Entrepreneurial Business Plan: Party Planner in the London Market

This project presents a comprehensive business plan for a party planner, named 'Party Planner,' targeting both local and corporate clients in London. The plan includes an executive summary, details of services like venue inspection and vendor management, and a unique selling proposition (USP) involving celebrity tie-ups. It features market research, competitor analysis, and a detailed marketing plan with pricing strategies and sales forecasts. The organizational and operational plans outline the company's structure and processes, while the financial plan covers start-up costs, cash flow statements, and break-even analysis. The business plan also defines the mission, objectives, and potential exit strategies for the party planning venture, providing a well-rounded overview of the business's development and future prospects, supported by references to relevant sources.

Entrepreneur Management

TABLE OF CONTENTS
1. Executive summary...................................................................................................................1
2. Details of the products and services............................................................................................1
3. The market and key competitors..................................................................................................2
4. The marketing plan......................................................................................................................3
5. The Organizational plan..............................................................................................................3
6. Operational plan...........................................................................................................................4
7. financial plan...............................................................................................................................5
8. The business plan contents..........................................................................................................9
references.......................................................................................................................................11

TABLE OF FIGURES
Figure 1: Organizational Structure..................................................................................................4
Figure 2: BEP chart.........................................................................................................................9
LIST OF TABLES
Table 1: Start-up cost.......................................................................................................................5
Table 2: Cash flow statement for Party planner..............................................................................7
Table 3: Breakeven analysis............................................................................................................9

