2011

Business Plan :--

Anti Cellulite Garments

ENTERPRENEURSHIP MANAGEMENT
Vision and Mission statements• Summary of the operation plan•
Summary of the marketing plan• Summary of the Financial plan

Mohit Singh
Nikhil Bajpai
Nishant Fogaat
3/18/2011
 1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a weight loss
center while showcasing the expected financials and operations over the next three years.
Discovery Direct, Inc (“the Company”) is an Ahmedabad, Gujarat (India) based corporation
that will provide customers with multiple systems that will assist clients in losing weight by
combining fitness programs along with the sale of healthy garments with biological utility.

The Company was founded by Nishant Fogaat & Nikhil Bajpai in 2011

1.1 Vision Statement

Our vision is to establish an innovative wellness solution that helps to invigorate the body,
mind and soul in a more effective and faster way and to lead the way to the beginning of a
New Generation in Slimming, Fitness and Beauty.

1.2 Mission Statement

The Discovery Direct, Inc is dedicated to provide exclusive fitness, slimming, beauty and
wellness concept with the latest, top-rated and highly effective technology, specially designed
for the modern desires of esteemed clientele in their mission to achieve an ageless and
youthful mind and body.

.
1.4 Management Team
The Company was founded by Nishant Fogaat & Nikhil Bajpai, Graduates from National
Institute of Fashion Technology (NIFT), specializing in Apparel Technology.

Through their expertise, they will be able to bring the operations of the business to
profitability within its first year of operations.

1.5 Expansion Plan

The Founders expects that the business will aggressively expand during the first three years
of operation. They intends to implement marketing campaigns that will effectively target
individuals within the target market.

1.6 The Financing

Mr. Fogaat & Mr. Bajpai are seeking to raise $100,000 from as a bank loan. The interest rate
and loan agreement are to be further discussed during negotiation. This business plan
assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
 2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Discovery Direct, Inc. The Company is registered as a Pvt. Ltd. corporation in
Ahmedabad.

2.2 Required Funds

At this time, Weight Loss Center, Inc. requires $100,000 of debt funds. Below is a
breakdown of how these funds will be used:
2.3 Investor Equity

We are not seeking an investment from a third party at this time.

2.4 Management Equity

Nishant Fogaat & Nikhil Bajpai, own 60% & 40% of Discovery Direct, Inc

2.5 Exit Strategy

If the business is very successful, we may seek to sell the business to a third party
for a significant earnings multiple. Most likely, the Company will hire a qualified
business broker to sell the business on behalf of Discovery Direct, Inc. Based on
historical numbers, the business could fetch a sales premium of up to 4 times
earnings.
 3.0 PRODUCTS & SERVICES
Below is a description of the services and products offered by the Anti – Cellulite
Garment Industry.

3.1 BodiAssets™ Anti Cellulite Micromassage Slimming Garments

The primary revenue source of the business is the sale of Anti Cellulite
Micromassage Slimming Garment packages that will assist clients by boosting
circulation which is needed to flush out trapped liquids and toxins that form cellulite. It
should be noted that these services are intended for people that are seeking to lose
a moderate amount of weight, and the business does not service those that must
seek medical attention for an obesity problem.

This products also is a uniquely effective experience for professional women who are fed
up with the false promises of commercial diet centres. In addition, those women facing
adult-onset or Type II diabetes find few effective programs that can make the diet and
lifestyle changes that truly impact the quality of their lives.
The Company will charge clients on the basis of the product of their desire, with
expected pricing to range from $50 to $200 per piece depending on the needs of the
client (whether Anti Cellulite Garment, Anti Cellulite Maternity Support or Therapeutic
Vein Control Hosiery).

3.2 Sales of Products

The business’s secondary source of revenue comes from the ongoing sale of dietary
supplements, dietary supplies, snacks, and assorted items that will be made
available throughout the BodiAssets™ location.

.
 4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the weight loss
center/fitness industry, the customer profile, and the competition that the business
will face as it progresses through its business operations.

