Vigor Health Business Plan 507

Graduate course business plan conceptualized and developed from the perspective of venture capitalist.

 <br />Rebecca Paris, CEOrparis@vigorhealth.comP: 631-123-1234<br />Table of Contents<br /> TOC    quot;
Heading 3,1quot;
 I.Table of Contents PAGEREF _Toc234260980  2<br />II.Executive Summary PAGEREF _Toc234260981  3<br />III.Company Overview PAGEREF _Toc234260982  5<br />IV.Products and Services PAGEREF _Toc234260983  7<br />V. Marketing Plan PAGEREF _Toc234260984  9<br />V.Development and Operations PAGEREF _Toc234260985  12<br />VI.Management and Organization PAGEREF _Toc234260986  13<br />VII.Financial Plan PAGEREF _Toc234260987  14<br />VIII.Assumptions, Risks, Contingencies PAGEREF _Toc234260988  19<br />IX.Summary PAGEREF _Toc234260989  20<br />Executive Summary<br />4872990871220Research has shown an alarming trend in the number of people who are overweight and obese. By 2015, obesity will be up 75% globally and people who are overweight will rise 44%.  With two-thirds of the United States overweight or obese, 96 million people have turned to dieting.  Unfortunately, the majority of dieters fail to achieve or sustain weight lose goals.  The information they acquire is often times too complicated to comprehend and commercial program methods are not set up for sustainable results.  Complications from excessive weight are also on the rise and include diabetes, sleep apnea, heart disease, and cancers resulting from environmental fat soluble carcinogens.  A recent online article from the Center for Disease Control revealed that the solution cannot come solely from hospitals, but that it must start within the community.<br />In an effort to provide a solution to these health issues, Vigor Health delivers a web-based service offering customizable and interactive nutritional plans.  Because the program is web-based, overhead is relatively low which keeps client membership costs well below competitor pricing.  Membership also includes counseling with a industry certified nutritionist, a community forum where members and staff can share information, downloadable “cheat sheets” rating best and worst products on the market, and emailed alerts to FDA recalled products.<br />The difference between Vigor Health and other fee based programs is that we educate our clients on proper quantification of the macronutrient density of foods.  Through this education, clients can maintain weight loss and properly manage their food choices and caloric intake. Vigor does not sell prepackage food products that often contain unhealthy ingredients.  Our clients are given the freedom to purchase products from their own local vendors.  They are also given an array of menu options without the strict restrictions of competitor programs. Our clients are not made to feel that weight management is a chore.  Rather, through education they find it a slight change of lifestyle that allows for a healthy way of life. <br />The personal health services industry has experienced tremendous growth over the past decade.  Though established for several decades, companies like Weight Watchers, Jenny Craig, and Nutrisytems have experienced tremendous growth over the past few years.  Of the 96 million dieters in the U.S., 36% are women who utilize their own diet plans. We feel we can penetrate this market through mass advertising. <br />Management of Vigor Health will consist of Rebecca Paris, who through research and personal experience developed the concept and prototype software; and Robert Manaseri who expanded the concept and will bring years of operational experience to the business.<br />Short term goals of Vigor health include business start up and development needs.  A strong push will be made to corporate partners who are looking to incorporate or expand the growing trend of wellness programs offered to employees.  Print advertising in selective media forums will draw individual consumers and drive brand recognition.<br />Long term goals include growing the business so it becomes synonymous with corporate wellness programs and individual consumers look for a sustainable, integrity based nutrition plan.  Revenue growth over the first two years will lead to projected profitability be the end of the second year.  Sustained growth will put Vigor Health in an excellent position to be acquired by the end of fifth year.<br />A total investment of $1.87 million is required to start up Vigor Health.  Vigor’s executive team will invest $60,000 of their own money bringing the monies sought by venture capitalists to $1.81m.  The seed money will start the business and sustain growth through profitability.  Five year cash flow balance is projected at $4.47m through individual members, corporate wellness programs, and corporate sponsor web links.<br />At the end of year five our exit strategy is to be acquired by a large company.  Companies like Microsoft and Google are currently developing their own web based health management services and we feel Vigor Health’s niche market and fast growth will generate interest as a compliment to either of their services.  