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Comment [Jon1]: Name of business?

@Jon's
Trademark?
Financial projections?
Authorizations, VAT, Trade license etc?
Good value for money?
Value Added Services and
Customer/Supplier Relationship
Establishment of a company to provide fitness classes in SEO/Viral Marketing
USB Sticks with brands
Malta and Gozo Ancillary services and projects
Sub-contracting
(India/Cote D'Ivoire)
ESTA code and professional conduct
Accreditation and accountability
e.g. Equal Opportunity, Health and Safety,
CIPD etc, when the business grows.
Equality
Access to persons with disabilities
Physiotherapists, trainers etc
Business First and legislation for small
business entrepreneurs.
The first 2 years are expected to be a
learning curve for the entrepreneur.
Statistics on the duration of businesses in
Malta, and, the IS/IT requirements of start-
up businesses.
MITA FP7 for MCST and Funding (Marie
Claire Tonna)
Parking space for clients?
QPM Management leased it for 10 years
and are sub leasing premises on each storey.
Showers might have to be fitted in, to
gather quotes.
Road sign?
Concave mirrors
Sauna?

Written by Mr. Jonathan Camilleri IADCS, who is referred to as the entrepreneur within this document, may
be contacted on for further queries:

Email: camilleri.jon@gmail.com

Postal address: 33, L. Casolani street, Birkirkara BKR 4535,

Malta (EU)

Online resume and testimonials are available online at http://mt.linkedin.com/in/jonathancamilleri.

Version 1.0 (draft) written during June 2013

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Confidentiality agreement
The reader acknowledges that the information provided within this business plan is confidential, therefore the reader agrees not to
disclose it without the explicit written consent of the entrepreneur.

It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than
information which is in the public domain through other means and that disclosure of use of same by reader may put the reader as liable
for the infringement of intellectual property.

It is assumed that the reader is familiar with business terminology, accounting, and, has a good grasp of the English language.

The document remains the property of the author, and, acceptance of reading this document is assumed to be an acceptance of this
agreement.

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Executive summary
The brand originated in Portugal in 2003 where we are the market leader of womens
centers, and now are quickly growing world-wide.

Currently we are on 3 continents: Europe (Portugal & Spain), Asia (India, Singapore and in
2013 we will open in Qatar, and Abu Dhabi) and South America (Uruguay).

Our mission is to run a successful business with a quick return on investment helping
women achieve results by creating healthy habits of physical exercise and nutrition.

Vivafit offers its members a fun, easy, and fast ways to exercise, live a healthier lifestyle,
and lose weight. At the core of the program is a 30-minute circuit exercise designed to
deliver a total body workout. In addition, Vivafit also offers Pilates classes as well as 30-
min Les Mills classes.
Vivafit Centers are comparatively small and therefore highly personalized reaching out to a
special niche within the market place.

Pedro Ruiz, Chief Executive Officer (June 2013)


Information sourced through interviews and through official documents made available to the public through advertising channels. The
company website is available [online] at http://www.vivafit.eu/.

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Company summary
The external environment

Fitness classes in the Maltese islands are popular and in demand. A survey carried out
amongst women indicates that dancing, weight training and cardiovascular are popular
amongst the sample surveyed and that they are aware of their daily total calorie
requirements.
According to the National Health Service (NHS), UK, the average male adult needs approximately
2,500 calories per day to keep his weight constant, while the average adult female needs 2,000. US
authorities recommend 2,700 calories per day for men and 2,200 for women. Sourced from
http://www.medicalnewstoday.com/articles/245588.php, last updated on 21st May 2012.

Partnerships with existing brands and pursuit of expansion by engaging shareholders and
seed funding are intended to make a cash cow of this business, targeting pricing that
would be competitive within the local market where established brands are already
established and popular, even amongst women.
Viral marketing, web marketing (e-shop) and social media shall be mainly used used to
promote the business. The loyalty scheme is intended to attract members to commit
themselves to subscribe as members and keep up a lifestyle that promotes healthy living
and regular fitness training.
The location of classes and the scheduling of classes are targeted to fit the needs of
interested persons, particularly women, who would like to go to fitness classes at a time
when it is convenient for them. On the other hand selecting the location for providing
classes is important because the entrepreneur would prefer not to engage in fierce
competition with similar brands, who might target to out-market this business should they
consider their business services to be at risk.
Cost savings is passed on to the end-customer in the form of loyalty schemes and
promotion.

According to Prof. Scicluna1 there are positive signs of economic growth for the Maltese
economy, and, this may encourage consumerism and more people to engage in a healthy
lifestyle, which is a perception held in common according to persons interviewed by the
entrepreneur.

1
Prof. Edward Scicluna is the Minister of Finance in Malta, and, his profile is available at
http://www.edwardscicluna.com/profile/.

