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NUTROLOGICNUTROLOGIC“The organic way to a healthier you”

“The food you eat can either be the safest and most powerful form of medicine or the slowest form of poison.” 

Ann Wigmore

ENTREPRENERIAL FINANCE - BUSINESS PLAN

BUSINESS PLAN – NUTROLOGIC

“The organic way to a healthier you”

Submitted By:

Nighat Zahra

Salman Sikander

Memoona Altaf

Rehan Ejaz

MBA - V - B

Submitted To:

Mr. Burki

Table of ContentsEXECUTIVE SUMMARY.........................................................................................................................4

1. BUSINESS OVERVIEW........................................................................................................................5

1.1. Business Description........................................................................................................................5

1.2. Need for Nutrologic – Why Focus on Nutrition?..............................................................................5

1.3. Business Vision/History...................................................................................................................6

1.4. Ownership structure..........................................................................................................................7

2. PRODUCT/SERVICES...........................................................................................................................8

2.1. Description.......................................................................................................................................8

2.2. Research and Development..............................................................................................................9

2.3. Service Quality.................................................................................................................................9

3. INDUSTRY /MARKET OVERVIEW............................................................................................................10

3.1. Market Size Growth & Trends........................................................................................................10

3.2. Customer Segments........................................................................................................................11

Nutrologic will target following groups or segments of potential customers:........................................11

3.3. Consumer Demographics................................................................................................................11

3.4. Industry Participants / Competition................................................................................................11

3.5. Marketing & Promotion Strategy....................................................................................................12

3.6. Pricing Strategy..............................................................................................................................13

4. OPERATIONS & PERSONNEL PLAN...............................................................................................14

4.1. Office Location & Monthly Rent....................................................................................................14

4.2. Equipment Required & Office Décor.............................................................................................14

4.3. Personnel Required/Expenses.........................................................................................................15

5. FINANCIAL PROJECTIONS.......................................................................................................................16

5.1. Start-up Financing..........................................................................................................................16

5.2. Profit & Loss Statement..................................................................................................................18

5.3. Balance Sheet.................................................................................................................................19

APPENDIX...............................................................................................................................................21

EXECUTIVE SUMMARY

Nutrologic will be provide complete consultancy in areas of nutrition and assist clients in making

healthy eating choices. It will be located in Blue Area Islamabad. Nutrologic will provide

services such as total client assessment, identification of eating pattern, cooking patterns,

assistance in weight loss regime, guidance to diabetic, Heart related patients etc. who have

specialized food requirement. It will focus on helping and guiding our clients to adopt a healthier

lifestyle rather than focus on Fad diets that have less impact on our overall health in the long-

term. In recent years there has been focus on organic food and healthier eating choices

worldwide, moreover, there is a rising trend of heart related diseases in Pakistan owing to the

fact that our dietary choices leave much to be desired. So keeping in view the current scenario

and prevalence of dining out especially at fast-food joint sin urbanites is an open invitation to

future Heart risks and other health complications, So there is need for services like Nutrologic

that brings healthier eating options to people while bring a balance in their eating preferences.

It will be co-owned as a partnership by following members: It will be started with Rs. 400,000

seed financing obtained through family and friends.

Nighat Zahra 25%

Salman Sikander 25%

Rehan Ejaz 25%

Memoona Altaf 25%

This plan includes sections on business overview, Nutrologic’s services, Industry/Market

Overview, Operations/Personnel overview & Financial Projection.

1. BUSINESS OVERVIEW

1.1. Business Description

Nutrologic’s focus is on helping our potential customers in making the right choices when it

comes to nutrition. The business focuses on providing professional consultation and teaching of

healthy cooking techniques and recipes to our customers. To accomplish this purpose only

PNDC (Pakistan nutrition and dietetic society) certified nutritionist will be hired, moreover for

cooking, in-house cooks will be hired and trained with help of our nutritionists and number

generic recipes will be developed to everyday nutritional purpose. For special individual cases

person specific menu will be created based on the needs of the customer or patient.

1.2. Need for Nutrologic – Why Focus on Nutrition?

Diet plays an important role in the maintenance of good health, stamina, prevention and cure of

diseases. Good health can be preserved and promoted only by the right kind of food and on the

flip side wrong nutritional choices are an open invitation to disease. Thus, therein lay our

opportunity to provide services that helps our customers to not only maintain body weight, health

and prevent future diseases such as cardiovascular diseases.

