I. Executive Summary

AdviCoach, a part of Franchise Source Brands International, is a business coaching service that helps struggling or new businesses achieve success. Founded in 2002, AdviCoach has grown into a well-known and respected name in the business coaching market. In North America, a business fails every 3 minutes, thus proving the value of AdviCoach’s services. Our experienced coaches provide clients with maximum business knowledge and infallible, unique strategies that guarantee businesses an immediate growth in profit and success.

Not only does AdviCoach offer incredibly successful services, but it is extremely accessible and convenient. After a free trial coaching session, clients can meet with their coach either in person or virtually. Bill Horowitz, Connecticut AdviCoach franchisee, is able to connect with clients all the way across the country in California. Our technology allows us to reach businesses anywhere in the country.

We believe that expanding internationally will allow AdviCoach to reach an even larger market while incorporating cultural differences. After observing market trends in the world, the best location to launch AdviCoach overseas is Singapore, the heart of Southeast Asia. The major advantage of relocating a business to Singapore is its convenient location, which would open AdviCoach to a market of 2.8 billion people within a few hours flight. The Singaporean economy is known as one of the freest, most innovative, most competitive, and most business-friendly in the world, quickly becoming the new place to be if one wishes to have success.

Singapore attracts many foreign direct investments as a result of its prime location, corruption-free environment, skilled workforce, low tax rates, and advanced infrastructure. Although very different from the United States, Singapore does share the same lively atmosphere and cultural diversity as we do. Singaporeans are both business-oriented and driven to succeed. Many speak both English and either Malay, Mandarin, or Tamil, making it easy to communicate and open AdviCoach Singapore.

After calculating both our projected sales and total expenses, we’ve determined that AdviCoach’s venture to Singapore will be worthwhile and exceptionally profitable. After one year of business, we expect to generate a net profit of $604,662.21 USD, which is equivalent to 770,823.39 Singapore Dollars (SGD). The longer we are open, the more our profits will grow because bigger businesses will seek our help once they realize how well our services work with the smaller businesses. The bigger the client, the more revenue AdviCoach makes.

We are confident that AdviCoach Singapore’s success and profits will only continue to thrive and flourish over the years, making it in AdviCoach and Franchise Source Brands International’s best interest. We are looking forward to working with you and we thank you in advance for your support!

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II. Introduction

A perfect blend of East and West, the beautiful island nation of Singapore has

transformed from a tiny fishing village into the major center for trade, industry,

communication, and tourism that it is today. Singapore is, in every way, the ideal

location to do business. Not only is it essentially the gateway to Asia - a continent

whose power is rapidly matching America’s - but it is a clean, vibrant city full of

worldly young professionals with business-oriented minds. Trailing only behind

Hong Kong, Singapore is swiftly approaching first place for the most economically

free country. We see a tremendous potential to open a business in Singapore and

are certain that the market would welcome our business.

After carefully observing trends in both the Singaporean and world markets,

we’ve chosen to internationally franchise AdviCoach, a business coaching service

that currently has eighty-six locations in the United States. The AdviCoach

approach is built to rescue the dream of business ownership and help business

owners achieve maximum success. It educates clients on the 5 Business Dangers

and helps them to identify and fix the problems within their business. AdviCoach’s

21 Rapid Impact Strategies are proven to generate significantly more success for a

business, provided that

the business owner is

dedicated to making

his or her dreams

come true. AdviCoach

is a unique business in

that each franchise is

owned by an experienced and highly trained “AdviCoach”. Coaches may run their

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franchise from home or from an office, yet the technology available to AdviCoach

permits coaches to work with clients nationwide.

As 2013 marked AdviCoach’s tenth year of franchising and all has gone well, we

feel that now is the perfect time to take the business overseas. Cultural barriers

prevent American coaches from fully helping international businesses, so a location

in Singapore would reach a whole new market of struggling business owners.

Franchising AdviCoach abroad would establish a global reputation and claim credit

for business’ success around the world.

Singapore is the perfect fit for AdviCoach for the following reasons:

58% of Singaporeans are bilingual, the second language most

frequently being English. This means that we won’t have much trouble

going to Singapore and finding staff to hire. Also, English is one of the main

business languages in Singapore, so we can communicate with our clients

easily and effectively.

As stated previously, Singapore is a major center for business and

therefore doing business is easy. Its Central Business District is known

universally and the financial district is one of the most influential in the world.

With business being such a huge industry in Singapore, AdviCoach will

undoubtedly have a large market of potential clients. This, along with

Singapore’s free economy and lack of trade barriers contribute to the

ability to start a new business quickly and efficiently- it only takes three days

to open a business.

Singaporeans are known for their diligent work ethic, meritocracy, and

focus. They emphasize education and goal-setting, and nearly every

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Singaporean strives to be a leader in his or her community. We know that

the labor force will be crawling with people eager to work with AdviCoach to

make our first international franchise a success.