Being acquired at $20m will yield a 10x return for our investors who will have a 90% ownership of the company.<br />As with any start up there are risk factors to consider. Three major competitors (Weight Watchers, Jenny Craig, NutriSystems) dominate the marketplace so penetration will require careful strategic planning.   Brand recognition is also a factor so marketing is a key to overcome this challenge. <br />The success of Vigor Health and project revenue growth is based on a number of assumptions.  The need for nutrition and weight management services will continue to rise as more and more American become overweight.  We also base out projections on the growing trend towards corporate sponsored wellness programs which to help improve employee health and reduce absenteeism.<br />Company Overview<br />The concept of Vigor Health began after CEO, Rebecca Paris, researched dietary management solutions and then built a database around her daily nutritional requirements.  The database was customizable and offered an array of menu ideas based off her individual needs.  The method proved successful and we now seek to scale the system to benefit a growing population of overweight and obese.  <br />Moving to a web-based system allows for this scalability.  Using back end software to perform algorithms based off of customer inputs, individuals will be provided with daily menu ideas which will improve their health, lose weight, and sustain a healthy lifestyle.  The goal of the company is to create a niche market by educating clients on nutrient dense food choices, product comparison to determine most healthful purchase, and creating a simply yet nourishing diet plan.   Through this personal service and education, the company differs from competitors who simply look at caloric intake and develop generic menus and proprietary systems, like a “point” or “volumetric” system.  Studies have shown and consumer reports indicate these systems are not sustainable for continued health and weight management. These traits are passed onto families and children to develop good habits early rather than to correct bad habits later.   <br />Mission Statement: <br />“Through nutritional education and counseling we look to improve lives, one customer at a time. “<br />Vigor Health is not a quick fix diet solution.  Our customers come away with an understanding of food nutrients as well as their personal dietary requirements.  With this information they are able to choose the foods they eat, maintain their weight, and lead a healthier life.  <br />Company Goals and Objectives: <br />The goal of Vigor Health is to build a strong, loyal customer base by providing leading customer service and wellness programs. Vigor Health is also committed to develop customized corporate sponsored programs for corporate employees.  The goal here is to brand the service so it becomes synonymous with corporate wellness programs- a value add in employee retention and recruiting.  We anticipate growing the business through profitability and eventual seek to be acquired after year 5.<br />Objectives:<br />Increase client base by 2000% through 2014<br />Obtain 30% of clients via corporate programs by EOY 2010<br />Provide customized extranet site for large corporate clients by EOY 2011<br />Become acquired between years 5 and 7<br />Grow revenue by 185% through first year of operation<br />Business Philosophy: <br />Vigor Health believes that integrity is the greatest importance in growing our business.  We do not intend on selling our own branded food products as it takes away from our primary vision.  Our qualified service staff will be appropriately credentialed and provide personal service and possess a genuine concern for our client well being.  We differ from competitors who tend to market a quick fix solution or proprietary methods of weight control where clients are not properly educated about quality nutrition. In turn, they fail to sustain permanent weight control.  We believe that as habits are learned, further development, understanding, and implementation come with ease – requiring less and less of one’s time and making dietary decisions second nature.<br />Products and Services<br />The obesity epidemic in the U.S. has been on the rise for several decades and the trend continues to increase.   In recent years, childhood obesity rates have become a growing concern.  The medical industry continues to convey myriad health risks to being obese.  During this time, many commercial diet plans and programs have been developed.  However, none of the diets have resulted in sustainable weight loss or healthy weight maintenance- nor have they assisted in resolving the other health risks associated with obesity. <br />The primary service we are developing is a meal planning application. The application will be based off a prototype application which is currently in use.  The prototype is a combination of three Microsoft Excel spreadsheets and current users have experienced successful results.  Together, these spreadsheets organize disparate information into useful, user friendly formats.  