SWM111

Sports and Wellness Program Finance and Accounting

Name: Joanelivert Mercado

Business Scenario:

An investor asking for help to put up a business with the capital amounting to Php100,000

1. What type of business you are going to suggest? Why did you choose the selected
business?

A combination of a service business (offers professional skills, expertise, advice, and

other similar products.) and merchandising business (reselling of products).
My idea is to offer 1 on 1 or personal MMA training and products that can help them
improve performances and reach their goal, like whey protein, mma gears/protections
(for rentals), apparel and some basic workout equipment. Sessions will be held in the
client’s place and at the same time the coach can deliver the orders. This is for the
people who don’t have enough time or don’t want to go to
the gym but still want to learn MMA.

2. Breakdown (Indicate the price and quantity of the products and or Equipment that
you are going to use/sell.)

PAYMENT PER SESSION: P400 (60-40pt/owner)

RENTAL FEE: P150 PER SESSION (INCLUSIONS: GLOVES, SHIN GUARDS.)
Selling price will be additional 10% of purchase cost

PRODUCTS FOR SALE: QUANTITY / PURCHASE COST

TUMBLER 10 PCS / P125 EACH

WHEY PROTEIN 5 (2LBS) / P1,600 EACH
RESISTANCE BANDS 5 PCS / P140 EACH
TRADITIONAL MMA FIGHT GLOVES 3 PAIRS / P2,600/PAIR
BOXING GLOVES 3 PAIRS / P2,200/PAIR
SHIN GUARDS 3 PAIRS / P1566/PAIR
HAND WRAPS 10 PAIRS / P100/PAIR
MOUTH GUARDS 5 PCS / P450/PC
GROIN PROTECTOR 3 PCS / 890 EACH
TSHIRTS 15 PCS / P250
BOARDSHORTS 15 PCS / P530
EQUIPMENT NEEDED FOR SERVICES:

1 PAIR OF THAI PADS & PUNCH MITTS (SET) 4 SETS / P7,800/SET

JUMP ROPES 4 PCS / P160 EACH
FOAM ROLLERS (OPTIONAL/IF REQUESTED) 2 PCS / P310 EACH
AGILITY LADDERS 2 PCS / P280 EACH

TOTAL COST FOR PRODUCTS AND EQUIPMENT: P79,688

MARKETING EXPENSE: P12,000
TOTAL EXPENSES: P91,688
REMAINING BUDGET AND WILL SERVE AS CONTINGENCY FUND: P8,312

3. What are the marketing Strategy?

Direct mailing and social media/internet marketing. These would be the perfect strategies for the
potential business since most of the people nowadays are engaged in virtual world and it would
be easier because you just have to look for a really good PR team and pay them.

4. Timeline for ROI

Let’s say we have a total of 4 coaches and each coach could do at least 5 sessions per day.
P400 per session, 60% is the coach’s cut (P240). So it would be P160 profit per session for the
owner and investor. P160 x 5 (sessions) = P800 x 4 (coaches) = P3,200
That would be P3,200 profit per day, P22,400 a week, and more or less P89,600 per month.
That’s only for services, and let’s say we were able to sell the stocked merchandise then it’s
possible that the return of investment will only take more or less than a month