MEM's Founder: A New Business Venture in the UK Market

The assignment discusses a business idea for an event management company in the UK, founded by MEM. The report presents a financial summary of the first four years of operation, showing increasing revenue and profitability. The conclusion emphasizes that the founder's existing skills, education, and experience make this venture a high-growth opportunity with low risk. The references provided are academic sources and industry reports supporting the business idea.

MINDTRACK EVENT MANAGEMENT
(BUSINESS PLAN)

TABLE OF CONTENTS
Executive Summary.........................................................................................................................4
Business Plan...................................................................................................................................4
Vision...........................................................................................................................................4
Mission.........................................................................................................................................4
Objectives....................................................................................................................................5
Business Summary.......................................................................................................................5
Unique Selling Point....................................................................................................................5
Business Profile...........................................................................................................................6
Management Team.......................................................................................................................6
Market Analysis...........................................................................................................................7
Target market...............................................................................................................................8
Premises.......................................................................................................................................8
Business Model..........................................................................................................................10
Revenue Model..........................................................................................................................11
Competitor Analysis...................................................................................................................11
Funding requirements................................................................................................................12
Business Description......................................................................................................................13
Mindtrack Event Management: The Idea..................................................................................13
Business description and Ownership.........................................................................................13
Management Team.....................................................................................................................13
Critical Success Factors.............................................................................................................15
Exit Strategy...............................................................................................................................16
SWOT Analysis.........................................................................................................................16

PESTEL Analysis.......................................................................................................................17
Expansion and Marketing strategy.............................................................................................18
Financial Analysis..........................................................................................................................20
Sales Forecast.............................................................................................................................20
Sources of Funds........................................................................................................................21
Salary.........................................................................................................................................21
Income statement.......................................................................................................................21
Cash flow statement...................................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

EXECUTIVE SUMMARY
Looking at the present economic condition of UK, event management industry is one of
leading contributor towards the economy of the country around 42.2 billion in 2015. On the basis
of market analysis, market gap has been identified that, there are several event management
companies in the UK that focus on specific types of events. There is a significant untapped
market and that is the lucrative sponsorship and endorsement market that exists when large scale
events are combined with celebrity endorsement and appearances. At the initial stage, owners are
planning to make use the hot desk facility in London provided via the Business Incubation
Support Package by Google Campus for atleast 12 months of the business. The Founders of
MEM does not require any external funding than the Financers. The Business Incubation
Service from Google Campus will be used at the cost of £5000 for the first 12 months.
BUSINESS PLAN
Vision
Mindtrack Event Management will be a unique event management company which will
organize and run Small related events throughout the UK. The main purpose of entrepreneurs is
to make the event company a recognized brand that will be at the forefront of every major Small
related entertainment event. In addition to it, Mindtrack Event Management vision is to become
leading organisation by marketing its events in India through its existing network and will
increase Small concerts in the UK.
Mission
The mission of Mindtrack Event Management is to offer quality of event management
services by organising superior quality of Small concerts for the entertainment of people.
Mission of the cited event firm consist of following points:
 Offering information related to latest trends in event management sector
 Organize entertaining Small concerts that enhances the level entertainment experience of
people.
 To create value for stakeholders
 To maintain excellent working relationship with vendors and suppliers
 To render unforgettable service experience to clients.
4

Objectives
On the basis of vision, there are certain objectives of entrepreneurs of MEM which are as
follows:
 The Leader in corporate hospitality organization in Small Entertainment events
 The Leader in sponsorship management in entertainment events
 The Leader in celebrity endorsements at entertainment events
 The Leader in Small related events with exclusive media rights in the UK
 To become an extremely lucrative company with several revenue streams
Business Summary
Mindtrack Event Management Limited is a UK based organisation which has been set up
by its principal, Miss Aiman Syed Ali. Miss Syed is of Pakistan origin and has significant
experience in organising and running large scale national and international events in Pakistan
(including but not limited to the most recent Pakistan Premier League in Pakistan) the largest
sporting event watched throughout the world (Booker, 2015). The business is aimed to be
financed by a financing company from Pakistan who are in this business very successfully for
over 30 years and has provided his wisdom and guidance to Miss Syed, together with years of
direct hands on experience which is invaluable. Miss Syed identifies a huge gap in the market
and a real opportunity in offering her expertise, her connections and most of all her passion to
bring the concept into the UK and having recently completed her BA in Business Management
from BPP, she has all the right ingredients to ensure her business venture is a success.