Two of the three spreadsheets can be altered and personalized; however, the third spreadsheet serves as a standard reference.  <br />During the development stage, Vigor Health plans on building a robust database using the prototype application as a guide.  The web-based application provides much greater detail and options for end users by using the Harris-Benedict equation and algorithms to calculate appropriate caloric intake according to user gender, height, weight, and age.  Based on inputs, clients will be given their daily allowance of calories from fat, protein and carbohydrates.  Users will then have the option to narrow the caloric allowances down even further based on other variables like daily activities and weight management needs (loss, maintain, gain).  The results show a number useful outputs including:<br />Discretionary calorie allowance per day<br />Pre Work Out Calories required<br />Post Work out Calories required<br />Calorie allowances* per meal per day from fats, proteins and carbohydrates. <br />*These allowances are determined based on the results from a new user questionnaire.  The questionnaire determines the rate at which your body breaks down your food into energy.  It is safe to “best guess” the ratio of macronutrients at forty percent carbohydrate and thirty percent of each proteins and fats. This ratio will serve as the default macronutrient breakdown ratio established for our service.  After taking the survey, if it is determined to not be the optimum ratio for the end user, the appropriate ratio will be applied to their plan.<br />Spreadsheet #1, Part #3- End User Daily Reference:<br />DAILY Each Meal::  Pre WkoutPost WkoutDiscretionary B'fast, AM snack, Lunch, Dinnergrams carbsgrams proteingrams carbsgrams proteinCarb calCarb grmFat calFat grmTotal CalGRM FatGRM CarbGRM FbrGRM Pro156391561731310315230000138341381527592852100001443614416324113252401751171654116518331113352551175117<br />Spreadsheet #2- Portion Controlling Meal to Fit within Established Guide:  (Please see spreadsheet contained within due diligence appendix).<br />Other services include:<br />*Detailed Information on Nutrient Density for Thousands of Food Items by type and manufacturer <br />Downloadable “Cheat Sheets” Rating Best and Worst Products to consume <br />Consultation and Help Desk with Certified Nutritionists <br />Email Alerts for Food Recalls and Warnings (FDA, USDA) <br />Community Forums include Health Tips, Recipe Exchange and Full Nutrient FAQs<br />*The reference database is a collection of nutritional data acquired from USDA’s National Nutrient Database for Standard Reference as posted on their website http://www.nal.usda.gov/fnic/foodcomp/search/.  The website maintains nutritional data for fresh, canned, frozen, as well as many foods served by common franchise restaurants.<br />V. Marketing Plan<br />4692015623570Research has shown that our peak target market is women in the age range of twenty-five to forty-five years old.  We base this information off studies that show women represent approximately sixty-four percent of the weight loss industry sales and consumerism.  Men, estimated at thirty-four percent of the market, will be our secondary market.   Also, individuals between the ages of twenty-five and forty-four are more likely to diet than any other age segment.<br />Having established our primary and secondary markets, next we considered appropriate media outlets geared for reaching out to our target consumers.  Surveys indicate that the most preferred means of acquiring information are magazines, blogging, viral, and web-based advertisement channels.  Articles in recent issues of Entrepreneur Magazine confirmed those channels as highly effective and least expensive means of syndicating one’s entrepreneurship.  <br />Likelihood of Dieting by Age18 - 24 -20%25 - 34 6%35 - 44 12%45 - 54 2%55+ -4%<br />With this understanding, we intend to establish our advertising budget to individual members by differentiating between the most effective free and paid opportunities.  Free opportunities that will be utilized are online viral marketing via Facebook, MySpace, LinkedIn, blogtalkradio.com, YouTube, Twitter, and the HARO program (help a reporter out – gives leads to up-and-coming reporters).  Since we are start up and trying to maximize publicity for as little money as possible, we will pursue these prospects first.  This avenue will allow us to announce our upcoming service without incurring expenses before startup.<br />We will also pursue paid advertisements.  We have selected online advertising via Google’s AdWords and print media in magazines.  AdWords is pay-per-click advertising and we will begin paying for AdWords effective immediately upon startup.  <br />The most costly means of advertising will be magazine print media. Our anticipated magazines were selected based on content focus, readership, circulation, and cost per advertisement.  We will postpone magazine advertising in our selected magazines until the issue immediately following startup.  