Financial Plan

  • Financial Plan

    Public elementary school students in the Denver Public School System will use our nutrition education services. We intend to provide two after-school sessions per week (per each school participating) and will charge students $10 per class. The schools in which we partner will retain 5% of the profits to encourage schools to promote our services to their students. Additionally, we plan on performing our services throughout the entire school year. We initially expect to capture 1% of the market share (which equates to roughly one school) and we plan to double our outreach each year. That being said, we estimated $18,200 total revenue for our first year of operation. This includes $2,500 in a nutrition education grant and $500 in donations, which we expect to increase each year of operation. For our first year of expenses, we anticipate various start-up costs including legal non-profit start-up fees ($325), printer costs ($5,000), and a van to transport food from local grocery stores ($12,950). Additionally, we have calculated wages for nutritionists ($26.75/hr), administrative workers ($20/hr), and drivers ($16.50/hr). We are assuming that the non-profit is operating in a pre-COVID academic environment and that the nutritionists will be paid to not only develop the curriculum but also train volunteers to teach it. As such, our total expenses for the first year are estimated to be $42,811.00, which includes the amount of capital needed for startup and wage expenses. We predict that we will have a net loss of $24,611.00 after our first year, as our revenue will not be enough to cover our expenses. We expect to continue to have a net loss up until year three, where we will eventually break even. In addition, we plan on spending an additional $12,950 for another van and driver in year four upon expansion, so that we can reach more schools. We expect our cash burn rate to be $44,792.00 in year two and three, $59,854.00 in year four, and $46,904 in year five. By the end of the fifth year of operation, we expect to make $206,796.000 in net income. Given that we receive groceries to conduct our after-school programs free by partnering with local grocery stores and that our business model is mainly volunteer-based, we are able to break even relatively quickly. See our attached budgeted income statement. 

     

  • Year

    Revenue

    Total expenses

    1

    $18,200.00

    $42,811.00

    2

    $33,900.00

    $44,792.00

    3

    $65,300.00

    $44,792.00

    4

    $128,100.00

    $59,854.00

    5

    $253,700.00

    $46,904.00

  • Competitive Edge

    Health Nuts has a competitive edge because it provides a lower-cost alternative to the average after school program in Denver (the average Denver program is $14/hr (Grossman, Lind, Hayes, McMaken, & Gersick, 2009)), provides hands-on nutrition education that is not regularly present in the public school curriculum, adds a hands-on component to nutrition education, encourages parent involvement, and partners with local grocers to promote community wellbeing.  Health Nuts is a wonderful alternative to other after-school programs; while all provide supervision, Health Nuts provides lessons that could change students' attitudes towards food for a lifetime. 


This portfolio last updated: 08-Jun-2020 12:41 PM