Business Plan of Event Planning Company-Free-Samples for Students

Question: Develop a Business Plan for an Event Planning Company. Answer: Business Opportunities There are always a variety of occasions which are needed to celebrated in the society. In such a circumstance there lies an opportunity for development of an event planning business. As per the plan of the management, an event planning company is to be opened in Sydney, Australia (Schaper et al., 2014). The name of the company as decided by the management will be Gatsbys Party. The company will be specializing in providing services which will be making all arrangements of party, marriage, birthday, or any other occasions. As per the business plan of the company, the business model which Gatsbys Party will be following relates to effective cost management and providing the best quality services to the clients of the business. The occasions which are celebrated by the society are constant such as Christmas parties, marriages and birthday parties and similar occasions. If anything such occasions and event have increased over the years so there is constant demand in the market for party planners and the demand is only increasing (Kogan Papanikolaou, 2014). The need of party planners is justified as people like to take off the burden of planning and arrangements and keep the work for professionals for effective results and services. Therefore, there is ample opportunity in the market for Gatsbys Party. Moreover, a list of events such as Christmas, Annual Fest of Colleges, Prom nights are coming and therefore it is the perfect opportunity for the establish a business as there will plenty of demand for party planners for the events which are coming. In addition to this, there are always regular occasions such as marriages, reception parties, birthday parties which will be requiring planning. Most of the people in the society do not take the stress of arranging for parties and normally employ the services of party planners for the purpose of total arrangement of the party. The market for event planning is competitive in nature as per the analysis but the ample demand for the event planners in the market allows the proposed plan of establish a event planning company to be appropriate. According to the U.S. Bureau of Labour Statistics, theprofession of event planning is expected to achieve growth at the rate of10% from now to 2024 which is even at a fasterratethan the averagegrowth rate which is attainable for any other profession (Bretherton, 2014). Thus, there is wide scope of opportunities present in the market of event planning and the business plan which is proposed for the event planning business is the correct one. Sales and Marketing Strategies Gatsbys Party which is being proposed to be established will be providing services as a planner to the society. The business will be targeting the clients who are within the age group of 25 years to 40 years of age. The main services which will be offered by Gatsbys Party are related to arrangement services for parties which will be including the decoration of the site where the party is to be held, the arrangements which are concerning music and dance in case of a fest or even a band performance as the case may be (Ingram et al., 2015). In addition to this, the event planner will be responsible for the foods which are supplied for the party. The plan of the management of the company is to hire a catering services which can provide food for the party. In case of an event planner business, the main requirement is to ensure that the business has tie up with different service providers like catering service providers, Bands, hotels or banquet halls for party in case the planner also has to select the place. The plan of the business is to enter into a tie up agreement which involves taking services of catering service providers and band musicians which can be made available to the customers incase they require such services. In addition to this the company plans to categorize the occasions on basis of occasions such as weddings, birthday parties, fests, Christmas parties and on the basis of the occasion and the nature of services which is employed by the customers, the fees are charged accordingly. The marketing activities of Gatsbys Party will be involving advertisement of the company and also of the various services which will be provided by the business (Armstrong et al., 2015). The advertisement activities of the business will be involving television advertisements and social media advertisements. The company will be collecting reviews of the clients and the members at the party as to how the arrangements of the party. On the basis of such feedback collection, the business will be able to advertise. However, all this depends on the quality of the services which will be provided by Gatsbys party. Another plan of the management of Gatsbys Party will be that in case of customers availing their services for the second time, discounts will be offered in order to retain the customer and promote customer loyalty (Laroche, Habibi Richard, 2013). In this way as well, the company will also be able to create a brand name and reputation in the market for providing quality services as well as looking out for the customers as well (Sah Fugh?Berman, 2013). In case of any default in the arrangements of the company, the company will bear the full costs of such a default or refund the money of the client as per the policy of the company. The important elements which the business will be considering for bettering the services of the company are given below: Price: The prices for the services will be depending on the nature of the party and the services which are taken by the client which may be arrangements, arrangements and foods services combined (Huang Sarigll, 2014). Place: The place where the company will be providing the services also affect the nature of services provides. In case of wedding ceremony, the place needs to be church and banquet hall or open garden and the arrangements need to be changed accordingly (Khan, 2014). Promotion: The management plans to promote the services which is provided by the company in social media