and living in our world, for our partners,
employees and for our clients.

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Our plan is to position the business to become the leading brand in The Juice and Wellness Bars
industry in the whole of Washington, and also to be amongst the top five wellness bar brand in
the United States of America within the first 10 years of starting our business. This might look
too tall a dream but we are optimistic that this will surely come to pass because we have done
our research and feasibility studies and we are enthusiastic and confident that Richland-WA is
the right place to launch this type of business before spreading to other cities all across United
States.

Highlights

$700,000

$600,000

$500,000
Sales
$400,000 Gross Margin

$300,000 Net Profit

$200,000

$100,000

$0
Year 1 Year 2 Year 3

i. Our Mission and Vision Statement

Our mission is to be the leading wellness bar in Tri cities. To provide top customer service nd
highest quality product to our community.

We will be 100% organic vegan wellness bar and aspire to be a community of health minded
individuals that wants to uplift to stay healthy and glow in and out.

ii. Objectives

Glow’s objectives for the first year of operations are:

• Become selected as the "Best New Wellness Bar" by the local restaurant guide.

• Turn in profits from the first month of operations.

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• Maintain a 65% gross

iii. Keys to Success

The keys to success will be:

• Store design that will be both visually attractive to customers, and designed for fast and
efficient operations.

• Employee training to insure the best served and preparation techniques.

• Marketing strategies aimed to build a solid base of loyal customers, as well as

maximizing the sales of high margin products.

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 III. COMPANY SUMMARY

i. Our Products and Services

At Glow Wellness Bar we deal in assorted fresh juice, smoothie and other shots, we are an
establishment that primarily prepare, serve / sell fresh smoothies, as well as toppings. Our
intention of starting Glow Wellness Bar, LCC is to make profits from the industry and we will do
all that is permitted by the law in the US to achieve our aim and ambition. Here are some of our
products and services;

 Selling smoothies made from frozen yogurt

 Organic cold pressed fresh-made juice drinks
 Selling fresh-made smoothies
 Immunity boosting
 Organic , vegan salads
 Wheat grass shots
 Chia pudding

ii. Our Business Structure

As part of our plan to build a top flight Juice and Smoothie Bar business in Richland-
Washington, we have perfected plans to get it right from the onset which is why we are going the
extra mile to ensure that we have competent employees to occupy all the available positions in
our company.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric
and are ready to work to help us build a prosperous business that will benefit all the stake holders
(the owners, workforce, and customers).

The picture of the wellness bar business we intend building and the goals we want to achieve is
what informed the amount we are ready to pay for the best hands available in the juice and
smoothie bars industry as long as they are willing and ready to work with us to achieve our
business goals and objectives.

iii. Organizational Structure

Our staffs will be distributed amongst the following departments

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 Chief Executive
Officer

Bar Managers Baristas

Customer
Accountant /
Service Agent / Cleaners
Cashier
Table Attendant

iv. Job Roles and Responsibilities

 Chief Executive Officer – CEO

Responsible for providing direction for the business, creating, communicating, and implementing
the organization’s vision, mission, and overall direction – i.e. leading the development and
implementation of the overall organization’s strategy.

 Responsible for fixing prices and signing business deals

 Responsible for recruitment
 Responsible for payment of salaries
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

 Bar Manager

Responsible for managing the daily activities in the bar, Ensures that the production facility is in
tip top shape and conducive enough to welcome customers

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  Interfaces with third – party providers (vendors)
 Reports to the Chief Executive Officer
 Attends to Customers complaints and enquiries
 Prepares budget and reports for the organization
 Responsible for Training and Development in the organization
 Responsible for procuring and distribution of beverages and pastries
 Any other duty as assigned by the CEO

 Baristas

Responsible for preparing different flavors and styles of drinks for customers, Make lists of
supplies in conjunction with the outlet manager, Ensures that each drop of made products that
leaves the production facility is tailor made and meets the request of each customer

