Are you about starting an energy bar company? If YES, here is a complete sample energy bar business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting an energy bar business. We also took it further by analyzing and drafting a sample energy bar marketing plan template backed up by actionable guerrilla marketing ideas for energy bar businesses. So let’s proceed to the business planning section.
Energy bars as most of us know are very common amongst athletes and people too busy to eat a proper meal and those looking for a healthy option to the mid-afternoon chocolate break. They are plenty room on the vast market because individuals are always looking for variety, creating a marvellous market you can take charge of.
If you are so interested in this business, you need to extensively research the market. You need to choose what type of flavour or energy bar you want to make. You need to find out if there is a market for specialty products, such as gluten free or vegan bars.
Targeting a segment of the market that is growing cam also serve as a niche ideas for you too. If you have a special interest, such as swimming, you may want to design an energy bar that appeals specifically to that market.
However, of course the importance of a business plan cannot be watered down. A business plan is as essential to a business like a backbone to man. It is a great way to plot a good map for your business as well as follow through to be sure that you are charting a good course. Here below is a sample Energy bar business plan that will help you start off really fine:
A Sample Energy Bar Business Plan Template
1. Industry Overview
It is very pertinent to note that the energy bar industry begun with a single creation in 1986 by Power Bar as a means to provide athletes with energy food. The energy bars were distributed at bike shops and covered major events of running and biking.
This process and marketing strategy increased drastically the demand of the energy bar and the industry competition increasing too.
The tremendous rise of the energy bar industry has been quick with its rise to $100 million to over $2 billion by 1996 which is only a decade. It has been estimated that the industry had an expected growth of 10 percent per year. Also the increased number of players in the industry and the acceptance of new flavour to satisfy the needs of the customers have also pushed the industry to a greater height.
The industry has also moved individuals to address their health issues including focusing on nutrition needs and that of their close pals.
Increase in large flavours which without doubts meets the needs of the industry customers has change the then monopolistic industry to a highly responsive to changes in customer’s tastes and preferences while various promotional methods have been adopted for the sole purpose of attaining competitive advantages, product positioning and customer loyalty in the industry.
Competition in this industry tend to increase with each coming day as customers’ demands are analysed and adjusted, market segments unsatisfied selected, the market information critically researched and analysed and most importantly the ability of the market base continual growth.
2. Executive Summary
Energy Republic as we believe will be a combination an energy bar shop and a rock climbing gear store which will be located near Willamette National forest. Our main objective at Energy Republic is to build the business to serve as part of the overall rock climbing activity.
Energy Republic will not be just a snack bar but also a rock climbing cultural centre for regulars and visitors to Oregon NY. The main agenda of writing this business plan is to build a proper foundation for the vision, philosophy and strategy of the venture. We at Energy Republic hope to employ hardworking and we’ll experienced workers, and those who have enthusiasm and we hope to compensate them accordingly.
We also understand that sourcing is very important for any retail venture. We hope to use Crunchy fries as our snacks and energy bar vendor, and they will also take care of almost all of our in-store merchandise. The sport aspect of our business will be sourced directly Puma and Nicole.
Our major objective at Energy Republic is to acquire the largest market share in the region for energy bar and rock climbing gears. We also want to build a business that will be an active and vocal member of the community, and to provide continual re-investment through sponsorship of community activities and celebrations.
Energy Republic we believe will be the sole destination for those who want to know anything about rock climbers gear, safety, rules, and events. We believe that with our commitment and approach, Energy Republic will be the future of rock climbing in the united states.
Emmanuel Collins is the founder and general manager of Energy Republic. Emmanuel Collins who has lived most of his life in Oregon is a graduate of the University of Oregon with a degree in Business Management. He worked as a sales manager at Energy Republic Inc., before being employed as the business manager of Maddox foods. He has the adequate experience and zeal to found and manage Energy Republic.
3. Our Products and Services
We at Energy Republic hope to sell high-quality sport climbing gear to serious and focused rock climbers. Every gear that we sake will be entirely strong and filled with quality as our knowledgeable employees who use them will be there to recommend equipment to customers and management. Thus gears and equipment just like we stated in our above Executive summary will be purchased directly from Puma and Nicole. We hope to create a long lasting connection with them.
