vigor health business plan 507

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Rebecca Paris, CEO

[email protected]

om

mailto:[email protected]

mailto:[email protected]

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I. TABLE OF CONTENTS

I. Table of Contents.................................................................2

II. Executive Summary.............................................................3

III. Company Overview..............................................................5

IV. Products and Services..........................................................7

V. Marketing Plan.....................................................................9

V. Development and Operations.............................................12

VI. Management and Organization..........................................13

VII. Financial Plan.....................................................................14

VIII. Assumptions, Risks, Contingencies....................................19

IX. Summary............................................................................20

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II. EXECUTIVE SUMMARY

Research has shown an alarming trend in the number of people who are overweight and obese. By 2015,

obesity will be up 75% globally and people who are overweight will rise 44%. With two-thirds of the United

States overweight or obese, 96 million people have turned to dieting. Unfortunately, the majority of dieters

fail to achieve or sustain weight lose goals. The information they acquire

is often times too complicated to comprehend and commercial program

methods are not set up for sustainable results. Complications from

excessive weight are also on the rise and include diabetes, sleep apnea,

heart disease, and cancers resulting from environmental fat soluble

carcinogens. A recent online article from the Center for Disease Control

revealed that the solution cannot come solely from hospitals, but that it

must start within the community.

In an effort to provide a solution to these health issues, Vigor Health delivers a web-based service offering

customizable and interactive nutritional plans. Because the program is web-based, overhead is relatively

low which keeps client membership costs well below competitor pricing. Membership also includes

counseling with a industry certified nutritionist, a community forum where members and staff can share

information, downloadable “cheat sheets” rating best and worst products on the market, and emailed alerts

to FDA recalled products.

The difference between Vigor Health and other fee based programs is that we educate our clients on proper

quantification of the macronutrient density of foods. Through this education, clients can maintain weight

loss and properly manage their food choices and caloric intake. Vigor does not sell prepackage food

products that often contain unhealthy ingredients. Our clients are given the freedom to purchase products

from their own local vendors. They are also given an array of menu options without the strict restrictions of

competitor programs. Our clients are not made to feel that weight management is a chore. Rather, through

education they find it a slight change of lifestyle that allows for a healthy way of life.

The personal health services industry has experienced tremendous growth over the past decade. Though

established for several decades, companies like Weight Watchers, Jenny Craig, and Nutrisytems have

experienced tremendous growth over the past few years. Of the 96 million dieters in the U.S., 36% are

women who utilize their own diet plans. We feel we can penetrate this market through mass advertising.

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Management of Vigor Health will consist of Rebecca Paris, who through research and personal experience

developed the concept and prototype software; and Robert Manaseri who expanded the concept and will

bring years of operational experience to the business.

Short term goals of Vigor health include business start up and development needs. A strong push will be

made to corporate partners who are looking to incorporate or expand the growing trend of wellness

programs offered to employees. Print advertising in selective media forums will draw individual consumers

and drive brand recognition.

Long term goals include growing the business so it becomes synonymous with corporate wellness programs

and individual consumers look for a sustainable, integrity based nutrition plan. Revenue growth over the

first two years will lead to projected profitability be the end of the second year. Sustained growth will put

Vigor Health in an excellent position to be acquired by the end of fifth year.

A total investment of $1.87 million is required to start up Vigor Health. Vigor’s executive team will invest

$60,000 of their own money bringing the monies sought by venture capitalists to $1.81m. The seed money

will start the business and sustain growth through profitability. Five year cash flow balance is projected at

$4.47m through individual members, corporate wellness programs, and corporate sponsor web links.

At the end of year five our exit strategy is to be acquired by a large company. Companies like Microsoft and

Google are currently developing their own web based health management services and we feel Vigor

Health’s niche market and fast growth will generate interest as a compliment to either of their services.

Being acquired at $20m will yield a 10x return for our investors who will have a 90% ownership of the

company.

As with any start up there are risk factors to consider. Three major competitors (Weight Watchers, Jenny

Craig, NutriSystems) dominate the marketplace so penetration will require careful strategic planning.

Brand recognition is also a factor so marketing is a key to overcome this challenge.

The success of Vigor Health and project revenue growth is based on a number of assumptions. The need for

nutrition and weight management services will continue to rise as more and more American become

overweight. We also base out projections on the growing trend towards corporate sponsored wellness

programs which to help improve employee health and reduce absenteeism.

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III. COMPANY OVERVIEW

The concept of Vigor Health began after CEO, Rebecca Paris, researched dietary management solutions and

then built a database around her daily nutritional requirements. The database was customizable and

offered an array of menu ideas based off her individual needs. The method proved successful and we now

seek to scale the system to benefit a growing population of overweight and obese.

Moving to a web-based system allows for this scalability. Using back end software to perform algorithms

based off of customer inputs, individuals will be provided with daily menu ideas which will improve their

health, lose weight, and sustain a healthy lifestyle. The goal of the company is to create a niche market by

educating clients on nutrient dense food choices, product comparison to determine most healthful purchase,

and creating a simply yet nourishing diet plan. Through this personal service and education, the company

differs from competitors who simply look at caloric intake and develop generic menus and proprietary

systems, like a “point” or “volumetric” system. Studies have shown and consumer reports indicate these

systems are not sustainable for continued health and weight management. These traits are passed onto

families and children to develop good habits early rather than to correct bad habits later.

Mission Statement:

“Through nutritional education and counseling we look to improve lives, one customer at a time. “

Vigor Health is not a quick fix diet solution. Our customers come away with an understanding of food

nutrients as well as their personal dietary requirements. With this information they are able to choose the

foods they eat, maintain their weight, and lead a healthier life.

Company Goals and Objectives:

The goal of Vigor Health is to build a strong, loyal customer base by providing leading customer service and

wellness programs. Vigor Health is also committed to develop customized corporate sponsored programs

for corporate employees. The goal here is to brand the service so it becomes synonymous with corporate

wellness programs- a value add in employee retention and recruiting. We anticipate growing the business

through profitability and eventual seek to be acquired after year 5.

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Objectives:

Increase client base by 2000% through 2014

Obtain 30% of clients via corporate programs by EOY 2010

Provide customized extranet site for large corporate clients by EOY 2011

Become acquired between years 5 and 7

Grow revenue by 185% through first year of operation

Business Philosophy:

Vigor Health believes that integrity is the greatest importance in growing our business. We do not intend on

selling our own branded food products as it takes away from our primary vision. Our qualified service staff

will be appropriately credentialed and provide personal service and possess a genuine concern for our

client well being. We differ from competitors who tend to market a quick fix solution or proprietary

methods of weight control where clients are not properly educated about quality nutrition. In turn, they fail

to sustain permanent weight control. We believe that as habits are learned, further development,

understanding, and implementation come with ease – requiring less and less of one’s time and making

dietary decisions second nature.

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IV. PRODUCTS AND SERVICES

The obesity epidemic in the U.S. has been on the rise for several decades and the trend continues to increase.

In recent years, childhood obesity rates have become a growing concern. The medical industry continues to

convey myriad health risks to being obese. During this time, many commercial diet plans and programs

have been developed. However, none of the diets have resulted in sustainable weight loss or healthy weight

maintenance- nor have they assisted in resolving the other health risks associated with obesity.

The primary service we are developing is a meal planning application. The application will be based off a

prototype application which is currently in use. The prototype is a combination of three Microsoft Excel

spreadsheets and current users have experienced successful results. Together, these spreadsheets organize

disparate information into useful, user friendly formats. Two of the three spreadsheets can be altered and

personalized; however, the third spreadsheet serves as a standard reference.

During the development stage, Vigor Health plans on building a robust database using the prototype

application as a guide. The web-based application provides much greater detail and options for end users

by using the Harris-Benedict equation and algorithms to calculate appropriate caloric intake according to

user gender, height, weight, and age. Based on inputs, clients will be given their daily allowance of calories

from fat, protein and carbohydrates. Users will then have the option to narrow the caloric allowances down

even further based on other variables like daily activities and weight management needs (loss, maintain,

gain). The results show a number useful outputs including:

Discretionary calorie allowance per day

Pre Work Out Calories required

Post Work out Calories required

Calorie allowances* per meal per day from fats, proteins and carbohydrates.

o *These allowances are determined based on the results from a new user questionnaire. The

questionnaire determines the rate at which your body breaks down your food into energy. It

is safe to “best guess” the ratio of macronutrients at forty percent carbohydrate and thirty

percent of each proteins and fats. This ratio will serve as the default macronutrient

breakdown ratio established for our service. After taking the survey, if it is determined to not

be the optimum ratio for the end user, the appropriate ratio will be applied to their plan.

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Spreadsheet #1, Part #3- End User Daily Reference:

DAILY Each Meal:: Pre Wkout Post WkoutDiscretionary B'fast, AM snack, Lunch, Dinner gram

s carbs

grams protei

n

grams

carbs

grams protei

nCarb cal

Carb grm

Fat cal

Fat grm

Total Cal

GRM Fat

GRM Carb

GRM Fbr

GRM Pro

156 39 156 17 313 10 31 5 23 0 0 0 0138 34 138 15 275 9 28 5 21 0 0 0 0144 36 144 16 324 11 32 5 24 0 17 51 17165 41 165 18 331 11 33 5 25 51 17 51 17

Spreadsheet #2- Portion Controlling Meal to Fit within Established Guide: (Please see spreadsheet

contained within due diligence appendix).

Other services include:

*Detailed Information on Nutrient Density for Thousands of Food Items by type and manufacturer

Downloadable “Cheat Sheets” Rating Best and Worst Products to consume

Consultation and Help Desk with Certified Nutritionists

Email Alerts for Food Recalls and Warnings (FDA, USDA)

Community Forums include Health Tips, Recipe Exchange and Full Nutrient FAQs

*The reference database is a collection of nutritional data acquired from USDA’s National Nutrient

Database for Standard Reference as posted on their website

http://www.nal.usda.gov/fnic/foodcomp/search/. The website maintains nutritional data for fresh,

canned, frozen, as well as many foods served by common franchise restaurants.

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V. MARKETING PLAN

Research has shown that our peak target market is women in the age range of twenty-five to forty-five years

old. We base this information off studies that show women represent approximately sixty-four percent of

the weight loss industry sales and consumerism. Men, estimated at

thirty-four percent of the market, will be our secondary market. Also,

individuals between the ages of twenty-five and forty-four are more

likely to diet than any other age segment.

Having established our primary and secondary markets, next we

considered appropriate media outlets geared for reaching out to our

target consumers. Surveys indicate that the most preferred means of acquiring information are magazines,

blogging, viral, and web-based advertisement channels. Articles in recent issues of Entrepreneur Magazine

confirmed those channels as highly effective and least expensive means of syndicating one’s

entrepreneurship.

With this understanding, we intend to establish our advertising budget to

individual members by differentiating between the most effective free and paid

opportunities. Free opportunities that will be utilized are online viral marketing

via Facebook, MySpace, LinkedIn, blogtalkradio.com, YouTube, Twitter, and the

HARO program (help a reporter out – gives leads to up-and-coming reporters).

Since we are start up and trying to maximize publicity for as little money as possible, we will pursue these

prospects first. This avenue will allow us to announce our upcoming service without incurring expenses

before startup.

We will also pursue paid advertisements. We have selected online advertising via Google’s AdWords and

print media in magazines. AdWords is pay-per-click advertising and we will begin paying for AdWords

effective immediately upon startup.

The most costly means of advertising will be magazine print media. Our anticipated magazines were

selected based on content focus, readership, circulation, and cost per advertisement. We will postpone

magazine advertising in our selected magazines until the issue immediately following startup. The financial

details regarding paid-for-advertising are included in the due diligence section of the Appendices.

Women; 64%

Men; 36%

Dieters

Likelihood of Dieting by Age

18 - 24 -20%25 - 34 6%35 - 44 12%45 - 54 2%

55+ -4%

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Vigor Health’s service is appropriate for both corporate and personal application. Studies show

corporations who participate in wellness programs see increased productivity, reductions in sick days, long

and short term disability claims, and workman's compensation. Vigor’s executive sales will focus on

partnering with corporations interested in bringing our wellness programs to their employees. We will

focus on industry specific trade shows and face to face solicitation.

The time required to use this application is roughly half an hour a week. Once the survey has been taken

and the first spreadsheet has been calculated, they are set and do not require revisiting. The time spent will

be planning weekly meals; this planning requires modification of the second spreadsheet using copy and

paste functionality between it and the reference database. Once you’ve established meal portions for your

favorite meals, those can be saved for future reference and no longer require development time; therefore,

future time is being saved in turn.

For individuals, financial savings will come in reduced medical copayments, grocery expenses, and

unnecessary supplemental products, like vitamins. Knowing food portions allows for knowing how much to

buy which in turn provides two means of savings – money out the door and waste reduction.

Increased awareness and development of better habits generate disease prevention. Among diseases that

can be prevented and/or reversed are diabetes, sleep apnea, obesity, and many cancers (carcinogens are fat

soluble).

We have been developing this application since February 2005 in pursuit of our own health and wellness.

Currently, the two modifiable spreadsheets are fully functional; however, while functional, the reference

database requires continued data acquisition and compilation. Given that it is functional, our service has

been beta-testing on a small scale. We would like to see large scope beta testing at the Cleveland Clinic

under the guidance of Dr. Michael Roizen, with New York Yankees and Mets under the guidance of their

trainers, and Biggest Loser contestants under the guidance of Jillian Michaels.

Our major direct competition comes from Weight Watchers, Jenny Craig, and Nutrisystem. Each provide

weight loss services, online communities, and have onsite corporate employee meetings. All three

companies are very well established and dominate market share. These companies have been successful in

focusing on portion and/or calorie control and current industry reports project their continued growth.

Even though Vigor Health is a new start up, we feel our integrity and sustainable solutions can pull market

share from these companies.

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While indirect, we still need to acknowledge competition from fad diets. These diets are a culmination of

many various unfounded concepts and perceptions passed simply by book sales and word of mouth.

Fortunately, industry and sales reflect decreasing consumer participation; therefore, going forward, we

anticipate progressively lessened rivalry from these diets.

Once our reputation and branding are established and profitability is sustainable, we would like to be

acquired by Google or Microsoft. Currently, both Microsoft and Google are two of the biggest companies

developing software and health related web-based applications. The competing programs of GoogleHealth

and Microsoft’s HealthVault are currently still in “beta” phase testing at the Cleveland Clinic.

We anticipate interest from Microsoft for several reasons. Historically, they package their software for

purchase for either industry or personal use. Currently, their HealthVault program is being marketed for

corporate and personal use. Additionally, they incorporate a nutritional aspect within their HealthVault

program. Regarding HealthVault’s current nutritional component, we believe our application would allow

more end-user control and choice rather than limiting them to ‘prescribed’ meal plans as their program

stands now. This will create a sentiment of freedom and autonomy rather than the reaction of “told to.”

We also anticipate interest from Google. Though GoogleHealth is being developed and competing against

Microsoft’s application, GoogleHealth does not incorporate a nutritional aspect. Vigor Health’s application

would give them the edge they are currently missing.

In acknowledging that no two lifestyles or metabolisms are explicitly the same, we are able to develop our

service to be uniquely customizable for each end user. Our seamless personalization allows an opportunity

to establish a niche market for ourselves without sacrificing the benefit of economies of scale.

Our desire to pursue this mission-driven venture came from the advantages we felt we could offer. First and

foremost, to quote Jillian Michaels, “We’re not going for perfection; we’re going for maximum impact.”

Second, our service and educational resources are both scientifically and medically founded; our service was

built upon a compilation of knowledge shared by appropriately credentialed industry leaders – we simply

put their knowledge into a readily usable format. Additionally, customization allows for individual optimum

results; we realize that individual plans are more effective than “umbrella” plans such as “points” and

“volumetrics” intended for mass use. Finally, our clients maintain their freedom of consumer choice as well

as their sense of autonomy and self-esteem.

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Our primary disadvantages are not unique to any start up venture; lack of branding and reputation.

Fortunately, through well selected advertising channels, positive feedback, and proven results these

challenges will be overcome.

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V. DEVELOPMENT AND OPERATIONS

Vigor Health will be located in Stony Brook, NY. Since there will be no inventory and no foot traffic, the

building space requirement is under 3500 square feet. Workspace and offices will be needed for the

executive team, technology team, and support team including a call center and server room. Loading docks,

warehousing, and vendor delivery will not be necessary. Initially a staff of 10 will be on board. Future

expansion over the next 5 years will bring a total of 25 associates to Vigor Health.

Development of the company will take place within the first 90 days of operation. During that time, several

projects need to be completed to ensure the success of the long-term plan including:

Web-Site Development : A user friendly, secure, interactive web-site consisted with the overall vision and philosophy of Vigor Health.

Database Development : Linking/importing USDA database information with internal databases to populate meal plans and recipe ideas.

Capital Equipment Purchases : Procurement of technology, phone systems, furniture, and office supplies.

Corporate Development : Soliciting corporations to sign on during development phase will ensure revenues at “Go Live”.

Advertising and Promotions: Appealing to corporation via trade shows, conferences, and industry

specific print ads to assist in corporate development.

Once the website is online and individual users can access their accounts, a push will be made to grow

membership. These sales operations, along with continued corporate growth, will be the responsibility of

CEO, Rebecca Paris. Nutritional information and web content will also be managed by Rebecca and her Lead

Nutritionist. Technical operations, customer service, and finances, including accounts payable and

receivable, will be the responsibility of CFO, Robert Manaseri. A Director of Technology will report into the

CFO and oversee a small IT staff.

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VI. MANAGEMENT AND ORGANIZATION

CEO- Rebecca Paris – Will oversee business development, sales, and corporate relations. Rebecca is

responsible for improving service content and protecting product integrity. Ms. Paris did extensive

researched into nutrition and took several leading theories when developing the prototype software. She

has experienced personal success when using it. She has also survey health care professionals and

colleagues on the products marketability and has received positive feedback.

CFO- Robert Manaseri- Responsible for daily operations including finance, technology, customer service,

and performance. Mr. Manaseri has over 10 years experience in building and growing operations at both

start-up and fortune 500 companies.

Director to Technology (TBD) - Oversee technical team, all web content, development, infrastructure, e-

commerce, database administration.

Director of Nutrition (TBD) - - Provide data on food nutrients, develop needs assessment, provide meal plan

content. Work with consultants on recipes and interchangeable ingredients.

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VII. FINANCIAL PLAN

The financial projections for Vigor Health are very encouraging. Based on the assumptions outline in the

Executive Summary, the number of individuals with obesity issues will increase 75% over the next 6 years.

In the United States, there are currently 96 million dieters, many of which have unsuccessfully sustained

weight loss through commercial programs or on their own. The increasing number of individuals looking

for quality, long term weight management solutions will positively affect Vigor Health’s market share.

Revenue and Expenses

Listed below are the major components of revenue and expenses from the income statement. Detailed

descriptions are located in the Appendix.

Revenues:

Individual Members: Membership costs will be $29.99 per month and will include a host of web

services. The target market here is woman between the ages of 25-44. Secondary markets include

men within the same age range.

Corporate Partnerships: Several

corporations now offer wellness

programs to their employees. The

wellness programs are becoming

increasingly more popular as they are

designed to improve and prevent

potential health issues. This not only cuts

down on employee absences, studies

show it improves moral and leads to greater productivity. Vigor Health’s long term goal is to obtain

30% of client base through corporate programs. Discounted rates between 5% and 15% apply to

corporations who enroll 15 or more members.

Corporate Sponsorships: This revenue stream is conservatively projected and has the potential to

see great expansion. Corporate sponsorships are links/ads placed on Vigor Health’s site for company

approved sponsors. The links will direct Vigor Health members to the sponsoring company’s site and

offer discounted purchases on that companies products. Vigor Health will charge between $1000

Individuals; 69.4%

Corporate; 29.4%

Sponsorship; 1.2%

Revenue Streams

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and $5000 per ad dependent upon its size and will seek a portion of any products purchases through

our link.

Expenses:

Advertising: In order to hit our target market, a

series of print ads will be placed in 15-20

specific magazines. We will also seek to secure a

spokesperson- funding for will come from the

advertising budget.

Payroll: Although the staff at Vigor Health is not

large, they are specialized and require

competitive salaries. In order to recruit and retain employees, Vigor offers a full medical benefit program.

5 Year Earnings Outlook

As can be expected, earnings and revenue during Year 1 and Year 2 are negative due to customer revenue

ramp-up. Expenditures in advertising, product development, and marketing will be necessary to attract a

large number of individual and corporate customers.

Fiscal Year 1:

Corporate partnership will continue throughout the year with a year-end goal of 60/40 ratio corporate/individual customers.

Year end projects forecast a customer base of 2300 members.

In 000's Year 1Revenue $453

Expenses $1,579

Net Profit (Loss) ($1,126)

Fiscal Year 2:

Continued upward trending as revenue projections grow 183% over Year 1. Advertising increases by 33% over prior year. Break even (revenue to expense) occurs in month 12 of fiscal Year 2 with a net profit of $2k.

Payroll; 68%Advertising; 18%

Other; 14%

Expenses

In 000's Year 1 Year 2Revenue $453 $1,288

Expenses $1,579 $1,822 Net Profit (Loss) ($1,126) ($534)

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Fiscal Year 3:

Customer base grows 1000% since inception to 10,000 members. Additional Staffing requirements lead to 27% increase in expenses over Year 2. Sustained profitability and revenue growth seen.

In 000's Year 1 Year 2 Year 3Revenue $453 $1,288 $2,968

Expenses $1,579 $1,822 $2,319 Net Profit (Loss) ($1,126) ($534) $379

Fiscal Year 4:

71% increase in revenue over prior year Additional advertising leads to 33% increase in expenses over Year 3.

In 000's Year 1 Year 2 Year 3 Year 4Revenue $453 $1,288 $2,968 $4,625

Expenses $1,579 $1,822 $2,319 $2,895 Net Profit (Loss) ($1,126) ($534) $379 $1,727

Fiscal Year 5:

Over 21,000 customers Nearly 100k from Sponsorship Program 21 Full Time Staff Members

In 000's Year 1 Year 2 Year 3 Year 4 Year 5Revenue $453 $1,288 $2,968 $4,625 $6,688

Expenses $1,579 $1,822 $2,319 $2,895 $3,471 Net Profit (Loss) ($1,126) ($534) $379 $1,727 $3,196

Year 2 Break Even

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

Revenue

Expense

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Funding Requirements

A total investment of $1.87 million will cover start-up expense through break even (please see Financial

Statement in Appendix for further detail). Vigor Health’s CEO and CFO will make an investment in the

company which brings the total request from venture capital to $1.81 million.

Staged funding is necessary as per schedule below:

September 2009 March 2010 September 2010 March 2011

Funding 800000 500000 460000 50000

$50,000 $150,000 $250,000 $350,000 $450,000 $550,000 $650,000 $750,000 $850,000

Funding Schedule

Use of Funds

Start-up and Development Costs: The initial 90 days will be critical for the success of projected sales and

growth during Year 1. Start up funding will be allocated towards building business infrastructure and

marketing efforts. The goal is to have a functional and tested infrastructure and corporate accounts on

board before product launch. Print advertising to individual customers will begin in November 2009 to

promote December 2009 website launch.

Operating Costs: The majority of operating costs will be spent on consumer marketing. As previously

described, the success of the company depends on achieving mass consumer appeal. Advertising increases

year over year at an average rate of 27% annually. Other costs include general operating supplies, IT

maintenance, rent, and utilities.

Personnel Costs: Vigor Health will need personnel with specialized skills in the nutritional and technology

fields. Initially, a staff of 10 will be employed including a CEO, CFO, Director of Technology, and Director of

Nutrition. Growth will require additional hires with a total number of 21 employees by year 5. Please see

appendices Staffing Breakdown which includes salaries.

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Return on Investment

The 5 year operating net is projected at $4,756k. Ownership percentages in Vigor Health breakdown as

follows:

CEO-5% Ownership CFO- 5% Ownership Investors- 90% Ownership

After the 5 year mark, Vigor Health will be in a strong position to be acquired. Considering the growing

market of dieters and niche market created by Vigor Health, there are a few companies that we foresee as

potential purchasers.

Google: GoogleHealth is in beta testing and in competition with Microsoft’s HealthVault. However,

GoogleHealth does not incorporate a nutritional aspect. Acquiring Vigor Health would give them the

edge they are currently missing.

Microsoft: HealthVault is being marketed for corporate and personal use and includes a nutritional

aspect within their program. However we believe our application would allow more end-user

control and choice rather than their current application which limits user to a ‘prescribed’ meal

plans. Vigor Health’s application allows for more freedom and autonomy rather than the stringent

plans.

Given the projected revenue forecasts, the company will be in a strong position to achieve a substantial

return on investment via acquisition. We believe the company’s market value after year 5 will be $20mm

and primed to be acquired. A sale of $20mm will breakdown as follows for investors:

$20m * 0.90 / $1.81 = 10 times ROI

Vigor Health would be in a positive position to be acquired based on the following:

Sales Growth Trends Based on Current Projections Projected Market Share and Customer Base Acquisitions by Microsoft in the Health Field including

o July 2006- Health Software, Azyxxio February 2007- Web based Medstory Inc

Recent Launch of and Competition Between Microsoft’s HealthVault and Google’s Health

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VIII. ASSUMPTIONS, RISKS, CONTINGENCIES

Assumptions

The success of our business can potentially be affected by the outcome of three assumptions. Two of these

assumptions are based upon forecasted market growth and trends. A third assumption is based upon newly

emerging business practices.

Our market assumptions are such that the market for nutritional services will continue to escalate in

parallel to the growing trend of obesity. Additionally, we assume as fewer and fewer people attempt fad

dieting, the fad dieting market share will decrease allowing an opportunity to acquire a larger share of the

overall market.

Newly emerging business practices include implementation of onsite employer based wellness programs.

These practices provide an additional market opportunity via the corporate sector; we are no longer limited

to individual service accounts. Not only does this increase our potential account acquisition, but it also has

the potential to stimulate viral advertising- satisfied employees could spread the word to friends and family

and in turn promote our individual client base.

Risk Factors/Contingency Plans

We consider risks in development, staffing, advertising, and obtaining corporate accounts as potentials to

demise our success. Primarily, there are two entities to our development; web development and database

development. If either of these projects are not completed on-time, our startup date would be delayed

which would have a direct effect on revenue. To reduce the risk of not meeting our startup date, we have

allocated funds for potential labor expenses to include bringing on temporary and/or contract staffing.

Another risk is issue in hiring and/or retaining personnel. Turnover during the development stage could

delay startup or impact customer service satisfaction levels once the web site is operational. Similarly, we

have set aside funds for unanticipated labor expenses.

Advertising has the potential to affect us negatively in two ways; missed goal in audience reach; and

financial loss due to unsuccessful advertising. For example, if we contract advertising with a magazine and

their readership declines, we will lose potential customers. In order to overcome that challenge, we have

identified other print media outlets to reach target market.

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IX. SUMMARY

Vigor Health delivers a sustainable solution through web-based nutritional services. Under the

management of Rebecca Paris and Robert Manaseri, Vigor Health strives to improve their customers’ lives

by providing best of class counseling, interactive meal plans, and education while preserving the integrity of

their core values.

The company comes at a time when there is great need for this service. Globally, obesity is increasing at an

alarming rate and contributes to the many health related issues associated with weight management. For

the 96 millions dieters in the U.S. alone, Vigor Health provides a viable solution. Our unique, customizable,

and individualized program gives our customers something our competitors can’t- sustainable results.

Vigor Health welcomes investors who also believe there is excellent opportunity to penetrate this market.

We offer a unique product, a niche market, strong leadership, and the vision to grow into a company that

provides a tremendous return.

vigor health business plan 507

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