Unique Selling Point
The unique selling point of Mindtrack Event Management Limited is to organize quality
of Small concerts at popular places of UK for the local crowd. In addition to it, cited firm will
provide Small and Hollywood celebrities for the functions like birthday, wedding or festival. In
addition to this, MEM will also be facilitating the use of UK locations for the Small Film
Industry. There is a large level of deals presently being negotiated with Hollywood for filming
locations here in the UK. This brings revenue into the UK economy as well as tourism.
Following are the points which differs the new business from the existing ones:
 Aggressive marketing campaign - The business will follow an aggressive approach
towards marketing. The services will be promoted on different channels of social media
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such as Facebook, Twitter, and YouTube etc. It is one of the unique selling point for the
new business.
 Established Connections – It is another plus point for the MindTrack. It is having well
established corporate connections within the industry. This will provide great strength to
the initial set up of the new business.
Business Profile
Corporate Structure UK Limited Company (to be incorporated)
Company Name Mindtrack Event Management Limited
Trading Name MEM – Mindtrack Event Management
Industry 2 (Initially with direct assistance of advisers
Management Team
The team will be headed by the founder Miss Aiman Ali Syed who has direct and
significant experience in running many large scale national and international events. She
possesses a very strong background in running her own businesses and companies and has
extensive experience in the event management industry in Pakistan. There will be an Operations
Manager who has already been identified and who has significant experience in event
management.
Other key members of the team will over time grow to consist of a Marketing Manager
who will have experience of UK event marketing as well as a Business Development and
Sponsorship Manager. Various people have been shortlisted for these roles and only the best will
succeed in securing confirmed positions. Miss. Syed will also work very closely with his
professional advisers who will be consulted in all Management Matters and who themselves
possess significant national and international business and enterprise experience. The
Management Advisors are directly appointed by the financers of this venture.
Designation Staff member
Director 1
Operations Manager 1
Sales and Marketing Manager 1
Finance Manager 1
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Executives 1
Other staff (event workers) 4
The role of the other staff is to complete all the assigned duties and responsibilities during
the course of the events effectively. They will be the backup support behind the happening of all
the events.
Market Analysis
Looking at the present economic condition of UK, event management industry is one of
leading contributor towards the economy of the country. There are several companies operating
in this industry which are making valiant efforts to provide quality of event management services
in regards to generate higher revenues. Furthermore, event industry of UK is almost the worth of
£48 billion in the present years. There several large events with the likes of exhibitions and trade
shows, music events etc.
(Source: Opportunities for Growth in the UK Events Industry Roles & responsibilities, 2015)
On the basis of above analysis, market gap has been identified that, there are several
event management companies in the UK that focus on specific types of events. There is a
significant untapped market and that is the lucrative sponsorship and endorsement market that
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exists when large scale events are combined with celebrity endorsement and appearances
(Coultry, 2008). There is no one looking at this market as no one is organising concerts or
musical events of the Small celebrities this indeed provides one of the major market gap that
entrepreneur can utilize. However, with connections in the world’s largest film industry, MEM
has an existing platform of connections to utilize in order to make the company very lucrative
and to attract the biggest of names to the events. Many companies that exist do not have the
experience of managing international events. MEM can proudly say that it has the experience at
the highest of levels in Pakistan which is not only a significant growing economy in the world
but a country with a large population. There is also no company in the UK focusing on sports and
tourism from Pakistan to neither the UK, nor indeed any company focusing on celebrity led
tourism and the gap is to incorporate these into the one organization (Office for National
Statistics 2015). This is an amazing yet untapped market and one which MEM will explore and
monetize due to its event management experience. These are therefore the gaps in this market
which presents itself as an opportunity.
