Wellness firm to launch “crowd funding” system

CEBU, Philippines - Body & Sole Franchise Corporation will soon introduce the “crowd funding” system and maximizing the social media to promote entrepreneurship.

This is an experimental move to invite and encourage people to start their own business with an initial investment of P25 thousand to co-own a Body & Sole outlet together with other 19 investors contributing the same amount, said Body & Sole Franchise Corporation president and chief executive officer Johnie Lim.

A 100 square-meter spa that accommodates 10 to 15 beds, would require at least P500 thousand.

“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,” Lim said.

According to Lim, he is now starting to make use of social media to aid the financing requirement of Body & Sole's expansion, to add to its current 40 branches nationwide.

Crowd-funding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet. With crowd-funding, members of the public can pool resources together to hit the amount target.

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.

“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.

Each investor will be issued a certificate of investment and will have to agree to be mentioned in all social media.

According to Lim all activities of the new business will also be an “open secret” in Facebook.

In each crowd-funding group of 20 people, Lim will also co-own a certain stake, and will give the brand royalty for free. The business will be registered under the 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.

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.

Lim added the potential of wellness sector in the Philippines is huge. The entry of ASEAN integration also widened the opportunity of entrepreneurs not just to expand in the Philippines, but also in 10 member countries in the region.

In one outlet, Body & Sole generates an average income of P200 thousand to P300,000 a month. (FREEMAN)