You are on page 1of 8

Herbalife Nutrition Club

Business Model
10 Year Financial Model
10 Marketing Lines
1 Proprietary Club
$2,500 Avg. Mo. Dist. Sale

Competitive Advantages
Proven business model with tremendous success operating in the field.
Knowledge base, tools, and technology from the Financial Success System.
Industry leading company and products with a 30 year history of success.

Modeling Assumptions
Four month ramp-up period to staff FIRST proprietary club with 4 host supervisors in addition to owner.
First new club at 9 months, each active club produces one new club every 3 months thereafter.
Each new club ramps to full staff of 16 distributors across 4 stations in 6 months.
Station Owner/Distributor Growth Model
Month 1
Month 2
Month 3

10 Customers
20 Customers
20 Customers

1,250 VP
2,500 VP
2,500 VP

1 Supervisor

Month 4
Month 5
Month 6

20 Customers
20 Customers
20 Customers

2,500 VP
2,500 VP
2,500 VP

2 Supervisors
3 Supervisors
3 Supervisors

80 Total Customers

Month 7
Month 8
Month 9

20 Customers
20 Customers
20 Customers

2,500 VP
2,500 VP
2,500 VP

3 Supervisors
3 Supervisors
3 Supervisors

80 Total Customers
80 Total Customers
80 Total Customers

1 Non-station Supevisor
2 Non-station Supervisors
3 Non-station Supervisors

Supervisor Opens New Club

Profit & Loss - Single Club Model


$2,500 Avg. Mo. Dist. Sale
PERIOD ENDING

December 31, 2011

December 31, 2012

December 31, 2013

December 31, 2014

December 31, 2015

Total Revenue
Personal Volume (Sales)
Organizational Volume (Sales)
Income from Station Rental

411,575.00
28,750.00
355,000.00
27,825.00

1,198,050.00
30,000.00
1,136,250.00
31,800.00

6,675,300.00
30,000.00
6,613,500.00
31,800.00

32,376,370.31
30,000.00
32,314,570.31
31,800.00

128,818,853.93
30,000.00
128,757,053.93
31,800.00

Cost of Revenue

345,125.00
66,450.00

1,059,800.00
138,250.00

6,291,810.00
383,490.00

30,952,587.50
1,423,782.81

123,529,521.77
5,289,332.16

Total Clubs (Incl. Propr. Club)


Average Revenue Per Club
Average Gross Profit Per Club

3
137,191.67
22,150.00

27
44,372.22
5,120.37

228
29,277.63
1,681.97

1,282
25,260.66
1,110.86

4,432
29,067.65
1,193.52

Operating Expenses
Construction & Build-out Costs
Information Technology Equipment
Property Lease Expense
Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll
Operating Income or Loss

35,259.35
1,000.00
400.00
24,000.00
6,000.00
3,000.00
859.35
31,190.65
-

35,179.40
1,000.00
400.00
24,000.00
6,000.00
3,000.00
779.40
103,070.60
-

35,179.40
1,000.00
400.00
24,000.00
6,000.00
3,000.00
779.40
348,310.60
-

35,179.40
1,000.00
400.00
24,000.00
6,000.00
3,000.00
779.40
1,388,603.41
-

35,179.40
1,000.00
400.00
24,000.00
6,000.00
3,000.00
779.40
5,254,152.76
-

Net Income

31,190.65

103,070.60

348,310.60

1,388,603.41

5,254,152.76

Average Income Per Club

10,396.88

3,817.43

1,527.68

1,083.41

1,185.59

Gross Profit

Profit & Loss - Single Club Model


$2,500 Avg. Mo. Dist. Sale
December 31, 2016

PERIOD ENDING

December 31, 2017

December 31, 2018

December 31, 2019

December 31, 2020

Total Revenue
Personal Volume (Sales)
Organizational Volume (Sales)
Income from Station Rental

308,450,904.89
30,000.00
308,389,104.89
31,800.00

533,933,879.00
30,000.00
533,872,079.00
31,800.00

786,090,366.29
30,000.00
786,028,566.29
31,800.00

1,071,112,344.56
30,000.00
1,071,050,544.56
31,800.00

1,391,982,388.56
30,000.00
1,391,920,588.56
31,800.00

Cost of Revenue

295,972,840.69
12,478,064.20

512,423,295.84
21,510,583.16

754,480,323.64
31,610,042.65

1,028,088,222.78
43,024,121.78

1,336,110,265.02
55,872,123.54

Total Clubs (Incl. Propr. Club)


Average Revenue Per Club
Average Gross Profit Per Club

8,043
38,347.86
1,551.32

12,074
44,221.61
1,781.56

16,629
47,271.51
1,900.87

21,772
49,195.82
1,976.08

27,475
50,663.86
2,033.57

Operating Expenses
Construction & Build-out Costs
Information Technology Equipment
Property Lease Expense
Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll
Operating Income or Loss