Target market
The main focus on owners of Mindtrack Event Management Company is to organize
Small concerts in popular places of UK Along with this, provide celebrity for the birthday parties
or other family functions or festivals and it is because of the fact that, bargaining power of
people of UK is relatively high as they are ready to pay high money for better services, food or
entertainment (Porter, 1985). Therefore, providing them what they need is the main purpose of
MEM to enter into the new market of UK. In this regard, company’s target market is divided into
two different categories i.e. high profile families that can afford celebrity endorsement in their
functions and on the other hand, sponsorship events like concerts for the local people to enhance
their experience in Small entertainment.
In addition to this, MEM will also be facilitating the use of UK locations for the Small
Film Industry. There is a large level of deals presently being negotiated with Hollywood for
filming locations here in the UK. This brings revenue into the UK economy as well as tourism.
MEM will do the same with the Small Industry which is considered as one of the largest
entertainment industry around the globe. MEM has existing connections in the Industry so this
can happen in what is otherwise a very difficult industry to deal with. This will result in the
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development of Entertainment tourism market which will then be marketed through MEM’s
connected companies in Pakistan and India (Proctor, 2012).
Premises
At the initial stage, owners are planning to make use the hot desk facility in London
provided via the Business Incubation Support Package by Google Campus for atleast 12 months
of the business. Following this period, a small serviced office will be used in London as London
will be the most suited hub to develop this business.
9

Business Model
Key partners Key Activities Value
Propositions
Customer
Relationships
Customer
Segments
Key
Resources
Channels
Cost Structure Revenue Streams
10
Production
Houses
Sponsorship
of events
Venue
booking
Fixed Assets Legal and Registration
Charges
Market
Research Marketing and Promotion
Logistics
Service
Providers
Photographer
Small concerts
Extensive
range of
event
planning
services
Celebrity
endorsement
in family
functions
Personal
Assistance
Pre and post
event
services
Affordable
and
budgeted
event plan
Memorable
services
experience
Creative &
innovative
services
High Profile
families
Human
resource for
planning and
management
Concerts
Maintaining
existing
connections
Direct
services
Brands for
endorsement
Government
and Public
sector
Indirect
services
Security
Companies
Sound
Systems
Corporate hospitality

Revenue Model
Owners of the Mindtrack Event Management Company is projected to be a high turnover
business and is predicted to make net profits in first year of its functioning. Further, making
efforts to rise the profitability to over £50,000 in year 3. By Year 4, it is expected that MEM will
have a well-established place in the market and as such will be aiming for a net profit of in
excess of £150,000.
The figures will continue to grow as other spin off concepts are added, including but not
limited to the management in the UK of Small Film celebrities and sporting personalities which
Miss Syed and their Financing partners already does to a large extent within Pakistan. With a
following of over 1 Billion people, the Small actors draw enormous crowds and their
appearances at events make the events hugely lucrative as everyone wants a piece of it.
Following are the major revenue streams for the cited event management firm:
 Sponsorship of events: MEM will act as agent and generate commissions from all deals
 Venue Booking: MEM will generate commissions from all venue bookings
 Corporate Hospitality: Several possible revenue streams from this
 Promotion of Small actors at events in the UK: a hugely lucrative industry
 Promotion of the UK to Pakistani companies wishing to tap into this market place
 Consultancy fees for the management of events on behalf of Sporting bodies
 Exclusive Media Rights in the UK to Small Celebrities and Sporting Personalities
 Ticket Sales and commissions.
Competitor Analysis
Operating in such a competitive environment operating in the event industry of UK.
However, taking into consideration only the entertainment events there are no companies solely
focusing upon it. This provides MEM with a unique opportunity to use its expertise and overtake
the others in this particular field which is growing. MEM has truly found a gap in the market
place and already coming from this background, MEM will make this a true success (Jonshon,
and et.al, 2014). On the basis of market there are two event planner who organize Small concert
events in UK can be considered as the art rival for the cited firm. In order to establish within the
market it is important for the Mindtrack Event Management Company to organize quality of
concerts or entertainment events as well as provide on demand celebrity for the clients.
Competitors Services offered Price Specific Features
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Star UK Awards/gala dinner
Small concert
High Main feature of company is to offer live
events by organising concerts like
“Celebrate 100 Years of Indian Cinema” and
interlinked it with future and beyond.
Jay’s
Entertainmen
t
Small concert High Organize concerts with high profile Indian
Musicians like Ankit Tiwari, Mohd. Irfan,
Shipla Rao.
