Entrepreneurship Part 3

This report provides a comprehensive business plan for Wedding Bells, an event management startup. It covers aspects like business description, products and services, market analysis, marketing plan, location, competition, management and operations, personnel, and financial data. The report also includes a break-even analysis, forecasted balance sheet, and income statement.

ENTREPREUNERSHIP
(PART 3)

EXECUTIVE SUMMARY
Entrepreneurship is a collection of various activities which is related with the opening of
new business in the market with the aim of removing obstacle in people's life. This report is
based on the event management start-up Wedding Bells located in Shoreditch High St, London,
UK and deals in different type of services like decoration and designing of event, food and
beverages, musical events etc. This start-up is started by Jonathan who is also the owner of other
company and second partner is Jose who has experience with MNC's. Targeted customers of
wedding bells are people who comes under lower, middle and higher income group and has
competition like MGN events, penguin etc. Company has targetted High, middle and upper
middle class of customers. Each partner is required to invest finance amounting to 50,000 for
first term and then changes according to the external environment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
AIMS AND OBJECTIVE................................................................................................................3
INTRODUCTION...........................................................................................................................3
SECTION ONE: THE BUSINESS..................................................................................................3
A. Description of Business and Aims.....................................................................................3
B. Products/Services...............................................................................................................5
C. Market Analysis.................................................................................................................6
D. Marketing Plan..................................................................................................................8
E. Location.............................................................................................................................9
F. Competition......................................................................................................................10
G. Management and Operations...........................................................................................10
H. Personnel.........................................................................................................................10
SECTION TWO: FINANCIAL DATA .......................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................15
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AIMS AND OBJECTIVE
 To grow and develop the business in order to earn high profits.
 To develop business for increasing job opportunities for family members
 To enhance main income through increasing business operations
INTRODUCTION
Entrepreneurship is a way designing and launching products and services in the market
with the aim of satisfying the needs and demands of customers (Barringer, 2015). Main motto of
entrepreneur is to resolve the obstacle faced by common people and then providing solution of it
in exchange of monetary value. For this report, Wedding bells is launched in the market which
provides services like designing, catering, music and decorations according to client's
requirements. Whole description related to business will be provided which includes products
and services, market analysis to make strategies for future, competition in the market etc.
Besides this, financial plan of wedding bells will be provided with the help of documents which
shows the current position of it.
SECTION ONE: THE BUSINESS
A. Description of Business and Aims
Business type
Wedding bells operates in the event industry as they provide solutions related to event to
the potential customers and operates their business in London, United Kingdom. Main motto of
the company is to provide resolve the obstacle faced by customers through their services so that
they can earn more profitability from them.
Work of business
Wedding bells provide various kind of products and services to clients at the time of
organising an event like designing of stage and place, music arrangements with decorating the
event, providing food and beverages to the potential customer etc.
Business status
It is a start-up which has been formed with the mission of making the events smoothly by
providing solutions to it. It is in the initial stage due to which company has to regularly assess the
market in which they are operations and have to change accordingly.
Legal Status
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This Start-up is a partnership firm in which two partners are involved in managing all the
operations of it. Losses and profits earned by Wedding bells is bear by both of them equally.
Jonathan and Jose is the two partner and owner of wedding bells.
Licences
License refers to legal permission provided by the local and central authorities to conduct
their business. It must be essential for Wedding bells to get various licenses like premises licence
if they want to sell liquor or alcohol in the weddings or functions. For instance, if any individual
or company is found for selling liquor without license then the guilty person would face a severe
action by local authority officials (Premises licence, 2019)
Apart from this, musical performance is also provided by start-up to their customers so it
is mandatory for them to get The music license as it allows them to play live or recorded music
to customers (Get a licence to play live or recorded music, 2019)
Initiation cost
Overall cost which will be incur to start wedding bells is 37000 Euro as owner needs to
hire various employees under them so that proper management of the event would be attain.