which will give the business a wide access and coverage to the potential clients of the business (Andreti et al., 2013). The business will be reducing the prices of the products in order to stay competitive in the market. People: This refers to the targeted customers of the company. As per the plan of the company, the targeted customers will be in the age group of 25 years to 40 years. In other words, the business will be accepting will be accepting wedding arrangements, school fests, Christmas parties. Operational Strategies The operational strategies of Gatsbys Party will be focusing on the overall management of the company. The top-level management of the company will be comprising of the owners and the executives who are responsible for the overall management of the company (Sroka Hittmr, 2013). The important decisions will be taken by the top-level management of the company regarding what are the services which are to be provided by the company in terms for planning for occasions and from where the services of catering, musicians and other services are to taken when the customers orders for the same. After the top-level of management comes the managers who are responsible for the different areas such as decorations, hiring of catering services, hiring of bands, miscellaneous requirements. The managers of the company will also be responsible to look after the works of the staff who are engaged in arrangements. They are to judge whether everything is in order and appropriate. The next level of employees consists of the technicians who are responsible for the lights and fireworks arrangements in case of a night party. The lowest level forms of the staff employees who are basically support staffs (Schneider et al., 2014). As per the plan of the management, the suppliers of the input for the business will be from locals. In case of wedding, flowers are necessary which will be supplied by the lower flower arrangement shops. The costs will be depending on the type of flower used and the quantity ordered. Financial strategies The business as per plan will be started by an initial investment from the owners of Gatsbys Party. The initial capital requirement as per the estimate of the management will be of $ 490000. In addition to this the business will be also be taking a loan of $ 600000 to coverup the entire start-up costs of the business (Bender, 2013). It is the estimate of the management that the company will not be earning decent profits in the first year. In the third year, the sales revenue of the company will increase by around 20% as per the estimate of the management. Therefore, the profits of the business will also be increasing in the third year as per management estimate. The statement of profit and loss and the balance sheet of Gatsbys Party as forecasted is given below: (4) PROFIT AND LOSS FORECAST Preop Year 2018 2019 2020 Revenue $ 5,00,000.00 $ 5,50,000.00 $ 6,05,000.00 Cost of sales $ 4,50,000.00 $ 4,95,000.00 $ 5,44,500.00 Gross profit $ 50,000.00 $ 55,000.00 $ 60,500.00 Gross Margin 10% 10% 10% Expenses/overheads Salaries of Staff $ 5,000.00 $ 5,000.00 $ 5,000.00 Depreciation of Furniture $ 10,000.00 $ 10,000.00 $ 10,000.00 Supervisor's Salary $ 6,000.00 $ 6,000.00 $ 6,000.00 Rent of the Premises $ 15,000.00 $ 15,000.00 $ 15,000.00 Electricity $ 3,000.00 $ 3,000.00 $ 3,000.00 Interest on loans $ 2,000.00 $ 2,000.00 $ 2,000.00 Marketing and Sales cost $ 4,000.00 $ 2,000.00 $ 2,000.00 Total expenses/overheads $ 45,000.00 $ 43,000.00 $ 41,000.00 Profit before tax $ 5,000.00 $ 12,000.00 $ 19,500.00 Tax @ 20% $ 1,000.00 $ 2,400.00 $ 3,900.00 Profit after tax $ 4,000.00 $ 9,600.00 $ 15,600.00 Transfer to reserves $ 4,000.00 $ 9,600.00 $ 15,600.00 Balance Sheet Assets 2018 2019 2020 Current Assets Cash $ 5,00,000.00 $ 5,50,000.00 $ 6,00,000.00 Accounts receivable $ 4,00,000.00 $ 3,40,000.00 $ 4,60,000.00 Total current assets $ 9,00,000.00 $ 8,90,000.00 $ 10,60,000.00 Fixed (Long-Term) Assets Furniture $ 4,00,000.00 $ 4,00,000.00 $ 5,00,000.00 Equipments $ 3,00,000.00 $ 3,00,000.00 $ 3,00,000.00 Computer and appliances $ 2,00,000.00 $ 2,00,000.00 $ 2,00,000.00 (Less accumulated depreciation) $ -3,00,000.00 $ -3,50,000.00 $ -4,00,000.00 Total fixed assets $ 6,00,000.00 $ 5,50,000.00 $ 6,00,000.00 Total Assets $ 15,00,000.00 $ 14,40,000.00 $ 16,60,000.00 Liabilities and Owner's Equity Current Liabilities Accounts Payable $ 2,00,000.00 $ 3,00,000.00 $ 3,50,000.00 Accrued Rent $ 50,000.00 $ 1,00,000.00 $ 1,50,000.00 Bank Charges Payable $ 40,000.00 $ 40,000.00 $ 40,000.00 Income taxes payable $ 60,000.00 $ 60,000.00 $ 60,000.00 Accrued salaries and wages $ 20,000.00 $ 20,000.00 $ 20,000.00 General Expenses $ 30,000.00 $ 30,000.00 $ 30,000.00 Total current liabilities $ 4,00,000.00 $ 5,50,000.00 $ 6,50,000.00 Long-Term Liabilities Long-term debt $ 6,00,000.00 $ 6,00,000.00 $ 5,00,000.00 Less: Loan Repayment $ -1,00,000.00 $ -2,00,000.00 Total long-term liabilities $ 6,00,000.00 $ 5,00,000.00 $ 3,00,000.00 Owner's Equity Owner's investment $ 4,90,000.00 $ 3,75,000.00 $ 6,90,000.00 Net Profits $ 4,000.00 $ 9,600.00 $ 15,600.00 Reserve and Surplus $ 2,800.00 $ 3,800.00 $ 4,400.00 Total owner's equity $ 4,96,800.00 $ 3,88,400.00 $ 7,10,000.00 Total Liabilities and Owner's Equity $ 14,96,800.00 $ 14,38,400.00 $ 16,60,000.00 Start Up Expenses for 2018 Start-up Expenses Fixed Costs Particulars Amount License cost $ 5,000.00 Rent of premises $ 15,000.00 Electricity $ 3,000.00 Salaries of Staff $ 5,000.00 Marketing and sales cost $ 18,900.00 Office equipment $ 3,500.00 Total Fixed Costs $ 50,400.00 Average Monthly Costs Rent $ - Interest on loan $ 2,000.00 Total Average Monthly Costs $ 2,000.00 x Number of Months: $ 12.00 Total Monthly Costs $ 24,000.00 Total Startup Expenses $ 74,400.00 Start-up Assets Sources of funds Owners Fund $ 4,90,000.00 Total Owner Funding $ 4,90,000.00 Loans Bank Loan $ 6,00,000.00 Other Total Loans $ 6,00,000.00 Total Startup Funds $ 10,90,000.00 Assets Furniture $ 4,00,000.00 Equipment $ 3,00,000.00 Computer and appliances $ 2,00,000.00 Total Fixed Assets $ 9,00,000.00 Total Start-up Assets $ 19,90,000.00 References Andreti, J., Zhafira, N. 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