4.2 Industry Analysis

There are over 9,400 businesses that focus on providing health, weight loss, and
wellness services in the United States. These businesses produce over $37 billon
dollars a year in gross receipts. Additionally, the business employs over 250,000
people, and generates payroll figures of $12.45 billion dollars a year. The industry
has experienced a tremendous rate of growth over the last ten years. The fitness
and weight loss industry from 2002 to 2007 experienced growth of more than 18%
over this five year period. This industry is one of the fastest growing industries in the
India as well as United States. Additionally, obesity has become a serious problem in
the India. Recent reports from the Indian government declare that obesity is an
Indian epidemic, and that more than 60% of Indians are considered overweight. The
demand for weight loss services has skyrocketed over the last ten years as more
Indians are seeking to reduce their weight through healthier diet, exercise, and
through programs that can guide patients on how to properly and healthfully reduce
their waistlines without shocking their body systems.

4.3 Customer Profile

It caters to a wide range of customers including, expecting moms (to make you look
good and feel good during this special time), People that spend a lot of time sitting or
standing, People that already have varicose veins (mild or severe), People with
aching feet and legs and/or swollen ankles, People with family history of varicose
veins and/or any kind of leg disorders, People with poor blood circulation, People
that are overweight/obese, Travellers that spend many hours in an airplane, train, or
car, Women who are pregnant or have recently given birth- studies show that about
80% of all women develop varicose veins, with the risk skyrocketing during
pregnancy, Women taking oral contraceptives, People that are bedridden or need
wheelchairs, and Smokers.
4.4 Competitive Analysis

Currently there exists numerous name to be called out for in relation to the anti –
cellulite technology. But, as a matter of fact, when it comes to combining the anti-
cellulite technology with garment industry, luckily for our industry, no one has yet
tested the waters of the industry.

The various other players that might give a serious competition are the cosmetic
brands like L’oreal, Oriflame, Garnier etc. But, at the same time, according to market
survey, the users of such cosmetic products do doubt the authenticity of such
products, and 64% population in Texas, USA do think that the use of such cosmetic
products hardly make any marginal difference to them. It is quite evident from this,
that the market is open for something new, which could revolutionize their lifestyle,
and could be worth the penny they incur upon. The USP of BodiAssets is, the
product has a long life span of usability, as well as its cheap, and yet durable unlike
anti –cellulite creams which shed off just after a little sweat or water beads.
 5.0 Marketing Plan
Discovery Direct, Inc. intends to maintain an extensive marketing campaign that will ensure
maximum visibility for the business in its targeted market. Below is an overview of the
marketing strategies and objectives of the Company.

5.1 Marketing Objectives

 • Establish relationships with referring physicians and allied health professionals

within the targeted market.
 • Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth advertising.
 • Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.

5.2 Marketing Strategies

Discovery Direct, Inc. intends on using a number of marketing strategies that will allow
BodiAssets™ to easily target men and women within the target market. These
strategies include traditional print advertisements and ads placed on search engines
on the Internet. BodiAssets™ will also use an internet based strategy. This is very
important as many people seeking local services, such as weight loss centres, now
the Internet to conduct their preliminary searches. We will register the BodiAssets™
with online portals so that potential customers can easily reach the business. The
Company will also develop its own online website showcasing the services offered
by the business, its location, its team of weight loss specialists, and relevant contact
information. The Company will maintain a sizable amount of print and traditional
advertising methods within local markets to promote the weight loss services and
products that the Company is selling. Finally, we will develop relationships with local
allied health professionals and physicians that will refer their patients to the
business.