Personal Budget
Particulars Amount
Building rent 2500
Investment 2600
Total 5100
Transportation 14000
Maintenance 3000
Equipment 7000
Insurance 8000
Total 32000
Success factor for entrepreneur
Chances of getting success from this start-up are higher as the other partner has
experience of managing start-up due to which it won’t be hard to operate the business. For
instance, other partner has knowledge about the rules and regulations which needs to comply by
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the companies. So it will assist to avoid any legal issues which could affect the business in a
negative way.
Experience of entrepreneur
One partner is managing and working in their personal start-up who provides IT solutions
to management companies. Other individual has past experience of working with MNC as a
market research consultant.
USP
Main USP of this business is to provide different services like designing and catering as
compare to other competitors. Besides this, highest quality of customer relationship is provided
by the Wedding bells with the aim of enhancing customer experience engagement (Bridge and
O'Neill, 2012). For instance, owners conduct personal meetings with their clients so that
solutions provided will be according to their needs and demands.
Why business be successful
Jonathan has experience in managing start-up which assist them to identify future
hindrance so that wedding bells can prepare themselves for it. Jose has experience of working in
companies which help them to handling the customers according to their behaviour. So it can be
said that start-up would become successful as they have leaders according to the situations as in
the initial stage, main work is to identify problems so that their productivity won’t get affected.
Other is customer interactions which is handled by Jose.
B. Products/Services
Services provided by company and its uniqueness
Wedding bells is an event company which assist customers to organise their events
specially weddings by giving highest quality of work in lesser cost. It includes musical event in
the marriages like on ring ceremony, decoration at wedding which includes stage and venue
decoration etc. Uniqueness of these services is that they fulfil the needs of the customers without
charging extra amount for it. For instance, if customers want to organise a theme party at
birthday then Wedding bells make their arrangement accordingly.
Specification and benefits of services
There are various benefits which are obtained by customers by using Wedding bells
services like they has specification that they quote minimum price to the customer as compare to
their competitors so that it would become a less expensive event. Moreover, this start-up does
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not charge any extra penny for specific decoration and design as it is their USP as well as value
proposition factor (Carsrud and Brännback, 2011).
Position in the market
It is the initial stage of the start-up so they do not have any specific position in the
market. But wedding bells plans is to provide highest quality of services by maintaining relations
with the customer so that competitive advantage would be gained which will lead to better
profitability. They have an aim of getting 7% of market within one year.
Distinguish factor of services from others
Main factor which differentiate Wedding bells from other companies is different range of
services at one point due to which customer does not have to visit any other vendors for some
specific work. Apart from this, though customer experience is immeasurable in nature but it
assists them to grow their business. For instance, if customer is happy with the services provided
to them then it will also pass on to other potential customer through word of mouthing resulting
in better growth in the future.
Uniqueness and desirability of services
Uniqueness of the services is that whole budget is made according to the demand and
budget of the customers. Which means that Wedding bells does not have any specific services
prices and it changes very often. Main idea behind using this strategy is that every customers has
different budget and different requirements which could not be fulfilled by using single brochure.
So this strategy makes the Wedding bells more unique in the market.
C. Market Analysis
Purchaser of the services
Wedding bells has targeted mass market in the market as they provide solution to every
class in the society i.e., low, medium and high. Various ways through which market is segmented
is given below,
 Geographic: It is based on various factors like climatic conditions, density of population,
economic conditions of country etc. (Dees, 2017). Wedding bells uses brochure to attract
those people who has their home nearby London. Apart from it, social media is used as
way of connecting high end and farfetched customer as it won’t be possible for wedding
bells to reach out them directly.
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 Demographic: It includes religion, cast, creed, income group, race etc. For instance, to
acquire more market and customer share in the market, this start-up has different products
and services for different classes in London i.e., high, upper middle and middle
customers so that circulation of work would not get stopped.
 Psycho-graphic: This factor is associate with lifeless, local trends, value, attitude,
lifestyles etc. of the customer. In the recent era, people prefers to hire event management
agencies for organising functions as it is full of hectic work. So Wedding bells has
captured and analyse this trends and started their operations. Target customers will be age
group 21-35 years of age as hiring event management is a trend in this age group.