Our plan to franchise AdviCoach internationally was compiled through extensive

research on both AdviCoach and Singapore. All of our information and rationale can

be found on government, business, economic, geographic, and marketing websites

online. In addition, we interviewed Connecticut AdviCoach franchisee Bill Horowitz

to get firsthand information on how AdviCoach is run and all that franchising entails.

As a side note, all monetary figures throughout this plan are expressed in US

Dollars (USD) unless noted otherwise.

III. Analysis of the International Business Situation

A) Economic, political and legal analysis of the trading country

1. Description of trading country’s economic system

The economic status of Singapore is ranked as the most open, least corrupt,

most pro-business country in the world. This highly developed trade-oriented

market economy is the perfect setting for AdviCoach to start up

and break out on an international level. According to the 2011

World Bank Ease of Doing Business Index, Singapore was ranked

first in the world for doing business, ahead of Hong Kong and

New Zealand. Singapore has one of the lowest unemployment rates in the world.

The labor force consists of experienced and highly skilled workers with education

implanted by the government. In 2010, the unemployment rate in the country was

a very low 2.2%. In the same year, 69.7% of the labor force was involved in a sort

of service, which means businesses dominate the economy in Singapore. A

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common label for the country is “Singapore Inc.” because it appears to be run more

like a business, rather than a nation. The economic structure of Singapore is

controlled by its manufacturing and service sectors. AdviCoach will help other

businesses and services reach their highest potential.

2. Description of the trading country’s governmental structure and

stability

The government of Singapore operates under a parliamentary republic

government and is defined by the Constitution of the Republic of Singapore. Similar

to the United States, it is divided into three branches: Executive, Legislative, and

Judicial. The role of the President, who is currently Tony Tan Keng Yam, is largely

ceremonial. It is the Cabinet, composed of the Prime Minister and other Ministers

appointed on his advice by the President, that generally directs and controls the

government. Singapore has a free-enterprise economy; however, the role of the

government has proven influential in relation to private sectors. Since its

independence in 1965, Singapore has been ruled by the People’s Action Party (PAP).

PAP has embraced economic liberalization and international trade, supporting the

statement that Singapore is one of the world’s most prosperous nations. In fact, the

nation’s economic freedom score is 88, ranking it the second freest in the 2013

index of economic freedom. The stable political and legal environment is the key to

Singapore’s continuous success in maintaining one of the world’s highest levels of

economic freedom.

3. Description of laws and agencies that affect the business

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Although Singapore has a relatively small population of 5.312 million people, it

has welcomed over 400 franchise concepts. The United States is by far the largest

supplier for foreign franchises in the country, contributing to 70% of the franchise

sales in the country. A major benefactor in our country’s relationship with

Singapore is the Free Trade Agreement that was signed between the two nations in

2004. This agreement strengthened Singapore as an elite member of the

Intellectual Property Rights (IPR) regime and gave strong protection to American

Franchisors doing business in the country. There are no foreign exchange controls

or taxes on capital gains or restrictions on foreign ownership of businesses.

Regarding the law governing franchising in Singapore, there is no special legislation

or specific law that affects how franchisors do business. The franchise agreement is

regarded as a commercial contract between the franchisor and franchisee and is

regulated under Singapore’s contact law and other related laws.

Additional laws that will affect AdviCoach include the Consumer Protection (Fair

Trading) Act and the Competition Act. The Fair Trading Act is principally designed

to accord better protection to consumers who seek redress against unfair practices,

which wouldn’t be a problem with AdviCoach. The Competition Act regulates the

competitive aspect of doing business in Singapore and diminishes the likelihood of a

dominant monopoly. Singapore is well known for its open economy and plans on

maintaining that image to other nations.

B) Trade area and cultural analysis

1. Geographic and Demographic Information

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Singapore is located in Southeast Asia, at the southern tip of the Malayan

Peninsula between Malaysia and Indonesia. It has a total land area of 714.3 square

kilometers and a 193 kilometer coastline, making

it essentially 3.5 times larger than Washington,

DC. Ongoing land reclamation projects predict

that this land area may grow another 100 square

kilometers by the year 2033. Consisting of 63

islands and 28 districts, Singapore is separated by

the Singapore Strait and the Straits of Johor; however, the northern Johor-Singapore

