Fun 2 fit aerobics: the misadventures of Amy and Azi and a Malaysian start up!

The key people

Ms Amy is a housewife who worked as a part-time assistant instructor at Daisys Studio in Skudai since September 2008. According to Daisy, Amy needs to help out so as to gain enough experience before taking the competency test at the MYS. After months of work without salary, the two of them got into a heated argument:

Amy: I dont understand why I am not being paid for the past three months.

Daisy: This is part of training. You should pay me as I am imparting valuable knowledge to you.

Amy: But when can I go for the competency test at MYS?

Daisy: Soon [. . .] be patient. Your time will come.

One day after filling in for Daisy, Amy bumped into Azi, an old acquaintance at the parking lot. Amy, Ive got good news. Ive just passed my competency test, said Azi excitedly. I am now a certified trainer!!Congratulations Azi, said Amy. So what are your plans now?I am thinking of opening my own studio, said Azi. Anyway, when will you go for the test?

I dont know, Daisy said that I am not ready yet, replied Amy.

Are you working at Daisys Studio? Youve been conned, said Azi. Her eyes were about to pop out in disbelief.

Do you know that Ms. Ram quit Daisys Studio about six months ago, and Daisy didnt pay her a single cent, continued Azi.

Oh my God, the same thing is happening to me now! cried Amy. Her hands began to tremble.

Why dont we start our own studio, Ill get my instructor Madam Aishah to provide a recommendation for you to take the competency test at MYS. She is also the regional representative of MYS here, you know, Azi tries to assure her friend.

If need be, we can recruit Ms. Ram and one of Madam Aishahs former students, Hani. I think if the four of us combined together, we can give the competitors a run for the money as most of the aerobics centres are under staffed and have only basic equipments such as step boards and floor mats, said Azi excitedly.

Lets do it, Azi! replied excitedly. Im going to resign from Daisys Studio immediately!

A new branch

It was early March 2010, Azi and Amy were having coffee at a health bistro in Pulai Perdana. They were having a long discussion after one of them had concluded her class (Figure 3):

Amy: We had a great time during the kick boxing session.

Azi: And how many turned up just now?

Amy: 21 initially, then it became 22 after a new participant enrolled.

Azi: I think we should open a new studio.

Amy: Are we not spreading our resources to thin? As of now, I feel tired teaching between 1-2 hours per day. And it is not just 1 hour every session. I have to come 45 minutes earlier to check on the inventory and equipment and spend another 45 minutes later to clean the studio and prepare the accounts.

Azi: We can rope in Ms. Ram and Ms. Hani. We can pay them RM50.00 per hour for each class they teach. Ive just talked to them. And I think Nusa Bestari would be a good place for our first branch.

Amy: I dont think its a good idea. Its too far away and the road to Nusa Bestari is congested.

Azi: Why dont we go there and have a look. I have found a premise which I think would be ideal. Its a three-storey shop-office and the rental for top floor is only RM1,000.00.

Amy: Only RM1,000.00? Isnt that too expensive?

Azi: Yes, but Nusa Bestari is a high income area. We can charge higher fees. Lets go.

The opening ceremony of Fun 2 Fit Aerobic & Dance Second studio

In June 15, 2010, Fun 2 Fit Aerobic & Dance Second Studio was already in operation. The first floor was occupied by a bakery operated by Ms. Phang the owner of the building whilst the second floor is the office of a legal firm (Figure 4). Unlike the Pulai Perdana studio, the Nusa Bestari branch is bigger in size and has better finishing.

Unlike the first studio, there was no opening ceremony for the second studio as Dr Zainah was away for a business trip abroad. Azi and Amy repeated the same strategy that made the first studio a success. They distributed brochures all over and placed banners and buntings along the road leading to the premise. They convinced their husbands to loan then RM15,000.00 each on top of the profits from the first studio to finance the operation of the second studio. In the first month only ten people registered for class. Monthly fee was raised to RM75.00 per month. Amy and Hani were bored as the number of participants did not meet their expectations. Furthermore, they had problems with their neighbor the legal firm who would always complain when they cranked the stereo. Matters got worse when in July only eight people registered. When Amy called the other two participants, it appears that they were not happy especially when Hani was the instructor. When Amy confronted Hani, she broke down and cried and said she wanted to quit!

Problems, problems and more problems

Im sorry, Amy. I should have listened to you earlier, cried Azi during an emergency meeting in late October 2010. Azi doesnt look as confident as always.

Amy just sat quietly. She has got a blank look on her face.

I think we have to cut our losses. We have to let Nusa Bestari go, said Amy in a soft tone. My husband is upset as I spend so many hours there, she continued. She seems worried.

Figure 4

The second studio in Nusa Bestari

But our lease will only expire by May next year. Im sure Ms. Phang would stick to the tenancy agreement, said Azi.

But the numbers are not coming in! We have only 8 participants at Nusa Bestari. Ive told them that they should come on Monday and Wednesday nights only. But they seem reluctant. Imagine I teach only 3 persons in one class and another 5 in another class. And with all the hard work we get only RM600.00 per month. It doesnt make sense! grumbled Amy as she banged the table several times to vent her frustration.

Im afraid Ive got another bad news, Amy! said Azi. She dares not look directly into Amys eyes.

What now? lashed Amy angrily as she stared at Azi earnestly.

The landlord, Mr Rahman is not willing to allow us to continue renting the Pulai Perdana premise from January 2011. We have to find another place for our studio. All our 150 students are worried, and we have more who wants to enroll! cried Azi. Tears were rolling down her cheeks.

Oh my God, Im going to die [. . .] screamed Amy.

Question 5. Describe the characteristics of the two partners.