Market size
Event market in UK region is attracting and profitable in nature as recently it has a
valuation of 42.3 billion Euro (UK Event Industry in Numbers, 2019). So it can be implied that if
any industry is big in context of revenue generated per year then there will also be high
competition and competitors so wedding bells have to make their strategies accordingly. Event
industry includes conference, exhibitions, travels, music and dance events etc. It can be said that
Wedding has still chances of getting deeper in to industry so that more revenue would be
generated.
Market share
As mentioned above, Wedding bells does not have any specific market share but still they
have planned to acquired 7 % of market in the next one year by implementing various strategies
which would enhance their brand awareness. After that, Wedding bells is planning to acquire 5
% of market and customer share with the aim of becoming market leader in the next five years.
Segments of user
Aim of every company in the event industry is to get high end customers in their portfolio
as it has a positive impact on the future of company in terms of money (Kelley, Singer and
Herrington, 2012). Due to which they avoid to contact people from lower and middle lower class
people. It was untapped in nature as less profit is generated from it besides this, innovation in
product and services is required in this phase as they have limited budget.
Opportunities
There are opportunities to serve those segment as company's customer share and brand
awareness in the market will increase to a certain level which assist them to increase their
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profitability in the future. More customer would be attracted from this segment due to which pile
of less profits will lead to large amount of profit in the last.
D. Marketing Plan
There are various benefits which is provided by Wedding bells like budget of the event is
made according to the budget of customers so that they would be able to hire event planner for
their event. Moreover, value added services is provided to the customers like decoration
according to the theme with the aim of enhancing customer experience engagement to a higher
level. As mentioned above, Wedding bells does not have market position in the market as it is in
the initial stage but they have planned to get 7% of market share in the next one year.
Competitors: As mentioned above, event industry is attractive in nature as its valuation
is approximately 42 billion Euro. There are many big players in the UK event industry like Jack
Morton Worldwide, CWT Meetings and Events, BCD Meetings & Incentives etc. They have
wide variety of products due to which all the mentioned companies are market leader of it (Light,
2011). For instance, CWT meetings and events deals is providing solutions to companies like
auto mobile, financial and pharmaceutical industries. Product launch event is one of the USP of
it. On the other side, Morton Worldwide provides services like conferences, company
recruitment, exhibitions for artefacts and paintings, annual meetings of companies, product
launch event etc. (top 20 British event agencies, 2019)
Target customers: Wedding bells does not have any specific target groups as they are
serving their services in every class of the UK society i.e., lower, middle and high class. This
strategy will have a positive impact on the balance sheet of start-up as they do not have to
specifically find their customer due to which size of customer market becomes large.
Various strategies which could be used by Wedding bells is explained below with
functional example of it,
 Product: It refers to good and services provided to the customer so that they can satisfy
their demands and needs. Wedding bells has variety of services which they offer to their
potential customers like decorating of the venue which includes lightings also, designing
of event which consist of props management, arrangements of foods and beverages
according to customer needs etc. They need to expand their product range as more
products or services leads to more revenue generation. For instance, Wedding bells is
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planning to launch new products like arrangements for meetings and conferences,
gathering for political parties etc. as it would assist them to get more market share.
 Place: Wedding bells is in their initial stage of development due to which they only have
one office in the UK. Apart from this, they have good reach on social media platform as
they regularly update it with the aim of getting leads from it.
 Price: Entire event companies in UK or in world is depends on price factor as customer
are price sensitive in nature due to which they switch their providers according to price.
Wedding bells should use penetration pricing in the starting as it would assist them to get
market share in the starting (Naudé, 2014). After a year, they should set their prices
according to demand and competitors as it is the best way of competing with the
competitors. There will be no comparison between the companies as they are new in the
market due to which they do not count in the competitor list of big players. Prices are set
according to customer ability to pay which helps company to gain trust of the customer.