Causeway and the western Tuas Second Link are two manmade connections to

Malaysia. The mainland is most commonly referred to as Singapore Island but is

also known as Pulau Ujong. Jurong Island, Pulau Tekong, Pulau Ubin, and Sentosa

are the four largest small islands in Singapore. Its proximity and easy access to

water has helped it to develop into a focal point for international sea routes and

become a major center for trade, communication, and tourism. Singapore’s central

location makes it possible for

AdviCoach to access a market of 2.8

billion people within a two-hour

flight. It has recently been regarded

as a global business nation and an

extremely important financial

center, with most international

banks locating their regional headquarters in Singapore. In fact, financial services

alone contribute to approximately 20% of Singapore’s GDP, so evidently there are

plenty of potential businesses for AdviCoach to help. Singapore is a prime location

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Potential location (also see page

13)

to launch the international AdviCoach franchise because it has a highly skilled and

hardworking workforce, favorable tax regime, free trade, and fair laws and

regulations. It has attracted business from over 3,000 multinational companies,

particularly from the United States, Japan, and Europe. Singapore is an incredibly

business-oriented nation that we want to be a part of not only because we see a

tremendous opportunity for profit, but also because our services could help

countless businesses thrive and succeed, making Singapore more potent than ever.

Due to its location between Malaysia and Indonesia, Singapore is extremely

diverse. An estimated 74.2% of its population

is Chinese, 13.4% is Malay, 9.2% is Indian,

and 3.2% is Eurasian or of other descent. Its

four official languages are English, Malay,

Mandarin, and Tamil. English is the primary

language used in business. Nearly everybody

living in Singapore is multilingual, for children are brought up learning both English

and whichever other language their parents speak. As of 2012, the population was

around 5.312 million yet only around 65% of people living in Singapore are citizens,

while the rest are permanent residents, foreign workers, or students. Permanent

residents take up about half a million in numbers and that does not take into

account the 11 million transient visitors who visit Singapore every year. The

median age of Singaporeans is 37 years old and the average household size is 3.5

persons. At only 0.79 births per woman in 2013, the fertility rate is the lowest in

the world, which is actually beneficial to our business because the majority of the

population is middle-aged people who could be business owners for us to seek as

potential customers. The low fertility rate is also causing the government to

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encourage foreigners to immigrate, which means a plethora of new businesses will

be popping up and will need AdviCoach’s expertise to help differentiate them and

prevent them from failing. In addition, the unemployment rate is only at about 2%

and the poverty rate is very low, both of which suggest that Singapore is home to

many wealthy citizens that would be willing to work with AdviCoach.

Singapore shares cultural similarities with the United States, but their business

world has a few differences. It’s imperative to note that Singaporeans wish “to have

face”, which basically means that it’s important for

them to maintain personal dignity, prestige, and

respect. Face can be gained or lost, but

Singaporeans strive to maintain face in order to

create harmonious relationships. Singaporeans

tend to rely on non-verbal communication- such as facial expression, tone, and

posture- in order to fully understand a conversation. They are very indirect when

addressing questions, responding by saying things like “I’ll see what I can do,”

rather than simply rejecting an idea, for this saves face and maintains a harmonious

relationship. Businesspeople will also take a minute to respond, as this

demonstrates a considerable amount of thought has been put into answering the

question. Additionally, elders are revered in Singaporean culture and are always

introduced first upon meeting. In business, younger men and women may act as

we do in the west and shake hands, but the older generation tends not to. As a

fledgling business owner, one must be patient and earn the respect of the

community by building personal relationships and networking. In Singapore, the

group/company is always more important than the individual. One last note of

importance is that when handing things from person to person, such as business

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cards, one must use both hands and keep each card in pristine condition. All of the

above customs are what we plan to educate our Singapore AdviCoach staff in so

that each coach will be professionally trained in the proper way to do business.

As AdviCoach is not a traditional business coaching service, it does not have

traditional competition. Bill Horowitz, the Connecticut AdviCoach franchisee with

whom we interviewed, describes his competition as follows:

Our model is not common…There are of course alternatives such as

traditional consultants who charge by the hours much as an attorney would.

But these consultants are usually hired to “fix” a specific

problem whereas we take a holistic approach to the

business and the owner’s goals for business success. I find

that my competition is not usually other companies doing

similar work- it is more the belief of the [business] owner that the program

will be worth their investment in time and money.

With that, AdviCoach does not have much competition other than simply customer

preference in coaching style. However, when we launch AdviCoach internationally,

we expect a small increase in competition only because AdviCoach is not yet a

recognized name in Singapore. Until we build a name internationally, AdviCoach

Singapore’s biggest competition is the assistance from government agencies.  The

bureaucracy of Singapore seeks to help businesses throughout the nation grow. 

Examples of agencies include Economic Development Board, EnterpriseOne, and

Accounting & Corporate Regulatory Authority.  Although it is advantageous for

governmental agencies to aid such businesses because they have experience with

developing and growing businesses, it’s beneficial for a new outlook from a

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Bill Horowitz

dissimilar country to bring new methods to the country.  AdviCoach is unique in that

we want to create lasting, personal relationships with our clients that will allow us to

continue doing business with them for years.  We help business owners achieve

success in both their business and their personal lives so that they can have the

income, control and flexibility to have the time and money to do the things they

enjoy most in life.  AdviCoach can be differentiated through its multitude of

methods and holistic approach that work for any problem that a business may be

facing.