According to Dr Sania Nishtar (President and Founder of Heartfile, Pakistan) - “To prevent

cardiovascular disease, countries need adequate health systems. But adequate health systems do

not just appear out of nowhere; they require a lot of inputs. One important prerequisite is

adequate health information. In other words, countries first must know what is ailing their

people. Are they too heavy? Are they too physically inactive? Do they smoke too much?”

Nutrologic focuses on bridging this gap by developing individual profiles of its customers and

guiding them in making right choices that do not jeopardize their health or their family’s health

by and large.

According to the national nutrition survey (2011), around 60% of Pakistan’s total population is

facing food insecurity. The results of the survey are termed by health experts as “alarming”, and

indicate a significant decline in the nutritional status of the people of the country over the past

decade. The survey took a sample of 30,000 households nationwide covering all the provinces

and found that around 57% of the households face food insecurity. Furthermore, 50% of the

women and children are found to be malnourished. The report states that iron deficiency

(anemia) and vitamin A deficiency remains widespread in the country; however, iodine

deficiency rate had reduced during the last decade.

These statistics are indicative of the underlying fact that various nutrients are essential to build

up and maintenance of healthy cell tissues, glands and organs in the human body. Without lack

of specific nutrients the body is not able to perform any of its functions, be they metabolic,

mental physical or chemical. Furthermore, there is strong need to not only create smart health

solutions for our community at large but also balance the need for making adequate revenues to

survive as a business venture.

1.3. Business Vision/History

Nutrologic (Nutrition + Logic) is a business idea that aims to guide and help customers and

community at large in making healthy nutritional choices. Our Vision is to provide the services

in a professional manner by a unique focus on the atmospherics of our consultation place as well.

The consultation area will be designed keeping in mind the natural and organic trend such as use

of light white colors on walls, full of natural lighting, potted plants to give it an appropriate feel

that matches with the business itself.

Our mission is to:

“Give guidance, clarity

and inspiration to people

to listen to their bodies”

1.4. Ownership structureNutrologic will operate as a partnership. It comprises of four members or partners who will

provide seed financing for the business. Business will be financed at developmental stage with

the help of equity provided by the members via friends and family contacts.

Profit/Loss will be shared according to capital invested and the range of services provided to

the business. The partnership deed will be prepared with the legal aid of Advocate High Court,

Mr. Imran Mumtaz Malik (contact # 0300 – 52060181 & 0315 – 5206181).Details of ownership

share is given below:

Nighat Zahra 20%

Salman Sikander 30%

Rehan Ejaz 35%

Memoona Altaf 15%

2. PRODUCT/SERVICES

2.1. Description

Nutrologic’s services work off the idea that food can be used to help the body fight disease. Our

focus will be on considering the quality of food, client’s likes and dislikes, their eating habits and

the availability of food; as well as we will also take into consideration the lifestyle factors. Our

Philosophy is:

2.2. Initial Appointments & Follow-up Appointments:

Initial appointments are 60 minutes and follow-up appointments are 30 minutes. The initial

assessment will cover following basic areas but it can vary according to client’s questions:

Dietary assessment

Weight and height measurements and Body Mass Index calculation

Assessment of how clients lifestyle, including meal planning, shopping, cooking habits

and other factors influence their eating behaviour

Development of a personal diet plan with SMART* goals

Further consultations of 30 minutes will offer continuing support and ongoing advice to help the

client to achieve the previously set goals.

Our nutritionist will be able to help our clients in:

Identifying dangerous dietary behaviors that may contribute to the development of an

eating disorder.

Maintaining a healthy, balanced eating pattern while coping with the pressures of life

( student life, work life, stress of running household etc)

Designing a nutritious meal plan within limited financial resources

“We really ARE what we eat, so isn’t it worthwhile to take a

look at what we are putting into our body?”

Making healthy food selections while dining at a restaurant.

