Business model/ plan for Event planner Services 1

Business Model/ Plan for Event Planner Services

Students Name

University/College
Business model/ plan for Event planner Services 2

Summary

The business plan seeks to detail the strategies that can be applied to an event planning

business. The business is a new player in the industry, and would leverage its competitiveness

due to the skills and experience of the personnel. The business plan considers the operation of the

business within a ten-year period, where it is expected to achieve profitability. The company will

offer high-quality services while minimizing the costs. The business will become economically

sustainable, and will be a major player in the industry by proving unique services. The financing

provided by the company will prove beneficial as it seeks to achieve its goals. The business plan

will also consider the components of the business model canvas to detail how it will achieve its

level of viability.
Business model/ plan for Event planner Services 3

1.0 Executive Summary

The business model will be profitable in the context of the event planner service. The

business, called Vikings events, will cater to the needs of a social landscape that is diverse and

ever changing. The business intends to expand to cater to the needs of a broad clientele within

the next ten years. It is important to understand the needs of both the private and public

organizations. It would comprise the largest number of clients being serviced by the service. The

vision of the company is to meet the needs of these clients while maintaining a high retention

rate among clients. The business will first begin as a home based establishment. The meeting

with the potential clients will be carried out within social settings such as in coffee houses,

restaurants, and hotels[ CITATION Sha11 \l 1033 ]. The meetings will also be conducted in

facilities where the events will be carried out. It will provide a valuable opportunity to

understand the specific needs of the client, and the suitability of the location for the event.

1.1 Services

Vikings will be profitable by considering the demands of the market and targeting this

market. Marketing will be an integral aspect. The business will provide services for events both

carried out by corporates and families. It will also plan for social events such as parties, holiday

events, and special meetings. The market prefers an event provider that offers quality at the best

price. It will be an important strategy for the company. The company will collect vital

information from the customer before carrying out an event[ CITATION Jud091 \l 1033 ]. It will

involve specific information such as the needs of the customers, the challenges that could arise

and the current circumstances of the client. It will allow the company to understand how to meet

the needs of the client fully.

Business model/ plan for Event planner Services 4

2.0 Marketing plan

Once the organization has been able to meet the needs of more clients, the company will

move to an office complex with more workers. Additionally, the company will consider the

introduction of branches in various locations based on the demand and client base. The company

will maintain the highest level of professionalism. It will be through of current technologies in

the offices such as communication systems and computers[ CITATION Rud12 \l 1033 ]. The

locations will also have the best security for the equipment and supplies to be used by the

organization. It includes safe storage for cell phones and walkie-talkies.

2.1 Strategic and market analysis

The business will operate in the context of a city. It will provide a diverse from both

corporate organizations and families in need of event planning services. The target population

will be comprised of both upper-class and middle-class families and individuals. These target

market will be accessible due to various behavioral factors that characterize them. Among this

population, there is a need to outsource event planning to reduce workload. Moreover, they lack

knowledge of certain specifics of the market such as caterers available and equipment necessary

to plan events that occur occasionally[ CITATION Rau12 \l 1033 ]. It would be expensive for

them to purchase such equipment that would only be occasionally used.

2.2 Financing

The business seeks to raise about $100,000 through investors and a bank loan. The

business will be able to receive a ten-year loan that will be payable as the business is growing.

The financing will be used for the purchase of event planning equipment. It includes tents,

communication equipment, furniture, and providing security services for the events[ CITATION
Business model/ plan for Event planner Services 5

Sau09 \l 1033 ]. The funds will also be used to purchase a vehicle that will transport the

necessary equipment for the events.

2.3 Mission Statement

The businesss mission is to provide high-quality event planning services to clients at the

lowest price.

2.4 Management Team

Henry Mark established the company. He has over five years experience in event

planning and management. The business is an opportunity to venture into private practice, and

his experience will prove beneficial as the business begins to grow and gain a foothold in the

industry. Sharon Stone and Michael Frost, who both have education in management, with

experience in event planning, will assist Henry.

3.0 Sales Forecast

The company will experience an exponential growth during the first year. There is a high

demand for event planning services, and this will ensure that profitability of the organization.

The table in the appendices shows the expected financials for the next ten years.

3.1 Expansion Plan

The founder believes that the business will grow quickly during the ten years in the

industry. The implementation of intensive marketing campaigns will prove important, and would

attract corporate clients, families, and individuals[ CITATION Rud12 \l 1033 ].

3.2 Registered Name and Corporate Structure

Vikings Events services is a company registered in the country.

