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• Executive Summary o GBI is an established business which acts as an Independent Distributor for Herbalife International. GBI is positioned to succeed as it expands from a successful home-based business to open several “Nutrition Clubs” in the area and subsequently expand throughout the state of (XX) and into other areas of the US. • The Companies and the Industry o The Wellness Industry is one of the fastest growing industries in the world today. Consumers across the world are embracing a healthier lifestyle. Growth in the industry in the United States alone is phenomenal. According to recent data, sales of consumer packaged goods in the health and wellness industry were $59 Billion in 2002, $68 Billion in 2004, and $79 Billion in 2005. Paul Zane Pilzer, a renowned economist, has predicted “…by the year 2010, and additional $1 trillion of the economy will be devoted to products and services that keep us healthy, make us look or feel better, slow down the effects of aging, and prevent diseases from developing altogether.” o Herbalife is a premier nutrition and weight-management company that offers lifechanging products and an unparalleled business opportunity. Herbalife is a direct selling company that has been in business for 29 years, operates in 70 countries around the world, and is publicly traded on the New York Stock Exchange (symbol = HLF). The Herbalife product line includes solutions for weight management, sports and fitness enhancers, antioxidants, supplements for the cardiovascular system to aid in lowering cholesterol and stabilizing blood pressure, children’s nutrition, digestive health, and an entire line of personal care products. The company is experiencing remarkable growth and is proud to have Michael O. Johnson, formerly President of Walt Disney International, as its CEO and Chairman of the Board. Company sales have grown from $1.7 billion in 2003 to $3.8 billion in 2008 under Johnson’s leadership.
50 . The demographics of (your town) and the outlying markets are prime for the products and services provided by a Nutrition Club. San Antonio. and North Dakota. There are currently 50+ “Americanized” Clubs in the US in areas including but not limited to Hope. Kansas City. 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. 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. Group Wellness Seminars and Weight Loss Challenges 2 . AK. BMI – body mass index. MO.50 Free Personal Wellness Evaluations including a free ShapeScan™ which will evaluate an individuals daily caloric needs.• 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.$5. It should be noted that the estimates are based on the lower end of actual sales and volumes produced. Oregon. The American people are focused on health and longevity and are using nutritional supplements more and more to meet their goals. o Nutrition Clubs were started in Mexico on a lower scale level in homes and in low-rent areas several years ago. 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. receive a free personal Wellness Evaluation. Herbalife has opened the doors for its distributors to operate “Nutrition Clubs”. as well as select towns in Virginia. 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. and purchase additional Herbalife products. 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. TX. In recent years.
741. $2. It is based on a club entry fee (cost of the shake and tea) at $5.000 volume points ($1000 in sales) = $21.000 in total sales = $10.50 35 entries = $2.000 3 .450 profit 800 volume points ($800 in sales) = $17.600 profit 1.5 days per month on average based on a Monday thru Friday work-week. Estimated range from $0 . expanding beyond that in following months.25 50 entries = $2.000 Possible tenant improvements to the property.612.322 45 entries = $2.200 in total sales = $8.500 profit o The Start-up costs will vary from Club to Club depending on the location: • • 1-month rent to secure space approx. The profit is $2. The club will generate an estimated 25-50 entries per day during the first 90 days of opening.150 profit 400 volume points ($400 in sales) = $8600 in total sales = $4. Ideally this will be included in the lease terms and not be an out-of-pocket expense.300 profit 600 volume points ($600 in sales) = $12.031. • • • • • • 25 entries = $1.70 per entry.50 Estimated retail sales of Herbalife Products per day • • • • • 200 volume points ($200 in sales) = $4300 in total sales = $2. Potential earning is based on a monthly calculation with the Club being open 21.75 40 entries = $2.902.451.00.• Financial Analysis o Analysis based on 50% profit margin – which is the standard in the company.900 in total sales = $6.$8.25 30 entries = $1.
000 Blenders. etc….000 Insert Financing Here: ex: GBI will borrow the start-up costs necessary from an Equityline with available credit of $$$ from the owners. regional.000 . The owners of GBI have the money ready to invest in opening the Nutrition Club. o Business cards/coupons will be circulated inviting individuals in for a Free Shake. GBI is borrowing the money from a local bank. and receive a one-on-one consultation.$15. Depending on the location. and national training events. The busy times of the day will be during breakfast and lunch hours when people will come in for their “healthy meal”. etc…. 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).• • • • • o Inventory of Herbalife Products $2. kitchen utensils. Individuals can walk-in or schedule an appointment to get a ShapeScan™. and Health Evaluation. complete a Wellness Evaluation. earlier or later hours may be developed as well as Saturday hours. Tea. • 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. The Club owners will recommend the program and products to help them 4 . Leaders in the Nutrition Club group provide weekly conference calls as well as local.000 Décor & Accessories $500 Total Start up Costs $7. $300 Furniture $2.
The Club will also be used to facilitate group classes such as Wellness Workshops and Weight Loss Challenges.reach their optimal health. 5 .
750 royalty check 10 clubs generating $15. 6 . in this case GBI.000 per month. • Management Team/Club Owners o Tell a little bit about yourself here • Projections o After the Club has officially opened for business. a Production Bonus will also be earned at certain levels elevating these incomes even higher.• 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. The above amounts are based on volume generated each month and are received monthly. Within 90 days the Club is estimated to generate between 3050 club entries per day and over $15. (These estimates are based on the 50+ clubs currently operating in the US previously mentioned).000 each = $3. the projection is to have at least 20 club entries per day.000 in sales the first month.000 each = $7. The income generated from this projection ranges from $8.500.000 in retail sales.946. The income potential based on duplicating the Club concept is remarkable: o 5 clubs generating $15.919 to $9. The marketing plan with Herbalife pays the upline Supervisor.500 royalty check In addition. the income will be in excess of $30. a 5% royalty on all business produced by the supervisors in an organization.500 royalty check 30 clubs generating $15. as well as over $10.810. The profit estimated the first month alone is $5. o o By finding other distributors to open 5 new Clubs in the subsequent 6 months – the income will increase to over $12.000 each = $22. By having 30 Clubs in the organization. They plan to expand to 30 Distributors with Clubs in their organization within 18-24 months.