BODY and Sole Philippines is crowd-funding a new branch in Mandaue City.
Johnie Lim, owner of the 40-branch homegrown spa business Body and Sole, said this new business concept is aimed at promoting entrepreneurship, especially to those who want to start a business with a minimal capital.
Lim made this announcement over his Facebook account.
“This is a calculated social experiment using Facebook as a venue for interested individuals to put up a business with minimal capital in this digital world,” he said.
Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. With crowdfunding, members of the public can pool resources together to hit the amount target.
Lim said he initially needs 20 investors who can put up P25,000 each for a total of P500,000.
A half a million investment can already build a 100 square-meter spa facility that can accommodate 10 to 15 customers.
Lim believes this new business concept would allow him to spark the entrepreneurial spirit of Filipinos, especially that the lack of capital is the top constraint of Filipinos to get into business.
Potential
Since he made the announcement on Dec. 31, Lim said he already has 23 potential investors in his list.
“This project has earned the interest of my fellow businessmen, a nurse, doctor and even a domestic helper who wants to get into business,” he said.
According to Lim, each investor will be issued a certificate of investment and will have to agree to be mentioned in all social media. All activities of the new business will also be an “open secret” in Facebook.
Lim said this new venture will be registered under the name Entrepreneur 20.
As a part owner, the investor is entitled to profit-sharing and will be invited to meetings and deliberation limited to this new branch only.
If this succeeds in a year, Lim said the investor may decide to continue with his investment and earn his profit share. If this venture fails, he may decide to withdraw and get back his investment with a share of the loss.
As a crowd investor, he will also be given extensive opportunity to see how a spa business work and he will be entitled to perks and discounts reserved for owners.
Buy franchise
Lim said he will also have the opportunity to buy a franchise at a fraction of the cost when he has gained enough experience to put up his own business.
However, while under the contract, the investor is prohibited from putting up a similar business to that of Body and Sole.
A Body and Sole branch logs an average gross income of P200,000 to P300,000 per month.
Lim, who is the founding president of the Spa Wellness Association of Cebu, said growth prospects at the spa industry will remain bright and robust this year as spa services have already become part of the people’s daily routines.
“Going to spa is nothing special anymore because now it’s like going to a barber shop. It’s already part of our system,” Lim said.
Body and Sole Philippines opened five new franchise branches last year in Cabanatuan, Mabalacat, Mandaluyong, Catbalogan, and San Fernando City in Angeles, Pampanga.
Lim said he is eyeing four to five new franchise businesses to open this year.