1. EXECUTIVE SUMMARY
In the present scenario, individual are making significant amount of expenditure for
organizing the events that depicts their richness. Along with this, corporate level clients are also
hiring the event planner for organizing the conference and banqueting services for corporate
level clients. Thus, the main aim of event planning organization is to give leisure services as well
as pleasure to their customers and clients. For the business plan selected organization is Party
Planner that is setting up new business in the event industry by targeting both local and corporate
level customers. It has also detailed the products/services that will be offered by the Party
Planner in London. Moreover, it has also provided an insight knowledge regarding the market
trends existing in the event industry as well as brief analysis of their competitors existing in the
market that deliver homogeneous services to the clients.
2. DETAILS OF THE PRODUCTS AND SERVICES
In order to conduct the present report the business plan for party organizer company that
is Party Planner has been developed. The Party Planner basically deals in providing different
products and services to their customers that are as follows-
1. Venue inspection: The foremost service that is provided by the party planner is related
with venue inspection. This service include inspection of venue and attends various
logistics meetings so that they can set up the event according to schedule budget and
specification of clients.
2. Vendors on on-site coordination: Another products and service that is offered by Party
Planner is related with vendor management that will coordinate with the services
provided by decorators, photographers as well as florists on they can easily manage and
coordinate the on-site of event (What Services Does an Event Planner Offer. 2016).
Furthermore, planners will also provide service regarding ensuring the location chosen
for the event must be maintained cleaned.
3. Preparing cards: Another service that is offered by the Party Planner is related with
preparing cards on the behalf of clients and customers so that they may reduce burden
from them. Therefore, they would prepare the same if they receive order from the
customers.
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USP (Unique Selling Proposition) of Party Planner- The USP of Party Planner is that they are
the only one that tie up with the celebrity for performing in the event that is organized for both
local and corporate level customers. The USP of Party Planner distinct them from their
competitors.
3. THE MARKET AND KEY COMPETITORS
Market research
For the present research primary and secondary sources have been used that assists in
determining and identifying different needs and requirement of customers. With the help of
conducting market research individual can easily identify the current market trends related with
the event planning occurring in the London that is feasible for the Party Planner.
Market trends
By taking into the consideration Party Planner will set up their activities and organizing
events within London (35 Experts predicts the event trends that will shape your 2016, 2016). It
has been measured that innovation within the event industry is significantly growing at the fast
pace. Now a days local and corporate level customers both prefer event planning services as it
offer them unique experience. The current market trends related with event planning include
organizing theme based event, providing additional discount offers on the weekends etc.
Analysis of key competitors
There are different competitors existing in the market that offer event planning services
for different segment customers. Therefore, to starting the business it is essential for them to
understand the level of competition within the industry.
1. MGN events- It is one of the large sized business that offers events services related with
corporate events to the events relate with wedding, birthday etc. the core competency of
MGN events is that for organizing the corporate party they render proper attention in
utilizing their house event management as well as technology infrastructure for
organizing the event (MGN Events. 2013).
2. Story events- Another rivalry is story events one of the small sized firm that incorporate
the team that consists of people in London for organizing the event. The organization
perform activities with customers and determine their requirement and activities that
want to execute in the party or event.
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4. THE MARKETING PLAN
Market segment
The target market segment for Party Planner would be the customers that falls within the
age group of 25-50. moreover, the customers who be targeted by the Party Planner must have
medium and higher income level.
Marketing message will reach customers
The tag line of Party Planner will be “Celebrate with us”. The promotional message will
be reach through the target customers with the help of advertisement via social media sites or
through creating own web page.
Cost of marketing
The selected cost of marketing for the Party Planner will be 5000 pound.
Explanation and justification of price
The pricing for services would be based on cost profit pricing that is while setting the
price planner would mark 30% profit on the price of service and then add the profit amount with
the total cost of service. The profit added cost will be the final price for their products and
services. The profit based price will be effective for Party Planner so that they can easily recover
their additional cost associated with setting the organization.
Sales forecast
Jan Feb March April May June July Aug Sep Oct Nov Dec
2500
0.00
275
00.
00
30250.0
0
33275
.00
36602
.50
40262
.75
44289
.03
48717
.93
53589
.72
58948
.69
64843
.56
71327
.92
5. THE ORGANIZATIONAL PLAN
Party planner will start its business as sole trader in which owner of the firm will be
Adam and he is accountable for each and every decision of the association and different kinds of
events. For managing different operations and tasks Adam will hire manager, financial manager,
human resource executive and two administrative staff members (Van Auken, 2015). For
managing different kinds of events of customers Party planner will follow the hierarchal
organization structure which is presented as under:
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Figure 1: Organizational Structure
Therefore, above management team of Party planner will complete each and every task in
appropriate manner. Manager will assign operational roles and responsibilities to administration
staff members. But on the other hand financial manager will manage available and required
finance for running the party planner firm in UK. For completing these responsibilities financial
manager must have appropriate skills for estimating finance, developing budget, analyzing
financial statements of the company, etc (Huang and et.al, 2011).
In contrast, major responsibility of HR is hiring and managing new employees for
accomplishing different tasks in appropriate manner. For hiring new employees HR executive
will use the online recruitment policy which will be fruitful for hiring new employees because it