2.3. Menu designing & Healthy Shopping Assistance:

The menu will be designed keeping in mind the nutrition and dietary needs of the client but also

to create a generic menu which is based on healthy cooking techniques such as steaming, grilling

etc. Moreover, inclusion of multi-nutrients in diet so that the client’s have a healthy health. Our

focus will be on helping the clients adopt a healthy lifestyle rather than adopt a Fad diet for a

small period of time. To make things easier for our clients, recipe cards will be given to the

clients, which will give detailed directions for making the particular recipe. Furthermore, our

nutritionist will also help (as per the client needs) in making healthy choices while shopping. For

that purpose, clients will be given directions as to what products or brands to buy that will not

compromise their health.

2.2. Research and Development

In recent years, there has been steady rise of Fast Food eateries in Pakistan and especially major

cities of Pakistan. These eateries provide calorie ridden food that is deep fried and is also linked

to cardiovascular and many other health problems. Furthermore, even in Pakistan Heart diseases

and stress related diseases are on rise and are also linked to bad food choices. Therefore, there is

need for creating awareness of healthy food in our community. In order to understand the public

reaction to such a business idea, we conducted a small survey of following areas for introducing

our business. The surveyed area is: F-sectors, G-sectors, BahriaTown, and Sadder area in

Rawalpindi.

2.3. Service Quality

As Nutrologic is concerned with providing services by and large, service quality becomes

imperative to ensure the satisfaction of our clientele. In order to do that our reception staff and

management staff will be trained to help our client’s in professional manner and our values will

be:

“Be honest, be courteous and kind to customers and respond to

their problems as if they are your problems”

3. INDUSTRY /MARKET OVERVIEW

3.1. Market Size Growth & Trends

According to a survey known as “Global trends in Healthy eating”, conducted by Nielsen

Company in 2010, it is stated that in Middle East, Africa & Pakistan, time and expense

associated with healthy eating pose the lowest barriers to this region in which consumers find

themselves short on healthy eating options (31%) and are confused as to which foods are really

healthy (30%). As a result, they are the least likely of any other regions to select organics

because they are healthy, to avoid toxins and bypass genetically modified organisms. However,

consumers in this region are the most likely to select organics because they taste better (59% vs.

global average of 45%).  They are also the most likely of consumers in any other region (29%) to

select products that come from farmer’s markets when grocery shopping.

The survey highlights the need for not only creating awareness for healthy food options but also

providing a proper service that helps the clients in their everyday decisions regarding eating,

food preparation etc.

In Pakistan, by and large very little emphasis is paid on nutrition and the general trend is on the

taste of food. The challenge over here is to come up with menus that are healthy but at the same

time are not high on calorie side. Furthermore, the taste needs to appeal to our customers and it is

general myth that healthy food tastes bad and it is boiled food all the time. Since, this healthy

food market is not aggressively targeted from commercial perspective, our focus is to not only

educate our clients but also help them in achieving a healthy lifestyle. Our clientele will be from

Rawalpindi and Islamabad especially more upscale sectors and areas as these are the clients that

can afford such services. All it needs is to create fun, healthy menus that nicely fit in with

consumers eating preferences.

According to the 1998 census, population of Islamabad was 800,000 but up till now it has more

than doubled according Dawn news, 2011. Moreover, there is insignificant increase in the

number of houses in developed resident sectors like F-6, F-7, F-8, G-6, G-7, G-8, and G-9. It

pinpoints to the fact that there is considerable market potential, if proper awareness can be raised

through effective marketing program.

3.2. Customer Segments

Nutrologic will target following groups or segments of potential customers:

Seniors:

They have several health issues like, diabetes, heart risk etc.

Housewives/Working wives:

As they usually making family nutritional decisions

Executives (25 to 60 years):

Lifestyle of working people is usually busy and full of stress that also leads to eating Fast food

and unhealthy dining choices.

3.3. Consumer Demographics

Initially, our clientele will be those people who are health conscious and living in upscale areas

of twin cities as these individuals have income level that allows them to avail such services and

secondly it is more fashionable in these socioeconomic strata to be more health conscious. It is

evident from the spa services, aerobics services that these segments consume. So, it makes

logical sense to target this clientele.

3.4. Industry Participants / Competition

In both cities, nutritionist services are not that common even in Hospitals, such as in Shifa

Hospital there is a separate department for Nutrition, which is run by Consultant, Ms. Rezzan

Khan. Many other Hospitals do not have a separate department for it and not certified nutritionist

on panel. If there are such services they are more in the form of private clinics about which not

much is known to general public at large. There is therefore need to create such just like in

western countries where nutritionist and dieticians run private practice or in the form of LLC’s.

