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. 1
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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