Business Plan on Event Management PDF

Preview

Summary

APPENDIX BUSINESS PLAN ON EVENT MANAGEMENT Group 3 B.B.A. 7th Batch, 3rd year 2nd semester, Department of Finance, Jagannath University. February 14, 2016 Business Plan: Friends Event Management Project Management A Report on a Business Plan On Event Management Submitted to Roushanara Islam Assistan...

Description

APPENDIX

BUSINESS PLAN ON EVENT MANAGEMENT

Group 3 B.B.A. 7th Batch, 3rd year 2nd semester, Department of Finance, Jagannath University. February 14, 2016

Business Plan: Friends Event Management

Project Management A Report on a Business Plan On Event Management Submitted to Roushanara Islam Assistant Professor, Department of Finance, Jagannath University, Dhaka

Submitted by Group-3 “L NO

ROLL NO B B B B B B B B B B

NAME MD. MONOAR HO““AIN EA“IN ARAFAT MD. AKRAM HO““AIN MD. “AIDUL I“LAM “UNJIDA PARVEN MD. “HAKHAWAT HO““AIN MD. RAJU AHAMED AYA“HA “IDDIQUA MOUE “UJON DA“ MILON “AHA

Date of Submission: 14 February, 2016 Department of finance

Jagannath university

1|P a g e

Business Plan: Friends Event Management

Table of Content Title of Topics

PART-I

PART-II

PART-III

PART-IV

PART-V

Executive Summary 1 Industry Analysis 1.1 Industry Size, Growth Rate, and Sales Projections 1.2 Industry Structure 1.3 Nature of Participants 1.4 Key Success Factors 1.5 Industry Trends 1.6 Long-Term Prospects 2 Company Description 2.1 Company History 2.2 Mission Statement 2.3 Products and Services 2.4 Current Status 2.5 Legal Status and Ownership 3 Market Analysis 3.1 Market Segmentation and Target Market Selection 3.2 Buyer Behavior 3.3 Competitor Analysis 3.4 Estimates of Annual Sales 4 The Economics of the Business 4.1 Revenue Drivers and Profit Margins 4.2 Fixed and Variable Costs 4.3 Operating Leverage, and Its Implications 4.4 Start-up Costs 4.5 Break-Even Chart and Calculation 5 Marketing Plan 5.1 Overall Marketing Strategy 5.2 Product, Price, Promotions, and Distribution

Department of finance

Jagannath university

2|P a g e

Page No 4 5 5 7 7 7 7 8 8 8 9 9 10 10 11 11 14 15 15 16 17 17 18 19 19 20 21 21

Business Plan: Friends Event Management

PART-VI

6

PART-VII 7

PART-VIII 8 PART-IX 9

5.3 Sales Strategy Design and Development Plan 6.1 Development Status and Tasks 6.2 Challenges and Risks 6.3 Projected Development Costs 6.4 Proprietary Issues (Patents, Trademarks, Copyrights, Licenses, Brand Names) Operations Plan 7.1 General Approach to Operations 7.2 Business Location 7.3 Facilities and Equipment Overall Schedule Financial Projections 9.1 Sources and Uses of Funds Statement 9.2 Assumptions Sheet 9.3 Pro Forma Income Statements 9.4 Pro Forma Balance Sheets 9.5 Pro Forma Cash Flows 9.6 Ratio Analysis

26 27 27 27 28 28 29 29 29 30 30 31 31 31 32 33 34 35 Page 1 2 3

Appendix  Table: Income Statement  Table: Cash Flow  Table: Balance Sheet

Department of finance

Jagannath university

3|P a g e

Business Plan: Friends Event Management

Executive Summary Welcome to the future of event planning! Friends Event Management, The Event Planning Specialists, brings to the community of Dhaka a new breath of air in the event planning market. By combining old fashioned values, going the extra mile, and using cutting edge event-planning software, Friends Event Management will lead the market, providing the same quality results, every time. Friends Event Management is an equal opportunity business making its expertise and its products available to help its customers plan their own events. Party Packs (complete kits for their event), make hosting a party a snap, right down to the refreshments. The event planning software brings interactive event planning as close as their personal computer. Through these and other affordable products and services, Friends Event Management aims to be the number one resource for any event. In this whole business plan we describe our industry as well our aim to choosing this business. We also broadly determine our service and facilities we provide to our client. We charge our client at a very cost effective margin hence they will always getting satisfied with our service. We also provide our marketing plan, development plan and operation plan to this paper work. We try to determine our breakeven analysis hence we are proud to say that we can recover our initial investment within the first year of operation. Last and final part of this report we provide our assuming financial projection which generate on an average over 9% profit margin we will able to get at the end of year.

Department of finance

Jagannath university

4|P a g e

Business Plan: Friends Event Management

PART-I 1 Industry Analysis Industry analysis is the important part of starting a new business. To start a new business we must analyze its related industry. As we want to do business as an event management business firm, we must analysis its industry, trends, participant and prospect of this business in Bangladesh.