In this case one such organization that is working in Pakistan is PNDC (Pakistan nutrition and

dietetic society) and other is NHC (Nutritional health consultants, Karachi). NHC focus on

individual consultations and also works in creating awareness. They also help in clinical setups

and hiring professionals. Our focus will be to have those nutritionists in panel who have an

experience and also are certified members of PNDC so that proper professional guidance could

be provided to our clients.

3.5. Marketing & Promotion Strategy

Advertisement is always compulsory for every kind of business and as well as we also need to

advertise in our project.

Radio

We talked to Mr. Najib Ahmed (Director) Power Radio FM 99 he told us advertisement cost in

his station is PKR.600 per minute. If advertisement time is less then minute then there would be

fewer charges. Our advertisement duration approximately would be 20 second they agreed to

charge PKR 200 per 20 seconds, no minimum required, and flat rate is same all over the year.

For City Fm89 the contact info is: (051) – 2606121 to 23.The budget we have set for this

purpose is around 700 – 1000 Rs at both radio stations per single advertisement.

Newspapers

Thirdly we will advertise through The News & Dawn Newspaper as these are the most widely

read newspaper and also carries a local edition. We will give the code of advertisement in jang

newspaper For 468 x 60 (Full Banner) ad format. The single ad costs will range from 500 Rs –

1000 Rs. We have kept a margin so that rate fluctuations will cover any changes.

For placing ads in dawn Newspaper:

DAWN NEWSPAPER – ISLAMABAD

Mr. Asim Effendi, Senior Manager Marketing

Tel: (051) 2202701 – 5, 2891506

Email: asimeffendi@dawn.com

THE NEWS - ISLAMABAD

Mr. Najib Ahmed 

Tel: 051-2102899; Cell: 0345-5299999

Banners

We will order banners from Shafiq Sign Services. The cost of 2 x 4 feet banners is Rs150 per banner. And we ordered 200 banners. The cost of banners is Rs 30,000.

Contact detail is as follow:

Muhammad Shafiq Butt

Ph # 5550948

Cell # 03005019090

3.6. Pricing Strategy

Our services are primarily based on consultations, menu preparation, shopping guidance and tips

and other nutritional blood tests, Lipid tests, Vitamins tests (Individuals will have them carried

out in private labs like BIOCARE labs, Islamabad). Our Basic Consultation fee per single

session will vary from 1500 Rs – 2000 Rs. If additional services are availed than charges can

vary from 2500 Rs – 3000Rs. These consultation rates are based on standard rates in other

Hospitals such as in Ali Medical Consultation fees. Our pricing strategy will be based on

standard market rates.

4. OPERATIONS & PERSONNEL PLAN

4.1. Office Location & Monthly Rent

As most of our clientele is located in Islamabad, our office will also be located in Islamabad. Our

office will be at following location at Rs 150,000 per month:

4.2. Equipment Required & Office Décor

The equipment required is the standard equipment as any office requires, but since our services

are related to lifestyle factors the office décor will also exhibit that aspect of our venture. The

minimum criterion is:

Office Desks

Reception area

Telephone lines

Lighting Equipment

Split AC

Heating Equipment for Winters

Chairs for waiting area

Office Chairs

Cupboards for Books and Client information

Computers ( For our panel Nutritionist and reception area)

Kitchen utensils & cutlery etc.

Refrigerator

Wall Painting etc.

Potted Plants & watering Buckets

Stationeries

TV in reception area

Cable TV Charges

For office décor, professional services will be hired:

Mr. Imran Rathore - Wallgrace Trading Company

Off. # 3, 3rd floor Paris Plaza Commercial Market, Rawalpindi.

Phone: 051-7152848; Cell: 0333-5111724, 0321-5111724

4.3. Personnel Required/Expenses

Following Personnel will be required to run the business:

Nutritionist – Initially, one nutritionist will be hired by placing an ad in newspaper or

preferably through using personal contacts of the business partners. Care will be taken to

make sure that they are PNDC certified nutritionist and moreover their degrees will also

be verified.