 Responsible for quality control

 Any other duty as assigned by the Manager and CEO

 Accountant / Cashier

Receives payments on behalf of Glow wellness bar and Issues receipt to customers

 Prepare financial report at the end of every working week

 Handles all financial transaction on behalf of the company
 Interfaces with our bankers
 Responsible for payment of tax, levies and utility bills
 Any other duty as assigned by the CEO / bar manager

 Customer Service Agent / Table Attendant

Opens door and welcome customers and Ensures that customers feel relaxed and at home

 Handles customers enquiries

 Takes customers’ orders
 Serve customer

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  Any other duty as assigned by the bar manager

 Cleaners

Responsible for cleaning the bar and all its facility at all times and Washes the mugs, spoons and
other utensils

 Ensures that toiletries and supplies don’t run out of stock

 Cleans both the interior and exterior of the wellness bar
 Any other duty as assigned by the restaurant manager

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 IV. SWOT ANALYSIS

Our intention of starting our wellness bar business in Richland-WA is to test run the business for
a period of 2 to 5 years to know if we will invest more money, expand the business and then
expand the business all over key Cities in our state and further across the United States.

We are fully aware that there are several large and small scale smoothie bars, coffee kiosks all
around Washington, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be welled equipped to confront our threats.

Here is a of what we got from the critically conducted SWOT Analysis for Glow Wellness Bar,
LLC;

i. Strength

Our strength lies in the fact that we have a wide range of juice, and smoothies that can meet the
needs of a wide range of customers. We have state of the art facility and equipment that has
positioned us to meet the demand of products even if the demand tripled over night or if we have
a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office;
who has a robust experience in the industry and also a pretty good academic qualification to
match the experience acquired which has placed us amongst the top flight professionals in the
industry.

ii. Opportunities

The opportunities available to us are unlimited. Loads of people consume fresh juice and
smoothies on a daily basis and all what we are going to do to push our products to them is
already perfected.

Many people around the world are beginning to see the need to return to nature for a healthy long
life and we are into making this moment in Rich-land

iii. Threat

The threat that is likely going to confront us is the fact we may have to deal with new entrance
into our market when people start seeing the success in the business we are doing, this is likely
going to coarse entrepreneurs to launch similar business within the location of our business.

Of course, they will compete with us in winning over the available market. Another threat that
we are likely going to face, is unfavorable government policies and of course economic

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downturn. Usually economic downturn affects purchasing / spending powers.

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 V. MARKET ANALYSIS

i. Market Trends

In recent time, loads of people are beginning to switch from drinking soft drinks / carbonated
drinks to drinking fresh juice and smoothies because of the health benefits. As a matter of fact,
the sale of smoothie making machine and juicers has increased tremendously.

As a matter of fact, most household now make it a point of duty to own a juicer or smoothie
making machine and also to start grooming their kids to choose fresh juice and smoothie over
soft drinks / carbonated drinks.

No doubt, The Juice and Smoothie Bars industry has grown steadily over the last five years as
juice and smoothie bars have adapted to the rapidly changing consumer preferences and lifestyle.
In recent years, the perceived high sugar content of some smoothies and juices has forced the
industry to adapt its offering.

Because of this reason, cold press juice, which is made by hydraulically chopping and crushing
produce such as spinach, kale and ginger without using heat, thereby yielding highly nutritious
juice, has risen to prominence.

Another trend is that some wellness bars have gone beyond only selling their products in their
bars to taking it out to people in parks, sport centers and public places through vans and mobile
food trucks.

ii. Our Target Market

When it comes to fresh juice and smoothies as well as our extended list of products, there is
indeed a wide range of available customers. In essence, our target market can’t be restricted to
just a group of people, but all those who love fresh juice and smoothies and those who would
want to try them out.