Business is better in terms of following points:
 Established Connections
 UK education of Founder
 Significant business set up experience
 Well established Advisors part of team
Entering into such a competitive environment it is important for the owners of Mindtrack
Event Management Limited to offer superior quality of services so that competitive advantage
can be achieved and maintained. The uniqueness offered by Mindtrack Event Company is that, it
will be the first Event Management firm focussing specifically on Entertainment Events and
corporate hospitality. Through the means of this, entrepreneurs are aiming to attract large number
of audience. However, cited firm brings with it the expertise and confidence of saying that it has
a tried and tested combination that will lead to long term sustainability (Ieyar, 2015). Thus, this
model will be incorporated for making entry into UK market for attracting high number of
vendors, supplier as well as clients and sponsors. With the help of founder’s significant business
experience will help the course in attaining desired outcomes. Further, it will be working in the
business from the outset. The business will be funded by a financer in return of 41% equity so
there will be no burden of finance payments which are usual with many businesses from the
outset (Godson, 2009).
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Funding requirements
The Founders of MEM does not require any external funding than the Financers. The
Business Incubation Service from Google Campus will be used at the cost of £5000 for the first
12 months. The Founder has sufficient funds to support her and does not require a salary at this
stage from MEM. In addition to this, fund required for marketing and promotional campaign will
be raised from the owner’s capital because carrying out business at initial stage is one of the
major challenge that entrepreneurs have to overcome.
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BUSINESS DESCRIPTION
Mindtrack Event Management: The Idea
Mindtrack Event Management is a UK based business. MEM was conceptualised by the
Founder, Miss Aiman Syed Ali in early 2015 whilst studying for her BA at BPP. The Founder
then explored and researched the UK market to determine if she could realize her vision
effectively and successfully in the UK. After researching in a great amount of detail and using
her expertise from her businesses and connections in Pakistan, the Founder realized that MEM
has significant growth potential in the UK and would be the ideal platform to establish her
vision.
The Founder then then went to work on the concept throughout 2015 to date observing
key factors in the industry in UK so as to create a real and very much achievable opportunity.
Detailed discussions then followed with various professional advisers who have significant UK
business experience and have assisted companies from start-up level to growth nationally and
internationally. MEM is anticipated to be a recognised brand throughout the UK by the year
2018. By intelligently combining experience, effort, knowledge, skills and connections MEM
will become the company to go to for the organisation and management of every Local, National
and International and Small entertainment events.
Business description and Ownership
Mindtrack Event Management is a new venture for organising Small concerts and
providing celebrity for endorsement. Following are the business details
Name Mindtrack Event Management Limited
Company Number TBC
Registered Office Google Campus – Hot Desk
Current business is owned by sole proprietor from Pakistan Miss Aiman Syed Ali.
However, the lady is of Pakistan origin and has significant experience in organising and running
large scale national and international events in Pakistan.
Management Team
Miss Aiman Syed Ali – Founder
Being BA from BPP, an experienced individual with proven managerial, business
analysis, strategic, technical and project management skills. Possesses comprehensive experience
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of setting up and running large businesses and projects from commencement to completion. Has
direct experience in the fields of event managements, sports management and celebrity
management. Has direct experience of negotiating endorsement and sponsorship deals at
significant levels which implies direct experience of negotiating with large international
corporations. Possesses strong negotiations/influencing skills. Successfully managed multiple
projects simultaneously, from both business and technical perspectives. Able to identify lucrative
investment deals and able to negotiate the best possible deal for maximum profits. Ideally placed
to set up and develop a business and take it to a multinational level.