Business operations will be carried out by all partners:

Marketing & operations - Ms Nighat & Rehan Ejaz

Account Services – Mr. Salman Sikander

Human Resource & Reception Area – Ms. Memoona Altaf

Office Boy & Janitor – One office boy & Janitor will be hired using newspaper.

Guard – one guard will be hired using the following agency:

Zim Security Company

3rd Floor, dosal plaza, Blue Area, Islamabad

Tel: 0334-5302728

Expenses :

Nutritionist Salary per month – Rs. 160,000 (80,000x2)

Guard Salary – Rs. 10,000

Office boy Salary – Rs. 8,000

Office Janitor – Rs. 5,000

5. FINANCIAL PROJECTIONS

Our start-up costs cover the renovation of the occupied office space, professional fees, and

expenses associated with opening our first location. The start-up costs are to be financed by

direct owner investment. The financial picture is quite encouraging. We will be slow to take on

debt and heavily investing our own assets, but with our increase in sales we do expect to apply

for a credit line with the bank, to a limit of Rs. 500,000/-. The credit line is supported by assets.

5.1. Start-up Financing

Table: Start-up Financing RupeesStart-up FinancingStart-up Expenses to Fund 85,000Start-up Assets to Fund 579,000Total Funding Required 664,000

Assets Non-cash Assets from Start-up 519,000Cash Requirements from Start-up 60,000Additional Cash Raised 0Cash Balance on Starting Date 60,000Total Assets 579,000

Liabilities and Capital LiabilitiesCurrent Borrowing 0Long-term Liabilities 0Accounts Payable (Outstanding Bills) 145,000Other Current Liabilities (interest-free) 119,000Total Liabilities 264,000

Capital

Planned InvestmentOwner 1 100,000Owner 2 100,000Owner 3 100,000Owner 4 100,000Other 0Additional Investment Requirement 0Total Planned Investment 400,000

Loss at Start-up (Start-up Expenses) (85,000)Total Capital 315,000

Total Capital and Liabilities 579,000

Total Funding 664,000

Start-up Ex-penses to Fund

Total Assets Total Liabilities Total Planned Investment

0

100000

200000

300000

400000

500000

600000

Start-up Expense Table RupeesStart-up

Requirements

Start-up Expenses Legal 35,000 Stationery etc. 30,000 Other 20,000 Total Start-up Expenses 85,000

Start-up Assets Cash Required 60,000Start-up Inventory 369000Other Current Assets 150,000Long-term Assets Total Assets 579,000

Total Requirements 664,000

5.2. Profit & Loss Statement

Pro Forma Profit and Loss

1st Quarter 2nd Quarter

Revenue 790,000 1,230,000

Direct Cost 0 0

Other expenses 30800 25600

Total Cost of Sales 30,800 25,600

Gross Margin 759,200 1,204,400

Gross Margin % 96.10 97.92

Expenses

Payroll 549000 549000

Sales and Marketing and Other Expenses 45000 20000

Utilities 25800 30740

Insurance 0 0

Other 4500 7300

Total Operating Expenses 624300 607040

Profit Before Interest and Taxes 134,900 597,360

EBITDA 134,900 597,360

Interest Expense 0 0

Taxes Incurred 3750 3750

Net Profit 131,150 593,610

Net Profit/Sales 16.60 48.26

5.3. Balance Sheet

Pro Forma Balance Sheet

1st Quarter 2nd QuarterAssets

Current Assets

Cash 185,000

310,000

Inventory 420,000

533,000

Other Current Assets 23,000

44,500

Total Current Assets 628,000

887,500

Long-term Assets 565,000

565,000

Accumulated Depreciation -

-

Total Long-term Assets 565,000

565,000

Total Assets 1,193,000

1,452,500

Liabilities and Capital

Current Liabilities

Accounts Payable 526,480

583,200

Current Borrowing -

-

Other Current Liabilities 145,880

74,700

Subtotal Current Liabilities 672,360

657,900

Long-term Liabilities -

-

Total Liabilities 672,360

657,900

Paid-in Capital 400,000

400,000

Retained Earnings (10,510)

(199,010)

Earnings 131,150

593,610

Total Capital 520,640

794,600

Total Liabilities and Capital 1,193,000

1,452,500

Net Worth 520,640

794,600

APPENDIXGENERIC MENU PREVIEW