As people already living in Oregon can testify to, Crunchy Fries produces awesome snacks. We hope to import those inventories on Mondays and Thursdays, which we believe will make sure that we provide the freshest snacks and energy bars as possible. The general manager of Energy Republic will oversee all purchases, shipments, and deliveries. We hope to sell snacks that will include energy bars, pizzas, sandwiches, doughnuts, coffees, energy drinks and many more.
4. Our Mission and Vision Statement
- Our vision at Energy Republic is to be one of the key players in the industry within two years of constant operation.
- Our mission at Energy Republic is to be the centrifuge for rock climbers living in and visiting Central Oregon. We want to be able to take over the market and create a landmark that will qualify us as the future and present of the industry.
Our Business Structure
We at Energy Republic understand and believe comfortably that the connection and workforce we employ should be structured with enough room for creativity, and pay should be commensurate with the amount and quality of work completed. Energy Republic will not departmentalize and every decision made in the company will be done in accordance with the company mission.
Our workers will be given explicit tasks based upon their creativity, knowledge, and social ability. We hope to fulfill all our goals and visions, which is why we have chosen designated portfolios to employ right from the beginning. They are;
- General Manager
- Head of operations
- Admin and Personnel Manager
- Nutritionist
- Sales and Marketing Officer
- Accountants / Cashiers
- Waiters/Waitress
- Drivers / Distributors
- Security Officers
- Cleaners
5. Job Roles and Responsibilities
General Manager
- His in charge of Overseeing all other executives and staff within the organization.
- He is Tasked with board of directors and other executives to determine if company is in accordance with goals and policies.
- Charged with encouraging business investment.
- He also promotes economic development within communities.
- His in charge of directing the organization’s financial goals, objectives, and budgets.
- Implement the organization’s guidelines on a day-to-day basis.
- Preside over quality control.
- In charge of Hiring, training, and terminating employees.
- In charge of developing and implementing strategies and set the overall direction of a certain area of the company or organization.
- Provide visionary and strategic leadership for the organization.
- Collaborate with the board of directors to develop the policies and direction of the organization.
- He makes sure that the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.
- He also Provide adequate and timely information to the Board to enable it to effectively execute its oversight role.
- Directs staff, including organizational structure, professional development, motivation, performance evaluation, discipline, compensation, personnel policies, and procedures.
Head of operations
- In charge for managing the daily activities in the fast food
- Make sure that the restaurant facility is in very good shape and conducive enough for customers
- Connects with third – party providers (vendors)
- In charge of supervising and training new staff members
- Reports to the General Manager
- Settles all Customers complains and enquiries
- Creates budget and reports for the fast food
- Any other duty as assigned by the General Manager
Admin and Personnel Manager
- In charge of overseeing the running of HR and administrative tasks for Energy Republic
- Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Stays updated on job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Builds the reputation of Energy Republic by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- States job positions for recruitment and managing interviewing process
- Organises staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Nutritional Consultant
- In charge of evaluating a client’s nutritional needs
- In charge of providing nutritional counselling and advice to clients
- Tasked with creating a clinical nutrition treatment plan for a client
- In charge of educating the public on nutrition issues
- Researches the effects of nutrition on health and fitness
- Consults with a team of healthcare practitioners on nutritional management for a client
Sales and Marketing Officer
- Oversees external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Creates demographic information and analyse the volumes of transactional data generated by customer purchases
- Understand, prioritizes, and reaches out to new partners, and business opportunities et al
- Understands development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- In charge for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Creates, executes and evaluates new plans for expanding increase sales
- Keeps all customer contact and information
- Represents the company in strategic meetings
- Aids to increase sales and growth for the business
Accountants/Cashiers
- In charge of preparing financial reports, budgets, and financial statements for Energy Republic
- Gives the managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- In charge of financial forecasting and risks analysis.
- Understands cash management, general ledger accounting, and financial reporting
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensures compliance with taxation legislation
- Takes care of all financial transactions for Energy Republic
- Serves as internal auditor for the organization
Waiters/Waitress
- Quickly attends to customers in a friendly and professional manner
- Makes sure that un-occupied tables are always set and ready for customers
- Draws out chairs for customers as they arrive
- Takes care of any other duty as assigned by the general manager
Drivers/Distributors
- Delivers customer’s orders on time
- Delivers correspondence for the shop
- Runs errand for Energy Republic
- Any other duty as assigned by the floor / line manager
Cleaners
- In charge of cleaning the business facility at all times
- Makes sure the toiletries and supplies don’t run out of stock
- Makes sure that both the interior and exterior of the business facility are always clean
- Handles any other duty as assigned by the general head.
