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Business Plan First Year to produce $20k wholesale value of herbal products quarterly

Startup required $80K

Pay myself a modest $24K annual salary from startup funding

Invest $40K to create salesforce, labels & packaging, marketing, Setup Online store, social media, R & D, etc.

Remaining $8K is reserved for rainy days and the unexpected

I will hire 1st helper paid $1.2K biweekly, $24K salary annually, including payroll taxes

*****1 Helper will cook and package $200K worth of product annually from their kitchen at home.*****

I will be free from the burden of cooking herbal products and can concentrate on sales & R&D

*****Invest $8K to cook $20K wholesale value of products 4 times annually = $32K*****

If I cook $1K wholesale value of product daily then I will consume 3 weeks cooking $20K of product

Minimum: generate $8K in wholesale value revenue every 10 weeks ($800 weekly). 4 times annually = $32K. Compile customer database

I would allocate 5% = $4K of wholesale value of product for labeling and packaging annually. 
However, in first year, this cost is covered by startup funding

Give away 2% = $400 wholesale value of product every 13 weeks, 4 times annually = $1.6K. Compile customer database

Network with local beauty and health stores, medical offices and clinics throughout GTA 

Form a direct sales force to sell herbal products throughout GTA. I will advertise on my website, Kijiji and craig's list and social media

Hopefully labor laws will not burden me with payroll taxes for the sales force. Essentially they are self employed, writing their own pay check.

Similarly, the helpers cooking from home are self employed individuals. They would be required to regiser a sole propriotorship business.

I will need advice about hiring people and employment law and expenses in Ontario, Canada

Salesforce will wear aprons and carry bags displaying the HighlyHerbal.ca brand. They will distribute my business cards.

Salespersons will get $100 of product they will sell for $200 and compile customer database (receipts with customer contact info)

Salespersons must pay a one-time processing fee upfront that covers the cost of the sales kit & apron ($25)
Meet sales group weekly to collect sales, arm with herbal products and motivate.
I will require a meeting place. Somewhere I can rent for 2 hours very cheaply, preferably a building with security. 

I will allocate $1K monthly for managing sales force
 
If 20 sales agents sell $100 wholesale value of product every week then the $20K wholesale value of product I cooked will be sold in 10 weeks

If salesforce is able to drive demand then I will need to cook $20K wholesale value of product more than 4 times annually

I would estimate that the max annual wholesale value amount of product one person can cook on a kitchen stove at home is $200K 

I may reach a point where I cannot cook enough product fast enough to meet demand.

To meet demand I can hire helpers to cook herbal products from their kitchens at home

Helpers will cook and package $200K wholesale value of product annually from their kitchens at home

Helpers are paid $1.2K biweekly to cook $10K wholesale value of herbal products every 10 days

I will be free from the burden of cooking herbal products and can concentrate on sales

Net income $6.4k
Expenses $72K, includes $24k annual salary I pay 1 helper. My initial $24K salary already paid from startup funding
Revenue $78.4K

This is a conservative estimate because I am assuming $80k wholesale value of product is sold when $200K wholesale value is being cooked by helper 1

Therefore, there is room to multiply sales by 2.5. 

I can increase the sales force from 20 to 50

If 50 sales agents sell $100 wholesale value of product every week then the $50K wholesale value of product cooked each quarter will be sold in 10 weeks

So first year has the capacity to achieve:

Net income $86k
Expenses $110K, includes $24k annual salary I pay 1 helper. My initial $24K salary already paid from startup funding
Revenue $196K

First year is all about getting established and driving demand for a sucessful 2nd year.

My gut feeling is most revenue will come from the direct sales force and from online sales because retail is slow and dying out.

Retail prices for my herbal products are:

1 lip balm $2, 1 bar of soap $4, 1 herbal salve $6

Wholesale prices are half that of retail prices

I will sell in bundles of 10 & 20 online, charging for shipping. 
20 lip balms $30, 10 soaps $30, 10 salves $45

Notice online prices are 1.5 that of wholesale prices

I will be actively developing new products associated with aroma science

I will succeed because I am honest and intelligent determined and industrious

From 16+ years of repairing computers in the GTA, I have many loyal customers who will buy my herbal products


Business Plan Second Year to produce $50k wholesale value of herbal prodcts quarterly

I will hire 2nd helper paid $1.2K biweekly, $24K salary annually, including payroll taxes

Helpers will cook and package $200K worth of product annually from their kitchens at home.

I will be free from the burden of cooking herbal products and can concentrate on sales

Pay myself and 2 helpers $24K salary annually

*****Invest $16K to cook $50K wholesale value of products 4 times annually = $64K*****

I am producing 2.5 times more product for only double the cost because I will produce more products that don't require expensive EVOO.