The financial details regarding paid-for-advertising are included in the due diligence section of the Appendices. <br />Vigor Health’s service is appropriate for both corporate and personal application.  Studies show corporations who participate in wellness programs see increased productivity, reductions in sick days, long and short term disability claims, and workman's compensation.   Vigor’s executive sales will focus on partnering with corporations interested in bringing our wellness programs to their employees.  We will focus on industry specific trade shows and face to face solicitation.<br />The time required to use this application is roughly half an hour a week.  Once the survey has been taken and the first spreadsheet has been calculated, they are set and do not require revisiting.   The time spent will be planning weekly meals; this planning requires modification of the second spreadsheet using copy and paste functionality between it and the reference database.  Once you’ve established meal portions for your favorite meals, those can be saved for future reference and no longer require development time; therefore, future time is being saved in turn.<br />For individuals, financial savings will come in reduced medical copayments, grocery expenses, and unnecessary supplemental products, like vitamins.  Knowing food portions allows for knowing how much to buy which in turn provides two means of savings – money out the door and waste reduction.  <br />Increased awareness and development of better habits generate disease prevention.  Among diseases that can be prevented and/or reversed are diabetes, sleep apnea, obesity, and many cancers (carcinogens are fat soluble).<br />We have been developing this application since February 2005 in pursuit of our own health and wellness. Currently, the two modifiable spreadsheets are fully functional; however, while functional, the reference database requires continued data acquisition and compilation.  Given that it is functional, our service has been beta-testing on a small scale.   We would like to see large scope beta testing at the Cleveland Clinic under the guidance of Dr. Michael Roizen, with New York Yankees and Mets under the guidance of their trainers, and Biggest Loser contestants under the guidance of Jillian Michaels.   <br />Our major direct competition comes from Weight Watchers, Jenny Craig, and Nutrisystem.  Each provide weight loss services, online communities, and have onsite corporate employee meetings.  All three companies are very well established and dominate market share.  These companies have been successful in focusing on portion and/or calorie control and current industry reports project their continued growth.  Even though Vigor Health is a new start up, we feel our integrity and sustainable solutions can pull market share from these companies.<br />While indirect, we still need to acknowledge competition from fad diets. These diets are a culmination of many various unfounded concepts and perceptions passed simply by book sales and word of mouth.  Fortunately, industry and sales reflect decreasing consumer participation; therefore, going forward, we anticipate progressively lessened rivalry from these diets. <br />Once our reputation and branding are established and profitability is sustainable, we would like to be acquired by Google or Microsoft.  Currently, both Microsoft and Google are two of the biggest companies developing software and health related web-based applications.   The competing programs of GoogleHealth and Microsoft’s HealthVault are currently still in “beta” phase testing at the Cleveland Clinic.  <br />We anticipate interest from Microsoft for several reasons.  Historically, they package their software for purchase for either industry or personal use.  Currently, their HealthVault program is being marketed for corporate and personal use.  Additionally, they incorporate a nutritional aspect within their HealthVault program.  Regarding HealthVault’s current nutritional component, we believe our application would allow more end-user control and choice rather than limiting them to ‘prescribed’ meal plans as their program stands now. This will create a sentiment of freedom and autonomy rather than the reaction of “told to.”<br />We also anticipate interest from Google.  Though GoogleHealth is being developed and competing against Microsoft’s application, GoogleHealth does not incorporate a nutritional aspect. Vigor Health’s application would give them the edge they are currently missing. <br />In acknowledging that no two lifestyles or metabolisms are explicitly the same, we are able to develop our service to be uniquely customizable for each end user.  Our seamless personalization allows an opportunity to establish a niche market for ourselves without sacrificing the benefit of economies of scale.<br />Our desire to pursue this mission-driven venture came from the advantages we felt we could offer.  First and foremost, to quote Jillian Michaels, “We’re not going for perfection; we’re going for maximum impact.”  