Smoothie and juice bar business plan

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Professional Business Plan a Smoothie and Juice Bar in a metropolitan city

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  • Key success factors Location
  • Smoothie and juice bar business plan

    1. 1. Smoothie & Juice Bar Business Plan www.smoothiebarbusinessplan.com
    2. 2. Business Proposal• Smoothie-bar, named Smoothie Bar-celona, selling a variety of mixed and instantly prepared, 100% natural fruit juices and Smoothies to take away.• The target group is composed of health conscious consumers looking for convenient fast-food alternatives• The healthy benefits and tastes of our juices are the core of our organization and will be transmitted through our efficient service. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    3. 3. The BusinessVision• “To be perceived as the provider of the most delicious, convenient and healthy grab and go alternative in Barcelona”.Mission• “To provide a healthy, tasty and refreshing experience with our 100% natural fruit juices and smoothies to take away. To serve and satisfy the nutrition needs of health conscious consumers through the high quality of our products. We contribute to make Barcelona a healthier city.” Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    4. 4. External AnalysisSpain:• A contraction of 3.2% in the GDP was forecasted for 2009. Unemployment rate rises 20% in the first quarter of 2010.Catalunya:• GDP Catalunya is similar to those of Finland and Denmark and higher that Ireland.• The GDP per capita 2009: 26,831 euros. (-7% vs 2008)• Food and Beverage industry had an 11.06% of total production in the region.• Average of 5 million visitors in Barcelona per year. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    5. 5. Industry AnalysisFive forces:• Smoothie industry is in a growing stage, with few players; differentiation is key. Potential Entrants High Suppliers Moderate Competitor Buyers Rivalry Low Moderate High Substitutes Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    6. 6. External & Internal Analysis• TOWS Matrix S W • Create a product to grab and go • The shareholders/management aligned with increasing healthy will learn during 6 months the trend and convenience of time. business and new employees O • Strategic location will increase require previous experience in sales with tourists in BCN. the food industry. • Management will establish long • Differentiation strategy and brand term agreements with suppliers T awareness will reduce the risk of and forecast average costs, to threat of new competitors reduce effects of variations. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    7. 7. Secondary ResearchConsumer Trends:• Constant growth rates of the juice market in Spain!• Soft drink market in Spain will rise up to 9 billion euros• “Resilience of health products during the recession to customers´ desire to maintain their health / wellness habits while avoiding risky cheaper options”• “Growing demand for “easy health” (convenience) in the shape of functional foods”• “Widespread consumer interest in products positioned as health-boosting” → preventative care• “Health benefits are driving sales of functional foods and beverages”→ value-added-products Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    8. 8. Primary ResearchSurvey Results (90 respondents)• Positive attitude towards Smoothies / freshly made natural juices• High demand – not saturated / growing market• Accepted by the target group / health-conscious people perceived as healthy fast-food alternative (tourists and short-/long-term residents)Main reasons for not consuming:• Doubts on quality / No confidence in cleanliness• Too expensive• Not available (in the variety that I would like them) Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    9. 9. Target & Strategy• “Smoothie Barcelona’s customers are likely to be followers of a healthy type of lifestyle. Additionally and as a result of the scarce restrictions that the product has in terms of age, gender and benefits, a secondary will be the tourists that come to city and young professionals that are adopting new trends”. Low Cost Strategy Differentiation Mass Coffee Packed fruit juices “Traditional Beer Soft drinks consumers of Regular sodas Yogurt drinks” Water Niche Energetic drinks 100% Natural fruit juices to “People in the Light sodas grab and go healthy living Vitamins trend.” Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    10. 10. Positioning + Aligned with healthy trend Smoothi e Bar- celonaExpensive Cheap - Aligned with healthy trend Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    11. 11. Strategy• Focused Differentiation Strategy• Strategically increase the number of locations within a short time-frame, expanding the reach, making the products more available to the consumers.• Take advantage of economies of scale• Strong brand management• In comparison to the first store, the following kiosks are small in size, investment and running costs, and are flexible and easy to set-up. Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    12. 12. Competitive Advantage• Excellent value-for-money we offer to our customers• Superior product quality and positioning combined with a price lower than that of the competition• Cost control and Economies of Scale• Diversified menu• Unique high traffic location• Clear shaped image and brand experience aligned to healthy lifestyle concept Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    13. 13. Promotion• Brand proposition: Promotion: • Sampling “Smoothie Barcelona is • Flyers the most convenient, • Bonus / Loyalty Cards fresh and tasty option to • Homepage nurture and energize your • SEM / SEO body and immune system at a reasonable price”. • Newsletter • Sweepstakes • Alliances Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    14. 14. OperationsValue chain: Human Resources Human Resources Accounting & Finance Procurement Procurement Reception, storage and Preparation of Smoothies Preparation of Smoothies. Marketing Customer quality control of fruits Packaging Packaging. Service and other raw materialsMaintenance ofof facilities. Maintenance facilities Inbound logistics Operations Sales Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    15. 