Event Company Business Plan

This assignment outlines a comprehensive business plan for a new event company. It covers various aspects including funding sources (personal savings and bank loans), cash flow projections, balance sheet estimations, risk management strategies (market uncertainty and inappropriate fund usage), critical success factors (high-quality services and competitive pricing), and survival strategies (adapting to customer trends and serving at least 20 clients monthly). The plan also explores partnership opportunities with other event organizers and identifies key milestones such as securing finance and implementing effective marketing strategies.

Business Plan
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EXECUTIVE SUMMARY
Event industry is the most dynamic industry in UK. These days’ event management
companies are being approached to make every kind of event happening and successful. This
report is about a new business plan related to opening a new event firm in UK. The major aim of
the new event management venture is to offer superior quality of creative and innovative services
to the people of Manchester. The study has concluded that new venture has the potential to
achieve success in the event industry. Most of the things relies on word of mouth publicity.
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TABLE OF CONTENTS
Purpose ........................................................................................................................................4
Nature .........................................................................................................................................5
Business detail ................................................................................................................................5
Description of Services ...............................................................................................................5
Mission and vision statement.......................................................................................................6
Aim and Objectives ....................................................................................................................7
Resource capability......................................................................................................................8
Industry and market analysis ..........................................................................................................9
Industry size growth, structure (macro and micro/local level)....................................................9
Industry and market trends (macro and micro/local level) .........................................................9
Market segments and reasons for target market selection ........................................................11
Buyer behaviors across segments..............................................................................................11
Competitor analysis ..................................................................................................................11
Marketing strategy ........................................................................................................................12
Operations plan..............................................................................................................................13
How the business start and end .................................................................................................13
How the business going to open give example .........................................................................13
How business going to operate-diagram ...................................................................................13
Key operation activity –make a diagram...................................................................................13
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Structure ....................................................................................................................................14
Management ..............................................................................................................................15
People history back ground .......................................................................................................15
Resources ......................................................................................................................................15
Staff............................................................................................................................................15
Equipment/machinery contribute to the business .....................................................................15
Financing .......................................................................................................................................15
Sources of finance .....................................................................................................................15
Implications of sources..............................................................................................................15
Cash flow ..................................................................................................................................16
Balance sheet projections ..........................................................................................................16
Risk and strategic options .............................................................................................................17
Identify 2 risk ...........................................................................................................................17
How to manage this risk............................................................................................................17
Critical success factors ..............................................................................................................17
Exist opinion .............................................................................................................................17
Partnership ................................................................................................................................18
Key milestones ..............................................................................................................................18
Critical sources factors...............................................................................................................18
Surviving strategy......................................................................................................................18
References......................................................................................................................................19
References......................................................................................................................................20
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Purpose
Looking at the present condition of UK’s event management industry it can be said that
people are hiring such companies to carry out their event in attractive and creative way. Due to
this, event industry has worth of billions of pound and growing at a quick rate. This has led to
increase the level of competition available in the market as more and more companies are
entering into it (Business vibes, 2014).
Nature
The projected business plan is based upon the concept of initiating a new event
management venture in the UK industry. The main purpose of this venture will be to provide
superior quality of event management services to individual as well as corporate clients.
Considering the present condition of UK’s event management industry it has been identified that
there are several small and medium sized party organizing company that offers wide range of
services to the people (Jones, 2014). However, entrepreneur of new event management venture
are focusing on assessing the needs and wants of clients and accordingly work in as team to
organise the event. Further, he/she will constantly make efforts to achieve the expectations level
of clients as well as to provide them quality of services for retaining them for long term. There
are several services that business will sell in the market such as planning for social event,
corporate meetings, party organising, wedding planning, birthdays, anniversary, brand
promotion, product launch etc (Pride and Ferrell, 2008). All these services will be provided at
reasonable prices with a creative unique style and approaches so as to enhance the level of
customer’s expectations.
BUSINESS DETAIL
Description of Services
There are various products and services that entrepreneur is planning to offer within the
target market which are as follows:
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Table 1: Products and Services
Mission and vision statement
Vision
The vision of new event management venture is to offer superior quality of creative and
innovative services to the people of Manchester for establishing position in the marketplace.
Mission
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The main purpose of new event management venture is to provide services in different
portfolios such as corporate, social, musical events as well as parties such as birthdays,
anniversary, weeding etc. Further, the company will be committed to offer highest level of
quality services to its clients at affordable charges.