Second, our service and educational resources are both scientifically and medically founded; our service was built upon a compilation of knowledge shared by appropriately credentialed industry leaders – we simply put their knowledge into a readily usable format.  Additionally, customization allows for individual optimum results; we realize that individual plans are more effective than “umbrella” plans such as “points” and “volumetrics” intended for mass use.  Finally, our clients maintain their freedom of consumer choice as well as their sense of autonomy and self-esteem.<br />Our primary disadvantages are not unique to any start up venture;   lack of branding and reputation.  Fortunately, through well selected advertising channels, positive feedback, and proven results these challenges will be overcome.  <br />Development and Operations<br />Vigor Health will be located in Stony Brook, NY. Since there will be no inventory and no foot traffic, the building space requirement is under 3500 square feet.  Workspace and offices will be needed for the executive team, technology team, and support team including a call center and server room.  Loading docks, warehousing, and vendor delivery will not be necessary.   Initially a staff of 10 will be on board. Future expansion over the next 5 years will bring a total of 25 associates to Vigor Health.<br />Development of the company will take place within the first 90 days of operation.  During that time, several projects need to be completed to ensure the success of the long-term plan including:<br />Web-Site Development: A user friendly, secure, interactive web-site consisted with the overall vision and philosophy of Vigor Health.<br />Database Development: Linking/importing USDA database information with internal databases to populate meal plans and recipe ideas.  <br />Capital Equipment Purchases:  Procurement of technology, phone systems, furniture, and office supplies.<br />Corporate Development: Soliciting corporations to sign on during development phase will ensure revenues at “Go Live”.  <br /> Advertising and Promotions: Appealing to corporation via trade shows, conferences, and industry specific print ads to assist in corporate development.<br />Once the website is online and individual users can access their accounts, a push will be made to grow membership.  These sales operations, along with continued corporate growth, will be the responsibility of CEO, Rebecca Paris.  Nutritional information and web content will also be managed by Rebecca and her Lead Nutritionist.  Technical operations, customer service, and finances, including accounts payable and receivable, will be the responsibility of CFO, Robert Manaseri.  A Director of Technology will report into the CFO and oversee a small IT staff.  <br />Management and Organization<br />CEO- Rebecca Paris – Will oversee business development, sales, and corporate relations.  Rebecca is responsible for improving service content and protecting product integrity.  Ms. Paris did extensive researched into nutrition and took several leading theories when developing the prototype software.  She has experienced personal success when using it.  She has also survey health care professionals and colleagues on the products marketability and has received positive feedback.<br />CFO- Robert Manaseri- Responsible for daily operations including finance, technology, customer service, and performance.  Mr. Manaseri has over 10 years experience in building and growing operations at both start-up and fortune 500 companies.  <br />Director to Technology (TBD) - Oversee technical team, all web content, development, infrastructure, e-commerce, database administration.<br />Director of Nutrition (TBD) - - Provide data on food nutrients, develop needs assessment, provide meal plan content.  Work with consultants on recipes and interchangeable ingredients.<br />Financial Plan<br />The financial projections for Vigor Health are very encouraging.  Based on the assumptions outline in the Executive Summary, the number of individuals with obesity issues will increase 75% over the next 6 years.  In the United States, there are currently 96 million dieters, many of which have unsuccessfully sustained weight loss through commercial programs or on their own.  The increasing number of individuals looking for quality, long term weight management solutions will positively affect Vigor Health’s market share.<br />Revenue and Expenses<br />Listed below are the major components of revenue and expenses from the income statement. Detailed descriptions are located in the Appendix. <br />Revenues:<br />,[object Object]
317690537465Corporate Partnerships: Several corporations now offer wellness programs to their employees. The wellness programs are becoming increasingly more popular as they are designed to improve and prevent potential health issues. This not only cuts down on employee absences, studies show it improves moral and leads to greater productivity.  Vigor Health’s long term goal is to obtain 30% of client base through corporate programs.  Discounted rates between 5% and 15% apply to corporations who enroll 15 or more members.
