Business Plan: John’s Smoothie Bar
The market research shows that for the past several years the food and beverage industry has been making efforts to meet rising consumer demand for healthy food that fosters health and wellness. John has performed a market survey and decided to run a smoothie bar at heart of Europe in Switzerland and provide healthy refreshments in Geneva. The smoothies are made from fresh fruits , ice ,milk, yogurt and some other ingredients , actually it depends on the type of juices. For smoothie bar plan John borrowed 100.000 CHF loan from a friend, and he will pay interest monthly, at an annual rate of 4.8% . John wants to open his business for July 1, 2013 .For this money he wants to buy the equipment and machinery such as refrigerators and freezers. John will buy the equipment and machinery in June 2012 in order to start for new business .
The shop located in Qui de Mont Blanc in Geneva tourist center with the enjoyable view of the Geneva Lake. By having an intense marketing strategy and bright view of environment he will achieve the profitability after 6month operation and he can have 24% growth on his revenue after 3 years. By setting the feasible prices, having efficient marketing plan he can pay back his loan after 3 years operation at the remarkable internal rate of return 13% on his capital. The business will turn to profitability after 6 month operation. John working alone until March 2012 to reduce the operating costs and to be able to set the prices lower than competitors .He will reduce the working hours in winter because of the low seasonal demand. Having additional stuff will provide by one part time employee in March 2013.He will add a coffee machine to save the profitability in unfavorable climate and cover the high risk of the seasonality of his main products. The innovative menu include the available fruits and people just need to choose their favorite fruits to have their own mixture .He expand his product with the smoothies included by ginger, honey, nuts and ingredients which have greater value in freezing winter. The price of smoothies are in the range of 6-10 CHF and the price rises regarding the economic atmosphere 0.5% every year regarding the production costs. The smoothie bar strategic plan lead the business to 3 year operation and achieve a least 5% market share . He will hire the second part-time stuff in second year to promote the sells capacity in high season (from April-August).To become more popular among the teenagers and youth he just made the job alert for them on website and social networks. He will spend the significant budget on marketing strategy as advertising and promotion to become known in the town. John’s future approach is to focus on business expansion in Geneva and after in other important cities in Switzerland. He will hire an operating manager for 3dr year and leave the operating task to other employees. After 3 years running the business and pay back the loan to the friend he can request loan from the bank to start the new branch Geneva. To compete better it the segmented market he needs well working marketing, management, financial and operating plans that will increase his profitability while the years pass.
* Define the goal.
* External and internal analysis.
* Delivering the high quality within unique prices to the customers. * Developing a long-term and profitable strategy in order to maximize the profitability of smoothie bar. * Financing the available funds and sources to achieve significant improvements in numerous financial...
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