Security Officers
- In charge of protecting the agency and its environs
- Controls traffic and organize parking
- Gives security tips when necessary
- Patrols around the building on a 24 hours basis
- Presents security reports weekly
6. SWOT Analysis
Running a business is not an easy task which is why we had to contract a well know Consultancy form to aid us with our SWOT Analysis. They were employed to extensively go through our business concept and critically examine the prospect and the success of our company. They did a good job and we believe that the results they actualize were after thorough research. Below is the summary of the SWOT Analysis done for Energy Republic;
- Strength
According to our SWOT Analysis, the strength of Energy Republic rest on the fact that we have a lot of products and services to be offering to the citizens of Oregon. Our niche idea has been inculcated with so many sports equipment, but just the idea of singling it out makes it our strength in the industry.
Our SWOT Analysis also noted that the experience and expertise of our founding teams makes our business the venture to beat in the industry. The connections we have set already also make us invisible and strong.
- Weakness
Our SWOT Analysis after extensive research also noted that our business location might serve as a weakness to us. It went further to acknowledge that district we have chosen in Oregon is the centre hub of the city and will be filled with businesses trying to offer most of the services we offer.
- Opportunities
The world has gotten to the point where every dick and Harry wants to exercise in other to look elegant and be healthy. Rick climbing is one of the outdoor exercises that is growing immensely. Also individuals are also interested in healthy foods to also help them live a far more healthy life. All this are opportunities which our SWOT Analysis noted are available to us.
- Threat
Our SWOT Analysis also noted that the major threat we will be facing is the fact that we are going to be competing against already existing business in Oregon. It is believed that this businesses will come after us with all they have got, and that won’t be easy for a new entrant in the industry.
7. MARKET ANALYSIS
- Market Trend
In Central Oregon only, consumer expenditures for rock climbing equipment increased last year to over $6,000,000. It has been estimated that this market will be on the increase and we hope to make use of it. The presence of several large universities in western Oregon is expected to push our business higher.
We also have Mountain Rocks, an international destination spot for rock climbing enthusiasts, which is a few miles away from us as a motivator to our business. People from all over the world tend to come to this location just to enjoy the coldness and run of a natural rock.
In our century, Outdoor sports and rock climbing are gaining very large attention and Central Oregon is becoming a major vacation destination and recreation spot. The gourmet coffee trend started in the Northwest, and is spreading quickly throughout the nation.
A growing number of people look to their high-end coffee drinks as a way to enjoy a moment, and as an integral part of any outing or activity. Individuals are also getting more interested in energy and protein bars which contain different amounts of protein, fats and carbohydrates. Because customers are always looking for variety, there is still plenty of room for new protein bars on the market, especially in niche areas, such as gluten free, organic and even kosher.
8. Our Target Market
We at Energy Republic understand that the target market for sports products cut across people of all walks of life. Most people are highly interested in their body and health, so they tend to go for a few outdoor sports like rock climbing.
We all agree that it is difficult to create a list of the people we intend selling our gears and snacks to because everybody needs what we have to offer except for our trainings and consultancy services. Listed here are just a few of the people / places that we intend selling our products and services to:
- Families (Homes)
- Schools (boarding house and campus et al)
- Grocery stores
- Shopping Malls
- Event Planners
- Sport Centres
- Corporate Organizations
- Aspiring Entrepreneurs (Those who want to learn baking)
Our Competitive Advantage
We at Energy Republic without doubt understand that we have several advantages over our leading competitor. These advantages may include;
- Newer inventory and more modern interior fixtures.
- Our snacks and our energy bars are made available to consumers while they shop, increasing marketing message impact. Our competitor offers the shopping experience that lacks the thrill of being able to sit down with friends and enjoy a fee snacks.
- Energy Republic is a fun, spacious store catering to both the climbing Pros and the inexperienced. Our positioning encourages those just getting started, a one-stop destination for equipment advice and purchasing opportunities, technique and safety instruction, and conversation with other enthusiasts.
- We at Energy Republic also expect a high degree of expertise and enthusiasm from our employees and we hope to compensate them accordingly. All our employees will be hired for their expertise and enthusiasm and will be paid at a rate well above the minimum wage to facilitate low-turnover and long-term loyalty.