Corporate Sponsorships:  This revenue stream is conservatively projected and has the potential to see great expansion.  Corporate sponsorships are links/ads placed on Vigor Health’s site for company approved sponsors. The links will direct Vigor Health members to the sponsoring company’s site and offer discounted purchases on that companies products.  Vigor Health will charge between $1000 and $5000 per ad dependent upon its size and will seek a portion of any products purchases through our link.3120390395605Expenses:<br />Advertising: In order to hit our target market, a series of print ads will be placed in 15-20 specific magazines. We will also seek to secure a spokesperson- funding for will come from the advertising budget.<br />Payroll: Although the staff at Vigor Health is not large, they are specialized and require competitive salaries. In order to recruit and retain employees, Vigor offers a full medical benefit program.<br />5 Year Earnings Outlook <br />As can be expected, earnings and revenue during Year 1 and Year 2 are negative due to customer revenue ramp-up. Expenditures in advertising, product development, and marketing will be necessary to attract a large number of individual and corporate customers.<br />Fiscal Year 1:<br />,[object Object]
Year end projects forecast a customer base of 2300 members.In 000'sYear 1Revenue$453  Expenses$1,579 Net Profit (Loss)($1,126)<br />Fiscal Year 2:<br />In 000'sYear 1Year 2Revenue$453 $1,288 Expenses$1,579 $1,822 Net Profit (Loss)($1,126)($534)<br />,[object Object]
Advertising increases by 33% over prior year.
Break even (revenue to expense) occurs in month 12 of fiscal Year 2 with a net profit of $2k.167640-451485<br />Fiscal Year 3:<br />,[object Object]
Additional Staffing requirements lead to 27% increase in expenses over Year 2.
Sustained profitability and revenue growth seen.In 000'sYear 1Year 2Year 3Revenue$453 $1,288 $2,968 Expenses$1,579 $1,822 $2,319 Net Profit (Loss)($1,126)($534)$379 <br />Fiscal Year 4:<br />,[object Object]
Additional advertising leads to 33% increase in expenses over Year 3.In 000'sYear 1Year 2Year 3Year 4Revenue$453 $1,288 $2,968 $4,625 Expenses$1,579 $1,822 $2,319 $2,895 Net Profit (Loss)($1,126)($534)$379 $1,727 <br />Fiscal Year 5:<br />,[object Object]
Nearly 100k from Sponsorship Program
21 Full Time Staff MembersIn 000'sYear 1Year 2Year 3Year 4Year 5Revenue$453 $1,288 $2,968 $4,625 $6,688 Expenses$1,579 $1,822 $2,319 $2,895 $3,471 Net Profit (Loss)($1,126)($534)$379 $1,727 $3,196 <br /> <br />Funding Requirements<br />A total investment of $1.87 million will cover start-up expense through break even (please see Financial Statement in Appendix for further detail).  Vigor Health’s CEO and CFO will make an investment in the company which brings the total request from venture capital to $1.81 million.<br />Staged funding is necessary as per schedule below:<br />Use of Funds  <br />Start-up and Development Costs:  The initial 90 days will be critical for the success of projected sales and growth during Year 1. Start up funding will be allocated towards building business infrastructure and marketing efforts.  The goal is to have a functional and tested infrastructure and corporate accounts on board before product launch.  Print advertising to individual customers will begin in November 2009 to promote December 2009 website launch.<br />Operating Costs: The majority of operating costs will be spent on consumer marketing. As previously described, the success of the company depends on achieving mass consumer appeal.  Advertising increases year over year at an average rate of 27% annually.  Other costs include general operating supplies, IT maintenance, rent, and utilities.<br />Personnel Costs: Vigor Health will need personnel with specialized skills in the nutritional and technology fields. Initially, a staff of 10 will be employed including a CEO, CFO, Director of Technology, and Director of Nutrition.  Growth will require additional hires with a total number of 21 employees by year 5.  Please see appendices Staffing Breakdown which includes salaries.<br />Return on Investment<br />The 5 year operating net is projected at $4,756k.   Ownership percentages in Vigor Health breakdown as follows:<br />,[object Object]
CFO- 5% Ownership
Investors- 90% OwnershipAfter the 5 year mark, Vigor Health will be in a strong position to be acquired.  Considering the growing market of dieters and niche market created by Vigor Health, there are a few companies that we foresee as potential purchasers.<br />,[object Object]