2. Market Segment Analysis Target Market

AdviCoach is a service that assists existing businesses by differentiating them

and helping them to achieve success. Naturally, then, our target market is business

owners without an established brand name. We will target both men and women

between the ages of 25 and 55, for we believe that to be the proper age range of

business owners may need our help. People can open their own business at any

age, but we want to work with adults who either need our help turning their ideas

into realities or adults whose businesses have been slowly sinking. Around 75% of

the Singapore population is between 15 and 64 years old, which benefits us

because nearly ¾ of Singapore could be our potential customers. However, to

narrow that number down, we’re looking for a target market of small to medium-

sized businesses so that we can uphold our unique and prestigious image and

pricing. In the first quarter of 2012, there were 14,596 entities registered in

Singapore, which is an 11% increase from the fourth quarter of 2011. The amount

of businesses in Singapore will continue to grow, making AdviCoach’s presence an

ongoing necessity that will consistently have significant clientele.

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Singapore’s score of economic freedom over time

The 2013 Index of Economic Freedom ranks Singapore as the second most

economically free nation in the world, behind Hong Kong by only 1.3 points

(Singapore has a score of 88 and Hong Kong one

of 89.3). Though many nations have free and

efficient economies, Singapore’s score has

grown 0.5 since last year, which indicates that

its economy continues to work well and attract

new businesses. Additionally, advancement in

financial freedom is so significant that it

outweighs trivial declines in five other economic

freedoms. Today, the Singapore economy is known as one of the freest, most

innovative and business-friendly in the world. It’s very easy to start an international

business there due to the lack of significant trade barriers. There are only three

documents needed to import goods to Singapore from the United States: the bill of

lading, commercial invoice, and customs import declaration. The United States also

requires these three documents to export goods, except it must be the customs

export declaration rather than the import declaration. However, because we do not

plan on exporting much to Singapore from America, the customs declaration do not

affect AdviCoach’s international debut.

3. Analysis of the Potential Location

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Singapore is divided into 28 districts. Districts 1-9 (shown on the map in purple)

are known as the central districts; they contain the main office and shopping areas

as well as the most entertainment

options. The central districts offer some

of the most luxurious and expensive

living areas in Singapore, most of the

Singaporean embassies and the newly

renovated Singapore river area, home to

a vast array of bars and restaurants. Most importantly, this area includes the

Central Business District (CBD). For AdviCoach to succeed abroad, it is crucial to

open in a location that’s not only bustling and vibrant, but chock full of businesses

that will potentially need our coaching services. We have found the perfect office

space at 6 Battery Road, located at the heart of Raffles Place in District 1, part of

the CBD. Only a twenty minute taxi drive from Changi International Airport in

District 17, this office space is convenient for traveling businesspeople in both

Singapore and throughout Asia. In this modernized

building are meeting rooms, reception services,

videoconferencing, IT and administrative support, AV

equipment, conference facilities, open-plan and furnished

offices, Wi-Fi, a multilingual staff, 24-hour security,

banking services, a board room, cleaning services, and

many more attractive amenities. With all of these

features already included in rent, we would only need to

hire coaches and purchase the necessary equipment to run AdviCoach, such as

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computers and software. This makes it easier to open an international franchise

because it eliminates shipping costs.

IV. Planned Operation of Proposed Business/Product/Service

A) Proposed Organization

AdviCoach Singapore will be a limited liability partnership. The location in

Southeast Asia will be the first international branch and will prove that we can

successfully handle expanding the company overseas. We chose this type of

ownership because although in the United States AdviCoach is a limited liability

corporation; this type is not offered in Singapore. LLPs offer the same benefits as

LLCs and allow the two of us to be equal partners in the running of our franchise. A

partnership is defined as an agreement between two or more individuals or entities

to jointly own and operate a business. The LLP has the added protection for

partners against negligence of other partners within the organization.

Advantages to running an LLP include the flexibility of the internal structure of

the company. One partner is not liable for the conduct of the other partner, which

is beneficial in the aspect that the wrongs acts or negligence will solely affect the

partner who committed the accused duties. Another advantage this type of

ownership has over sole proprietorships and general partnerships is that AdviCoach

will have perpetual succession. In company law, perpetual succession is the

continuation of an organization’s existence despite the death, bankruptcy, insanity,

change in membership or an exit from the business of any owner or member. This

is important because any change in membership will not affect the status of the

company. A disadvantage to owning a limited liability corporation is that taxing

authorities in some places recognize the structure as a non-partnership for tax

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purposes. This acts as a drawback for partners who require special tax

consideration. Also in some places, the creation of a limited liability partnership is

restricted to professionals like doctors or lawyers. Finally, individual partners are

not obligated to consult with other participants in certain business agreements. In

order to keep complete control and hold integrity for your business, the partnership

should create an agreement that specifically outlines what each limited partner can

and cannot do when forming business decisions.