9. SALES AND MARKETING STRATEGY
- Sources of Income
We at Energy Republic are very prepared to offer our prospective customers high quality energy bar, climbing gear, energy drinks, snacks, and a befitting platform to meet and talk. We believe that our venture being close the park is something our competitors cannot beat, and we believe that our services are astounding and cannot be compared with what is common in the industry.
We are prepared to offer our customers a comfortable location to buy our products directly from our store and also our website, which is a secure server and we will ship all ordered products from the store. We also hope to make sure that all our telephone orders will be taken at the store through either our single (800) line or the local number.
Any mail order we get at Energy Republic will be processed at the main office and shipped from our main office. All debits and credits, order transactions, charge backs, and price discounts will be accounted for on the SBT Accounting system at our Central Oregon office.
We will be generating incomes by retailing our goods which will include energy bars, energy drinks, snacks, rock climbing gears, nutritional advice, carabineers, nuts, ropes, webbing, shoes, and harnesses; our product mix is sufficient to satisfy even the most hard-core enthusiast
10. Sales Forecast
We at Energy Republic expect our sales to increase at a rate of 3-4% per month for each product in the first few months. We believe that from November 2016 to February 2017 will be very slow and drastic for us, but we believe that if we increase our cooperate identity we will be able to benefit from holidays and Christmas vacation crowd in Oregon.
We expect the1% monthly sales growth becoming 2% growth as we reach the second summer within March to July. In 2017 and 2018, we expect solid 20-25% sales growth as we become a well-known energy bar and rock climbing gears shop in all of Oregon. All these we believe after extensive research are obtained. Below is a well started sales projection for Energy Republic;
- First Year-: $420,000
- Second Year-: $1,200,000
- Third Year-: $3,000,000
- Marketing Strategy and Sales strategy
Our main sales strategy at Energy Republic is to build our business experience to be a part of the sport climbing activity in the United States. Energy Republic was not established as just a store, but a sport climbing cultural centre for regulars and visitors to Oregon.
It is worthwhile to not that our first marketing tactic will focus on the needs of the Hard-core climber all over the world. Our sales and marketing partner believe that steady interest from the Hard-core set will generate interest for others. It was also proclaimed after extensive research and discussion that our marketing and sales strategies will be based on three important segments. Which are;
- That our sales and marketing strategies will benchmark our objectives for sales promotion, mass selling, and personal selling.
- Our sales and marketing strategies will be majorly focusing on the Weekend warriors and the Hard-core climbing community and we will be inculcating a strategy that treats these customers as a community. This means our marketing resources will be cantered around both sales promotions (events, displays) and personal sales (customer service, friendly atmosphere).
Our marketing budget will not exceed $250,000 per year and our promotions will be consistent with our Mission Statement.
11. Publicity and Advertising Strategy
We at Energy Republic understand and believe that every individual living in the United States is a potential customer and all our potential markets will experience growth. We also believe that our publicity and advertising to a particular sector of the population will lead to an expansion in overall market growth.
We at Energy Republic plan to implement a strong sales publicity and advertising strategy, which is why we have partnered with Nicklaus Communications, an advertising firm that specializes in taxi top advertisements and many other advertising strategies, to help us with boosting the image of Energy Republic. It has been agreed that we will leverage or do the following to boost our cooperate identity on the market;
- It was agreed that Energy Republic will pay Nicklaus Communications $60,000 to determine the needs of the surrounding population and the best we at Energy Republic can meet those needs with promotions, literature and other marketing programs.
- Our promotional campaigns will be partially outsourced to Nicklaus Communications because of their expertise on the field
- Our advertising will be consistent with Nicklaus Communications being a well-known advertising brand
- Nicklaus Communications and our sales team will work together to inform customers of new products, to encourage an image of community involvement for Energy Republic, and to limit environmental impact.
12. Our Pricing Strategy
Energy Republic is a business established to serve the needs of the people and to keep them healthy. We plan encourage impulse buying, which is we believe it is paramount that we maintain a flexible pricing strategy. Our pricing strategy at Energy Republic will be based on competitive parity guidelines.
We are not in business for a trial and error design but as a venture with hope and promises, which is why we won’t be exceeding our competitors’ prices by more than 10%, and if a customer sees a price elsewhere for less, we will give it to them for that price.