Business model/ plan for Event planner Services 6

3.3 Exit strategy

In the case that the business grows and becomes a major player in the industry, the owner

may seek to sell the business to gain more money. In this regard, the company will have to utilize

a qualified financial services company or broker to determine its price. The financial services

company will also play a role in selling the business[ CITATION Wit07 \l 1033 ]. The

predictions based on the growth means that the business can be able to fetch over six times its

earnings.

4.0 Strategic and Market Analysis

4.1 SWOT analysis

The SWOT analysis will detail the strengths of the company. It also details the

weaknesses of the company, as well as showing the threats and opportunities inherent in the

company. The strength of the company lies in the enthusiastic and professional employees who

are well trained[ CITATION Sus13 \l 1033 ]. It also offers better services than competitors offer,

and maintain a strong relationship with the complementary providers of various services.

The company has a weakness of having a small market size. It arises from the occasional

characteristic of events, meaning that there would be times when the company will lack

customers. The company is also not in a position to meet an unexpected and large increase in

demand[ CITATION Jud09 \l 1033 ]. It is also difficult to market the company during the first

year of operation to increase visibility and awareness.

The company has an opportunity for the increasing number of corporates and families

that are outsourcing events. It is also a business dealing with a specific niche and places it in a

unique position in the provision of event planning services. The changes in the economy are a
Business model/ plan for Event planner Services 7

threat to the operations of the business[ CITATION Sha11 \l 1033 ]. Moreover, many companies

are emerging within the industry. This threat is a major challenge to the success of the business.

4.2 Marketing objectives

The company will increase its repeat clients by about 15% in every quarter. It will also

ensure that there is a decrease in customer acquisition costs by about 5% per year. It is also

imperative to increase awareness about the company, as well as the services offered[ CITATION

Sha14 \l 1033 ].

4.3 Viability Summary

The business will reach viability through an increase in profitability. The company will

use the cheapest inputs that would ensure that costs are kept low. I will also provide high-quality

services to retain clients. The company will use less money on the overhead in comparison to

other event planners. It leads to additional savings for the business, allowing it to use the funds in

marketing the company[ CITATION Col05 \l 1033 ]. The savings can also apply to the expansion

efforts. The business is service-based, and will require funding during its initial introduction.

Funding will also play a role in the growth and expansion of the business. Fewer funds will be

required for the maintenance of the business. The charts and graphs will detail the investment the

company will require to function within a debt-free environment with minimal overhead. It will

allow the company to achieve a faster break-even point, and gain profits from the start of its

operations[ CITATION Jil10 \l 1033 ]. Furthermore, the debt-free environment will be the norm

until a point that it is unable to carry out its activities without additional financial input. A

consultation will be carried out by suppliers and customers to understand the viability of the

market. It will comprise about two suppliers and five potential clients.
Business model/ plan for Event planner Services 8

5.0 Growth Summary

The business will grow from initial viability to an ambitious implementation within a ten-

year period. During the initial stages, the business will use personal selling as a sales strategy.

The employees of the organization will play a role in creating more relationships with the

network of friends. It will arise from trade shows and social groups. The cost savings resulting

from using the business will be outlines to the client. It will demonstrate how the company is a

preferable choice when it comes to costs savings. Higher levels of service will also

communicated via testimonials from satisfied customers[ CITATION Joh15 \l 1033 ]. A website

will also be created to provide accurate information about the services offered by the company to

both current and potential clients. It will also be an avenue that they can ask for further

information about the services, and request personalized services. This website will also provide

more information such as event proposals and the costs applicable to specific events. During the

first few months, an office will be set up. The company will also come up with systems that act

as a template for event planning in future. After this, it will be much easier to process requests

from clients. The sales will begin to pick up after six months. This increase is expected to

increase for the entire ten-year period.

5.1 Scenario planning

Scenario planning will entail offering a superior service that is much cheaper than what

the competitors offer. This long-term strategy will guarantee the success of the business. The

company will concentrate on a few set of services, and will become proficient and a leader in the

provision of event planning services. It will allow the company to be a leader in the industry, and

offers a level of expertise that other companies cannot meet in the industry[ CITATION Sha11 \l

1033 ]. The company will also improve visibility through networking, participation in trade
Business model/ plan for Event planner Services 9

events and a website. It will provide the clients will information about the company, and provide

the company will an avenue to determine the specific needs of clients.