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The Small Business Act, which is being discussed at various business meetings, promises
to reduce the time and cost of setting up a company, and, provide financial instruments of
the Competitiveness and Innovation Framework Programme.
Low risk Medium risk High risk
Substitutes for all Similar services for
services nutrition advice,
(see page 8 for list of services) beauty and slimming
and fitness/gym are
available
throughough the
islands using
established franchise
names.
New entrants to the VivaFit is already an
market established brand
worldwide.

Other brands might


provide a wider
range of fitness
products.
Buyers bargaining Competing fitness
power centres might provide
different pricing
schemes.
Suppliers bargaining Higher value orders
power are expected to avail
from bulk buying.
Workers' unions are not expected to have a strong influence. Professionals may be
offered employment on a part-time basis depending on availability, demand, and,
willingness to commit themselves to a regular schedule, although some might prefer to
provide services as a self-employed freelancer to the company.
The anatomy of the business process is expected to be influenced mainly by demand and
supply. Influence of the nation-state and regional authorities is expected to be low to
medium with the exception of basic regulatory obligations related to health and safety,
employment, environmental and other legislation which is required to comply with financial
and other incentives that may be granted by the Government of Malta or one of its
agencies and authorities.

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Strengths Opportunities
 Flexibility and competitive pricing can
be provided.  Ancillary services such as nutritional
 Pricing scheme encourages supplements, nutrition advice, beauty and
members to commit themselves to a slimming tips might be attractive to potential
program. customers.
 Premises is planned to be located  The firm may engage in donating a
within Birkirkara bypass, with close access percentage of the income to charity
to facilities. institutions which have a cause that fall
within the policies of the organization in
view of corporate social responsibility and
the fact that the entrepreneur highly
respects ethics.
Weaknesses Threats
 Work-life balance of entrepreneur.  Local and international competition
within IT Services, hence, higher price
elasticity.
 Business development may be a
challenge due to established competing
brands in the Maltese islands.

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Human capital analysis
For the time being, the entrepreneur intends to venture into setting up a one-person
business thus a micro-enterprise2, and business growth is perceived to be one of the
performance indicators.
Nutrition professionals, physiotherapists, gym instructors and possibly accounting staff
may be engaged by the firm. Initially the involvement of an accounting professional is
expected to be high. Their profiles will be available on the website for the purposes of
public relations.
The key persons would be involved and incentivized by being provided with share options
that they can purchase at a nominal value of 2, and, this gives them a share of the profits
during the company's annual shareholders' meeting.
Strategy and implementation summary
In order to benefit from limited liability, the entrepreneur intends to set up a private
company with the name of VivaFit Malta Limited.
The entrepreneur shall pursue opportunities for business networking, in order to create
collaborative ventures and seek seed funding for rapid business growth with providers of
ancillary services, although there is a risk that competitors attempt to out-market the newly
established firm. Therefore healthy business relationships need to be established with
competing firms as well, such as being smart with the location of classes so as not to
appear as poaching customers away from competition aggressively. Maltese business is
perceived to compete non-aggressive competitive culture that welcomes competition as
long as the enterprise has established itself in a manner that is ethical and does not
attempt to poach customers in a manner that breaches competition legislation, although
this might be an optimistic assumption made by the entrepreneur.
Accounting, administration and management of the affairs of the business, will be carried
out assuming that the business is a going concern.
The location of the enterprise still has to be established since the entrepreneur is looking
for a strategic location that provides visibility and ease of access to potential subscribed
and walk-in customers.

2
A micro-enterprise is a type of small business, defined by the European Union as those (businesses) that meet 2 of the following
criteria:
 has less than 10 employees,
 has a balance sheet total of less than 2M, and,
 a turnover below 2M.
The above information is available at http://en.wikipedia.org/wiki/Micro-enterprise, and, at the website of teh
European Commission for Small to Medium enterprises at http://ec.europa.eu/enterprise/policies/sme/facts-figures-
analysis/sme-definition/index_en.htm.
Within the Maltese Islands, the Malta Enterprise (http://www.maltaenterprise.com/ is responsible for attracting inward
investment and supporting enterprises. Commission recommendation 2003/361/EC concerning the definition of micro, small, and,
medium-sized enterprises, is available online at http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:124:0036:0041:EN:PDF, which builds upon Commission Recommendation
96/280/EC concerning the definition of small and medium-sized enterprises, available online at http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31996H0280:EN:HTML.
Independent business advisory, and, legal advice shall be undertaken by the entrepreneur.