5.3 Pricing

 Anti Cellulite Shopping

BodiAssets™ Anti Cellulite Micromassage Shorts

Anti Cellulite Shorts feature a compressed micromassage knit allowing

you to wear the product anywhere & anytime- while you are at work,
and under the tightest of clothing. BodiAssets™ Anti Cellulite shorts
are opaque, so you can even wear them by themselves as a gym
shorts or exercise pants. Built in lifting bands gently tame and raise
your derrière, for an attractive contour. In addition to a massaging
effect, these our garments have a containing effect as well, providing
you with a beautiful contour underneath your clothes

Price: $ 36.50 USD

BodiAssets™ Anti Cellulite Micromassage Capri Pants
Same great design as the Anti Cellulite Shorts. Anti Cellulite Capri
Pants extends from upper tummy to right below the knee,
micromassaging stubborn knee cellulite and fat. Graduated
compression along the leg coupled with the 3-D micromassaging weft
knit can supercharge local circulation. Anti Cellulite Capri Pants
doubles as a body shaper, made with a highly elastic compressive
fabric, providing you with beautiful body contours. Great for exercise,
too!
Price: $ 48.50 USD

BodiAssets™ Anti Cellulite Micromassage Pants

Same great design as the Anti Cellulite Shorts. Full
Length Pant extends from upper tummy to the ankle,
micromassaging stubborn knee cellulite and fat, as well
as those cellulite and water retention prone calves and
puffy ankles. Graduated compression along the leg
coupled with the 3-D micromassaging weft knit can
supercharge the local circulation. Anti Cellulite Pants
doubles as a body shaper, made with a highly elastic
compressive fabric, providing you with beautiful body
contours.
Price: $ 66.50 USD

BodiAssets Anti Cellulite Slimming Vest

Micromassage Sleeveless Vest provides an effective upper body
micromassage. Micromassages love handles, stubborn back and
tummy fat. This vest also provides lumbar support, built in bra
support, and provides a containing effect for that desired hour
glass contour. Can be used as an elegant cami!
Price: $35.90 USD
 Therapeutic Shopping

BodiAssets Prevention Line Compression Stockings with Control Top

70 denier graduated compression hosiery with 12 mmHg of
compression at ankle

Price: $13.99 USD

BodiAssets Therapy Line Compression Stockings with Control Top

140 denier graduated compression hosiery with 17 mmHg of
compression at ankle

Price: $14.99 USD

BodiAssets Therapy Line Compression Knee High Stockings

140 denier graduated compression knee highs with 17 mmHg of
compression at ankle

Price: $10.99 USD

BodiAssets Therapy Line Compression Dress Knee Socks

200 denier microfiber compression dress socks made with Meryl SkinLife
bacteriostatic yarns

Price: $11.99
 6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

 7.0 Financial Plan

7.1 Underlying Assumptions

 • Weight Loss Center will have an annual revenue growth rate of 16% per year.
 • The Owner will acquire $100,000 of debt funds to develop the business.
 • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

The Company’s revenues are moderately sensitive to the overall economy. Health, wellness,
and fitness services are in demand among the general public regardless of general outlook of
the economic markets. However, the services offered by the Company are moderately
expensive As such, in the event of a steep economic decline, the business may lose revenue,
as clients find mightalternatives to the diet and weight loss solutions offered by the Company.
However, the economic decline would need to be significant in order for this to occur as it is
the first of this kind to come up with Anti – cellulite garment, thus would have a monopoly in
the consumer market, and can capitalize upon the opportunity till the time span of its patent
life (20 years) .

7.3 Source of Funds

 8.0 Market Analysis Summary
The dieting "Body Wars" are great for the economy, as the majority of discontented dieters
repeatedly invest their resources in shedding pounds. Figures from the late 1990s showed
that Americans spent $50 billion annually on diet products. This exceeds the projections for
the entire Federal education, training, employment and social services budgets by five to
ten billion dollars. In fact, this figure is the equivalent of the gross national product of
Ireland. An estimated 50 million Americans will go on diets this year. And while some will
succeed in taking the weight off, very few--perhaps five percent--will manage to keep all of it
off in the long run.
Approximately eight million Americans a year enrol in some kind of structured weight-loss
program involving liquid diets, special diet regimens, or medical or other supervision.
Approximately 70% are women. In 1991, about 8,500 commercial diet centres were in
operation across the country, many of them owned by well-known national companies.
Against this backdrop, BodiAssets™ is a uniquely effective experience for professional
women who are fed up with the false promises of commercial diet centres. In addition, those
women facing adult-onset or Type II diabetes find few effective programs that can make the
diet and lifestyle changes that truly impact the quality of their lives.
Going to the Spa twice a week for massage isn’t an option for most of us. BodiAssets
Micromassage Garments are!

