How to Raise Money for your Juice Bar/ Truck or Delivery Service

How to Raise Money for your Juice Bar/ Truck or Delivery Service

How to Raise Money for your Juice Bar/ Truck or Delivery Service

Steve Prussack, Founder of Juice Guru Institute
on November 5, 2020

You know that you will need funds to get your Juicing business up and running. You may have Certified Juice Therapist’s qualifications, but you still need to get the cash to establish your dream business.

For people focused on helping others in their health and wellness journey, sourcing funding for a business startup isn’t a strength we have had the opportunity to develop. In truth, the whole process can feel overwhelming – not knowing where to start.

You can go through many avenues to get startup funding, and you don’t have to choose just one route. Accessing funds from multiple sources is possible if you are organized and prepared to do the leg work.

One funding source isn’t better than any other. Your decision will have a lot to do with your risk tolerance and the different contingencies you have in place. Read on to find out some of your funding sources and how they might help.

Raising Money for Your Juicing Business

Self-Funding

This type of funding is where you invest your savings into the startup. Not everyone can do this, but remember, you don’t have to throw all of it in. You can do a partial self-fund if that is what is needed to start up your Juicing Bar.

The best part of self-funding is that you’re not required to give away any equity in the self-funded part and don’t have any loan repayments. It’s risky to put all your savings into a startup, particularly if you don’t have any experience.

Bank Financing

This funding option is the heaviest relied upon choice up until recently – the landscape is changing! It involves accessing business loans, credit cards, or lines of credit to fund your juice business startup.

You will need to show a good credit score, have your tax returns in order, and an exceptionally well thought out business plan. The banks will also require collateral.  This will usually be a house or property that you own.

The best part of a business loan is you won’t be required to hand over any business or brand equity. But, in the current climate, it is sometimes hard to access these loans. Also, the interest repayments mean you are eating away at your profit every month.

Investor financing

This funding source is where investors use professionally managed funds to invest in companies they see as potential successes. It isn’t easy to access this type of funding as a startup because they prefer more established companies already experiencing a positive financial outcome. But it’s not impossible.

This funding differs from traditional financing because it offers ownership of the business rather than repaying a loan with interest. Utilizing managed funds can have you raise the full amount of funds in one hit. However, it does mean the fund can have a big say in your operations, limiting your decision-making.

Angel Investor

A high net worth individual with surplus cash, ready to invest, are referred to as angel investors. They can work alone or within a network of multiple angel investors.

Angel investors helped fund a few of the most successful startups globally, such as Google and Alibaba. These angel investors often give business advice and are available for mentorship. But there is a cost. They usually demand up to 49% equity in the company.

Business Accelerators

This type of program is found in every major city. They are designed to accelerate your business by nurturing it through access to tools, training, and networking opportunities. They often fast track your business from concept to opening within 4-8 months. Hence the name accelerator program.

The best part of these programs is having access to mentors, business advisors, tools, and other experts, including angel investors and venture capitalist funds. These programs are very selective and extremely competitive.

Crowdsourcing

Crowdfunding offers a highly creative way to gather funds needed for startups. You can almost describe it as taking contributions, pre-orders, or guaranteed discounted prices when the product comes online. Essentially, in the juice business, you will be preselling at a small discount.

As the entrepreneur, you describe the business on your selected platform, indicating its goals, plans for profits, what funding amount is needed, and how the funds will be used. People choose to either make a donation or, more commonly, pre-purchase the product at a discounted rate.

It’s not a way you can raise vast amounts of money, but you do have creative freedom, and you can generate a community of potential customers before your business opens.

Micro investment

This funding is commonly referred to as seed investment. It’s where you access non-banking financial institutions because your traditional banking options are limited. This may be due to having a poor credit rating. It also may be due to having little or no collateral. Potentially you would be able to raise enough money for a complete startup, but you would have to do it over multiple sources. This can become complex.

Small Business Grants

Business grants are monetary funds given to a business by an organization (usually the government but not always) for a precise purpose. Startups commonly use them. These grants don’t need to be repaid. The catch is they come with restrictions. The money needs to be spent in the exact way outlined by the provider of the grant.

There are specialized programs for minority or disadvantaged groups in every state that you may access. Each state differs, but some include woman’s business grants and even veterans grants.

Establishing Relationships with Investors

Communication is an essential part of your relationship with your investors. Strong, clear, and concise communication is needed when you craft the funding agreement and full transparency in your relationship as it unfolds throughout your business journey together. It’s best to have fewer investors to decrease communication problems and be able to maintain relationships.

Also, consider your equity agreements. The investors will get a minimum of 40% in your contract. A lot of investors will ask for more. You should never go over 49% of equity; otherwise, you lose control of your brand and business.

How do you find Investors for your Juice Bar?