Give away 2% = $1K wholesale value of product every 13 weeks, 4 times annually = $4K. Compile customer database

Generate $49k in wholesale revenue every 10 weeks ($4.9K weekly). 4 times annually = $196K. Compile customer database

Year 2 is critical!

*****2 helpers will cook and package $400K worth of product annually from their kitchens at home.*****

I will be free from the burden of cooking herbal products and can concentrate on sales & R&D

Recruit 30 additional sales agents for a total of 50

If 50 sales agents sell $100 wholesale value of product every week then the $50K wholesale value of product I cooked will be sold in 10 weeks

Net incone before taxes is $38k 
Expenses $158K includes $24k annual salary I pay myself and 2 helpers
Revenue $196K

Again a conservative estimate because it is based on $200K wholesale value of product when 2 helpers are cooking $400K wholesale value of product
Therefore, there is room to multiply sales by 2.

I can increase the sales force from 50 to 100

If 100 sales agents sell $100 wholesale value of product every week then the $100K wholesale value of product cooked each quarter will be sold in 10 weeks

So second year has the capacity to achieve:

Net income $160k
Expenses $232K, includes $24k annual salary I pay myself and 2 helpers
Revenue $$392K


Business Plan Third Year to produce $100k wholesale value of herbal prodcts quarterly

I will hire 3rd helper paid $1.2K biweekly, $24K salary annually, including payroll taxes

*****invest $32K to cook $100K worth of products 4 times annually = $128K*****

Give away 2% = $2K wholesale value of product every 13 weeks, 4 times annually = $8K. Compile customer database

Generate $98k in revenue every 10 weeks ($9.8K weekly). 4 times annually = $392K. Compile customer database

*****3 helpers will cook and package $600K worth of product annually from their kitchens at home.*****

I will be free from the burden of cooking herbal products and can concentrate on sales & R&D

Recruit 50 additional sales agents for a total of 100

If 100 sales agents sell $100 wholesale value of product every week then the $100K wholesale value of product I cooked will be sold in 10 weeks

Pay myself and 3 helpers $24K salary annually

Net income $136k before taxes
$256K expenses includes my $24k annual salary I pay myself and 3 helpers
$392k revenue

Again a conservative estimate because it is based on $400K wholesale value of product when 3 helpers are cooking $600K wholesale value of product
Therefore, there is room to multiply sales by 1.5

I can increase the sales force from 100 to 150

If 150 sales agents sell $100 wholesale value of product every week then the $150K wholesale value of product cooked each quarter will be sold in 10 weeks

So 3rd year has the capacity to achieve:

Net income $258k
Expenses $330K, includes $24k annual salary I pay myself and 3 helpers
Revenue $$588K

Business Plan Fourth Year to produce $200k wholesale value of herbal prodcts quarterly

I will hire 4th helper paid $1.2K biweekly, $24K salary annually, including payroll taxes

*****invest $64K to cook $200K worth of products 4 times annually = $256K*****

Give away 2% = $4K wholesale value of product every 13 weeks, 4 times annually = $16K. Compile customer database

Generate $196k in revenue every 10 weeks ($19.6K weekly). 4 times annually = $784K. Compile customer database

*****4 helpers will cook and package $800K worth of product annually from their kitchens at home.*****

I will be free from the burden of cooking herbal products and can concentrate on sales & R&D

Pay myself and 4 others a $24K salary annually

I can increase the sales force from 150 to 200

If 200 sales agents sell $100 wholesale value of product every week then the $200K wholesale value of product cooked each quarter will be sold in 10 weeks

Net income before taxes is $356K 
Expenses $428K includes my $24k annual salary I pay myself and 4 helpers
Revenues of $784K annually 


Business Plan Fifth Year to produce $400k wholesale value of herbal prodcts quarterly

*****invest $128K to cook $400K worth of products 4 times annually = $512K*****

I will hire 4 helpers paid $1.2K biweekly, $24K salary annually, including payroll taxes

Give away 2% = $8K wholesale value of product every 13 weeks, 4 times annually = $32K. Compile customer database

Generate $392k in revenue every 10 weeks ($39.2K weekly). 4 times annually = $1,568K. Compile customer database

*****8 helpers will cook and package $1,600K worth of product annually from their kitchens at home.*****

I will be free from the burden of cooking herbal products and can concentrate on sales & R&D

Pay myself and 8 helpers $24K salary annually

If 400 sales agents sell $100 wholesale value of product every week then the $400K wholesale value of product cooked each quarter will be sold in 10 weeks


Net income before taxes is $780K 
Expenses are approx $820K includes my $24k annual salary I pay myself and 8 helpers
Revenues are $1,568K


Business Plan Sixth Year to produce $800k wholesale value of herbal prodcts quarterly

*****invest $256K to cook $800K worth of products 4 times annually = $1,024K*****

Give away 2% = $16K wholesale value of product every 13 weeks, 4 times annually = $64K. Compile customer database

Generate $784k in revenue every 10 weeks (78.4K weekly). 4 times annually = $3,136K. Compile customer database

I will hire 8 helpers for a total of 16, and pay each worker $1.2K biweekly, including payroll taxes

16 helpers will cook and package $3,200K worth of product annually from their kitchens at home.