15. Initial Investments• The main investment required to start the business is composed by the following aspects: Item Cost € Licenses & Legal 8,000 Store remodeling and installation costs 12,000 Operation and management equipment 6,780 Consulting 3,000 Marketing 9,000 Other 3,000 Total 41,780• 2nd Store: 31.787 €• 3rd Store: 34.966 € Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    16. 16. Operations• Processes / Diagram path Production Area Frozen Raw Storage of cleaning and Materials safety materials Cleaning area STORAGE AREA 5m Finish Products Customer area / Bar customer area Storage of Storage of raw complementary materials products 5m 3m Production process path Path for storage fof cleaning and safety materials path Storage Operation Path for storage of inputs and raw materials Transport Inspection Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    17. 17. Operations• Project Management Smoothie Bar-celona Critical Path Start-up 35 56 56 70 70 77 77 98 98 112 5 6 13 14 15 35 56 56 70 70 77 77 98 98 112 35 56 19 77 98 35 49 49 91 14 28 9 10 7 56 70 70 112 21 35 35 49 49 56 56 63 16 17 18 84 98 98 105 105 112 112 119 0 7 7 14 14 28 28 35 20 35 56 56 63 1 2 3 4 11 12 112 119 0 7 7 14 14 28 28 35 84 105 105 112 14 42 8 84 112 Item CPN: 1, 2, 3, 4, 5, 6, 13, 14, 15, 20 Activity Time (days) 1 Invest the shareholderes equity to create the business 7 2 Register the Company "Smoothie Bar-celona" 7 3 Research for a bank loan 14 4 Get a loan (sign contract with the bank) 7 5 Evaluate and select location for store 21 6 Rent of the selected location 14 13 Obtain construction license 7 14 Execution of construction and remodeling stage Copyright © 2012 Smoothie Bar-celona. All Rights 21 Reserved. 15 Installation of equipment and furniture 14 20 www.smoothiebarbusinessplan.com Opening Day 7 www.smoothiebarbusinessplan.com
    18. 18. Human ResourcesStrategy / Organizational structure• HR seen as an important strategic factor• Employees are considered the most important asset• They will be a key to success through their commitment and attitude to the customer satisfaction.• SB will attract and hire the best applicants, and provide the best work environment• Main motivational factor: belongingness to an entrepreneurship business with a high projection for growth• The main values on which Smoothie Bar-celona is build on are: customer orientation, friendliness, dynamism and integrity Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    19. 19. Organizational Structure• Months 1-6: Shareholders will also work in the Share holders operation activities of the business General Manager• After 6th month: Incorporation of a General Assistant 1 Assistant 2 Manager plus two assistants Shareholders General Manager• After two years: Incorporation of a Assistant Store 2 Store 1 Manager plus one Assistant Coordinator Assistant 1 for the second kiosk. Store 2 Store 1 Assistant 2 Assistant 1 Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    20. 20. Financial Plan• Capital Structure First store: Initial investment  41,780€ Smoothie Bar-celona Capital Structure Working Capital  28,220€ Loan 57% 40,000 € Equity 43% 30,000 € Monthly Loan Payments  1,216.88€ Capital Structure Amount € % María del Carmen Matías 10,000 14% Christian Höller 10,000 14% Loan for 2nd store 32,000€ Luis Fernando Recio 10,000 14% Bank Loan Total 40,000 70,000 57% 100% Annuity for 3rd store Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    21. 21. Break-even Analysis 180,000 Cash Break - Even 160,000 140,000 120,000 Euros 100,000 80,000 60,000 40,000 20,000 0 10,000 20,000 30,000 40,000 50,000 60,000 Gross Profit Units Sold Fixed Costs• Contribution margin: 2,75 €• To reach a positive cash flow in a yearly basis, Smoothie Bar- celona has to sell at least 37.634 units or 131.718€ Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    22. 22. Financial PlanSales Forecast 80,000 70,000 Sales Forecast Smoothie Bar-celona 60,000 50,000 40,000 30,000 20,000 1 store + 2 10,000 1 store + 1 kiosk kiosk 1 store 0 may-11 may-12 may-15 may-13 may-14 mar-11 mar-12 mar-13 mar-14 mar-15 sep-11 nov-11 ene-12 ene-14 sep-14 ene-15 nov-15 ene-11 sep-12 nov-12 ene-13 sep-13 nov-13 nov-14 sep-15 jul-12 jul-13 jul-15 jul-11 jul-14 Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    23. 23. Profit and Loss Accounts Smoothie Bar-celona Net Profit & Dividends 200,000 150,000 100,000 Net Profit 88,471 50,000 Dividends 0 1,791 9,087 40,286 0 2011 2012 2013 2014 2015 (50,000) 2011 2012 2013 2014 2015Net Profit (5,859) 3,582 18,173 80,572 176,943% of Sales -4.5% 2.5% 6.8% 20.4% 26.3% Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    24. 24. Risk AnalysisProject Valuation Scenarios Realistic Optimistic Pessimistic Net Present Value € 72,375 241,355 -74,244 Internal Rate of Return 25.50% 58.60% -11.78% Profitability Index 173.23% 577.68% -177.70% Investment Recovery Time 4.1 Years 2.8 Years > 5 Years• The valuation indicates that the project is economically feasible• Develop a Contingency plan Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    25. 25. Ratio Analysis Financial Ratio Analysis 2011 2012 2013 2014 2015 Short - term liquidity Working Capital 14,173 7,216 - 10,771 3,913 93,093 Long - term credit risk Debt Ratio 0.53 0.64 0.46 0.40 0.37 Profitability Return on assets -0.12 0.09 0.43 0.91 0.97 Return on equity -0.20 0.12 0.61 2.69 5.90• Financial ability to pay its short term debts.• Big part of the liabilities that are accounted at the end of each year is assign to the concept of dividends payables.• The assets are more productive every year.• The business is generating enough profits to finance its own expansion Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    26. 26. Financial Plan• Contingency Plan• Lower Sales Levels → Increase Promotion / Reduce Price• Unavailability / Decreased quality of fruits → continuous sourcing & menu variation• Sales higher than expectation → accelerated growth• Exit Strategy → Sale of business / Liquidation of assets Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com
    27. 27. For more information, please visit www.smoothiebarbusinessplan.com© Copyright © 2012 Smoothie Bar-celona. All Rights Reserved. www.smoothiebarbusinessplan.com

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