33,779.40
24,000.00
6,000.00
3,000.00
779.40
12,444,284.80
-

33,779.40
24,000.00
6,000.00
3,000.00
779.40
21,476,803.76
-

33,779.40
24,000.00
6,000.00
3,000.00
779.40
31,576,263.25
-

33,779.40
24,000.00
6,000.00
3,000.00
779.40
42,990,342.38
-

33,779.40
24,000.00
6,000.00
3,000.00
779.40
55,838,344.14
-

Net Income

12,444,284.80

21,476,803.76

31,576,263.25

42,990,342.38

55,838,344.14

Average Income Per Club

1,547.12

1,778.76

1,898.84

1,974.53

2,032.34

Gross Profit

Expense Statement
1

Expense Statement
2
Qty.

One-time Charges
Construction/Buildout
Technology/PC
* One-time charges amortized
over first five years.

Cost

Total

1,000.00
400.00
-

1,000.00
400.00
-

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
35,259.35

Qty.
One-time Charges
Construction/Buildout
Technology/PC
* One-time charges amortized
over first five years.

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

35,259.35

Gross Annual Expense

1,000.00
400.00
-

1,000.00
400.00
-

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
35,259.35

Gross Annual Expense

35,259.35

Workforce Schedule

Workforce Schedule

February
March
April
May
June
July
August
September
October
November
December
January

Total

Recurring Charges

Recurring Charges

Month

Cost

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary

Month

February
March
April
May
June
July
August
September
October
November
December
January

18

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Expense Statement
3

Expense Statement
4
Qty.

One-time Charges
Construction/Buildout
Technology/PC
* One-time charges amortized
over first five years.

Cost

Total

1,000.00
400.00
-

1,000.00
400.00
-

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
35,259.35

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

35,259.35

Gross Annual Expense

Total

1,000.00
400.00
-

1,000.00
400.00
-

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
35,259.35

Gross Annual Expense

35,259.35

Workforce Schedule

Workforce Schedule

February
March
April
May
June
July
August
September
October
November
December
January

One-time Charges
Construction/Buildout
Technology/PC
* One-time charges amortized
over first five years.

Cost

Recurring Charges

Recurring Charges

Month

Qty.

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Month
February
March
April
May
June
July
August
September
October
November
December
January

18

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Expense Statement
5

Expense Statement
6
Qty.

One-time Charges
Construction/Buildout
Technology/PC
* One-time charges amortized
over first five years.

Cost

Total

1,000.00
400.00
-

1,000.00
400.00
-

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
35,259.35

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

35,259.35

Gross Annual Expense

Total

24,000.00
6,000.00
3,000.00
859.35
-

Gross Annual Expense

24,000.00
6,000.00
3,000.00
859.35
33,859.35
33,859.35

Workforce Schedule

Workforce Schedule

February
March
April
May
June
July
August
September
October
November
December
January

One-time Charges
Construction/Buildout
Technology/PC

Cost

Recurring Charges

Recurring Charges

Month

Qty.

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Month
February
March
April
May
June
July
August
September
October
November
December
January

18

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Expense Statement
7

Expense Statement
8
Qty.

One-time Charges
Construction/Buildout
Technology/PC

Cost

Total

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
33,859.35

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

33,859.35

Gross Annual Expense

Total

24,000.00
6,000.00
3,000.00
859.35
-

Gross Annual Expense

24,000.00
6,000.00
3,000.00
859.35
33,859.35
33,859.35

Workforce Schedule

Workforce Schedule

February
March
April
May
June
July
August
September
October
November
December
January

One-time Charges
Construction/Buildout
Technology/PC

Cost

Recurring Charges

Recurring Charges

Month

Qty.

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Month
February
March
April
May
June
July
August
September
October
November
December
January

18

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

Expense Statement
9

Expense Statement
10
Qty.

One-time Charges
Construction/Buildout
Technology/PC

Cost

Total

Qty.
One-time Charges
Construction/Buildout
Technology/PC

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

24,000.00
6,000.00
3,000.00
859.35
-

24,000.00
6,000.00
3,000.00
859.35
33,859.35

Property Lease Expense


Marketing Expense
Utilities Expense
E-business Expense
Staff Compensation
Management Compensation
Burden Cost of Payroll

33,859.35

Gross Annual Expense

24,000.00
6,000.00
3,000.00
859.35
-

Gross Annual Expense

24,000.00
6,000.00
3,000.00
859.35
33,859.35
33,859.35

Workforce Schedule

Workforce Schedule

February
March
April
May
June
July
August
September
October
November
December
January

Total

Recurring Charges

Recurring Charges

Month

Cost

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary

Month

February
March
April
May
June
July
August
September
October
November
December
January

18

Staff
0
0
0
0
0
0
0
0
0
0
0
0

Salery
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33
2,083.33

Total Salary
-

You might also like