Types of events
organized
Skills gained Contacts gained
Miss Aiman Syed
Ali – Founder
 Sports events
 celebrity
concerts
 Negotiation
 leadership
 communicatio
n
 Sponsorships
from different
firms
 Lucrative
investment
deals
Members of the Management Team
In the management team entrepreneur will appoint one high skilled and experienced
personnel as CEO (chief executive officer). For this, business entity will make focus on the
selection of personnel who has experience in the field of event management. Further,
entrepreneur will appoint one marketing manager for the purpose of promotional aspects. Such
personnel either professional or master level student. On the other hand, other personnel will be
hired by MEM according to the event. An Operations Manager will join Miss Syed from the
outset. This person has been identified and is ready to start. Miss Syed will be using the
Business Incubation support and mentoring that will be provided by Google Campus over the
first 12 months. Miss Syed is also in advanced discussions with several key people who will
gradually form part of the team at MEM and who will work together to ensure that MEM
becomes the leader in the field that it intends to. These people consist of:
 Accountants – BCi Accountants – significant business experience – national and
international
15

 Lawyers – NB Lawyers – Specialists in Commercial Contracts, IP, Business Startups
 Business Consultants – Mayfair Corporate – Corporate growth consultants
 Advisory Board – Google Campus
 Marketing Manager
 Business Development Manager
All of the above will heavily support the growth of MEM and with the right advice will
ensure that risks of failure are minimized.
Professional and Advisory Support
MEM BANKERS HSBC
MEM LAWYERS NB Lawyers
MEM ACCOUNTANTS BCI Accountants
MEM BUSINESS CONSULTANTS Mayfair Corporate
Critical Success Factors
There are several critical success factors for cited event company which needs to be taken
into consideration by the owners. Following are the varied critical success factor:
Skills and knowledge
The wealth of skills and direct experience of the Management Team is a key strength.
MEM management team will come with the necessary key skill set and knowledge to ensure it
leads the market in achieving significant success.
Access to finance
The Founder has direct investment from their Financers which will give her the ability to
pay for the Business Incubation Service, the relevant professional advisers, the employment of
the Operations Manager (at basic level wages for the first year) as well as provide him with
sufficient money to cover her living costs until the business starts to generate enough money to
justify a salary. The Business Incubation Service will be used for the first 12 months at a fixed
cost of £5,000 and this will minimize the costs normally associated with a start-up business.
There will be no requirement for the holding of stock as this is a services based business model.
There will be no requirement for a loan nor bank finance. 80% of new business venture fail
within the first 3 years. One of the main reasons is cash flow and the lack of access to finance in
16

the critical early stages. The Founder has this finance so this will allow her to focus on her efforts
on building and marketing the business.
Intellectual Property Protection
The name MEM will be trademarked. This is the brand and will require protection and
will form a key asset of the business especially at the time of expansion and building of the
franchise business model.
Team Culture
MEM is in discussions with various key people who will form part of the Team. This will
ensure that MEM has the infusion of the right people, with the right skills at the right time. All of
the Team will be highly trained and will understand that success requires hard work, time and
effort. There will be a strong culture within the team to keep focused by ensuring the business is
consistently offering high quality products and excellent customer service.
Social Media and Technology
MEM will develop a website and use all forms of Social Media to enhance and market its
brand (Gummerson, 2008). Channels like Twitter and Facebook will be used to create official
web pages. The potential customers can get all the information about the events and concerts on
these channels. These channels are suitable because they have the potential to create great level
of awareness among the people in very short span of time. It will be easy to target specially the
young crowd because they are more acquainted with these channels.
Exit Strategy
There is no set exit strategy at this stage. The reason for this is that MEM will be building
a business, the success of which will lead to other spin off businesses some of which will be
suited to the franchise route in order to roll out throughout the UK and in Pakistan. With the
predicted level of growth there are many Pakistani companies that are heavily investing into the
UK and if required a sale could easily follow through at any stage for a significant amount of
money. A sale would not be considered though at least for the first 3 to 4 years as this is the
period in which large scale organic growth will occur and therefore the company will have a
significantly larger value.
SWOT Analysis
Strength Weaknesses
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 No loan payments meaning overheads
will be low. Significant business
experience.
 Established Connections
 UK education of Founder
 Significant business set up experience
 Well established Advisors part of team
 No direct experience in UK market
 New concept focused on specific
market
Opportunities Threats
 Corporate hospitality and brands
awareness increasing at events.
 Entertainment Tourism from India to
the UK an untapped market to explore
and monetize.
 Increasing competition
PESTEL Analysis
 Political: Hospitality is recognised as one of the five big industries in the UK by the
prime minister. It is the 5th largest industry in the UK and employ more than 2.4m people.