will reduce cost and time of the organization (Wise and Sirohi, 2005).
6. OPERATIONAL PLAN
As per the discussion of the products and services Party planner will offer different
services to local and corporate customers and these include venue inspection, vendor on on-site
coordination and preparing cards, etc. all these services and products will be produced by
completing different day to day operations. These services can be provided by customers using a
specific process which includes different stages, such as event planning, deciding a date, creating
a budget, timeline, choosing a theme, decorations, advertisement, wristbands, notifications, food,
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complying with rules and regulations, emergency management facilities, etc (Sahlman, 2008).
Along with this, there are number of other day to day services which are also need to be
completed at the time of providing all these services such as checking for facility damage,
evaluating and revising the whole event plan, etc.
There are number of suppliers which play very important role in providing all these
services and these are hospitality organizations, decorators, photographers, caterers, etc. in which
hospitality organizations are required for deciding venue for events, decorators provide facility
of decoration for whole event. Similarly, photographers and caterers are necessitated for giving
other services to clients such as capturing party moments, food, etc (Hirsch, 2000). All these
products and services will reach to customers in terms of completion of whole event.
7. FINANCIAL PLAN
Start-up Cost:
Table 1: Start-up cost
Start-up Cost £
Fixed Assets 15000.00
Technical equipments 5000.00
Research on restaurant industry of UK 2000.00
Training fee 3000.00
Service Fee 1200.00
Marketing cost 5000.00
Miscellaneous or other Expenses 1000.00
Total Cash Outflow 32200.00
As per the above calculation start-up cost for Party planner will be £32200. As per the
given information Adam has his own capital of £15000, so, he needs to make appropriate
arraignment of funds from suitable sources of finance. Party planner can collect funds from bank
loan because this sources will be effective for getting large amount for longer period of time with
specific rate of interest. Therefore, it is one of the cost effective source of money for Party
planner (Ries, 2011). Therefore, for getting start-up cost Party planner can use bank loan as a
source of money.
Total Start-up Cost £32200
Owner’s capital £15000
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Bank Loan £17200
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Cash flow Forecast:
Table 2: Cash flow statement for Party planner
Cash Flow Statement
Cash flow
statement £ Year 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 1 Year 2
Opening
Balance
15000.0
0
15000.0
0
11899.6
7
10124.3
3 9806.50 11091.9
2
14140.9
1
19129.8
3
26252.6
8
35722.8
5
47775.0
7
62667.5
4
80684.3
0 94969.76
Cash Inflow
Cash Sales 0.00 25000.0
0
27500.0
0
30250.0
0
33275.0
0
36602.5
0
40262.7
5
44289.0
3
48717.9
3
53589.7
2
58948.6
9
64843.5
6
71327.9
2
534607.0
9 588067.80
Owner's
capital
15000.0
0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15000.00 0.00
Loan from
bank
17200.0
0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17200.00 0.00
Total Cash
Inflow
32200.0
0
25000.0
0
27500.0
0
30250.0
0
33275.0
0
36602.5
0
40262.7
5
44289.0
3
48717.9
3
53589.7
2
58948.6
9
64843.5
6
71327.9
2
566807.0
9 588067.80
Cash Outflow 0.00
Fixed Assets 15000.0
0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15000.00 12000.00
Technical
equipments 5000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5000.00 5000.00
Research on
Party
organiser of
UK
2000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000.00 0.00
Training fee 3000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3000.00 0.00
Cost of sales 10000.0
0
11000.0
0
12100.0
0
13310.0
0
14641.0
0
16105.1
0
17715.6
1
19487.1
7
21435.8
9
23579.4
8
25937.4
2
28531.1
7
213842.8
4 324000.00
Service Fee 1200.00 750.00 825.00 907.50 998.25 1098.08 1207.88 1328.67 1461.54 1607.69 1768.46 1945.31 2139.84 17238.21 9911.62
Marketing
cost 5000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 3000.00 41000.00 40000.00
Rent 0.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 9000.00 108000.0
0 110160.00
Interest
payment on
bank loan
0.00 100.33 100.33 100.33 100.33 100.33 100.33 100.33 100.33 100.33 100.33 100.33 100.33 1204.00 10500.00
Insurance fee 0.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6000.00 6000.00
Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7168.00 7168.00 41105.44
Salary 0.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 3500.00 42000.00 44940.00
Miscellaneous
or other
Expenses
1000.00 1000.00 1100.00 1210.00 1331.00 1464.10 1610.51 1771.56 1948.72 2143.59 2357.95 2593.74 2853.12 22384.28 33581.18
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Repayment of
loan 0.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 3000.00 3000.00
Total Cash
Outflow
32200.0
0
28100.3
3
29275.3
3
30567.8
3
31989.5
8
33553.5
1
35273.8
3
37166.1
8
39247.7
6
41537.5
0
44056.2
2
46826.8
1
57042.4
5
486837.3
3 640198.24
Net cash flow 0.00 -
3100.33
-
1775.33 -317.83 1285.42 3048.99 4988.92 7122.85 9470.17 12052.2
2
14892.4
7
18016.7
5
14285.4
6 79969.76 1228266.0
4
Closing
balance
15000.0
0
11899.6
7
10124.3
3 9806.50 11091.9
2
14140.9
1
19129.8
3
26252.6
8
35722.8
5
47775.0
7
62667.5
4
80684.3
0
94969.7
6 94969.76 1323235.8
0
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Breakeven Forecast:
Table 3: Breakeven analysis
Break Even Analysis
Particular Amount (£)
Year 1
Amount
(£) Year 2
Average Selling Price per event 1000 1000
Variable Cost 900 900
Contribution 100 100
BEP in sales
Total Fixed cost 15000 12000
Contribution 100 100
BEP = Fixed cost / Contribution 150.00 120
Break Even Point
Average Customer Per Month 15 20
Number of months = BEP in events/ customer per month 10.00 6.00
Figure 2: BEP chart
8. THE BUSINESS PLAN CONTENTS
Mission:
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Mission of Party planner is to provide highest level of event planning to its customers. It
exist to attract and maintain customers for long term (Party planning, 2016). Along with this, the
mission is to provide such kind of services which exceed the expectation of their customers.
Objectives:
 To develop a service base firm which major objectives in raising the customer’s
expectations.
 To utilize the existing resources in optimum manner.
 To increase the total sales of the company by 30% in coming three future years.
 To increase the number of clients by 30% per year through the superior quality services.
 To develop a sustainable and profitable business.
Possible exist strategy
The possible exist strategy that can be adopted by the Party Planner is enabling merger
and acquisition with the businesses that are operating and rendering services in the similar field.
Choosing this strategy would support the Party Planner in conducting their operational activities
in the effectual manner so that it can minimize the situation of occurring losses.
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