In view of that, we have conducted our market research and we have ideas of what our target
market would be expecting from us. We are in business to engage in wholesale distribution and
to retail a wide variety as our product list to the following groups of people;

 Households
 Children
 Corporate Executives
 Government Officials
 Business People
 Celebrities
 Military Men and Women

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  Sports Men and Women
 Government food contracts
 Students
 Tourists
 Everyone who resides in our target locations

iii. Our competitive advantage

A close study of the wellness bars industry reveals that the market has become much more
intensely competitive over the last five years. As a matter of fact, you have to be highly creative,
customer centric and proactive if you must survive in this industry but that’s not the case with us.
We are going to be the only Wellness bar in our neighborhood avoiding the expensive
competition, this alone can give us the edge to take off successfully in our startup.

We are aware of the stiffer competition and we are well prepared to compete favorably with
other wellness bars in Washington and throughout the United States. Glow Wellness Bar, LLC is
launching a standard wellness bar that will indeed become the preferred choice of residence of
Richland-Washington and every city where we intend opening our outlets.

Part of what is going to count as competitive advantage for us is the vast experience of our
management team, we will bring people on board who are highly experienced and understands
how to grow business from the scratch to becoming a national phenomenon.

So also, the wide varieties of products that we produce, our large distribution network and of
course our excellent customer service culture will definitely count as a strong strength for the
business.

Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category (startups wellness bars) in the bottled water industry, meaning that they
will be more than willing to build the business with us and help deliver our set goals and achieve
all our aims and objectives. We will also give good working conditions and commissions to
freelance sales agents that we will recruit from time to time.

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 VI. SALES AND MARKETING STRATEGY

i. Sources of Income

Glow Wellness Bar, LLC is established with the aim of maximizing profits in the juice and
smoothie bars industry in the United States of America and we are going to go all the way to
ensure that we do all it takes to sell a wide range of fresh juice and smoothies to a wide range of
customers.

We will generate income by selling the following products;

 Selling smoothies made from frozen yogurt

 Organic cold pressed fresh-made juice drinks
 Selling fresh-made smoothies
 Immunity boosting
 Organic , vegan salads
 Wheat grass shots
 Chia pudding
 Grab and go salads and wraps

ii. Sales Forecast

One thing is certain when it comes to wellness bar business, if your juice and smoothies are well
– prepared and branded and if your wellness bar is centrally positioned and easily accessible, you
will always attract customers cum sales and that will sure translate to increase in revenue
generation for the business.

We are well positioned to take on the available market in Richland-Washington and every city
where our products will be sold and we are quite optimistic that we will meet our set target of
generating enough income / profits from the first six month of operations and grow the business
and our clientele base.

We have been able to critically look into other wellness bars, fresh juice and smoothie industry
and we have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projection is based on information gathered through research
from IBISWORLD, Fortune Business, Government economic data and state department analysis
on changing patterns of business units and industries and of course some assumptions that are
peculiar to startups in Washington

Product costs are assumed at 25% for raw materials and 50% for retail and other packaging.
Proximity to the Centre will dictate certain sales seasonality with revenues slightly increasing
during the school vacation periods and holidays.

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The chart and table below outline our projected sales forecast for the next three years.

Chart: Sales Monthly

Sales Monthly
$60,000

$50,000

$40,000 Cold pressed juices and other organics

$30,000 Smoothies

Immunity boosting, and other shots etc

$20,000

$10,000

$0
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3

Sales

Cold pressed and other juices $350,400 $385,440 $423,984

Smoothies $87,600 $96,360 $105,996
Other organics and shots etc $146,000 $160,600 $176,660
Total Sales $584,000 $642,400 $706,640

Direct Cost of Sales Year 1 Year 2 Year 3

Cold pressed and other juices $87,600 $96,360 $105,996
Smoothies $43,800 $48,180 $52,998
Other organics and shots etc $73,000 $80,300 $88,330
Subtotal Direct Cost of Sales $204,400 $224,840 $247,324

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N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown and there won’t be any major competitor
offering same products and customer care services as we do within same location. Please note
that the above projection might be lower and at the same time it might be higher.

iii. Marketing Strategy and Sales Strategy

Before choosing a location to launch Glow Wellness Bar and also the kind of fresh juice and
smoothies to produce, we conduct a thorough market survey and feasibility studies in order for
us to be able to be able to penetrate the available market in the cities where we intend positioning
our business.