The total revenue hospitality industry contributed towards the UK economy is £34bn and
employs around 2.5 million people (Euromonitor, 2015). According to government
sources the Government is encouraging growth of the industry and it is expected to grow
with generation of 236,000 jobs by the end of 2016 (British Hospitality Assc, 2015). The
supply and market volume in UK is increasing considerably as the government is
fanatically pushing towards market dominance in the sector.
 Economic: The economy in the UK is quite volatile at the moment with Britain
referendum for EU exit. This will change the scenario of the current system as the free
borders will be restricted. This is highly likely to effect the event industry as the currency
values may vary in near future.
 Social: The society in UK has changed drastically in the past few years; the living cost
has increased in the UK and people are looking for highest standard at minimal prices
(Event Industry News, 2016). The main social attributes are:
 Strong and high end brands
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 Value for money spent
 Customer demand reciprocation
 Variability in prices or available avenues.
 Standard and quality demand amongst all classes of people.
 Technological: Technology affects the marketing and promotion of the product. Though
the operations in the company do not need a lot of technological inferences but the
marketing of this business will need technological advances. The world is moving
towards more of a mobile platform and MEM also wants to deploy mobile technology
towards its business in marketing. MEM will also maintain a database of ticket sales
during their event will be enabling to record returning guests in their events.
 Environmental: Corporate Social Responsibility is one of the major attributes any
business can perform towards environment. The main priorities of the business towards
csr will be
 Take care of the environment through plantation
 Helping out people in communities
 Health benefits and fitness related campaign for people
 Creating fair trade and environment friendly setups during conducted events.
 Legal: The cited company will maintain high standards such as health and safety act for
customer’s comfortability, employment act for employees working for the company etc.
as responsible sourcing policy, which means maintain cordial relations with their
suppliers, customers and partners.
Expansion and Marketing strategy
Entering into such a competitive market it is important for the entrepreneur of Mindtrack
Event management limited to make use of effective marketing objectives of that desired results
and outcomes can be generated (Hall and Ledger, 2013). Through the means of SMART
objectives entrepreneur can develop suitable and realistic objectives for the future contingency.
 Specific: To attract around 1000 people for each events by organising high profile Small
concerts.
 Measurable: To reach maximum number of people through the means of different
methods of marketing such as traditional and digital approaches.
 Achievable: To organise 4 to 5 Small concerts within a year.
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 Realistic: To maintain excellent working relationship with vendors and suppliers while
crafting concern as per the need and wants of clients.
 Timely: To provide efficient services to customers and clients.
Due to having access to funding without being dependent on bank financing, MEM will
be in a position to set up the business and commence marketing from day one via personal
connections, networking events, social media and direct contact (Event management: a booming
UK industry, 2016). MEM will use all existing connections to organize presentations to the
decision making bodies. MEM will use its founder’s experience to establish relationships with
all bodies, venues and various brand marketing agencies.
Four P’s
 Product: Cited event firm focuses on offer services in two different segments: Small
concerts and celebrity endorsement.
 Price: The main purpose of MEM existence is to offer quality of services at affordable
prices.
 Place: For Small concerts different venues such as Nottingham Playhouse, De Montfort,
The New Bingley Hall etc will be used. These theatres and halls have seating capacity
between 150-300 members. While on the other hand, MEM will use the hot desk facility
in London provided via the Business Incubation Support Package by Google Campus.
 Promotion: Different methods will be employed to market and promote various events
such as traditional methods: posters, banners, hoardings, pamphlets in newspaper, radio
etc. Social media: different networking sites i.e. Facebook, Twitter and YouTube to attract
large number of people from target market.
USP (Unique selling point): USP of MEM is that '' we organize dinner with the celebrities for the
luck draw winners''. This aspect entails that MEM will select following customers according to
the price level are enumerated below:
Price point Selection of customers (in number)
£30.00 2
£40.00 3
£60.00 5
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By taking into consideration such USP MEM can influence the decision making aspect of
customers to the significant level. Moreover, usually people have desire to do party with the
celebrities. In this, by offering opportunity to the customers through lucky draw productivity and
profitability can be enhanced by the entrepreneur to the large extent. Moreover, during the period
of summer most of the stars are already in London. In this, by making contact with them party
can be organized by MEM according to the promise made.