1.1

Industry Size, Growth Rate, and Sales Projections

The event management business in Bangladesh is not yet fully settled. There are few recognized event management organizations in the country. The three recognized solely event management organizations are Jetset PR, Antar Showbiz and Wizard. These firms are devoted exclusively to the show business events. But, the corporate market for event management has mostly been unexplored. Although there is a demand for specialized event management organizations, there is few such organizations that cater solely to this demand. The advertising firms made the most of this circumstances, as they took up event management as a very profitable side business. The initiative of handling thei lie t’s e e ts as sta ted

Asiati ad age

a d soo follo ed

by most of the advertising organizations. In fact Asiatic was so much interested to see the turnover in this sector, that they have opened a distinct subsidiary called Asiatic EML, for the only purpose of dealing thei e e take

to

lie ts’ e e ts. But othe tha that, o sig ifi a t

eate a se i e fi

fo the pu pose of

o e e ts

a agi g the lie t’s e e ts

professionally. Unitrend, Andes, and Asiatic EML can be recognized as major players in the industry of event management. They have a high profile customer base like – 





Unilever Bangladesh British American Tobacco Bangladesh ACI

Department of finance

Jagannath university

5|P a g e

Business Plan: Friends Event Management 











Social Marketing Company (SMC) GQBall Pen BRAC PranRfl Saudia Airlines Samsung

Unitrend and Andes are basically advertisement agencies, which provide event management as supplementary service. As stated before, Asiatic EML is a subsidiary of advertising agency Asiatic. Other than Asiatic EML, CEMS (Conference and Exhibition Management System) is currently the only firm delivering event management services. By this analysis we found a very little growth in this industry, though it has a very good potential in doing well in Bangladesh in upcoming year. Sales projection If we start this business our analysis says there will be 10% growth per annum in sales. Bearing that in mind our sales projection will be as follows:

Sales Projection 70000000 65876800

60000000

60693600 55176000

50000000

50160000 40000000 30000000 20000000 10000000 0 2016

2017

2018

2019

Sales

Department of finance

Jagannath university

6|P a g e

Business Plan: Friends Event Management

1.2

Industry Structure

Event management industry is new model of doing business in Bangladesh. But most of the people associates with this sector encourage people to adopt this business with having some experience. In this industry people are encouraging to come especially youth have a very much passion over this business industry. To start a business in this sector people face less o petito as it’s a g o i g i dust

a d a ie s a e also uite lo . “o people a easil

enter this industry. By analyzing all of this we refer event management as a business we can do in Bangladesh.

1.3

Nature of Participants

Most of the participant in this sector are willing to provide service to corporate client and corporate events rather individual events and individual client. Though most of them provide services to both individual and corporate client. As we adopt this business, our aim is to satisfy both individual as well as corporate clients through our quality services.

1.4

Key Success Factors

To achieve success in this business is proper management and handling pressure situation with strong commitment. And most importantly satisfy your client through quality services. Our keys to success include the commitment to quality by every person who is part of the team. Each of us will be responsible to push ourselves to a higher level of professionalism in three areas: 





1.5

Consistent, accurate satisfaction of the client's wishes. Competitive pricing for the quality of services offered. Significant revenue made on each event planned.

Industry Trends

Event management industry is a growing industry. Though event management industry started its journey after liberation war and successfully operating in last two decades but it did ’t g o that

Department of finance

u h like othe i dust

did. But it has a huge scope in Bangladesh and in is

Jagannath university

7|P a g e

Business Plan: Friends Event Management one of the growing sector in Bangladesh and good business for youth as they are more willing toward this sectors.

1.6

Long-Term Prospects

Event management has a bright prospect in Bangladesh. As Bangladesh economy is growing more big events will organize by corporate house and individual people are want and willing to make their events more lucrative. So demand for this business services will increase and more event management company will join together to booming this industry. In many survey reports shows that it will be one of the growing business in upcoming years. So we can assume a bright future and long run prospect of this business.

PART-II 2 Company Description In company description we provide our organization overall assessment in brief to aware our reader what our organization is and what is its mission and legal formation and so on.

2.1

Company History

Name of the Venture The name of our event management firm will be known as Friends Event Management. As we start this usi ess all frie d together that’s hy e hoose this a e for our e ture. We also hoose a tagli e a d that is Events that people talk about .

Why Choose Event Management Business As we observing our business world, and event management business is trending all over the world. This idea has come over our mind as we see lots of international and national event on TV as well as on our personal appearance in different events which encourage us to choose this as our business. Moreover in this industry is small enough currently where we have to face less competitors. So assuming all this thing we think this is the business we can choose as our own business and thus the idea of Friends Event Management turn into our business goal.

Department of finance

Jagannath university

8|P a g e

Business Plan: Friends Event Management

2.2

Mission Statement

Mission Mission of Friends Event Management will be to provide its customer services to their utmost satisfaction.

Vision Friends Event Management initiates its dedication to serve the community with quality services and set an example of professionalism and moral business practices in the industry. The vision of Friends Event Management is positioned towards becoming the market leader in event management through hard work and commitment, maintaining the leadership and carrying the flag of uncompromising quality into the unforeseen future with constant value addition and a strong line of innovation.