It is relatively easy to start a business in Singapore; the International Finance

Corporation ranked Singapore first in the ease of trading across borders for 2013 as

well as its prediction for 2014. Starting up a business in Singapore can be done in

three easy steps and the set-up only takes three days. The first step is to register

online with the Accounting and Corporate Regulatory Authority where business

owners apply for the approval and reserve their company name. The next step is

making the company seal, followed by signing up for Employee Compensation

Insurance at an insurance agency. Franchises have proven successful in Singapore

considering 90% of franchisees reported an improvement in sales and 78% had

higher profits.

Every AdviCoach franchisee runs his or her franchise differently. Some may

choose to rent an office space, like we plan to in Singapore, but some prefer to run

business from the comfort of their own home. Bill Horowitz, the franchisee of the

Enfield, CT AdviCoach location, has a home office from which he runs his business.

For staff, he has two administrative assistants and one marketing specialist, all

independently contracted. There are currently 86 AdviCoach franchisees working

with clients in America, which has a population of 313.9 million people

(approximately 60 times that of Singapore). We thus feel it’s appropriate to start

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out with three coaches in our Singapore franchise. This international franchise will

have more of a company feel, with the three coaches working in the same office

space but each representing their own clients. The following is a breakdown of our

staffing plan, with the number of people per position indicated next to the job title:

Certified AdviCoach business coach (3): Held at the highest position

as business development professionals, these coaches must go through

extensive training to become a certified AdviCoach. They must be

business-minded, committed, engaging, and enthusiastic as well as

creative and innovative problem solvers. Clearly, as they’ll be the faces of

AdviCoach Singapore, each coach must carry him or herself with dignity

and demonstrate leadership qualities. The responsibility of a certified

coach is essentially to work with a struggling business and incorporate

AdviCoach’s 21 Rapid Impact Strategies to help the client’s business grow

and flourish. We achieve our success by helping others achieve theirs;

their dreams and goals are important to us, so the coaches must be

dedicated to making them happen. Three coaches is the right number to

start with in Singapore because it allows the franchise to handle up to 30

clients at a time while still not saturating the market and overwhelming a

nation that is still foreign to us. It creates a set supply of coaching

services that satisfies a sufficient demand. Technically through our virtual

coaching sessions, a business in Singapore could find a way to reach an

American AdviCoach. However, not only would this be difficult and

inconvenient, but there would be a significant cultural barrier, hence the

reason why we want to begin franchising internationally. We plan to hire

coaches who are Singaporean or at least familiar and respected in

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Singapore’s business world. That way, our coaches will be fully capable of

applying our Rapid Impact Strategies to Singapore business and culture.

According to the 2010 Census of Population, 58% of Singaporeans are

literate in two or more languages (the second most frequently being

English) and 30% speak English as a first language at home, compared to

the 36% who speak the official language of Mandarin and 16% who speak

in a Chinese dialect. Therefore, multilingual coaches will absolutely be

beneficial to AdviCoach’s success.

Average salary for executive/management positions in 2012 = 9,750

SGD/month

Secretary (1): Because AdviCoach Singapore is located in an office

building, it’s important that we have a secretary to handle phone calls,

filing, and greeting clients when they come in for meetings. Requirements

for this position include a sociable and pleasant personality,

multilingualism, organizational skills, and the ability to multitask.

Average salary for administrative/secretarial/reception positions in 2012 =

3,626 SGD/month

Marketing Specialists (3): Our team of marketing specialists will

execute our promotional plan and make sure that AdviCoach Singapore

becomes well-known and grows to be revered in the business world. The

specialists must periodically conduct demographic research and use the

AdviCoach search engine to find potential clients. Additionally, they

should be creative and capable of coming up with new ideas that could

benefit AdviCoach in its international setting. This team must be well-

spoken, effective communicators, and familiar with the Singapore culture

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and society. They also must be able to maintain a positive image for

AdviCoach Singapore.

Average salary for marketing positions in 2012 = 5,357 SGD/month

B) Proposed Service

1. Details of the Service to be Offered

The services that AdviCoach provides are strategies and plans for business

owners to help them grow their business. AdviCoach offers business coaching to

primarily small and mid-sized businesses, offering strategies to improve financial

management, marketing, sales and leadership. We alert business owners of the 5

Business Dangers: poor leadership, underperforming sales, ineffective marketing,

lack of human capital management, and financial mismanagement. With our

holistic problem solving approach, our coaches help business owners create a plan

for the future to get them back on their feet and running a company more

successful than they could’ve ever imagined.

