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MINDBODY WHITE PAPERHow to Survive and ThriveWhen Opening a New BusinessMINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY1

If you’re thinking of opening a business, thenumbers are in your favor. According tothe U.S. Department of Labor, 75% of smallbusinesses make it through their first year,and 69% survive the first two years.1 How canyou set yourself up for similar success? Followthese initial steps and you’ll be well on yourway to celebrating your first anniversary.MINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY2

Make a planEntrepreneurs who prepare a business plan are twice as likely to besuccessful, attract investors and qualify for loans.2 But your successis only as good as your research. When writing a business plan, you’llwant to include realistic goals over a given period of time and establisha solid method for tracking progress. Create an itemized budget of youranticipated expenses and leave room for unforeseen costs. The moredetail you include, the more prepared you’ll be.You’ll also want to research your competition. Drive around theirneighborhood, peruse their online sites and, if possible, visit theirphysical location. It’s important to learn what your competition is alreadydoing (the services they offer, amenities they provide, etc.) so you canmake informed decisions about how to position your business and whatproducts and services to offer.Uneasy about writing a business plan? Hire a company. “I used an onlineconsulting company to write a business plan,” said Chezaray Wade,owner of Evolve Dance & Fitness. “It really helped me set a budget,determine operating costs and set realistic goals for my business.”“I used an online consulting company to write abusiness plan. It really helped me set a budget,determine operating costs and set realistic goalsfor my business.”— Chezary Wade, Owner of Evolve Dance & FitnessMINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY3

Secure fundingIf you’re like most aspiring business owners, you don’t have the cashneeded to cover the cost of starting a business, and borrowing moneycan be intimidating. Fortunately, credit conditions are constantlyimproving, and once you’ve prepared a business plan, you’ll have all thefinancial information needed to apply for a loan. For a detailed checklistof what you’ll need during the loan process, read the U.S. Small BusinessAdministration’s 6-Step Guide on How to Get a Business Loan.Not ready to take out a loan? There are plenty of ways to financea startup. Studies show that the majority of entrepreneurs fundthemselves.3 John and Lynn Wilbur, owners of Chi Ling Pai Academy,continued working their primary jobs to finance their martial arts school.“Lynn worked full-time as a nurse for two years to help fund our business.To save money on equipment, we would frequent yard sales and thriftstores and look on Craigslist.”The second-largest funding source for startups is friends and family whoinvest over 60 billion annually, followed by venture capitalists and angelinvestors.4 A newer method of finding investment money, crowdfunding,is growing in popularity with websites like Kickstarter and GoFundMe.These sites help entrepreneurs target a large number of investors onlineto raise money for their venture.John and Lynn have found crowdfunding helpful in raising money fortheir business. “We are using GoFundMe to help raise money for kidswho would like to train, but whose parents can’t afford to send them toour academy.”“Lynn worked full-time as a nurse for two yearsto help fund our business. To save money onequipment we would frequent yard sales andthrift stores and look on Craigslist.”— John Wilbur, Co-owner of Chi Ling Pai AcademyMINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY4

Build a supportive networkSurrounding yourself with mentors and peers is crucial to helping youobjectively evaluate how well your business is doing. This group is alsoa great sounding board as you navigate the typical trials and errors as anew business owner.An effective network includes supportive people who can help inoperational, personal and strategic ways. If you have staff, make timefor them. They know a lot about what goes on in your business. Be sureto also make time for your friends, and be open to making new oneswho share your interests. Everyone needs people they can trust whenit comes to sharing frustrations. It’s also important to decompress, andfriends are great for that.The first step in building strategic relationships is making yourselfavailable. For extroverts this won’t be very difficult, but for those ofyou who don’t gravitate toward social settings, this may be a bit of achallenge. The reality is the more you give, the more people are willingto give back. So be proactive and get involved in your community (e.g.,local schools, athletic programs, community celebrations, etc.). Alsointroduce yourself to neighboring businesses, as they can become yourgreatest advocates.“Being part of a community allows for great opportunities to make friendswith neighboring businesses run by remarkable people. That has beena great source of knowledge and support over the years,” said BeckyStone, owner of Pranava Yoga. “I also utilized a business consultantto help me create effective marketing and business strategies gearedspecifically for yoga studios.”“Being part of a community allows for greatopportunities to make friends with neighboringbusinesses run by remarkable people. That has been agreat source of knowledge and support over the years.”— Becky Stone, Owner of Pravana YogaMINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY5

Invest in business management softwareRunning a business takes a lot of work and time, but it doesn’thave to overrun your life. With today’s technology, there’sbusiness management software available to help you doeverything from managing schedules and online booking totracking business operations on the go to handling recurringrevenue, all in one place. Good business managementsoftware will also include marketing tools to help you get theexposure you need to bring new clients your way.Here are a few ways MINDBODY business managementsoftware helps our clients:“I love how easy it is for clients to see class schedules in real time.”Rachel Roberts, owner of The Yoga Bar, can easily add new classes, cancelexisting classes and reassign instructors on MINDBODY in a matter of seconds.Every change she makes is automatically updated and viewable by bothher staff and her students. And with automated emails, all her students areimmediately updated when any changes are made to a class they’re enrolled in.“Booking online saves me and my clients so much time.”With MINDBODY’s gym management software, Jessica Storch no longer has to spendtime managing her calendar and attendance. Once a class is booked, the schedule isupdated in real time, preventing any booking conflicts. Because of real-time updatesand the ability to set class sizes, all she has to do is show up and teach.MINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY6

“I love that I can do everything right from my phone.”Kalysa Loren, owner of Kayos Studio, uses the MINDBODY Express app, whereshe can conveniently schedule appointments, send email confirmations and takepayments. Having the capability to now manage her business while out of the officeallows her to focus on what she loves doing most: hair.“It’s nice to be steadily making money instead of losing it.”Glenn Murphy, owner of NC Systema, experiences lowerattendance during winter months, but is able to steady hisincome with MINDBODY’s AutoPay feature that brings inrecurring revenue. He’s learned that a few slow months doesn’thave to mean lower overall revenue.“I’m getting more clients because I have an app that’s easy and convenient to use.”Because of the MINDBODY Connect app, Nanci Newton, owner of Healing ZoneTherepeutic, is no longer losing clients due to playing phone tag. New and existingclients can easily book a massage that works with their schedule, wherever they are,without the hassle of waiting for a return phone call. And new clients are regularlydiscovering her business because she’s listed on MINDBODY Connect.MINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY7

Research shows that more small businesses succeed than don’t in their first year. To ensureyour business’s survival, take the time to write a detailed business plan, determine your sourceof funding, surround yourself with a supportive network and implement business managementsoftware that allows you to manage the day-to-day, all in one place.Discover how MINDBODY can work for your business and requesta demo today at nning.html3,4. MINDBODY White Paper How to Survive and Thrive When Opening a New Business Copyright 2014 MINDBODY8

who would like to train, but whose parents can’t afford to send them to our academy.” “Lynn worked full-time as a nurse for two years to help fund our business. To save money on . equipment we would frequent yard sales and thrift stores and look on Craigslist.” — John Wilbur, Co-owner of Chi Ling Pai Academy. MIDBODY White Paper ow to Survive and hrive When Opening a ew Business .