2.3

Products and Services

Although Friends Event Management is primarily a service business, we also offer products to support our customers in planning the event themselves. The following products are tools used inside our operation for the best possible results: 1. Party Pack The Party Pack is a complete kit for any party. It includes decorations, lighting effects guide, disposable theme cameras, cutlery, plates, napkins, cups, punch mix (or recipe), snack supplies (or recipe), tablecloths, theme music (where applicable), invitations, thank-you cards, and a step-by-step guide to planning, putting together, and hosting the event.

2. Step-by-Step Guides These booklets include a calendar to map out the event, a step-by-step guide on what is needed for and how to put together a successful, worry-free event, resource information, popular refreshments with recipes, games, and tips to put their event in the record books. The events available include birthdays for all ages, meetings, retreats, parties, vacations, and special occasion celebrations such as graduations, holidays, showers, weddings, and receptions.

Department of finance

Jagannath university

9|P a g e

Business Plan: Friends Event Management 3. Resources Manual This valuable guide acts as a review for all the resources located in the surrounding area. A ranking is given to the various services, such as caterers, decorators, disc jockeys, bands, and facilities. This manual gives the client the freedom of making a choice based on experience. Friends Event Management provides event planning in a wide range of applications. We guarantee satisfaction in the areas of appearance, performance, and taste. The following is a sampling of the types of events we will plan every year: 1. Meetings, Trainings, and Retreats. 2. Conferences and Workshops. 3. Birthdays, Anniversaries, Graduations and Holidays. 4. Weddings, Receptions, and Showers. 5. Company picnics, banquets, and award ceremonies.

2.4

Current Status

As Friends event management is a new business firm, its first aim to complete its legality and forming a name and its way of operation. Frie d’s event management also set its milestone to recover its investment during the first year of its operation. Friends events management will do and take every possible initiative to recover its investment through providing its variety range of services to its potential client and earn a moderate profit margin from every events it organize. Friend event management also want to celebrate its first anniversary as high profitable organization and want to expand its market all over Bangladesh.

2.5

Legal Status and Ownership

Primarily Friends Event Management will operate the business as partnership basis. But in near future ownership will change as per necessity. It has also aim to turn into a company under company act 1994. Friends Event Management will be a service oriented company that is the firm will provide intangible goods or perform useful labor on behalf of another person.

Department of finance

Jagannath university

10 | P a g e

Business Plan: Friends Event Management The company will start its ope atio as soo as it’s o pletes its e essa

p o edu e, if

everything goes as planned by the proprietor. For the purpose of registration the entrepreneur must acquire the following licenses. 1. Trade License – From Dhaka City Corporation(North or South as Per Location) 2. Article of Incorporation – From Registrar of Joint Stock Company(when it will turn into a company) 3. Tax Certificate – From National Board of Revenue

PART-III 3 Market Analysis The market analysis is distinctly different than the industry analysis. Whereas the industry analysis focuses on the industry that a firm will participate in (i.e., toy industry, software i dust , e ’s lothi g i dust ), the market analysis breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal. In this part we segment our market and select our target market. We also analysis our possible competitors.

3.1

Market Segmentation and Target Market Selection

Market Segmentation In Bangladesh, the prospect for event management businesses is very good. The huge market out there has not been explored yet. This market can be distributed into three major segments. 





The corporate clients The non-corporate clients The Bangladesh Government

 The Corporate Clients

Department of finance

Jagannath university

11 | P a g e

Business Plan: Friends Event Management This section includes various multinational companies, local public and private limited companies, financial and non-financial institutions, joint ventures and franchises, small businesses, NGOs, research institutions, private and public educational institutions, showbiz companies, social marketing companies, theater groups, cultural forums etc. The corporate clients are located in Gulshan, Dhanmondi and Motijheel – which will be the key area of attention while conducting the marketing accomplishments.

 The Non-Corporate Clients Due to changes in our socio-cultural and economic condition, people are spending more time at work. As a result, they have less time to spend on social affairs like marriages, get together or a may be a birthday party for the children, or concert and other family function as well as social functions. These people make up the noncorporate client segment of the event management market.

 The Bangladesh Government Another major segment in this market is the Bangladesh Government. Each year the Bangladesh Government hosts a variety of programs. Which firm will be in care of these programs are decided by tenders.

Target market determination As has been mentioned earlier, the market for event management has been unexplored. But, at the same time, this market is too huge to be targeted by a small firm like Friends Event Management. To be successful Friends Event Management will have to emphasis its attention to segments or niches that the big players have unnoticed or ignored. This way, Friends Event Management will be able to avoid conflict with the major players in the market by specializing along market, customer, service and marketing mix lines. Through smart targeting, Friends Event Management will be able to receive as much profit as the market leaders. The corporate clients, particularly the MNCs are very much willing to involve in long-term contracts with professional event management organizations. But most of them already have Department of finance

Jagannath university

12 | P a g e

Business Plan: Friends Event Management contracts with various advertisement companies for their event management. They are not willing to dismiss their contract nearly and would like to engage both an event management firm as well as advertising firms on a short term basis to see just how much value professionalism adds to the process of event management. But, the number of events that these corporate clients are going to initiate is likely to increase by more than 10%-15% in the comin...