Microsoft: HealthVault is being marketed for corporate and personal use and includes a nutritional aspect within their program.  However we believe our application would allow more end-user control and choice rather than their current application which limits user to a ‘prescribed’ meal plans.  Vigor Health’s application allows for more freedom and autonomy rather than the stringent plans.Given the projected revenue forecasts, the company will be in a strong position to achieve a substantial return on investment via acquisition.  We believe the company’s market value after year 5 will be $20mm and primed to be acquired.  A sale of $20mm will breakdown as follows for investors:<br />$20m * 0.90 / $1.81 = 10 times ROI<br />Vigor Health would be in a positive position to be acquired based on the following:<br />,[object Object]
Projected Market Share and Customer Base
Acquisitions by Microsoft in the Health Field including
July 2006- Health Software, Azyxxi
February 2007-  Web based Medstory Inc
Recent Launch of and Competition Between Microsoft’s HealthVault and Google’s Health Assumptions, Risks, Contingencies<br />Assumptions<br />The success of our business can potentially be affected by the outcome of three assumptions.  Two of these assumptions are based upon forecasted market growth and trends.  A third assumption is based upon newly emerging business practices.  <br />Our market assumptions are such that the market for nutritional services will continue to escalate in parallel to the growing trend of obesity.  Additionally, we assume as fewer and fewer people attempt fad dieting, the fad dieting market share will decrease allowing an opportunity to acquire a larger share of the overall market.<br />Newly emerging business practices include implementation of onsite employer based wellness programs.  These practices provide an additional market opportunity via the corporate sector; we are no longer limited to individual service accounts.  Not only does this increase our potential account acquisition, but it also has the potential to stimulate viral advertising- satisfied employees could spread the word to friends and family and in turn promote our individual client base. <br />Risk Factors/Contingency Plans<br />We consider risks in development, staffing, advertising, and obtaining corporate accounts as potentials to demise our success.  Primarily, there are two entities to our development; web development and database development.  If either of these projects are not completed on-time, our startup date would be delayed which would have a direct effect on revenue.  To reduce the risk of not meeting our startup date, we have allocated funds for potential labor expenses to include bringing on temporary and/or contract staffing.<br />Another risk is issue in hiring and/or retaining personnel.  Turnover during the development stage could delay startup or impact customer service satisfaction levels once the web site is operational.  Similarly, we have set aside funds for unanticipated labor expenses.<br />Advertising has the potential to affect us negatively in two ways; missed goal in audience reach; and financial loss due to unsuccessful advertising.  For example, if we contract advertising with a magazine and their readership declines, we will lose potential customers.  In order to overcome that challenge, we have identified other print media outlets to reach target market.<br />Summary<br />Vigor Health delivers a sustainable solution through web-based nutritional services.   Under the management of Rebecca Paris and Robert Manaseri, Vigor Health strives to improve their customers’ lives by providing best of class counseling, interactive meal plans, and education while preserving the integrity of their core values.<br />The company comes at a time when there is great need for this service.  Globally, obesity is increasing at an alarming rate and contributes to the many health related issues associated with weight management. For the 96 millions dieters in the U.S. alone, Vigor Health provides a viable solution.  Our unique, customizable, and individualized program gives our customers something our competitors can’t- sustainable results. <br />Vigor Health welcomes investors who also believe there is excellent opportunity to penetrate this market.  We offer a unique product, a niche market, strong leadership, and the vision to grow into a company that provides a tremendous return.<br /> <br />
Vigor Health Business Plan  507

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Vigor Health Business Plan 507

  • 1.