There will be no credit policies in the Wedding bells as they do not want to expose to risk
by any means as it is the time where company wants to grow.
 Promotion: Main aim of implementing promotion strategies in the business is to enhance
brand awareness in the market as higher awareness leads to better profitability of
company. For instance, Wedding bells should use social media to spread their name all
over world as it is cheap as well as effective approach to promote their services.
Moreover, regular mails and messages regarding start-up activities should be done by the
company as it makes their customer knowledgeable regarding company which could be
beneficial at the time of mouth marketing (Sarasvathy and Venkataraman, 2011). For
promotion, enterprise has their 3000 Euro as social media marketing is less expensive as
compare to other way of promotions. More focus will be given in the starting of 1 year as
brand awareness is essential for company to grow in the future. Company has targeted
mass segment which includes high, upper middle, middle income group of UK.
E. Location
Wedding bells is located in Shoreditch High St, London, UK which is one of the crowded
place in London. It assists them to capture customers as location around has a footfall of more
than 20000 people in a day which makes it suitable for them (SMITH, 2014). Place where start-
up is running is on lease in which bells have to pay 50% of per month rent as a security deposit
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which will be given after 1 year of the term. It does not require any renovations as it was fully
furnished and makes according to corporates only. This office is favourable for company growth
as mentioned above, there are vast number of customers who regularly visit this place as it is a
hub for companies in London which implies higher number of people. Higher footfalls lead to
better sales result in the future.
F. Competition
Event industry is vast in context of the opportunities and attractiveness of it. But there are
few companies which would give direct competitions to Wedding bells like AA decorative,
MGN events, the events company, penguins, wedding planner etc. (Tarasovych, 2017). There is
a huge difference between MGN events, penguins etc and wedding bells as other companies deal
with the upper middle or high end customers but on the other hand, Wedding bells focuses on
lower and middle class people with the aim of gaining market share. They have not respond to
entry of wedding bells as those companies did not considered wedding bells as their
competitions.
G. Management and Operations
Wedding bells has two owners as it a partnership firm in which one has their start-up in
IT industry and other has experience of working with MNC's. Start-up has functional area like
etc. All the work which requires interaction is done by the person who was working with MNC
as they have experience in communicating with others. Remaining work like operations,
technical etc. is handled by the first owner. Junior level employees report to the owner as they do
not want to have any wall between them. Minimum salary provided to the salary is 1000 euro per
month. All the management resources which are required for smooth functioning of business is
present in Wedding bells like marketing and finance team, mentor from outside industry, office
for operations etc.
H. Personnel
It must be essential for owners to identify needs of the personnel as they are one who put
their whole effort to assist company to attain their mission and vision. Proper salary and healthy
working environment is the needs of the employees which should be fulfil by Wedding bells. As
it is kind of business which requires continuous interaction with customer so personnel should
skills like excellent interpersonal and communication skills, politeness, handle team in pressure
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etc. All the people which company needs to hire to attain success is present as due to this only,
they would be able to work with their higher potential. Proper training of communication skills
will be provided to the employees so that they would also perform better while communicating
with potential customers. All the employees which Wedding bells needs to start their business
are available.
SECTION TWO: FINANCIAL DATA
This part will include all the financial data of wedding bells and its projections in the
future. Break even points refers to a phase in which company is neither earning nor getting loss
(Windiarti and Astuti, 2017).