5.2 Sensitivity analysis

The sensitivity analysis shows a positive picture of the business. The business will use an

innovative and efficient staffing and operation model. The company will focus on events that are

entertaining and fulfilling to attract many clients. Additionally, the identification of profitable

avenues for the business will guarantee that the company has a sustainable financial base. The

sensitivity analysis will look at the effect of global economic factors and trends within the

industry. Specifically, it will look at the occurrence of events, and the interest among clients. The

sensitivity analysis indicates that there is a growing demand for event planning services. Many

organizations are coming up in the city[ CITATION Jil10 \l 1033 ]. Outsourcing for events has

been the norm for many corporates and families. Outsourcing has also been a cheaper alternative

in comparison to locally organized events by companies and families. Essentially, the company

will attract many clients, and the potential for growth is high within the current market.

5.3 Competition

The completion faced by the business will arise from already established event planning

services. These services offer various products for many clients. It will be difficult to compete

without offering unique services that are cheaper and of better quality than the competition. The

competitors such as Gregg events have been in the business for many years. They have acquired

a large part of the market, and it would be a challenge to offer better services and attract their

current clients[ CITATION Rau12 \l 1033 ]. Despite this, a significant opportunity arises in
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offering out services to families and individuals. This market has not been captured adequately

and creates great potential for the company to access new clients.

Bibliography
Business model/ plan for Event planner Services 11

Abramowicz, W. & Mayr, H. C., 2007. Technologies for Business Information Systems.

Dordrecht: Springer.

Allen, J., 2009. Confessions of an event planner : case studies from the real world of events :

how to handle the unexpected and how to be a master of discretion. 1st ed. Mississauga, Ont.: J.

Wiley & Sons Canada.

Allen, J., 2009. Event planning : the ultimate guide to successful meetings, corporate events,

fund-raising galas, conferences, conventions, incentives and other special events. 2nd ed.

Mississauga, Ont.: J. Wiley & Sons Canada.

Friedmann, S., 2013. Meeting & event planning for dummies. 1st ed. Hoboken, N.J. : John Wiley

& Sons.

Kilkenny, S., 2011. The complete guide to successful event planning. 2nd ed. Ocala, Fla.: Atlantic

Pub. Group.

Lach, S. M., 2014. Start & Run a Meeting and Event Planning Business. 1st ed. New York: Self-

Counsel Press.

Martinson, C., 2005. Planning, promoting and managing your childcare business : every

childcare provider's winning program management book. 1st ed. Trafford: Victoria, B.C..

Moran, J. S., 2010. How to start a home-based event planning business. 3rd ed. Guilford, Conn. :

Globe Pequot Press.

NewsRX, 2015. Environmental Defense; Global warming to bring risks, rewards for business

and investors. Global Warming Focus, 7(1), p. 150.

Business model/ plan for Event planner Services 12

Rosen, R. A., 2012. Money for the cause : a complete guide to event fundraising. 1st ed. College

Station: Texas A & M University Press.

Saunders, M., Lewis, P. & Thornhill, A., 2009. Research Methods for Business Students. 5th ed.

Harlow: Pearson Education Limited.

Valverde, R. & Talla, M. R., 2012. Information systems reengineering for modern business

systems : ERP, supply chain and e-commerce management solutions. Hershey, PA: Information

Science Reference.

Appendix

Figure 1: Business Model Canvas

Business model/ plan for Event planner Services 13

Figure 2: Number of customers served

Figure 3: Financial analysis

Manual
Inputs
Calculated
Outputs BE
Number of 20,90 62,70
0 10,450 31,351 41,801 52,252 73,152 83,603 94,053
Customers 1 2
USD USD USD USD USD USD USD USD USD USD
35,00 35,00
Fixed Costs 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000
0 0
11,28
Variable costs 1,881 3,762 5,643 7,524 9,405 13,167 15,048 16,930
6
38,76 46,28
Total costs 35,000 36,881 40,643 42,524 44,405 48,167 50,048 51,930
2 6
19,43 58,31
Revenue 0 9,719 29,156 38,875 48,594 68,032 77,750 87,469
8 3
Using to Contribution
Business model/ plan for Event planner Services 14

Formula
Sales Price per Formu
0.93
unit las:
Variable cost
0.18
per unit
CPU =
Contribution
0.75 SPU-
per unit
VCU
Total Fixed
31,351
Costs
Contribution
0.75
per unit
BE
(units)
Break-even
41,801 =
number of units
TFC/C
PU
Break-even
41,801
number of units
Forecast
Number of
200
units sold per
day
Number of days No. Days = BE
into year before 209 (units)/units
breaking even per day