One of AdviCoach’s main focuses is strategically and tactically facing the issues

of privately-owned businesses. We do so with our 21 Rapid Impact Strategies,

which directly address the challenges of time, team and money; all of which are

critical aspects to owning a successful business.

AdviCoach plans on providing its services

through one-on-one coaching, whether it is in

person or through the advanced forms of

technology that we have today in the 21st century.

With the common use of smartphones, tablets, laptops and other mobile devices,

communicating with someone from anywhere in the world is easier than ever

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before. The benefit of opening a franchise in Singapore, especially in such a highly

populated area, is that business owners can meet face to face with our coaches.

Coming into our office space and meeting in a spacious boardroom or a more

intimate individual office room provides customers with a safe and comfortable

atmosphere. We want our clients to feel protected and able to express themselves

fully when discussing the future and goals for their businesses and we feel that

AdviCoach Singapore will provide that for them.

Only a few supplies are necessary for AdviCoach to be franchised in Singapore.

Most of our services come from the experience of our employees, who implement

our strategies and their familiarity with the business world by aiding struggling

business. However, we want to be in constant contact with our customers, so the

most advanced and innovative technology is necessary if we plan to succeed.

These materials include smartphones for all staff, computers/laptops, and tablets if

applicable.

2. How the product/supplies will be transported to/from the home

country

One US dollar is equivalent to 1.27 Singapore Dollars. The best option would

therefore be to not import any supplies from the United States. Since all that we

need to purchase are office supplies, technology, and some furniture, we can buy

everything in Singapore near our location. This reduces

transportation costs and is cheaper than shipping overseas

where the products would be more expensive. Our

location at 6 Battery Road is furnished with a vast amount

of office furniture including tables, chairs, desks, couches and more. If we were to

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need additional furniture to equip our office setting, AA Yeo Office Equipment would

be our source for these materials. Located in Fortune Centre, Singapore, this

provider will furnish AdviCoach with other supplies such as copying machines,

shredders, cutters, and copiers. The product that we will need most to be

successful as a business is computers. Dell is a reliable brand name for a multitude

of technologies and software in the United States. They also manufacture in

countries around the world, Singapore being one of them. Customers trust Dell to

deliver technology solutions that will help them achieve more, and they strive to

commit to the needs of their customers.

C) Proposed Strategies

1. Proposed Pricing Policies

Being a business that works with businesses of various sizes, the rate AdviCoach

charges differs from client to client. One client may be charged $500 per month,

but another much larger business may have to pay $10,000 a month for our

services. For reference, the average client may be charged $2,000 per month,

which is equal to 2,554 Singapore Dollars. This

price includes one meeting per week, either

virtually or face-to-face. One AdviCoach franchisee

may work with between five to ten clients at any

given time, each staying with their coach from anywhere between a few months to

five years, depending on their individual needs. As noted earlier, the Singapore

Dollar is equivalent to 0.79 USD (1 USD = 1.27 SGD). Being in Singapore, we plan

to primarily use their currency; however, we will also accept US Dollars due to the

significant presence of English businessmen in the nation.

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As previously stated, AdviCoach’s unique holistic approach is beneficial

because we do not have much competition. Hourly business consultants’ prices

cannot be compared to ours because they target specific problems rather than help

a business to truly change its ways and get on the road to success. Our main

competition is Singaporean government agencies that aim to help businesses grow.

Like AdviCoach, these agencies do not have a set price because of the range in

business sizes. However, prices tend to be slightly lower than ours. This is because

they’re much more focused on what will benefit Singapore, whereas AdviCoach

focuses on making the client’s dreams come true. Clients will come to us because

they want individual attention and a personal focus.

2. Proposed Promotional Program

As Singapore will be AdviCoach’s first international location, we’ll need a strong

promotional plan to make ourselves stand out to our target market. The following is

an outline of our first year of promotional activity:

Advertising

With its central districts crawling with

people and wealth, Singapore has become

very urban. Therefore, it’s best to find

advertising space on billboards in the Central

Business District, near the Changi Airport, and

along the busy east coast. Additionally, because many Singaporean businesspeople

walk or use public transportation in the city, advertising on buses and trains

(particularly the MRT line) is effective. An average of 25 hours is spent using the

Internet by Singaporeans every week, which is more than twice the amount of time

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spent watching television (as shown in the diagram to the right). Therefore, we’ve

decided to advertise online rather than through television commercials. The

Internet plays a huge role in today’s society- it’s quickly becoming the number one

medium in Singapore- so we want to take advantage of the opportunity to advertise

AdviCoach through more modern technology. Noting the popularity of modern

technology and social media, AdviCoach already has both a Twitter (@AdviCoach)

and a Facebook page to interact with our tech-savvy customers. Our final way to

advertise is through print media in multiple business magazines such as Singapore

Business Review, BiZQ, The Edge Singapore, and World Biz Journals. Each

magazine draws a large market that also reaches our target market of business

owners looking for pointers and seeking advice.