In other to continue to be in business and grow, we must continue to sell our products to the
available market which is why we will go all out to empower or sales and marketing team to
deliver our corporate sales goals. In summary, Glow Wellness Bar will adopt the following sales
and marketing approach;

 Introduce our fresh wellness bar brand by sending introductory letters to residence,
merchants and other stakeholders both in Richland-WA and in other cities in the United
States of America
 Open our wellness bar with a party so as to capture the attention of residence who are
our first targets
 Engage in road show in targeted communities from time to time to sell our products and
promote our wellness bar
 Advertise our products in community based newspapers, local TV and radio stations
 List our business and products on yellow pages ads (local directories)
 Leverage on the internet to promote our fresh juice and smoothie brands
 Engage in direct marketing and sales
 Encourage the use of Word of mouth marketing (referrals)

iv. Publicity and Advertising Strategy

Despite the fact that our wellness bar is a standard one with a wide range of fresh juice and
smoothie products that can favorably compete with other leading brands in the United States, we
will still go ahead to intensify publicity for all our products and brand. We are going to explore
all available means to promote Glow Wellness Bar.

We have a long term plan of opening outlets in various locations all around the United States of
America and also to sell our franchise which is why we will deliberately build our brand to be
well accepted in Richland-Washington before venturing out to other cities in the United States of
America.

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As a matter of fact, our publicity and advertising strategy is not solely for selling our products
but to also effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise;

 Place adverts on both print (community based newspapers and magazines) and electronic
media platforms
 Sponsor relevant community programs
 Leverage on the internet and social media platforms like; Instagram, Facebook, twitter,
etc to promote our brand
 Install our Bill Boards on strategic locations all around major cities in the United States
of America
 Engage in road show from time to time in targeted communities
 Distribute our fliers and handbills in target areas
 Position our Flexi Banners at strategic positions in the location where we intend getting
customers to start patronizing our products.
 Ensure that all our staff members wear our customized clothes, and all our official cars
and distribution vans are customized and well branded.

v. Our Pricing Strategy

When it comes to pricing for products such as cup of fresh juice and smoothies, there are no hard
and fast rules, the price depend on the size and packaging. Generally, the prize for cup of fresh
juice, smoothies and similar products like frozen yogurt, ice cream and confectioneries are
affordable hence there is no need to employ any detailed strategies when it comes to pricing.

In view of that, our prices will conform to what is obtainable in the industry.

Payment Options

At Glow Wellness Bar, our payment policy is all inclusive because we are quite aware that
different people prefer different payment options as it suits them. Here are the payment options
that will be available in every of our outlets;

 Payment by cash
 Payment via Point of Sale (POS) Machine
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money

In view of the above, we will choose banking platforms that will help us achieve our payment
plans without any itches.

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 VII. FINANCIAL ANALYSIS

i. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting a place, then you would need a good amount of
capital as you would need to ensure that your employees are well taken care of, and that your
facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business. The tools and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a wellness bar business; it might differ in other
countries due to the value of their money. When it comes to starting a wellness bar business the
major areas that you look towards spending the bulk of your cash is in the purchase of latest
smoothie making machines and juicers and of course renting or leasing well located facilities.

Aside from that, you are not expected to spend much except for paying of your employees and
the purchase of supplies. This is the key areas where we will spend our start – up capital;

The start-up expenses include:

 Legal expenses for obtaining licenses and permits as well as the accounting services
totaling $1,300.
 Marketing promotion expenses for the grand opening of Glow Wellness Bar in the
amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the
total amount of $3,580.
 Consultant’s fees of $3,000 for the help with setting up the wellness bar.
 Insurance (general liability, workers' compensation and property casualty) coverage at a
total premium of $2,400.
 Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of
$4,400.
 Premises remodeling in the amount of $10,000.
 Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).