I will be free from the burden of cooking herbal products and can concentrate on sales & R&D

Pay myself $24K salary annually

If 800 sales agents sell $100 wholesale value of product every week then the $800K wholesale value of product cooked each quarter will be sold in 10 weeks

Net income before taxes is $1,532K 
Expenses $1,604K includes my $24k annual salary I pay myself and 16 helpers
Revenues are $3,136K

Analysis:  

In year 5, I make my first million dollars.

I am paying the same wages every year. I would like to reward helpers with annual $10k bonuses.
Outstanding Salespersons will get rewards too.
Annual party or picnic

I may raise wages

I must hire the right people I can trust! Can use psychological tests, security screening, etc.

I will need a secretary for admin work. Secretary too can work from home.

I plan to make herbal soap from melt and pour base
Herbal soap made this way requires no additional beeswax nor oils
Also no containers needed for soap, just moulds and wrapping in clear plastic

I will make products that make use of aroma science.

I am empowering people to contribute to a business from their home.
Is there a service out there that can cook and package my herbal products inexpensively in bulk quantities?
Cooks are human beings so production will be reduced by illness of helper.

I need to know my legal obligations to workers, cooks and sales people, especially where payroll taxes apply.

I plan to exit the business by 2030. By then HighlyHerbal,ca should provide me with annual income of 
$1,000K after taxes while the business is managed by a manager on salary.

The success of HighlyHerbal.ca can be exported to major cities elsewhere.

Management of the team would be done over the Internet

The size of teams will vary according to population. Minimum population is 300K.

Toronto would have a team of 16 cooks and 800 sales agents, $3,200K wholesale value of product annually

Mississauga, 4 cooks and 200 sales agents, $800K wholesale value of product annually

Brampton, 3 cooks and 150 sales agents, $600K wholesale value of product annually

Vaughan 2 cooks and 100 sales agents, $400K wholesale value of product annually

Markham 2 cooks and 100 sales agents, $400K wholesale value of product annually

Hamilton 3 cooks and 150 sales agents, $600K wholesale value of product annually

London 2 cooks and 100 agents, $400K wholesale value of product annually

Ottawa 5 cooks and 250 sales agents, $1,00K wholesale value of product annually

Montreal 10 cooks and 500 sales agents, $2,000K wholesale value of product annually

Calgary 7 cooks and 350 sales agents, $1,400K wholesale value of product annually

Edmonton 5 cooks and 250 sales agents, $1,00K wholesale value of product annually

Winnipeg, 4 cooks and 200 sales agents, $800K wholesale value of product annually

Vancouver, 4 cooks and 200 sales agents, $800K wholesale value of product annually

Quebec City 3 cooks and 150 sales agents, $600K wholesale value of product annually

Surrey, BC 3 cooks and 150 sales agents, $600K wholesale value of product annually

Laval, 2 cooks and 100 sales agents, $400K wholesale value of product annually

Halifax, 2 cooks and 100 sales agents, $400K wholesale value of product annually

This formula can be implemented worldwide!

Team members reaching targets set by wholesale value quotas, $200K cooked annually
and $5K in annual sales will be rewarded annually with a 5% bonus.

Thus cooks will get $10K and sales agents, $250.

If cooks could obtain benefits from social services then I would be responsible for paying wages and annual bonuses only

Notice I avoid overhead as much as possible.  This is true of loans I am required to pay back.

Therefore, I am interested in grants, crowdfunding and philanthropy. Free money I am not required to repay.

If I don't receive funding then I will simply supply myself with herbal products I develop and cook for my personal use only.


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$20K product involves 10K lip balms (sell 5 ml for $1 each),  3.333K salves (sell 45 ml for $3 each)

250 L EVOO oil ($2K @ $8/L), 50 kg herbs ($2.5K @ $50/Kg), 28kg beeswax ($625 @ $8/lb). Cost is $5,125.

10K lip balm containers ($2.1K ), 4K salve containers ($2K). Cost is $4.1K.
Total direct cost to produce $20K of product is approximately $9.225K  

Except the lip balm containers and beeswax, these costs are based on the purchase of small quantities.
I need to reduce this cost. 
My cost to produce $20K worth of product every 13 weeks should not exceed $8K

Each Quarter First year involves:
Spend 3 weeks cooking $20K worth of product. 
Spend 10 weeks selling and giving away product
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CCC