  • 2. 317690537465Corporate Partnerships: Several corporations now offer wellness programs to their employees. The wellness programs are becoming increasingly more popular as they are designed to improve and prevent potential health issues. This not only cuts down on employee absences, studies show it improves moral and leads to greater productivity. Vigor Health’s long term goal is to obtain 30% of client base through corporate programs. Discounted rates between 5% and 15% apply to corporations who enroll 15 or more members.
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  • 5. Advertising increases by 33% over prior year.
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  • 7. Additional Staffing requirements lead to 27% increase in expenses over Year 2.
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  • 10. Nearly 100k from Sponsorship Program
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  • 15. Projected Market Share and Customer Base
  • 16. Acquisitions by Microsoft in the Health Field including
  • 17. July 2006- Health Software, Azyxxi
  • 18. February 2007- Web based Medstory Inc
  • 19. Recent Launch of and Competition Between Microsoft’s HealthVault and Google’s Health Assumptions, Risks, Contingencies<br />Assumptions<br />The success of our business can potentially be affected by the outcome of three assumptions. Two of these assumptions are based upon forecasted market growth and trends. A third assumption is based upon newly emerging business practices. <br />Our market assumptions are such that the market for nutritional services will continue to escalate in parallel to the growing trend of obesity. Additionally, we assume as fewer and fewer people attempt fad dieting, the fad dieting market share will decrease allowing an opportunity to acquire a larger share of the overall market.<br />Newly emerging business practices include implementation of onsite employer based wellness programs. These practices provide an additional market opportunity via the corporate sector; we are no longer limited to individual service accounts. Not only does this increase our potential account acquisition, but it also has the potential to stimulate viral advertising- satisfied employees could spread the word to friends and family and in turn promote our individual client base. <br />Risk Factors/Contingency Plans<br />We consider risks in development, staffing, advertising, and obtaining corporate accounts as potentials to demise our success. Primarily, there are two entities to our development; web development and database development. If either of these projects are not completed on-time, our startup date would be delayed which would have a direct effect on revenue. To reduce the risk of not meeting our startup date, we have allocated funds for potential labor expenses to include bringing on temporary and/or contract staffing.<br />Another risk is issue in hiring and/or retaining personnel. Turnover during the development stage could delay startup or impact customer service satisfaction levels once the web site is operational. Similarly, we have set aside funds for unanticipated labor expenses.<br />Advertising has the potential to affect us negatively in two ways; missed goal in audience reach; and financial loss due to unsuccessful advertising. For example, if we contract advertising with a magazine and their readership declines, we will lose potential customers. In order to overcome that challenge, we have identified other print media outlets to reach target market.<br />Summary<br />Vigor Health delivers a sustainable solution through web-based nutritional services. Under the management of Rebecca Paris and Robert Manaseri, Vigor Health strives to improve their customers’ lives by providing best of class counseling, interactive meal plans, and education while preserving the integrity of their core values.<br />The company comes at a time when there is great need for this service. Globally, obesity is increasing at an alarming rate and contributes to the many health related issues associated with weight management. For the 96 millions dieters in the U.S. alone, Vigor Health provides a viable solution. Our unique, customizable, and individualized program gives our customers something our competitors can’t- sustainable results. <br />Vigor Health welcomes investors who also believe there is excellent opportunity to penetrate this market. We offer a unique product, a niche market, strong leadership, and the vision to grow into a company that provides a tremendous return.<br /> <br />