The required start-up assets of $142,320 include:

 Operating capital in the total amount of $67,123, which includes employees and owner's
salaries of $23,900 for the first two months and cash reserves for the first three months of
operation (approximately $14,400 per month).
 Start-up inventory of $16,027, which includes:
 Equipment for the total amount of $59,170:

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We would need an estimate of $300,000 to successfully set up our wellness bar business in
Richland-WA that is if we want to be conducting our training program and providing internship
programs to students studying food science and nutrition as well as home economics. Please note
that this amount includes the salaries of all the staff for the first 3 month of operation.

ii. Startup Primary Requirements

Start-up

Requirements

Start-up Expenses
Legal $1,300
Stationery etc. $500
Brochures $3,580
Consultants $3,000
Insurance $2,400
Rent $4,400
Remodeling $10,000
Other $2,500
Total Start-up Expenses $27,680

Start-up Assets
Cash Required $67,123
Start-up Inventory $16,027
Other Current Assets $0
Long-term Assets $59,170
Total Assets $142,320

Total Requirements $170,000

iii. Important Assumptions

Table: General Assumptions

General Assumptions

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 Year 1 Year 2 Year 3

10 Month 12
Plan Month 1 2 3

9 Month 11
Current Interest Rate 10.00% 10.00% 10.00%

8 Month
Month
Long-term Interest Rate 10.00% 10.00% 10.00%

Month
Tax Rate 25.42% 25.00% 25.42%

Month 7
Other 0 0 1

MonthMonth
5 6
iv. Projected Cash Flow
Month 4
As the chart and table below present, the company will maintain a healthy cash flow position,
Month 3

which will allow for timely debt servicing and funds available for future development.
MonthMonth 2

Chart: Cash
1

Cash
$200,000

$180,000
$160,000

$140,000

$120,000 Net Cash Flow

$100,000
Cash Balance
$80,000

$60,000

$40,000
$20,000

$0

Table: Cash Flow

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Pro Forma Cash Flow

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 Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales $584,000 $642,400 $706,640
Subtotal Cash from Operations $584,000 $642,400 $706,640

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 $584,000 $642,400 $706,640

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $124,600 $143,800 $155,144
Bill Payments $327,865 $388,144 $420,837
Subtotal Spent on Operations $452,465 $531,944 $575,981

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $3,300 $3,300 $3,300
Borrowing
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal $0 $3,585 $3,961
Repayment
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $2,000 $2,000
Dividends $0 $0 $0
Subtotal Cash Spent $455,765 $540,829 $585,242

Net Cash Flow $128,235 $101,571 $121,398

Cash Balance $195,358 $296,928 $418,326

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 v. Key Financial Indicators

Chart: Benchmarks

Benchmarks

1.0

Year 1

Year 2

Year 3

0.0
Sales Operating Expenses
Gross Margin% Inventory Turnover

vi. Break-even Analysis

With average monthly fixed costs of $20,300 in FY2001 and an average margin of 65%, Glow
well Bar’s break-even sales volume is around $31,300 per month. As shown further, the
company is expected to generate such sales volume from the outset.

Chart: Break-even Analysis

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 Break-even Analysis
$16,000

$12,000

$8,000

$4,000

$0

($4,000)

($8,000)

($12,000)

($16,000)

($20,000)
$0 $10,000 $20,000 $30,000 $40,000 $50,000
$5,000 $15,000 $25,000 $35,000 $45,000 $55,000

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $31,247

Assumptions:
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost $20,311

vii. Projected Profit and Loss

Annual projected sales of $584,000 in FY2018 translate into $254.00 of sales per square foot,
which is in line with the industry averages for this size of a wellness bar. Overall, as the
company gets established in the local market, its net profitability increases from 17.06% in FY
2022 to 17.63% in FY2024. The table below outlines the projected Profit and Loss Statement for
FY2022-2024.

