Vitamin and Supplement Store Business Plan [Sample Template]

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Are you about starting a vitamin & supplement company? If YES, here is a detailed sample vitamin store business plan template & FREE feasibility report.

If you are considering starting a vitamins and supplement business, the good news is that you can’t get it wrong because various types of vitamin and supplement products are consumed by almost everybody both old and young, the sick and healthy.

It is important to state that a vitamin and supplement business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business especially if it is in a good location and you know how to source for vitamin and supplement products that are generally consumed in your location.

A Sample Vitamin & Supplement Store Business Plan Template

1. Industry Overview

Businesses in the Vitamin and supplement manufacturers industry primarily develop and manufacture products that contain an ingredient intended to supplement the diet. Key groups within this industry consist of standard vitamin and mineral supplements, as well as sports nutrition products and herbal supplements.

Companies that are involved in manufacturing energy drinks, infant formula and prescription or over-the-counter (OTC) medications used to prevent or treat illnesses are not part of this industry manufacturers.

If you are a close observer of the Vitamin and Supplement manufacturing industry, you will agree that the industry has grown rapidly over the last half decade, profiting from increased demand from a larger mainstream, health-conscious consumer base and of course an increasingly aging population.

Going forward, the industry is expected to benefit from the same trends that have supported its growth in the past, including increasing health expenditure and growing interest in wellness and nutrition among mainstream consumers. So also, as discretionary income continues to strengthen, more consumers will trade up to premium, all-natural and organic products, helping lift the revenue generated by establishments in the industry.

Statistics has it that in the united states of America alone, the Vitamin and Supplement Manufacturing industry generates over $18 billion annually from more than 1,041 registered and licensed vitamin and supplement manufacturing companies.

The industry employs over 27,015 people. Experts project the Vitamin and Supplement manufacturing industry to grow at a 5.2 percent annual rate. Establishments in this industry that have dominant market shares in the United States of America are; NBTY and Otsuka America Pharmaceuticals.

Research conducted by IBISWORLD shows that The Vitamin and Supplement Manufacturing industry has a low market share concentration, where the four largest companies are expected to account for a 26.3 percent share of the market in 2016.

The research also pointed out that due to the wide range of products offered, the market for dietary supplements remains highly fragmented, with only two companies expected to account for greater than a 5.0% share of the market.

The research further stated that although larger operators such as NBTY and Pharmavite (Otsuka Pharmaceutical) manufacture a variety of dietary supplements across all product groups, most operators choose to specialize in a particular product segment.

For example, major player Glanbia plc has quickly become a leading manufacturer in recent years due to the popularity of its flagship Optimum Nutrition brand line of whey protein powder.

The Vitamin and Supplement Manufacturing industry will continue to blossom because taking vitamins and other supplements has become a way of life for the ever – growing health conscious and aging population of the society. Some of the factors that encourage entrepreneurs to start their own vitamin and supplement store could be that the business is thriving and the products can be sold not just in your country but all across the globe.

Over and above, the Vitamin and Supplement Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish their own business; you can chose to start on a small scale by opening a store or you can chose to start on a large scale with standard vitamin and supplement manufacturing factories both in the United States of America and in countries in Asia where you can get cheaper raw materials.

2. Executive Summary

Nick Brighton® Vitamins & Supplements, Stores, Inc. is a registered vitamin and supplements store business that will be located in downtown Fort Wayne – Indiana. Our retail outlet is a standard facility in one of the most ideal locations for a vitamin and supplements store. We will retail a wide range of vitamin and supplements to a wide range of customers.

We are aware that there are several supplements stores all around Fort Wayne – Indiana, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have self – service options and delivery options for our customers, and our outlet is well secured with the various payment options. Nick Brighton® Vitamins & Supplements, Stores, Inc. will ensure that all our customers are given first class treatment whenever they visit our vitamin and supplements store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of vitamin and supplement that will be on our racks and also when making some business decisions.

Nick Brighton® Vitamins & Supplements, Stores, Inc. is owned by Mrs. Nick Brighton. Nick Brighton has a B.Sc. in Business Administration from the University of Indiana, with well 15 years’ experience in the vitamin and supplements industry, working for some of the leading brand in the United States of America.

Although the business is launching out with just one outlet in Fort Wayne – Indiana, but there are plans to open other outlets in Indiana and major cities in the United States of America.

3. Our Products and Services

Nick Brighton® Vitamins & Supplements, Stores, Inc. is in the vitamin and supplements industry to establish a retail store and will make available a wide range of vitamin and supplement products in the United States. Our product offerings are listed below;

Vitamins and Minerals
Specialty dietary supplements
Herbs and botanicals
Protein powder
Meal replacements and weight loss products
Specialty and elite sports nutritionals

4. Our Mission and Vision Statement

Nick Brighton® Vitamins & Supplements, Stores, Inc. vision is to grow vitamins and supplements stores all over the world and be the brand for quality vitamins and supplements products, a great crew, cool culture, and active community involvement.
Our mission is to make available a wide range of vitamin and supplements to a wide range of customers.
We want to build a vitamin and supplements business that will become the leader in our line of business; we want to set up a one stop vitamin and supplements store and also in the nearest future run a standard vitamin and supplements manufacturing plant.