It would help if you talked to multiple experts in the area. Consider talking to entrepreneurs who have acquired loans or investments and what worked and didn’t work for them. They may be able to introduce you to their network.

Attend local business meet-ups and speak with the other members. They may be able to point you in the right direction of local funding sources or bank managers that are willing to hear your pitch.

To save your time and energy, consider pitching to several investors at once, rather than setting up single meetings. Pitch to 15 potential investors but only have spots for 5-8 investors. This creates a sense of urgency and action within the group.

Set up a tasting experience for local investment groups or individuals. It’s another excellent way of creating excitement around your startup.

Know what your investors are looking for. If it is purely financial gain, pitch that angle. If it’s a local philanthropic investor, speak about the potential for community enhancement.

Always think of the potential questions you will be asked by people who want to protect their money. The truth is – they are looking to put their money to work. You are essentially helping them make more money. Always answer any concerns before they are voiced. This is where your SWOT analysis will come in handy when you did your business plan.

The most important point – be professional. No-one wants to invest money in someone who is disorganized, untidy, and sloppy. People invest in people. Present yourself as someone who can run a juicing bar business and be able to do it well.

    About Steve Prussack

    Steve Prussack is the founder of Juice Guru Institute. He is the bestselling author of "Juice Guru" and "The Complete Idiot's Guide to Juice Fasting".

    Grab the ONLY juice recipe you'll ever need!

    This is The ONLY Juice Recipe You'll Ever Need! GET Juice Guru Steve Prussack's "TAPE TO THE FRIDGE" poster day. It's the same recipe that was featured in our Amazon bestselling Book, Juice Guru: Transform Your Life by Adding One Juice A Day".

    How to Write Your Juice Bar Business Plan

    How to Write Your Juice Bar Business Plan

    How to Write Your Juice Bar Business Plan

    Steve Prussack, Founder of Juice Guru Institute
    on October 17, 2020

    Are you wanting to start a juice bar business? You should, because it’s a clear avenue to capitalize on your qualifications as a health coach and Juice Guru® Certified Juice Therapist.

    Juice bars can be easily set up and run to generate huge profits with minimal financial investment. But you need a plan to help you set goals and detail the steps on how you are going to accomplish them.

    Benefits of a Business Plan

    1. If you need to raise capital, you have something to show potential investors.
    2. It will get you clear on all aspects of setting up the business, so you won’t come across any surprises.

      Benefits of a Business Plan

      1. If you need to raise capital, you have something to show potential investors.
      2. It will get you clear on all aspects of setting up the business, so you won’t come across any surprises.

      Every good business plan starts with…an executive summary

      But in reality, the best executive summary is done last. Why? Because it is a concise overview of what type of business you are, your product, market, location and unique selling position.

      You need to have done the research for all the other sections before you create a summary of how your business is going to come to life.

      If this plan is going to be used to source funding you need to make sure it is formulated and presented in a way that motivates the reader to continue reading. To do this, you can take the reader on a journey as they step inside the store or walk up to the van.

      The most important thing to remember is that it’s not long. It’s only a summary of the elements and the detail that you will flesh out later in the plan. For a guide, it should be no more than a full page long.

      Business Description

      This section will lay out who you are, your target market, your competitive edge (Juice Guru® Certified Juice Therapist and health coach), and what product and service you are offering. Keep it to a few paragraphs and know that you will go into more details for each point you share in the sections below. You also need to explain your business model, the mode of service (in-store, deliver etc) the interior and customer experience and briefly mention the business owner or founders.

      Like the executive summary, this description is best left until you have completed the rest of the plan.

      The Business of Juice Bars

      This is where you put in a brief description of the overall Juice bar business. Don’t assume that people understand the viability of this type of business. Reference annual revenue, and the key drivers of popularity in the industry. Explain to the reader how the current industry is going to relate to the success of your juice bar business.

      Sales Plan and Strategy

      This is where you must explain the models of service of your sales in depth. These can include in-store, takeaway, online orders, catering, delivery by the store, and delivery through third-party apps.

      This is the section to mention your marketing strategy on how you are going to expose people to your product. Include marketing collaterals such as posters, flyers and brochures. You should also discuss your digital marketing strategy and the techniques you will utilize, such as website, social media and email marketing.

      Spend some time outlining any strategic partnerships you have created, such as with gyms or fitness studios. You can also discuss how you will handle your in-house promotions, the informed selling strategy and loyalty rewards program to incentivize your customers to return.

      Brand Concept

      This is where you will have creative freedom – communicating what your company values are, and how they are expressed through your business concept.

      You will need to flesh out what aspects of your brand that make your business unique. Outline the vision of your brand and what it represents. What are the values and how are you going to create that for your customers?  