Direct Marketing

70% of Singapore’s population owns a smartphone; it has the highest

penetration of smartphones in the world

and has over 100% regular mobile

penetration. AdviCoach, being an

innovative business coaching service,

sees the opportunity to use this statistic

to reach our target market. Our

business boasts one of the most

powerful client acquisition engines in all of franchising. With a few alterations to

make it international, we can use this program to form a list of potential clients.

To create brand recognition in the booming business world of Singapore, we’ll

send postcards to those clients explaining our business services. These

postcards will display a phone number with which one can subscribe to daily

22

business tips and inspirational success stories from AdviCoach via mobile device

and/or e-mail. This form of direct marketing appeals to the vast use of mobile

phones and technology in Singapore and gives potential clients a sample of how

AdviCoach could help them.

Personal Selling

We can use AdviCoach’s modified client acquisition engine to find a list of

potential clients. After studying these businesses that are either struggling or

just beginning, we plan to visit each location and speak to the owners about

AdviCoach’s services. Not only will this help to familiarize Singapore’s business

world with our services and establish credibility, but it will allow us to bring in

new customers to kick off our international opening. Brochures and business

cards will be prepared and left with each business.

Public Relations and Publicity

Considered one of the best places to study, Singapore is home to six national

universities that are recognized and highly ranked internationally. It is also a

strong meritocracy in which academic performance and success are emphasized

by a culture and society. Singaporeans stress education and have various

programs, both public and private, for children to go through. To generate

positive buzz about AdviCoach Singapore, we’ll introduce a scholarship in our

name for Singaporeans (also open to

foreign students studying in the nation)

who are interested in business and/or

entrepreneurship. We’re especially

interested in providing scholarships to

23

students planning to attend Singapore Management University (SMU) because

the school will sculpt those students into professionals with some of the best

minds for business in the world. By creating a scholarship program amidst its

international debut, AdviCoach will appeal to the Singaporean meritocracy and

demonstrate its care for education, which will undoubtedly gain good publicity

for our business. Furthermore, we hope to gain mutually beneficial and genuine

relationships with our scholars. By helping them to achieve their goals and

essentially investing in them, we can build their trust, thus making them

potential clients, business partners, or referrals for recommendations.

Additionally, for our Grand Opening we will schedule a press conference in

Singapore’s Central Business District at our location in Raffles Place. This will

draw positive attention and ensure that the Singaporean business world knows

AdviCoach is there to help. Following this press conference, we hope to

interview with local news stations and business journals.

Sales Promotion

In order to build clientele and establish our brand, we must convince

Singaporeans to try AdviCoach to see how much we have to offer. To do so,

we’ll offer a free trial coaching session to businesses that are interested in our

services. This will educate potential clients on how AdviCoach operates and give

them a feel for what working with our coaches would be like. This experience

will help them decide whether or not they want to use our services and finally

achieve their dreams of owning a thriving business.

Media Availability and Costs

24

We’ve calculated marketing expenses for the first year of business to total

$33,444.92. In the first two quarters, we will saturate the market and advertise

AdviCoach Singapore on the back cover of World Biz Journals for $7,500 and on

its online banner for $4,500 per quarter. World Biz Journals is a leading

publisher with offices in Singapore, Hong Kong, the United Kingdom, and

the United States. It publishes print and online business and finance

magazines as well as lifestyle and sports magazines around the

world. World Biz is a well-known publisher with a large customer base, so

our advertisements will reach our target market and get our name out in

Southeast Asia. In the third and fourth quarters of the first year, we will continue

to advertise with World Biz’s online banner for $4,500 per quarter. However, to

decrease costs a little bit, we will switch to a full page print advertisement inside

the magazine rather than on the back cover. This will bring the cost down to

$4,500. We will also place an advertisement in The Edge Singapore, which is a

cheap and easy way to reach Singaporeans weekly.

Because Singaporeans are so business-oriented, we expect business owners to

stay up-to-date with their business magazines and notice AdviCoach’s

advertisements. Regardless, we’re confident that our strong and creative

promotional plan will have Singaporeans talking about AdviCoach within weeks of

our international launch.

