Wheatgrass Smoothie Production Business Plan

Wheatgrass Smoothie Production: Business Concept

Wheatgrass smoothie marketing is based on the promotion of healthy lifestyle tendencies among customers. Therefore, the product belongs to the category of drinks that target a wide social group.

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The industry that launches wheatgrass smoothie sales has to account for several crucial factors. First, the production demands innovative strategies since it is often claimed that juices that are made from wheatgrass have no beneficial qualities since they are manufactured from powders and frozen grass. Consequently, such drinks lose their properties due to thermal processing. So, the primary task of the management is to promote organic grass-based smoothies. Moreover, it is acknowledged that some people may suffer from detoxification after consuming pure wheatgrass. That is why the industry launches an innovative formula for producing smoothies with natural additions such as lemon and melon. Consequently, the business concept for organic smoothie production implies a reformation of wheatgrass usage as well as its adaptation, according to the customers’ demands.

Management Structure as a Backbone of Industry’s Success

Wheatgrass smoothies manufacture’s work primarily dwells on such management structures as advertisement board and executive directors. Due to the product’s relative unpopularity, it is a primary task for the company to demonstrate its advantages favorably and efficiently. For instance, since wheatgrass is a natural energizer, it can be advertised as a healthy substitution for caffeine. Besides, the key production operations have to be well-organized, for the industry launches a new formula of turning the grass directly into juices, without the usage of frozen materials or powder. That is why the company administration must handle every level of work efficiently so that to make the industry profitable. The technological management is crucial as well. Thus, it is important to ensure that both distanced operators and office technologists have enough resources so that to coordinate automatic processes without delays.

Market Need: Establishing a Tradition of Healthy Nutrition

The modern world, with its environmental pollutions, consumption, and heavy industries, demands natural production to eliminate harmful effects. People throughout the continents adopt vegetarianism and tend to choose organic food for their daily nutrition. Therefore, the wheatgrass industry finds sympathy among individuals who care about nature and their well-being. However, there is a prevailing inclination for the seniors to prefer ecology-friendly products, but the youth still chooses food that is rich in sugar, fat, and synthetic coloring agents. Therefore, the ultimate goal of the wheatgrass company management is to reveal the assets of organic smoothies as well as create a formula for tasty fresh drinks.

The market evolves from a small manufacturer that is based on the usage of 30 pounds of wheatgrass and two high-quality juicers. Nevertheless, it is expected that low-cost facets of production, as well as an enormous demand, will help the management to extend the scope of the industry in the second year.

Wheatgrass Smoothie Advantages

Organic juices that are produced of refined fresh wheatgrass possess a vast number of qualities that improve human health. Thus, wheatgrass smoothies ensure a healthy intestinal environment, provide minerals, chlorophyll, and proteins. Moreover, such drinks contain antioxidants that strengthen the immune system and digestive tract. Therefore, the products fall into a category of on-demand beverages.

The production of the developing company has consistent advantages over its rivals’ drinks. Since the management uses fresh wheatgrass in manufacturing, it supersedes the industries that produce smoothies of grass powder. Moreover, it succeeds due to its efficient advertising strategy and an innovative formula of organic additions.

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The Future Financial Projection

The management of the developing company devices a one-year projection with the separate monthly accounts so that to ensure a step-by-step finance tracking. A successful budget distribution planning is crucial for the industry since its innovative formula, and organic orientation demands more resources than the regular wheatgrass juices manufacture. That is why the production of the company is more expensive, due to the wheatgrass expenditure. It is an undertaking challenge for the management to persuade the customers that they have to purchase an expensive drink since it is highly nutritional. Consequently, the company has to start its work from minor sales so that not to lose its initial investments in the case of marketing failure.

Wheatgrass Smoothie Industry as a Target for Investors

Since the health-care sphere always attracts much public attention, the progressive formula of wheatgrass smoothie production is a lucrative destination for many people who wish to gain profit by sustaining a rewarding investment. However, the business concept of the industry has to be well-promoted and properly advertised so that to reach the potential stakeholders. The management of the manufacture embraces a three-fold strategy of demonstrating a wheatgrass smoothie industry as a promising venture. First, the company creates a logotype that serves as an instant demonstrator of the drink’s advantages. Thus, a green grass marking, as well as the pictures of additions, has to catch the eye of a potential investor. In this way, the innovative principles of wheatgrass processing are revealed. Second, the management of the industry becomes an initiator of an evidence-based investigation, which involves people of any age and launches practical testing of the drink’s effect on human health. As a result, a conclusion about the product’s facets is made on the basis of the participants’ reports. It is crucial to ensure that this study becomes an integral part of the smoothie’s advertising. Finally, the company creates favorable conditions for the investors by ensuring that stakeholders feel their financial resources being protected within the industry.

The Exit Plan

Since the production of wheatgrass smoothies is susceptible to risks, due to its expensiveness and unverified formula, the developing company compiles an effective exit plan. The regulation predetermines a step-by-step dissipation of the industry at the end of the first year. The strategy implies data security sustainability. Thus, informative resources have to be transferred to the owner. Moreover, it includes such aspects as efficiency evaluation, which determines the treatment of personnel and equipment sales.

Business Plan Financials

The company management develops a yearly financial plan that is grounded at the estimation of the drink price and initial budget. Thus, due to the analysis of wheatgrass production, it is assumed that one pound of the grass costs $35. Since every pound of organic wheatgrass can be turned in six ounces of juice, it may be claimed that the total profit has to equal $6,300 per month, which makes $75,000 annually. The incoming statement for a year includes: $40,000 for revenue, $75,000 for sales cost, $20,000 for distribution cost, $5,000 for administrative expenses, and $1,000 for finance charge. The net profit equals $33,000. The cash flow assessment estimates the financial incomes and outcomes of cash allocations. The analysis of the total budget of the industry showed that the company invested $45,000 ($5,000 for juicers and $40,000 for resources and supplies) into production launching. Due to the sales estimation, the company succeeds in gaining a desirable profit until the end of the first year. The balance sheet reveals the company’s assets, equity, and liabilities. According to the budget estimations, the cost of the asset reaches $95,000 since it summarizes initial investments and revenue costs. Liabilities equal to $45,000 since the initial investments were gained through loans. Finally, the owner’s equity equals $55,000 since it demonstrates the difference between the assets and revenue cost.

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StudyCorgi. (2020, October 23). Wheatgrass Smoothie Production Business Plan. Retrieved from https://studycorgi.com/wheatgrass-smoothie-production-business-plan/

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