Event Management & Funding Strategies

This assignment delves into the financial aspects of running an event management company. It examines various funding sources, including angel investment, crowdfunding, and bank loans. The report analyzes different pricing strategies used by event planners, such as premium pricing and price skimming. Additionally, it explores key financial concepts like ROCE (Return on Capital Employed) and event cost analysis. The overall aim is to understand the financial decision-making processes involved in successful event management.

Financial Decision Making
for Creative Projects and
Events

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the company:.....................................................................................................3
Market research......................................................................................................................3
Sources finance available to the event companies.................................................................6
Discussion of relevant income streams..................................................................................6
Information about proposed event activity.............................................................................6
Pricing strategies used in event planning...............................................................................7
Recommendation....................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Finance is one of the crucial part of an organisation. All the operations as well as
business decisions are depend upon amount of investment the company is making a particular
activity. This project is all about providing specific information about creative projects and
activity that are performed by “First Event” to various customers. Outcome generated from
conducting market research regarding commercial viability of similar events and certain
conclusion from it. Various sources of funds available for the event are discussed accordingly.
Certain proposed event cost, earning, breakeven and ROCE is mentioned under this report. The
pricing policy used in organise are discussed properly (Kaner, 2014).
Overview of the company:
“First event” is one of the effective company that is held responsible for managing
overall business travel, meeting and events for industries, governments and other agency. It is
privately held company which is founded in 1999. They are working with the specialist and
experience team to provide best and reliable services to people and other agencies. The staffs and
other members are more creating and providing tailored activity that would be memorable as life
experience and within the budget. They are associated with provided services for incentives,
conferences, exhibitions, meetings and corporate hospitality. Their mission is very simple or
common to understand their customer business and assist them to attain their aims and passion to
gain more thinking ability of the people. Their organic development has come through gaining
an impressive portfolio of national and global customer is testimony to specific quality of event
solution they are providing to various customers. They work very hard to ensure that all event is
actually as client wants it to be (Schaper, 2016).
Market research
It is basically related with specific action or event of collecting data regarding customer
needs and wants they are expected from the event company. It summaries of social and public
survey which is considered as one of the systematic gathering and analysis of data regarding an
individual or an organisation. By the help of this, researcher can easily be able to gain viability
of a new good and services through research organise directly with the customers. This will
directly help the first event company to discover the target market to record essential opinion and
related inputs from various customers regarding the interest of the parties. These are basically
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related with certain section that describe the market segmentation, planning and industry
evaluation. Some of basic criteria is being mentioned underneath:
Market segmentation: The breakdown of such kind of market for business activity
planning. Individual as well as top most companies to attend the meeting that are organise by the
First event company. in order to provide greatest depth of data, the market categorisation have
been divided into private and public organisation as well as age group (Hotho and Champion,
2011).
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Figure 1: Segmentation on the basis of activity performed various organisation
From the above pie-chart, it has been determining that public organisation is the one
which is having maximum event as compare to other. After that private parties, function,
conferences and other activities is being taken into effects. The age group of 25 to 55 is
increasing each year. Overall strength of event management company is to fulfil demands of
customer as well as organisation.
Target market strategies: There overall target market is upper-middle class families, couple
those are part of public and private organisation. It has been selected these group because they
are most right to afford event organisers and have minimum amount of time to replacement for
any activity in common manner. Most of the familiar’s demand attention, employees are
overburden detail requirements to plan large events are wide as a constraint to any particular
places. The vast pace of world they are live in leaves as minimum time for additional things they
would like to do such kind of planning which consists of parties, social get-together. The demand
for such services would only enhance consideration that are related with total incomes,
population and that required for the analysing healthy relation at the workplace (Rossi, 2014).
Service business analysis: Occasions is one of the right position of competition. It used
to compete in front of hotels with having conference facilities, centres and other event planners is