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Sales 2000*20 40000
Variable Cost 2000*10 20000
Contribution 2000*10 20000
Fixed Cost 2000*10 20000
Profit/loss - NIL
It can be said that Wedding bells has their break-even point on 40000 euro which depicts
that company must have to reach 40000 Euro of sales as then only they would be safe from any
kind of losses to the business
Total Required Capital:
Twelve month's aggregate fixed Expenses £
Salaries (include owner) Payroll Taxes at 12% Rent Marketing and Advertising
Supplies 105600
Telephone & Utilities 12540
Insurance Maintenance Legal and Accounting 6980
Miscellaneous 1740
Monthly Fixed Expense Sub-total 126860
Asset Purchases
Purchase of Land and Building 650000
Decorating and Remodel-ling Fixtures and Equipment (plus installation) 260000
Deposits on Rental Property and Utilities Beginning Inventory 150000
Asset Purchase Sub-Total 1060000
Start-up Expense You Pay Once
Legal and Accounting Organization Costs 35460
Licenses and Permits 37640
Initial Advertising and Promotion 40040
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Start-up Expense Sub-total 113140
Total Estimated Cash Needed to Start = Twelve Months of Fixed Expenses +
Asset Purchases + Start-up Expenses 1300000
Forecasted balance sheet
Equity and liabilities: Amount
Capital 130000
Reserves 25000
Retain earnings 35000
Creditors 15000
Loans 15000
Total Liabilities 220000
Assets:
Fixed assets 120000
Current assets:
receivables 45000
Cash 45000
Fictitious assists 10000
Total assets 220000
Income statement
Forecasted Profit and loss statement for Wedding bells
Particulars Amount (£)
Revenue through breakfast 12313.2
Revenue through Lunch 171602.81
Revenue through Dinner 967579.2
Total revenue 1151495.21
Less: Cost of revenue 400000
Gross Profit 751495.21
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Gross profit margin 65%
Operating expenses
Supplier commission 117000
Salary to staff 80000
Computer for billing and record keeping 69000
Total operating expenses 50000
Operating profit
Operating margin 26000
Less: Corporate tax 100000
Net income 150000
Net profit margin 559495
CONCLUSION
As from the above mentioned information, it can be concluded that it must be essential
for entrepreneur to find out the problem which people are facing as objective of start-up is to
solve the obstacles with their products and services in exchange of money. Beside this,
continuous monitoring and analysing of internal as well as external environment is mandatory
fluctuations in it directly affect company's performance in a positive or negative way. Owner of
the business should try to satisfy the needs and demands of the personnel working as high
motivation in the employees has a positive impact on the balance sheet of the company.
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REFERENCES
Books and Journals
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Bhachu, P. ed., 2017. Immigration and entrepreneurship: culture, capital, and ethnic networks.
Routledge.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Carsrud, A. and Brännback, M., 2011. Entrepreneurial motivations: what do we still need to
know?. Journal of Small Business Management. 49(1). pp.9-26.
Dees, J. G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Kelley, D. J., Singer, S. and Herrington, M., 2012. Global entrepreneurship monitor 2011 global
report. Global Entrepreneurship Research Association, London Business School.
Light, P. C., 2011. The search for social entrepreneurship. Strategic Direction. 27(6).
Naudé, W., 2014. Entrepreneurship and economic development. International Development.
Ideas, Experiences and Prospects.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for
an entrepreneurial future. Entrepreneurship theory and practice. 35(1). pp.113-135.
SMITH, E. D., 2014. RELEVANCE OF ENTERPRENEURSHIP EDUCATION IN
REDUCING UNEMPLOYMENT AMONG UNDERGRADUATES IN EDO STATE.
Tarasovych, L., 2017. Marketing as an enterpreneurship philosophy and a component of
inclusive development of rural areas.
Windiarti, R. and Astuti, H. P., 2017, September. Developing Enterpreneurship Activity Based
on Local Culture in Early Childhood. In 9th International Conference for Science
Educators and Teachers (ICSET 2017). Atlantis Press.
Online
Get a licence to play live or recorded music. 2019. [Online]. Available Through:
<https://www.gov.uk/licence-to-play-live-or-recorded-music>
Premises licence. 2019. [Online]. Available Through: <https://www.gov.uk/guidance/alcohol-
licensing#premises-licence>
top 20 British event agencies. 2019. [Online]. Available Through:
<https://blog.printsome.com/top-british-event-agencies-2017/>
UK Event Industry In Numbers. 2019. [Online]. Available Through:
<https://www.eventbrite.co.uk/blog/academy/uk-event-industry-in-numbers-ds00/>
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