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Financial projections
The entrepreneur envisages gross revenue streams to total up to circa 165,000 per year,
which are expected to provide no credit to members or customers.
The following table illustrates the expected revenues, averaged over 5 years3:
Fitness classes e.g. Pilates, Les Milles and personal 135,000
coaching
Nutrition advice 30,000
Sale of beauty products To be estimated
Sale of nutrition products To be estimated
500,000
The entrepreneur aims business development to improve the overall business and market
share of website development, and, consultancy projects, in the medium term.
At a high level, assuming that the entrepreneur will pursue the enterprise as a part-time,
and, thus won't require a regular salary. Business venture and networking in order to
improve capital inflows would improve the business model, and, stimulate business
growth.4
Start-up costs

Company start-up fees 2,000
Software licenses Depending on
project
requirements
Outsourcing of IS/IT and cabling To be estimated
Trade licenses, compliance fees, and, other permits To be estimated
Plumbing and electrical fittings To be estimated
these are
expected to be
considerable,
therefore requiring
a loan.

3
It is expected that the initial 2 years shall be the learning curve of the start-up business, and, the value and volume of business will help
the entrepreneur with the financial forecasts for subsequent years, although other external economic factors which are not predictable
would be taken into consideration at the start of each financial year. Thus the forecast is illustrative, and, will be reviewed regularly with
the business performance and financial indicators, in liason with a business consultant.
The entrepreneur shall endeavour to match creditors' terms with the debtors' terms so as to reduce the impact of negative cashflow
impacting the business, as a form of trade financing option.
4
Estimates and financial feasibility will be confirmed by an independent business advisor in due course. The financial forecasts will be
reviewed accordingly, in line with relevant news.

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Operating costs
Water and electricity 3,000 per year
Cleaning expenses 1,300 per year
Audit fees 600 per year
Stationery and office equipment 600 per year
Maintenance and cleaning of offices 2,000 per year
Communication expenses including mobile 2,500 per year
phone and internet
Travelling expenses (including fuel) 5,000 per year
Insurance on buildings To be estimated
Professional indemnity insurance
Sub-contracting and employment including Starting from 20,000 per year, and,
entrepreneur's remuneration revised on a project-basis.
Health and safety To be estimated
Training, education and certification
Marketing and public relations 50,000 per year
Compliance fees
Research Not applicable
Franchise and branding 100,000 upfront
950 yearly
Wages and salaries To be estimated
Lease of premises at Birkirkara 44,000 yearly excluding notarial fees,
taxes and legal expenses, unless these are
borne by the vendor.
Stocks 5,000 yearly est.

The entrepreneur is expecting payback within 1.5 years, considering an upfront investment
or total credit amount to around 200,000, which may include overdraft and start-up
financing for fixed costs, repayable at the interest rates applicable by the banking
institution and within the established terms and conditions of the facility.

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Start-up funding and financial model
The entrepreneur has limited financial capacity at the moment, and, is therefore pro-
actively seeking seed investors with experience within the nutrition, health, beauty and
fitness industry as business partners to collaborate within the Maltese business market.
Customers are expected to pay membership fees upfront according to the pricing model
established within this business proposal. Additional services, payable in advance include
one-to-one personal training and nutrition advice, the availability of a gym and equipment
to do routine cardiovascular training and lifting weights.
The entrepreneur shall seek to establish favourable credit terms with sub-contractors
where services, supplies or their part thereof are sub-contracted, for example by seeking
to negotiate favourable credit terms with suppliers and providers.
The entrepreneur shall seek to participate in local business associations of choice and
follow standards of good practice when it comes to credit management and due diligence
when dealing with third parties, to ensure that the customers avail from goods of high
quality and reputable brands. The entrepreneur is seeking to establish business
partnerships with suppliers and no agreement has yet been reached on the brands of
choice to be promoted.

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Pricing
Technical support calls shall be charged at the following rates, unless other rates have
been negotiated or agreed explicitly within a contract of service.

Pricing option A - Membership


Member subscription Price
Monthly membership for basic fitness 39 per month for 8 months
Monthly membership which includes basic 49 per month for 8 months
fitness and Pilates

Discounts, vouchers, and, free gifts such as make-up are available when signing up as a
members.
Members also avail from 2 hours of free nutritional advice in a group session, with our
highly qualified nutritionist of choice.

Pricing option B Pay by class


Basic fitness 4 per class per person (30 minutes)
One to one nutrition advice 40 per person per hour
Physiotherapy 40 per person per hour
Nutritional supplements and other products sold by the firm are based on the cost of
purchase and a mark-up of 30% as gross profit on each item ex-VAT.
The entrepreneur estimates that a minimum of 10 persons need to book in order to
organize a fitness class. When 10 persons are not available the entrepreneur shall re-visit
the feasibility on an exceptional basis only.
The relevant VAT needs to be charged on to customers at the relevant rates applicable by
the VAT legislature.
The prices shall be published through social media, and, is available upon request. It shall be reviewed from time to time by the
entrepreneur in view of business performance, cost of living allowance increases which are allowed to human resources, consumer
price index which is expected to reflect an increase in expenses, business growth, other internal factors, market conditions, compliance
costs, and, other external factors such as taxation and obligations and commitments that the firm might be contractually bound with.

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