having wide and small scale areas to conduct any kind of meeting or events. The business
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advantage and drawbacks of each of their competitors in accordance with the services they are
offering to them must be matched with proper quality and economical prices.
Sources finance available to the event companies
There are various sources of funds that are available to the event company by which they
can estimate the costs of their events and total of amount they can raise from each funding
sources. Some of them are discussed underneath:
 Crowdfunding: This particular sources of collecting fund is said to be effective platform
such first event has made testing the appetite for new activity so simple or easier. It is
more risk free investment for attendees and would also for the organisers that does not
need to stake their individual capital.
 Angle investors: These are considered as wealthy individual or groups of individual that
are looking for any kind of share opportunity. They would have 12000 angle investors
and total claim of 90% success rate.
 Savings and internal marketing budget: It is basically termed as own incomes that an
individual used to possess while organise any kind of plan of events. The chances of risk
are very much low (Hoever and et. al., 2012).
 Bank loan: There are various financial institution and agency those are present to
provide specific amount of funds to finance their business effectively. They are unlikely
to lend in accordance to any particular event a company is going to organise.
Discussion of relevant income streams
There are various incomes generating sources which are taken into account for any
researcher. Events such as wedding and event organisers under the huge job segments of
meeting, convention and event planners. These specialists earned total annual earnings of 49830
in a year. government grants are considered as one of the valuable sources from which revenues
can be collected in more proper manner. Though using sponsorship is prevalence of activity in
sport and recreation marketplace is increase the organisation strength during the time.
Information about proposed event activity
Event cost – This is overall expenditures which are incurred in an event. This costs
comprises expenses related to raw material, labour and other equipment’s. First events are an
organisation which arranges multiple events in which various costs gets included.
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 Revenue – It is the income which is acquired from sales of products and services which
is served. In this case, revenue are the profits which are earned by providing their
services to several clients.
 Breakeven – Break even is a situation when an organisation faces no profit and no loss
condition. This method can help First events by determining sales revenue which will
ensure that the organisation will not have to suffer any loss.
 Return on capital employed – ROCE is the rate on which owner of the organisation
earns return against the amount of capital which is employed by them. Owner has the
right to get this return as this amount is considered as an investment.
Pricing strategies used in event planning
It is important for every organisation to make use of more affordable pricing process to
increase the overall earning of the company. Price is said to be internal process of event planning
that allow more earning to increase overall sale of events tickets. On the other hand, pricing
tickets too economically that can reduce the rate of event. There are various types of strategies
that are needed to be taken into account. Some of them are:
 Pricing at a premium: By the help of this particular pricing, every business used to set
cost much higher more than their competitors. It is the best practice of keeping the cost of
any event or services more artificially maximum.
 Price skimming: It is one of the effective planning which is considered by marketers to
sets a relatively high in the early phase of planning for a products and services to the
people or any other business enterprises (Moore, 2014).
Recommendation
There are various sources of funding that an organization can opt for, based on the nature
and characteristics of its business. Sources of funding includes angel investment, crowd funding
as well as bank loan, every source has its benefits as well as drawbacks, First Event Company is
having a medium size business and thus it will be easier for the organization to acquire funds
from the source of Crowd, and it will be beneficial for the company as well because company
will be able to get funds and there will not be any liability to pay interest from the profits of the
company.
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CONCLUSION
From the above project report, it has been concluded that there are several aspects which
are needed to considered while making decision-making for an organisation. First event is an
event management company which uses various external and internal sources to procure funds.
Several concepts such as ROCE and event cost has discussed which summarises all the
expenditures incurred in an organization along with various pricing strategies.
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REFERENCES
Books and Journal:
Kaner, S., 2014. Facilitator's guide to participatory decision-making. John Wiley & Sons.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship. CRC
Press.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation
as a people management challenge. Management Decision. 49(1). pp.29-54.
Rossi, M., 2014. The new ways to raise capital: an exploratory study of
crowdfunding. International Journal of Financial Research. 5(2). p.8.
Hoever, I.J. and et. Al., 2012. Fostering team creativity: perspective taking as key to unlocking
diversity's potential. Journal of Applied Psychology. 97(5). p.982.
Moore, C.W., 2014. The mediation process: Practical strategies for resolving conflict. John
Wiley & Sons.
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