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FINANCIAL ANALYSIS
To initiate new venture proper financial planning is required by the entrepreneur. It is
important for the individual to ensure proper inflow and outflow of fund so that risks and
uncertainties related to financial planning can be minimized.
Assumptions:
 20% of increase has been assumed in the number of event after one year of establishment
in the market.
 Interest on bank loan is assumed at 7.63% (Hall and Ledger, 2013) on the basis of
standard rate in UK financial institutions.
 Insurance of fixed assets is being assumed at £200 in pre-operating year.
 Utilities expenditure is expected to increase by 4% PA.
 Promotion and advertisement expenditure estimated at £500 in the initial year. Thereafter,
it will be decreased because at initial level entrepreneur has to spend high in promotional
aspects with the aim to attract customers.
 Employees will be given hike by 5% on yearly basis.
 Miscellaneous Expenses are assumed to increase by 10% PA.
 COGS is expected at 10% of revenue generated.
 Rent on different venues is expected to increase by 10% every year.
Sales Forecast
(Note: numbers are presented in round figure)*
The venue - Nottingham Playhouse – seating capacity 150-300 people
Revenue streams
Number of people Ticket price Revenue
75 people £30.00 £2250
45 people £50.00 £2250
40 people £75.00 £3000
Total £7500
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Revenue for the period of 3 years are:
Year Revenue (increased by 20%)
1 £7500
2 £9,000.00
3 £10,800.00
On the basis of increasing demand of Small celebrity among the people of UK, it is
expected that, number of events will be increased by 20% every years. Further, the level of Small
concerts possess the spending is defined on the average basis.
Sources of Funds
Sources of Fund Amount (£)
Owner's capital 15,000
Bank loan 30000
Total Sources of Fund 45000
Income statement
Particulars Year 1 (£) Year 2 (£) year 3 (£)
Revenue
Sales from Products and services sold 7500 9000 10800
Less: COGS (10%) 750 900 1080
Gross Profit 6750 8100 9720
Operating Expenses
Market Research 500 450 300
Utilities (Electricity/water/telephone) 300 312 324.48
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Promotion and advertisement 350 280 250
Insurance 200 200 200
Salary (9 people) 500 550 605
Rent on premises 400 440 484
Miscellaneous Expenses 200 220 242
Depreciation 250 250 250
Less: Total Operating Expenses 2700 2702 2655.48
Operating Profit 4050 5398 7064.52
Less: Interest 2289 2289 2289
PBT 1761 3109 4775.52
Less: Tax 352.2 466 716
Net Profit 1408.8 2643 4059
Rent: (Music Venues for Hire in London, 2015)
(Herein, list of stadiums has been identified wherein, cited firm will execute its concerts. But
there is not exact information about the rent thus, tentative amount is being considered.)
Cash flow statement
Particulars
Pre-Operating
Year Year 1 (£) Year 2 (£) year 3 (£)
Cash Inflow
Opening Balance 0 37750 240200 379120
Cash Sales 0 7500 9000 10800
Owner's capital 15000 0 0 0
Bank Loan 30000 0 0 0
Total Cash Inflow 45000 45250 249200 389920
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Cash Outflow
Fixed Assets 5000 0 0 0
Market Research 500 450 300
Utilities (Electricity/water/telephone) 0 300 312 324.48
legal registration charges 500 0 0 0
Rent 0 400 440 484
Promotion and advertisement 500 350 280 250
Working Capital 1000 0 0 0
Interest 0 2289 2289 2289
Insurance 0 200 200 200
Tax 0 352.2 466.35 716.328
Salary 0 500 550 605
Miscellaneous Expenses 250 200 220 242
Loan Repayment 0 10000 10000 10000
Total Cash Outflow 7250 15091.2 15207 15411
Closing Balance 37750 30158.8 233993 374509
CONCLUSION
In conclusion to the above report it has been evaluated that, MEM’s founder has
identified a gap in the UK market and has developed an idea for a business which will be very
lucrative and will have excellent growth. Using their existing skills, education and experience,
the founder is on to a winner. The concept is new to the UK but tried and tested by the Founder
in Pakistan. Because the risk associated with the business is bare minimum and will be on soft
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launch for the first year, the chances of generating loss is low as compared to high investment
ventures. Therefore, this business idea is apt for a new entrepreneur to venture.
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