      Your Competitive Advantage

      What is your competitive advantage? If you are a health coach and Juice Guru® Certified Juice Therapist, this is your time to shine. If you have done other certifications, let people know. Don’t be shy in holding back.

      If you have unique strategic partnerships with other business in the area, this is where you make sure they are documented.

      You must show people that you have advantages over other business’ in your surrounding area.

      Industry Outlook

      This is not only good for investors but need to know information before you make any concrete decisions about opening up a juice bar business. You and your investors need to know where the industry is trending.

      A lot of this information is online, the best quality information you will have to pay for.

      Consider including the juice industry revenue statistics, growth projections, demographics research with customer avatars and patterns of buying habits. You can also discuss the technology that is aiding the industry and what advances if any are on the horizon.

      Always put a predominate display of your key findings of the industry outlook in this section. Make them easy to read and relevant.

      Relevant Market

      Research the consumer market around the prospective location and break it down into neighbourhoods that surround the proposed location of the shopfront or van. Get a good indication of the demographics such as median age, median household income, male/female ratio, families with kids, unemployment rate. Anything that would impact on a juice bar revenue.

      Then detail the prospective location – either the address or local region. Explain why you chose this address including the proximity to local wellness centers or gyms. Anything that would indicate why this is a good area for a juice bar business. For added emphasis you can add some photos of the area and the potential assets of why the market is ripe for your type of business.

      Competitive Environment

      This is the area where you need to clearly outline any direct or indirect competitors.

      Direct competitors are considered to be within a two-mile radius and have a similar concept to your store. These would be other juice or smoothie businesses, acai bowl stores or juice vans. Include their name, what they sell, how long they have been in business, the average price point for their main product that is similar to your prospective business.

      You should also include the indirect competitors within a two-mile radius of the proposed location. These are the businesses selling similar products as a part of their menus, such as cafes, coffee shops or other health food places. Include their name, what they sell, how long they have been in business and the average price point for their main item that is most similar to your business concept.

      It is also good to show your key findings of this section and summarize it down into two or three bullet points.

      Relevant Business Demographics

      You should outline the yoga, Pilates, CrossFit and other fitness studios in the area. Detail the names and demographics they are focused towards. This will reveal your target market and prospective customers – namely health-conscious and active people with disposable income who are seeking fresh, healthy options to eat and drink. The longer the list of these types of businesses the better.

      SWOT Analysis

      This can be done as a bullet point list.

      • Strengths – outline the strengths of your business. Consider factors such as your unique concept, the location, business experience or qualifications.
      • Weaknesses – outline the weaknesses you foresee. This shows that you are thinking ahead. You can plan for these instead of being blind to them.
      • Opportunities – show that you are considering the opportunities in the area in how your company can grow.
      • Threats – what are the potential threats that can hinder your business success.

      It’s important to share all these factors with potential investors up front. They will ask the questions anyway. You can get ahead of the game and show that you have thought these issues through and aiming for long term business success.

      Management and Personnel

      You should always have a biography of the owner or founders. Detail relevant personal information. What is your history and your vision for the business? Then drill down on your educational and professional background and how your skills can be transferred to the management of this business.

      Then delegate the roles and responsibilities of the future hires from management through to kitchen, clean and front of house crew team members. Indicate the experience requirements if needed, characteristics, the role description and key responsibilities.

      Financial Assumptions

      Make sure you put in the key financial assumptions of the juice bar business. This should show start up costs of the storefront lease or van costs, build out costs, licenses and permits, utilities deposit, equipment, menu creation, labor training, inventory, signage, marketing etc.

      Next, outline your payroll expenses and production costs.

      Finally, give a breakdown of how many customers are going to have to come through the door and purchase to make your assumptions break even and profitable.

      Financial Projections

      Be conservative here. Know where your breakeven point is going to be and how long it is going to take to get there. What is your year-end net profit going to look like? Give a month by month projection for the first year. You should also indicate any financial projections into the next year, two years and beyond.

      Milestone Schedule

      This is a timeline of when the major steps that have to take place to launch your business. It will include the schedule for raising funds, organising the lease, getting the relevant licenses, to the grand opening date.

      Remember, you can find many templates on the internet that give you a base to work with and set out the information in a professional and easy to read manner. Utilise them. You don’t have to reinvent the wheel.

      About Steve Prussack

      Steve Prussack is the founder of Juice Guru Institute. He is the bestselling author of "Juice Guru" and "The Complete Idiot's Guide to Juice Fasting".

      Grab the ONLY juice recipe you'll ever need!

      This is The ONLY Juice Recipe You'll Ever Need! GET Juice Guru Steve Prussack's "TAPE TO THE FRIDGE" poster day. It's the same recipe that was featured in our Amazon bestselling Book, Juice Guru: Transform Your Life by Adding One Juice A Day".