Our Business Structure

Nick Brighton® Vitamins & Supplements, Stores, Inc. is all out to build a standard and world – class business from the onset hence the need to follow due process when it comes to setting up a structure for the business. We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of 8 years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner)
Store Manager
Human Resources and Admin Manager
Merchandize Manager
Sales and Marketing Manager
Information Technologist
Accountants / Cashiers
Customer Services Executive
Cleaners

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
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 providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Reports to the board

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office activities.

Store Manager:

Responsible for managing the daily activities in the store
Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
Interfaces with third – party suppliers (vendors)
Control goods distribution and supply inventory
Supervise the workforce in the grocery sales floor.

Merchandize Manager

Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
Help to ensure consistent vitamin and supplements products on our rack
Responsible for the purchase of vitamin and supplements products for the organization
Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
Model demographic information and analyze the volumes of transactional data generated by customer purchases
Identify, prioritize, and reach out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company

Information Technologist

Manage the organization website
Handles ecommerce aspect of the business
Responsible for installing and maintenance of computer software and hardware for the organization
Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
Manage the organization’s CCTV
Handles any other technological and IT related duties.

Accountant/Cashier:

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization

Client Service Executive

Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Find out the customer’s needs, recommend, select and help locate the right vitamin and supplements products
Make suggestions and encourage purchase of vitamin and supplements

Cleaners:

Responsible for cleaning the store facility at all times
Ensure that toiletries and supplies don’t run out of stock
Handle any other duty as assigned by the store manager.

6. SWOT Analysis

Our plan of starting just one outlet in Fort Wayne – Indiana is to test run the business for a period of 3 to 6 years to know if we will invest more money, expand the business and then open other outlets.

We are quite aware that there are a several vitamin and supplements stores and of course several pharmacy stores that retail vitamins and supplements all over Fort Wayne – Indiana and even in the same location where we intend locating ours, which is why we are following the due process of establishing a new 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 equipped to confront our threats.

Nick Brighton® Vitamins & Supplements, Stores, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Nick Brighton® Vitamins & Supplements, Stores, Inc.;

Strength:

Part of what is going to count as a positive for us is the fact that we are centrally located, the business model we will be operating on, varieties of payment options, wide range of vitamin and supplements products and our excellent customer service culture will definitely count as a strong strength for us.

Weakness:

From our findings, one major weakness that may count against us is the fact that we are a new vitamin and supplement store and we don’t have the financial capacity to compete with multi – million dollars’ pharmacy and vitamin and supplement outlets when it comes to retailing at a rock bottom prices.

Opportunities:

The fact that we are going to be operating our vitamin and supplements store in one of the most populated cities in the whole of Indiana provides us with unlimited opportunities to sell our vitamin and supplements products to a large number of people especially vegetarians.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our outlets; we are well positioned to take on the opportunities that will come our way.

Threat:

We are fully aware that one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new vitamin and supplements store or pharmacy store that sells vitamin and supplements in same location where ours is located.

7. MARKET ANALYSIS

Market Trends

It is important to state that any trend that is applicable to businesses in the Supermarket and pharmacy industry is applicable to vitamin and supplements stores. A close study of the trends in the industry shows that the industry is expanding rapidly due to demand for the industry’s products.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development. Going forward, the industry revenue growth is expected to outpace revenue growth in the industry.

A large number of brand name manufacturers lost patent protection for blockbuster drugs beginning in 2010; demand for generics subsequently grew, as consumers demanded affordable versions of these high-profile products. These trends are expected to continue in the next five years.

It is now a common phenomenon for vitamin and supplements outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology helps retailers to maximize supply chain efficiencies.

Lastly, the vitamin and supplements manufacturing industry is adopting the eco-friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

Those who are the end consumer of vitamin and supplements are all encompassing. Everyone whether old or young, sick or healthy consume vitamin and supplements. In essence a vitamin and supplements retail store should be able to sell its products to as many people as possible.

Our Competitive Advantage

A recent study conducted on the industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are prepared to compete favorably with other leading stores in and around Fort Wayne – Indiana.

Nick Brighton® Vitamins & Supplements, Stores, Inc. is launching a standard vitamin and supplements products retail store that will indeed become the preferred choice of residents of Fort Wayne – Indiana. Our vitamin and supplements store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Fort Wayne – Indiana.

One thing is certain, we will ensure that we have a wide range of supplements in our store at all times. It will be difficult for customers to visit and not see the type of supplements that they are looking for. One of our business goals is to make Nick Brighton® Vitamins & Supplements, Stores, Inc. a one stop vitamin and supplements shop.

Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the 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 objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

Sources of Income

Nick Brighton® Vitamins & Supplements, Stores, Inc. is in business to retail a wide range of supplements to the residents of Fort Wayne – Indiana. We are in the industry to maximize profits and we are going to ensure that we achieve our business goals and objectives. In essence, our source of income will be the retailing of;

Vitamins and Minerals
Specialty dietary supplements
Herbs and botanicals
Protein powder
Meal replacements and weight loss products
Specialty and elite sports nutritionals

10. Sales Forecast

One thing is certain when it comes to vitamin and supplements stores, if your store is stocked with a wide range of supplements and is centrally positioned, you will always attract customers. We are well positioned to take on the available market in Fort Wayne – Indiana and we are quite optimistic that we will meet our set target of generating enough income/profits from our first six months of operation.

We have been able to examine the vitamin and supplements products store line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Nick Brighton® Vitamins & Supplements, Stores, Inc., it is based on the location of our business and other factors as it relates to supplements startups in the United States;

First Fiscal Year (FY1): $350,000
Second Fiscal Year (FY2): $550,000
Third Fiscal Year (FY3): $950,000

N.B: This projection was 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.

Marketing Strategy and Sales Strategy

Before choosing a location for Nick Brighton® Vitamins & Supplements, Stores, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice in Fort Wayne – Indiana.

We hired experts who have good understanding of the vitamin and supplement industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Fort Wayne – Indiana.

In summary, Nick Brighton® Vitamins & Supplements, Stores, Inc. will adopt the following sales and marketing approach to win customers over;

Open our vitamin and supplements retail store in a grand style with a party for all.
Introduce our vitamin and supplements store by sending introductory letters alongside our brochure to offices, households and key stakeholders in and around Fort Wayne – Indiana
Ensure that we have a wide range of vitamins and supplements products in our shelves at all times.
Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
Use friends and family to spread word about our vitamin and supplements store
Post information about our store and what we sell in bulletin boards in places like schools, libraries, and local coffee shops et al
Place a small or classified advertisement in the newspaper, or local publication about our vitamin and supplements stores
Make use of attractive hand bills to create awareness and also to give direction to our vitamin and supplements store
Position our signage/flexi banners at strategic places around Fort Wayne – Indiana
Position our greeters to welcome and direct potential customers

11. Publicity and Advertising Strategy

Even though our vitamin and supplements store is well located, we will still go ahead to intensify publicity for the business. Nick Brighton® Vitamins & Supplements, Stores, Inc. has a long term plan of opening outlets in various locations all around Indiana which is why we will deliberately build our brand to be well accepted in Fort Wayne before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Nick Brighton® Vitamins & Supplements, Stores, Inc.;

Place adverts on community based newspapers, radio and TV stations.
Encourage the use of word of mouth publicity from our loyal customers
Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our store.
Ensure that our we position our banners and billboards in strategic positions all around Fort Wayne – Indiana
Distribute our fliers and handbills in target areas in and around our neighborhood
Advertise our vitamin and supplements store in our official website and employ strategies that will help us pull traffic to the site
Brand all our official cars and vans and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

In actual sense, pricing is one of the key factors that gives leverage to supermarkets and pharmacy stores and a supplements store is not an exception, it is normal for consumers to go to places (retail outlets) where they can get products at cheaper price which is why big players in the supermarket and pharmacy store industry will attract loads of consumers.

We know we don’t have the capacity to compete with multi – million dollars’ vitamin and supplements stores, but we will ensure that the prices of all the products that are available in our stores are competitive with what is obtainable in retail stores within our level.

Payment Options

The payment policy adopted by Nick Brighton® Vitamins & Supplements, Stores, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Nick Brighton® Vitamins & Supplements, Stores, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for our supplements without any stress on their part.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard supplements store and here are the key areas where we will spend our startup capital;

The total fee for registering the business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
Marketing promotion expenses for the grand opening of Nick Brighton® Vitamins & Supplements, Stores, Inc. 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.
The cost for hiring business consultant – $2,500.
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $75,300.
The cost for facility remodeling (construction of racks and shelves) – $10,000.
Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
The cost for start-up inventory (stocking with a wide range of vitamin and supplements products) – $150,000
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost of purchase and installation of CCTVs – $5,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
The cost of launching a website – $600
The cost for our opening party – $5,000
Miscellaneous – $5,000

We would need an estimate of $200,000 to successfully set up our vitamin and supplements store in Fort Wayne – Indiana.

Generating Funds/Startup Capital for Nick Brighton® Vitamins & Supplements, Stores, Inc.

Nick Brighton® Vitamins & Supplements, Stores, Inc. is owned and financed by Nick Brighton and her immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Nick Brighton® Vitamins & Supplements, Stores, Inc. is to ensure that we continue to make available a wide range of vitamins and supplements, deliver quality services, and improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Nick Brighton® Vitamins & Supplements, Stores, Inc. adopt the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key components to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store.

We will not waste time in adopting new technology, best practices and diversifying our services; expand our product and service offerings once the need arises.

Nick Brighton® Vitamins & Supplements, Stores, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

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.

Check List/Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of facility and remodeling the shop: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
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): Secured
Opening party/launching party planning: In Progress
Compilation of our list of vitamins and supplements that will be available in our store: Completed
Establishing business relationship with vitamin and supplements manufacturers: In Progress