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Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales $584,000 $642,400 $706,640
Direct Cost of Sales $204,400 $224,840 $247,324
Other $0 $0 $0
Total Cost of Sales $204,400 $224,840 $247,324

Gross Margin $379,600 $417,560 $459,316

Gross Margin % 65.00% 65.00% 65.00%

Expenses
Payroll $124,600 $143,800 $155,144
Sales and Marketing and Other $25,800 $27,600 $31,000
Expenses
Depreciation $5,400 $5,500 $5,500
Rent $48,400 $52,800 $52,800
Rent $6,000 $6,000 $6,000
Maintenance $5,840 $6,424 $7,066
Utilities/Phone $9,000 $9,500 $10,000
Payroll Taxes $18,690 $21,570 $23,272
Other $0 $0 $0

Total Operating Expenses $243,730 $273,194 $290,782

Profit Before Interest and Taxes $135,870 $144,366 $168,534

EBITDA $141,270 $149,866 $174,034
Interest Expense $2,821 $2,326 $1,618
Taxes Incurred $33,740 $35,510 $42,424

Net Profit $99,308 $106,530 $124,491

Net Profit/Sales 17.00% 16.58% 17.62%

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Projected Balance Sheet

The company's net worth is expected to increase from approximately $212,000 by the end of
FY2022 to approximately $443,000 in FY2024. The table below summarizes the projected
balance sheets for this period.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets
Cash $195,358 $296,928 $418,326
Inventory $21,175 $22,671 $24,939
Other Current Assets $0 $0 $0
Total Current Assets $216,533 $319,600 $443,264

Long-term Assets
Long-term Assets $59,170 $61,170 $63,170
Accumulated Depreciation $5,400 $10,900 $16,400
Total Long-term Assets $53,770 $50,270 $46,770
Total Assets $270,303 $369,870 $490,034

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities
Accounts Payable $31,974 $31,896 $34,831
Current Borrowing $6,700 $3,400 $100
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $38,674 $35,296 $34,931

Long-term Liabilities $20,000 $16,415 $12,454

Total Liabilities $58,674 $51,711 $47,385

Paid-in Capital $140,000 $140,000 $140,000

Retained Earnings ($27,680) $71,628 $178,159
Earnings $99,308 $106,530 $124,491
Total Capital $211,628 $318,159 $442,650
Total Liabilities and Capital $270,303 $369,870 $490,034

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Net Worth $211,628 $318,159 $442,650

viii. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business (company), then it won’t be too long before the business
close shop.

One of our major goals of starting Glow Wellness Bar is to build a business that will survive off
its own cash flow without the need for injecting finance from external sources once the business
is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our
fresh juice and smoothies a little bit cheaper than what is obtainable in the market and we are
well prepared to survive on lower profit margin for a while.

We are putting in place to ensure that our staff welfare is well taken of. Our company’s corporate
culture is designed to drive our business to greater heights and training and re – training of our
workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management
staff and it will be based on their performance for a period of three years or more. We know that
if that is put in place, we will be able to successfully hire and retain the best hands we can get in
the industry; they will be more committed to help us build the business of our dreams.

ix. Check List / Milestone

Elements Status
Business Name Availability Check: Completed
Business Registration In progress
Opening of Corporate Bank Accounts In progress
Securing Point of Sales (POS) Machines In progress
Opening Mobile Money Accounts In progress
Opening Online Payment Platforms X
Application and Obtaining Tax Payer’s ID In Progress
Application for business license and permit In progress
Purchase of Insurance for the Business: Completed
Leasing of facility and construction of standard wellness bar In Progress
Conducting Feasibility Studies Completed
Generating capital Completed
Applications for Loan from the bank In Progress
Writing of Business Plan Completed

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Drafting of Employee’s Handbook In progress
Drafting of Contract Documents and other relevant Legal Documents X
Design of The Company’s Logo Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials In Progress
Recruitment of employees X
Purchase of the needed smoothie making machines and juicers In progress
Purchase of the Needed furniture, racks, shelves, computers, electronic In Progress
appliances, office appliances and CCTV
Creating Official Website for the Company In Progress
Creating Awareness for the business both online and around the community In Progress
Health and Safety and Fire Safety Arrangement (License) X
Opening party / launching party planning In Progress
Establishing business relationship with vendors – wholesale suppliers / In Progress
merchants
Purchase of delivery vans X

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