We also understand that the prices we keep will tell a lot about our brand. We hope to bring to the people of Oregon products that are innovative and not available elsewhere in the region, which will be marked up to meet the demand curve.
We are not afraid of premium pricing premium products. Our energy bars and snacks will be priced slightly above the industry average. Although we will still be make money off our house coffee, we see it explicitly as a “Loss Leader” product.
- Payment Options
Our business location is a very important competitive advantage that we possess. It will be difficult for our competitors to match our business location and we also understand that the business means or rather the payment means we provide quality also aid us to beat our competitors.
We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers. We have also partnered and registered with the necessary financial institutions in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
- Payment by via bank transfer
- Payment via online bank transfer
- Payment through point of service machines
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
13. Startup Expenditure (Budget)
We at Energy Republic hope to build a business that will grow moderately, with a positive cash balance. We hope to build a classic business that will invest residual profits into company expansion and Personnel. We have estimated that our advertising costs and consulting costs will go up in the next two years. Which we believe will give Energy Republic an acceptable profit-to-sales ratio of by Year 3.
Without argument, new entrants are always operating with negative profits through the first two years. We at Energy Republic hope to avoid that kind of operating loss by knowing our competitors, our target markets, industry direction, and the products we sell. Outlined below are the ways we expect to spending our start-up cost;
- The Total Fee for Registering the Business in Oregon: $750.
- The budget for insurance, permits and license: $5,000
- The Amount needed to acquire a suitable Facility for 6 months in Oregon (face lifting of the facility inclusive): $75,000.
- The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables and chairs et al): $20,000.
- The Cost for Equipment (Standard commercial oven, shelves, Proof boxes, Baking Sheets and Racks, Work Tables, Sinks, Slicers, Scales et al): $15,000
- The Cost for inventory : $600,000
- The Cost of Launching a Website: $600
- Our marketing and publicity budget – $200,000
- The cost for our opening party: $5,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
From our detailed analysis above, we will need $926,350 to start Energy Republic. We have also put plans in place to be able to raise the funds and capital.
Generating Funding / Start up for Energy Republic
Just like we stated in the executive summary, Emmanuel Collins is the founder and general manager of Energy Republic. Emmanuel Collins who has lived most of his life in Oregon is a graduate of the University of Oregon with a degree in Business Management. He will also be the sole financial of the business which is we have restrict the sourcing of the start – up capital for the business to just three major sources.
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate part of the capital from the bank (loan facility).
Note: Emmanuel Collins have been able to raise $600,000 ($500,000 from personal savings and $100,000 from his friends and family as soft loan), and we are at the final stages of obtaining a loan facility of $400,000. We have verified all the necessary procedures to actualize or get our start-up cost.
14. Sustainability and Expansion Strategy
We at Energy Republic understand that for us to grow and expand, we need to sell products that are of the highest reliability and quality. We will have to offer as many or more premium products than any of our competitors. This means we must carry all premium brands of harnesses, active protection, passive protection, helmets, ice climbing gear, camping gear and mountaineering gear.
Our energy bar and snacks made by Crunchy Fries will be of the utmost quality. We are also prepared to offer loss leaders and other promotions that bring customers into the store to buy goods, explore our line of services, and sign up for future events.
We are also prepared to offer our customers and vendors the 100% satisfaction they deserve because they are very valuable to us, and we will also design a customer care plan to manage complaints, implement employee and customer feedback, manage supplier accounts, and predict potential conflicts.
We at Energy Republic plan to be a special member of the community. We also understand that if we want to maintain a high margin business plan, we need to negotiate a good cost structure. Our head office will be located at 2054 Portland St., Bend, OR 974423.
This office complex is about 1,000 square feet and has all the necessary requirements for the first three years of growth. Our deliveries and shipments will be moved through our store located at 957 Smith Rock Drive, Redmond, OR 974423. This 5,000 square foot retail building is owned by Energy Republic and we hope to use it as our backbone for expansion
We hope to add some sports gears as we grow and expand these gears may include water sport gear, camping gear, and mountain biking accessories. We at Energy Republic cannot rule out the possibility of vertically integrating through our own line of climbing gear and/or energy bar. We will also explore new services such as gear storage lockers, cellular phone rentals, and same day guide services.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress