Business Plan for Our Tampines Hub Franchise in Jurong East

This business plan outlines the proposal for establishing an Our Tampines Hub franchise in Jurong East, Singapore, aiming to replicate the success of the original hub in Tampines. The plan details the business concept, emphasizing the unique selling points of the franchise, which include a focus on community engagement and providing diverse services such as workstations, meeting rooms, childcare, and wellbeing areas. It analyzes the target market, market trends, and conducts a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The marketing plan includes pricing and promotional strategies. The management and organization design covers legal obligations and personnel requirements. Financial analysis provides income statements, cash flow projections, balance sheets, and break-even analysis. Investment analysis details capital sources and expected financial returns, while a critical risks analysis identifies potential challenges and alternative courses of action. The franchise aims to offer high-quality facilities and activities accessible to the local community, contributing to their social, educational, and economic goals.

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Table of Contents
1
.Executive summary...................................................................................................................2
2. The business concept..............................................................................................................3
2.1 Description of Franchise and its unique selling...............................................................3
2.2 Goals and Potentials of Franchise at Our Tampines Hub................................................4
3. Research and analysis............................................................................................................5
3.1 Target market and their needs..........................................................................................5
3.2 Market size and the trends based on research data..........................................................5
3.3 SWOT analysis.................................................................................................................6
4. Marketing plan formulation...................................................................................................7
4.1 Pricing Strategy................................................................................................................7
4.2 Promotional activities.......................................................................................................8
5. Management / Organization design.......................................................................................9
5.1 Legal obligation...............................................................................................................9
5.2 Requirement of personnel................................................................................................9
6. Financial analysis.................................................................................................................10
6.1.1 Income statement........................................................................................................10
6.1.2 Cash flow....................................................................................................................11
6.1.3 Balance sheet...............................................................................................................13
6.2 Break – Even analysis....................................................................................................13
7. Investment analysis..............................................................................................................15
7.1 Sources of capital...........................................................................................................15

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7.2 Expected financial returns..............................................................................................15
8. Critical risks analysis...........................................................................................................16
8.1 Potential risks of setting up at ‘Our Tampines Hub’......................................................16
8.2 Alternative course of action...........................................................................................17
Reference and Bibliography.....................................................................................................18

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1. Executive summary
Te main objective of this business plan is to discuss the opening of franchise for Our
Tampines Hub at Jorung East of Singapore for the Angel Investors for investing in the
project. Various facilities that will be provided by the hub as same as the services that are
already provided by Our Tampines Hub are - open reception plan and the public place that
will include workstations, versatile meeting rooms and public hall, children’s play area,
nursery and day care area, wellbeing and health areas. The mission of the franchise will be to
offer high quality life to the residents of Tampines as well as Juron East. It will further enable
them to achieve the educational, social and economic goals and to be part of the caring,
prosperous and strong local community. There will be generally three groups of customers
from the locality of Tampines and Jurong East. They are – School students, children and
young group, adults and families and corporate, clubs and organizations. It is expected that
the growing trends of community hub will become a high and lucrative demand for the
residents in that area. This approach is also welcomed by the council as it is expected to
improve the life standards of the residents. The total funds required for starting up the
business will be $ 446,050. Out of the total requirement 44% of total fund will be raised
through equity and 56% will be raised through debt.

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2. The business concept
Our Tampines Hub is the 1st ever integrated lifestyle and community hub in
Singapore. It brings together various agencies and provides wide ranges of diverse and
comprehensive service, facilities and programmes. The project is headed by the association of
people and it is located at the former Tampines Sports Hall and Tampines Stadium. The
residents from Tampines can enjoy various sports facilities, countless amenities and
programmes associated with community club, art facilities, retail shops and hawker centre.
The Tampines Hub project is actually designed for the residents, by the residents. The hub
received BCA Green Park Millenium award from owing to their efforts for promotion of the
eco-friendly habits. However, owing to the grand success of the hub, the management is
planning for a new development and it will inject the vibrancy to town. It is planned for
opening the franchise business of Our Tampines Hub that will be opened in the location of
Jurong East of Singapore as the area is developing fast with various facilities (Our Tampines
Hub - Community-lifestyle-hub, 2018).
2.1 Description of Franchise and its unique selling
The franchise hub of Our Tampines Hub will be registered with the Local Government of
Singapore for the advantages of community. It is planning to be managed by community and
residents from Jurong East. Through the open meetings of the community it is planning to
engage wide range of community and voluntary groups that will be operated through Jurong
East (Units, 2014). Key features of the hub will be as follows –
 Any person can subscribe the share for becoming member
 Each shareholder will have the right of one vote irrespective of the size of holding
 No artificial restrictions will be there for membership
 It can borrow capital through loans, grants or share issue.
 The management will publish the financial reports annually
 The management committee will be headed by at least 3 members
 The management will hold AGN in each year for selecting the committee and
conducting various businesses (Blank, 2013).
The hub will be designed by the top class architects for achieving highest level of
environmental standard through usage of the modern techniques of buildings and improving
the stock and ranges of various public amenities in the locality (Ward, 2016). Various

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facilities that will be provided by the hub as same as the services that are already provided by
Our Tampines Hub are as follows –
 Open reception plan and the public place that will include workstations
 Versatile meeting rooms and public hall
 Children’s play area, nursery and day care area
 Recreational and activity space
 Ancillary storages and toilets
 Wellbeing and health areas
 Environment friendly surface with grass-crete for Parking of 50 cars
In addition to those mentioned above, it will make improvements and changes that will
include –
 Consultation booth for confidential discussions
 Security arrangements and general access
 Enhanced provision for special needs of the people those are facing physical
disabilities and learning challenges
Further, the unique service that will be provided is that there will be informal chat of 30
minutes with the lifestyle advisor regarding the changes that can improve the lifestyle of the
person. Further, the advisor will answer the questions that may be raised by the member
regarding the issues faced by him (Bryman & Bell, 2015). The advisor will not tell the
member what to do rather they will work on the suggestions that will be provided by the
member. It will also provide unique appointment style like walk and talk under which the
member and advisor will have a walk and discuss the issues instead of discussing in sitting in
office.
2.2 Goals and Potentials of Franchise at Our Tampines Hub
The vision of the franchise will be to offer high quality life to the residents of Tampines as
well as Juron East. It will further enable them to achieve the educational, social and economic
goals and to be part of the caring, prosperous and strong local community. To achieve its
vision it will try to achieve the following mission –
 Manage the community building that will deliver high quality facilities and wide
range of activities that will be accessible for all the sectors of local community.

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 Update and develop the hub on continuous basis for meeting the changes in
expectations and requirements of the community
 Developing activities that will increase the participation in the civic life that will
include providing services to the local residents with the opportunities of
volunteering, self-development and the involvement in making of local decisions.
3. Research and analysis
3.1 Target market and their needs
There will be generally three groups of customers from the locality of Tampines and Jurong
East. They are –
 School students, children and young group – engaging with the providers of local
schools, children’s service and special requirements will develop the programmes that
will fulfil the demand of the residents and will strengthen the links and engagement of
youth leaders.
 Adults and families – with efficient programming and marketing sales in the hub, it is
likely to enhance the services. It will further bring the adults and families into the hub
and will provide positive influence for accelerating the influx (Council, 2014).
 Corporate, clubs and organizations – information from the Our Tampines Hub
demonstrated how Jurong East and other surroundings will be benefitted from
opening of franchise of the hub. It is further required to mention that the growth in
new hub business and innovation centres in that area will provide opportunities to the
local enterprises and companies for taking up new commercial opportunities (Finch,
2016).
3.2 Market size and the trends based on research data
As per the market research it is projected that there will be significant development in the
community hub and lifestyle business on continuous basis. Therefore, the demand for good
services and facilities will continue to grow (McKeever, 2016). It will further drive the
demand for wellbeing and health services, leisure, childcare services, social and family
activities and nursery provisions. It is expected that the growing trends of community hub
will become a high and lucrative demand for the residents in that area. This approach is also
welcomed by the council as it is expected to improve the life standards of the residents.

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3.3 SWOT analysis
Taking into consideration the above factors the business plan reviewed the external
(opportunities and threats) and internal (strengths and weaknesses) factors that will dive the
plan are as follows –
Strength –
Various strengths of this business plan will be –
 Experience – multi-award winning Our Tampines Hub’s extensive and community
experience will be used for this franchise to maintain and deliver dynamic facilities
and programmes that will be capable to engage all the members from Tampines and
local community (Kruijsen, Owen & Boyd, 2014).
 Sustainability – the hub will be developed and created based on the principles of
sustainable and strong management proposition
 Networks and involvement of stakeholders - strength of combined support networks
that are already available with Our Tampines Hub will assist in establishing strong
network which in turn will involve the stakeholders and the members.
Weaknesses –
On the contrary, the management have to overcome the following weaknesses –
 Lack of resources – available resources to the hub will be difficult to accumulate.
Therefore, in absence of sufficient resources the project planning and conception may
get hampered.
 Lack of awareness – local community may become distant from project. The reason
behind this is that previously they were involved in various consultations which in
turn may make them disengaged and weary (Simpson, 2014).
 Access to the information regarding present market – as there is regular changes and
updates in the demand and the available data regarding demand and risks are
historical, the management may not be able to plan based on current demand criteria.
 Lack of business and commercial expertise – requirements of the project for it to be
sustainable financially is accessing of the full capital. It will require the business to
adopt the commercial outlook for balancing the social demands.
Opportunities –

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 Efficiencies in accessing the funds and supports – as the Our Tampines Hub already
achieved huge success in Tampine area, it will be efficient for the franchise business
to access supports and funds
 Targeted funding – there is opportunity for initiating various social action related
projects that is linked to sales plan that will attract the resources from third party
either towards infrastructure or funding posts (Harada, Yagi & Sashida, 2013).
 Design facilities as per the requirements – it will provide flexibility through the early
agreement and development of business plan and it will allow the potential voluntary
and commercial partners to influence the building’s internal design. It will further
bring the additional resources and funding for the project for maximising the
efficiency and effectiveness (Leigh & Blakely, 2016).
 Changing demographics – growing population and start of new projects like high
speed rail and various other services will provide social as well as commercial
opportunities in sector of hospitality, well being, childcare and exercise.
Threats –
 Resident engagement – the local community are not able to embrace the project
 Enhancing the cost of capital – as the construction costs are increasing rapidly, it may
reduce the scope and scale of facilities if any unforeseen delays take place (Botha &
Robertson, 2014).
4. Marketing plan formulation
4.1 Pricing Strategy
Pricing schedule of the hub will be as follows –
Deluxe room Luxury room Classic room Garden area
Hiring of hall $ 150 $ 130 $ 100 $ 180
Hiring of meeting
room
$ 90 $ 75 $ 65 $ 100
Hiring of event space On request $ 35 per hour On request $ 40 per hour
Exercise classes N/A $ 100 per month N/A
The charges will be reasonable with excellent value and will allow the target group to receive
the facilities on continuous basis. Detailed price range for full range of the activities and
facilities will be confirmed once the final facilities and programme are confirmed.

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Subsidised activities and reduced rates will also be provided with the principle of the hub.
The commercial lets and hires rates will be competitive in the market and will be subject to
booking nature. The pricing strategy of the company is expected to represent competitive
value on the basis of the range and quality of the available facilities. Further, it seeks the
commercial partner for running wide range of services that will include exercise classes,
nursery classes and classes for disable children. Further, the pricing may be required to be
more flexible for maximising the overall revenues. This will involve the premiere pricing
under which the packages will be provided in discounted price if chances are there to earn
additional revenues. The cancellation policies and the policies associated with administration
charge and late payment will be developed in next 6 months period after consultation with the
management and finance department.
4.2 Promotional activities
The promotion will be done on two aspects. These are –
1. Raising interests and awareness in new hub – new volunteers will be recruited for
procuring new services. They will communicate with the local community and
communities from Tampians and analyse their expectation and aspirations taking into
consideration the services that are projected to be offered. The principle for awareness
is repeating the message constantly. Therefore, with the assistance of the steering
member group it will create the positive approach for using the activities for
generating every opportunity. It will further establish the positive relationship with the
the media like television, radio and local newspaper to identify their stories for good
causes.
2. On-going marketing for the hub – the on-going sales and promotional plan for new
franchise of Out Tampines Hub will be prepared 3 months prior to the starting of the
hub. It will reflect the specification and final mix of the facilities and will confirm the
activities for the programme. The on-going marketing will include the following –
 Offer free exercise classes and workshops – initially the members registered for the
exercise classes will get 10 days free subscription with one month subscription.
Further, 10% discount will be allowed on booking the meeting hall, event space.
 Join with the Our Tampines Hub for generating customer demand – members
registered with Our Tampines Hub will get 5% discount for using services from the
franchise hub.

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5. Management / Organization design
5.1 Legal obligation
The new franchise will required to be registered with the company registrar in Singapore with
the following details –
 Name of the business
 Description of the business activities
 Details of shareholders with their shareholding percentage
 Name of the directors
 Particulars regarding the company secretary
 Memorandum and the articles of association (Brinckmann & Kim, 2015).
Further, the franchise will be bound by the following commercial law for carrying out the
business –
 Law of contract
 Competition law
 Forms of business organizations
 Singapore income taxation
 Insurance law
Further, the franchise is legally bound to pay 5% of the sales as royalty to the Our Tampines
Hub as per the contract (Burns, 2016). Moreover, both the parties are required to go through
the contract terms and clauses before starting up as the franchise.
5.2 Requirement of personnel
The business will recruit employees from local community as they have better knowledge
regarding the priority and expectation of the local community (Massa & Tucci, 2013). Other
people will be recruited from voluntary groups. The required personnel will be as follows –
 The accountant – 2
 Direct employees for maintaining the hub – 80 (including the employees for
supervising, cleaning and maintaining)
 Management level – 10 (including the directors, executives, secretary)

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In addition to the above mentioned people for growing affordably and quickly the hub will
require various 3rd party collaborations where the commercial acumen and specialism will
enable the business to get faster and greater returns. Depending only on in house staffs can be
time consuming and expensive owing to the training and recruitment cost (Schaper et al.,
2014).