Market Segmentation

BodiAssets™ is focused on three target customer groups:

 Anti Cellulite Garment centric:

 This group is highly motivated to make the lifestyle changes that will improve the
quality of their lives

 Anti Cellulite Maternity Support centric:

 This group is for expecting moms. Both designed to make you look good and
feel good during this special time

 Therapeutic Vein Control Hosiery centric:

This group deals with following list of clients:-
People that spend a lot of time sitting or standing
• People that already have varicose veins (mild or severe)
• People with aching feet and legs and/or swollen ankles
• People with family history of varicose veins and/or any kind of leg disorders
• People with poor blood circulation
• People that are overweight/obese
• Travellers that spend many hours in an airplane, train, or car
• Women taking oral contraceptives
• People that are bedridden or need wheelchairs
• Smokers
 9.0 SWOT ANALYSIS

• Very own patented technology

• High R & D
STRENGTH • Total Market monopoly

• Health consciousness people found

surgical alternatives, like Liposuction
• Facing slump in demand from America
(the country with maximum obese
WEAKNESS people)

• Ability to tailor products to customer

demands.
• Integration providing innovative
technology like Heptic motor to relieve
OPPORTUNITY on pressure areas.

THREATS
 10.0 Appendices

SURVEY ANALYSIS
The graphs below would help illustrate the perception of women towards anti-aging skin-
products. The purpose of doing so is to test the waters of the anti-cellulite products, and come
up to a conclusion, why anti-cellulite garments are better than anti-cellulite skin products.

DO YOU USE ANTI–AGEING SKIN PRODUCTS?

24

Yes
76 No

WHY DO YOU REFRAIN FROM USING SUCH SKIN-PRODUCTS?

11 20

37
31

Does not suit the skin

Do not feel the need to use them as skin is not showing signs of aging

Prefer conventional alternatives like eating healthy, drinking water

etc
Any other
 WHICH BRAND/S ARE YOU CURRENTLY USING?

19
36 L’oréal
8
Oriflame
8 Shiseido
28
Garnier
Others

HOW DID YOU HEAR ABOUT THE ABOVE-MENTIONED BRAND/S?

18 Advertisements
9

Word of Mouth
18
55 Recommended by your
beautician
Came across it in a
shopping mall
 HOW MUCH OF A DIFFERENCE DO THESE ANTI-AGING SKIN PRODUCTS MAKE?

36

64 Marginal difference
Noticeable difference

APPROXIMATELY HOW MUCH DO YOU SPEND ON THESE PRODUCTS IN A MONTH?

10

45
< Rs. 500
45 Rs. 500 - Rs. 1000
> Rs. 1000
CRITICAL SUCCESS FACTORS

Critical Success Factors are factors upon which the success of the business is
dependant. Discovery Directs’ attend to these factors to ensure success.

 Ability to tailor products according to different market and anticipate

customer demands
 Understanding in depth of the countries in which BodiAssets caters.
 Policy of listening to customers.
 Producing different range of products to match the diversity of its
consumers
 Scaling down to a few specific core products with different end usage.
 Increased advertising budget and interaction with advertising agencies
 Reorganisation

Financial Plan
The following is the financial plan for Discovery Directs’ BodiAssets™.

 Break-even Analysis
The monthly break-even point is shown in the table and chart below.

Break-even Analysis
Monthly Revenue Break-even $148,858
Assumptions:
Average Percent Variable Cost 22%
Estimated Monthly Fixed Cost $116,192
  Projected Profit and Loss

The following table and charts are the projected profit and loss for three years.

 Projected Cash Flow

The following table and chart are the projected cash flow for three years.