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V. Planned Financing

26

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

Income (Projected)

Sales/Consulting 180,000.00$ 234,000.00$ 405,000.00$ 540,000.00$ 1,359,000.00$

Gross Sales (USD) 180,000.00$ 234,000.00$ 405,000.00$ 540,000.00$ 1,359,000.00$

Costs

Salaries 115,124.25$ 115,124.25$ 115,124.25$ 115,124.25$ 460,497.00$

Rent 30,576.24$ 30,576.24$ 30,576.24$ 30,576.24$ 122,304.96$

Advertising/Marketing 9,111.23$ 9,111.23$ 7,611.23$ 7,611.23$ 33,444.92$

Technology 6,659.00$ -$ -$ -$ 6,659.00$

Supplies 500.00$ 400.00$ 400.00$ 400.00$ 1,700.00$

Insurance 750.00$ 750.00$ 750.00$ 750.00$ 3,000.00$

Miscellaneous 500.00$ 500.00$ 500.00$ 500.00$ 2,000.00$

Franchise Fee 45,000.00$ -$ -$ -$ 45,000.00$

Total Expenses (USD) 208,220.72$ 156,461.72$ 154,961.72$ 154,961.72$ 674,605.88$

Gross Profit (USD) (28,220.72)$ 77,538.28$ 250,038.28$ 385,038.28$ 684,394.12$

Taxes -$ 5,427.68$ 17,502.68$ 26,952.68$ 47,907.59$

Net Profit Before Royalty Fees (28,220.72)$ 72,110.60$ 232,535.60$ 358,085.60$ 636,486.53$

Royalty Fees -$ 3,605.53$ 11,626.78$ 17,904.28$ 31,824.33$

Net Profit (USD) (28,220.72)$ 68,505.07$ 220,908.82$ 340,181.32$ 604,662.21$

Net Profit (SGD) (36,071.73)$ 87,330.26$ 281,614.56$ 433,663.15$ 770,823.39$

AdviCoach Singapore's Projected Income Statement - Year 1

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Cash on Hand 45,000.00$ 16,779.28$ 94,317.56$ 344,355.84$

(+) Sales 180,000.00$ 234,000.00$ 405,000.00$ 540,000.00$

(- ) Paid 208,220.72$ 156,461.72$ 154,961.72$ 154,961.72$

Cash on Hand (USD) 16,779.28$ 94,317.56$ 344,355.84$ 729,394.12$

AdviCoach Singapore's Cash Flow Statement - Year 1

27

AdviCoach Singapore's

Balance Sheet for Year 1

March, 2014 - February 2015

ASSETS LIABILITIES

Current Assets

Cash from Profit 604,662.21$ Loan for Start-Up Expenses 188,220.72$

Cash from Partners' Investment 20,000.00$

Capital Equipment 6,659.00$

Total Assets 631,321.21$ Total Liabilities 188,220.72$

EQUITY

Capital 443,100.49$

TOTAL ASSETS 631,321.21$ TOTAL LIABILITIES & EQUITY 631,321.21$

Year 1 Year 2 Year 3

Sales 1,359,000.00$ 2,265,000.00$ 3,171,000.00$

Expenses 674,605.88$ 859,090.28$ 1,043,574.68$

Gross Profit 684,394.12$ 1,405,909.72$ 2,127,425.32$

Taxes 47,907.59$ 98,413.68$ 148,919.77$

Net Profit (USD) 604,662.21$ 1,307,496.04$ 1,978,505.55$

Net Profit (SGD) 770,823.39$ 1,658,427.98$ 2,509,536.44$

AdviCoach Singapore's Three-Year Plan

After launching AdviCoach Singapore, we expect to make significant returns over

the course of three years and are confident that franchising internationally will be

worthwhile. In determining revenue for quarter one, we estimated that each of our

three coaches would generate $2,000 per client for 10 clients every month, thus

totally $180,000 in gross sales for the first three months of business. Our expenses,

however, will total $208,220.72, which means that we will be operating at a loss for

the first quarter. Over the course of the year, we expect AdviCoach Singapore to

gain more clients and eventually clients that are bigger in size, who we charge more

for our services. We used the following predictions to calculate gross sales for each

quarter after the first:

o Quarter 2: Clientele increases from 10 per coach to 13 per coach, increasing

gross sales to $234,000.

o Quarter 3: Clientele increases to 15 per coach and AdviCoach works with

bigger clients, bringing the average charge to $3,000 per month and the

gross sales to $405,000.

o Quarter 4: AdviCoach brings in even bigger clients, increasing the average

charge to $4,000 per month and the gross sales to $540,000.

Even though AdviCoach Singapore operates at a loss in the first quarter, you can

see that it will grow and flourish throughout the first year and continue to do so in

the following years. We calculated our three year plan by adding two coaches to

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our staff each year after the first and then totaling the gross sales that each coach

would bring in.

It’s clear that taking AdviCoach to Singapore will be an extremely profitable

venture and we have confidence that it will be a valuable investment. We’re so

excited to launch our business internationally and introduce Singapore to our

successful methods of business coaching!

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