Aim and Objectives
The major aim of the new event management venture is to offer superior quality of
creative and innovative services to the people of Manchester for establishing position in the
marketplace.
 To provide quality of services in different portfolios of event management for the clients.
 To develop value of money for the stakeholders.
 To serve the customer’s need efficiently.
 Developing and maintaining better working relationship with vendors and suppliers.
 To develop professional image within the minds of people.
 To deliver creative and innovative services for enhancing the experience of the clients
SWOT Analysis
Target market
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Target market will consist of people which belong to middle and high income group.
Along with this, individuals from age 20 to 65 will be targets.
Resource capability
In terms of resources capability, the new event business will make proper arrangement of
resources such as finance, human and technology
Physical outlook
Figure 1: Sample of event services
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INDUSTRY AND MARKET ANALYSIS
Industry size growth, structure (macro and micro/local level)
Table 2: The Value of Britain’s Events Sector
The event sector of UK is of worth £39.1 billion. There are more than 25,000 businesses
operating within the industry. It has been identified that there are several small and medium sized
party organizing company that offers wide range of services to the people.
These include event organizers, venues, destinations, marketing companies, exhibition
contractors, event production firms etc. It is estimated that every year 1.3 million business events
are held in UK on annual basis. With regard to corporate meetings, UK event management
industry has generated revenue of £21.8 billion in 2015 which will reach to £25.5 billion in
coming five years (Fletcher, 2015). The industry has welcomed the new entrepreneurs and it is
giving many fruitful opportunities. Further it can be said that industry is a major contributor
towards the economic development of UK. It is helping in generating adequate amount of
revenue which can be utilized for growth and progress.
Industry and market trends (macro and micro/local level)
Pestle analysis
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 Political – Changes in democracy can influence the business decisions of new venture.
Democratic parties can bring changes within the rules and regulations of the industry.
 Economical – Economic factors such as recession, inflation, stagflation etc can affect the
new business. This will impact the purchasing power of the customers.
 Social - Consumer behavior changes from time to time. Situations such as inflation or
recession can affect the purchasing power of the customers.
 Technological – The event firm is required to be remain updated with all the
technological advancements. For instance use of smart phones for the purpose of
marketing the services can be an effective option for the company
 Legal – Every industry is comprised with certain legal rules and implications. These
norms are to be followed in appropriate manner by the company.
Marketing mix
 Product- New business will make sure that unique and innovative services are provided
to customers. Some key services will include planning, organizing of events on the basis
of clients requirement. Furthermore, the services will be special as well as tailor made for
the customers. Market research will be carried out by new business at regular intervals
and modifications in services will be done on the basis of same.
 Price- The new business will be offering its services by using low prices strategy at initial
level. This will help the brand to attract customers and penetrate the market. As soon as
business will become successful, it will adopt competitive pricing strategy.
 Place- People in the market will be able to purchase services of new business through its
corporate office which will be established in Manchester. Along with this, individuals
will also have opportunity to buy event services via online.
 Promotion- Promotion of services of new business will be done by using both online and
offline sources. This means that it will promote itself over internet as well as by using
pamphlets. In addition to this, events will be carried out near corporate offices and public
places. The main objective behind promotion will be to create brand awareness and
increase sales.
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Market segments and reasons for target market selection
This section depicts customers and market segment which will be targeted by the event
company. There are various ways through which organizations can perform the task of market
segmentation. This includes dividing market on the basis of geographical location, income age,
etc. It can be stated that for the present business, target customer is going to be corporate
organizations along with small medium enterprise. Furthermore, focus of the business will be on
arranging corporate events on big scale. In addition to this, it will also provide event related
services to small businesses as per their need and demand. The services will be also offered to
working people and youngsters of UK. Target market segment and customers will provide the
business with new opportunities related to growth and development. Other than this, it will help
in developing more effective strategies which will based on the specific needs of people in target
market.
Buyer behaviors across segments
In simpler terms, buyer behavior is set of elements and factors which help people in
market to determine whether they should buy the product or not. In terms of income level, buyer
behavior across segments is divided into three major categories which are high and medium
income group. People in high income group wants the best quality of services whereas people in
other segment are influenced by quality event services at convenient prices.
Competitor analysis
The new business is going to face intense and very high degree of competition in the market.
Furthermore, it won’t be easy for the business to attract customers and gain market share. One of
the main reason behind this is that there are various kind of large and small market players
already operating in the country. Some key competitors are mentioned below as:
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Therefore, it can be stated that the competition for new business is really going to be very
difficult. It won’t be easy to gain competitive advantage over other market player. New business
will be required to provide innovative services at the convenient prices in order to attract
customers. Furthermore, it will also need to make changes or modify its services on the basis of
changes in need and demand of its target customers. This will help the brand in earning adequate
profits and sustain in highly competitive marketplace.
MARKETING STRATEGY
Pricing-
A moderate pricing strategy will be employed during initial stage to attract customer.
Promotion-
Social media, Search engine optimization and press release will be used for promotion.
Distribution-
The services will be distributed from the corporate office
Launch strategy-
A press conference will be arranged to launch the new business
Sale tactics –
The services will be sold by carrying out effective online and offline marketing.
Brand development-
Brand development will take place by providing satisfactory services to customer and
enhancing their loyalty.
Competitive reaction-
Other event companies will face tough competition from new business
Product and market development-
Effective marketing and moderate price will be used for product and market development
Growth potential-
According to the market trend there is adequate growth opportunities present.
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OPERATIONS PLAN
How the business start and end
On the basis of gap identified and scope of in the industry
How the business going to open give example
The operations will be carried out with the help of physical store.
How business going to operate-diagram
Key operation activity –make a diagram
Gantt Chart
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Network Digram
Structure
There will be two people assigned to manage things and total five people will be
responsible for sales and marketing. The event company will be handled by one owner.
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Management
Services will be provided on the basis of customer demand and effective monitoring will
be done in order to achieve aim and objectives.
People history back ground
Experienced people will be hired which have adequate skills and knowledge in terms of
event industry.
RESOURCES
Staff
First of all a talented and efficient team is needed. The team members are required to be
highly skilled and capable of handling all the tough situations. An event is made successful due
to the hard efforts and team work of all the individuals. There will be total 10 staff members
during initial stage.
Equipment/machinery contribute to the business
The new event company will hold a brand new office in the Manchester. The office will
be established in the middle of the town. The clients can contact with the company with ease and
comfort. Personal computers will be required to carry out smooth flow of operations.
FINANCING
Sources of finance
In order to get finances to establishment and operations of new business two options
bank loan and personal savings are being selected.
Implications of sources
The reason why own sources are selected is that the business will not require to pay any
kind of interest on it and it will not increase liability of event company.
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Cash flow
Balance sheet projections
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RISK AND STRATEGIC OPTIONS
Identify 2 risk
The two major risk will be related to inappropriate use of funds and risk related to market
uncertainty.
How to manage this risk
Adequate market research will be carried out at regular interval to manage market risk.
Financial risk will be managed by best allocation and utilization of funds.
Critical success factors
High quality and convenient prices of event services will be the critical success factor
Exist opinion
In order to exist in the industry the option available are achieving high degree of
customer base, satisfaction rate and high brand image.
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Partnership
The event company can form partnership with other event organizers operating in the
country.
KEY MILESTONES
Critical sources factors
 Finance – Availability of finance is the most critical factor. In the absence of finance,
operations cannot be financed in appropriate manner.
 Marketing – A new start-up requires high level of marketing and promotion so that
awareness can be created at the initial level.
Surviving strategy
In order to survive in the market, the business will be reviewing its strategies and action
plan at regular intervals and will make modifications in as per changing customer trend. The
target is to serve at-least 20 clients every month.
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REFERENCES
Business vibes. 2014. [Online]. Available through:
<https://www.businessvibes.com/content/event-management-overview>. [Accessed on
9th March 2016].
Fletcher, M., 2015. Valuing the event's industry for economic growth. [Online]. Available
through: <http://raconteur.net/business/valuing-the-events-industry-for-economic-
growth>.[Accessed on 9th March 2016].
House, G., 2012. The Royal Wedding Bank holiday and Bad Weather, 2010-The Effects of Two
Special Events on UK Economic Time Series. Routledge.
Jones, M., 2014. Sustainable event management: A practical guide. Routledge.
Parry, B., 2014. "Key Concepts in Event Management." International Journal of Contemporary
Hospitality Management. 26(2). pp.326-327.
Pride, W. and Ferrell, O., 2008. Marketing. Boston: Houghton Mifflin Co.
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REFERENCES
Books and journals
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