

Event Planning Business Plan

Business Plan
2020 - 21

John Doe
10200 Bolsa Ave, Westminster, CA, 92683

(650) 359-3153

support@upmetrics.co

https://upmetrics.co
Table of Contents

Executive Summary 3
Business Overview 3
Objectives 3
Management 3
JOHN DOE 4
Mission 4
Keys to Success 4
Financial Highlight 4
Net Income & Gross Margin 5
Business Summary 6
About Business 6
Business Ownership 6
Start-up Summary 6
Startup Expense 6
Start-up Assets 7
Funding 7
Location 7
Office Design 8
Products and Services 9
Products and Services 9
Party Pack 9
Step-by-Step Guides 9
Event Planning Software 10
Resources Manual 10
Event Planners Training Institute 10
Competitive Comparison 10
Market Analysis 11
Market Segmentation 11
Private Organizations and Businesses 11
Public Organizations 12
Age Breakdowns 12
Customer Segmentation 12
Target Market Segment Strategy 13
Service Business Analysis 13

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 Hotels and Conference Centers 14
Other Event Planners 14
Employees or Persons wishing to do it themselves 14
Marketing and Sales 15
Marketing and Competition 15
Sales Strategy 15
Private and Public Organizations 15
Individuals 15
Sales Forecast 15
Sales 16
Management and Operations 17
Management Summary 17
Organizational Structure 17
Personnel Plan 17
Financial Plan 18
Financial Plan 18
Important Assumptions 18
General Assumptions 18
Key Financial Indicators 18
Benchmark 19
Break-even Analysis 19
Income Statement (5 Year Projections) 20
Balance Sheet (5 Year Projections) 21
Cash Flow Statement (5 Year projections) 22

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Executive Summary

Business Overview

Welcome to the future of event planning! Eventel, The event planning specialists
bring to the community of Portland a new breath of air in the event planning
market. By combining old fashioned values, going the extra mile, and using
cutting edge event-planning software, Eventel will lead the market, providing the
same quality results, every time.
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Eventel is an equal opportunity business making its expertise and its products

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Objectives

Eventel is a small business aimed at the big time. In order to reach its lofty
goals, Eventel must focus on the mission behind the vision. It will take all the
employees, owners, founders, and vendors daily living the vision that Eventel
represents. The vision manifests itself in three ways:

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1. Be one of the top three event planning specialists in the Northwestern
United States.
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Management

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 JOHN DOE
Owner - john.doe@example.com
Eventel will be lead by John Doe. Throughout her life, Ceece has been a planner,
and only recently has she truly discovered that she could leverage her passion
and skill into a business opportunity. While Greece was pursuing her
undergraduate and graduate degrees, she was a chairperson for no less than
four different student organizations. After receiving her MBA, she went to work
for IBM as a project manager. It was her six years at IBM pursuing project
management that truly honed not only her planning/ project management skills
but also her interpersonal skills. After her fifth year at IBM, Greece began to get a
bit too complacent and began dreaming of leaving to begin her own business. At
first, it was a struggle to figure out what she could do on her own. One day on a
long bike ride she had an epiphany, realizing that she should begin her own event
planning company.

Mission

In an ever-changing, fast-paced world, success is determined by good choices

for lasting effects. Communication is essential. Eventel strives to be the best
choice for clients by helping to ease their event planning burden. Through
consistent, predictable professionalism, Eventel will ensure a worry and hassle-
free event at a reasonable price.
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But, not all of our clients will be external. Eventel has internal clients to serve.

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Keys to Success

Our keys to success include the commitment to quality by every person who is
part of the team. Each of us will be responsible to push ourselves to a higher
level of professionalism in three areas:

1. Consistent, accurate fulfillment of the client's wishes.

2. Competitive pricing for the quality of services offered.
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3. Significant profit made on each event planned.

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Financial Highlight

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Net Income & Gross Margin

Sales Gross Margin Net Profit

600.00k

400.00k

200.00k

0
Year1 Year2 Year3

Financial Year Sales Gross Margin Net Profit

Year1 320000 280000 80000

Year2 470000 370000 210000

Year3 520000 410000 280000

2020 - 21 Bu sin ess P la n | E v en t P la n n in g Bu sin ess P la n 5 / 22

Business Summary

About Business

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Business Ownership

Eventel is established as a sole proprietorship with the intention of selling the

business when it is established to one of the employees invested in the vision
of event planning. All aspects of the business will be documented to ensure
clients can count on the same results every time. It is these documents that

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will become the basis of ownership. The sole proprietor will use his or her
name as the guarantor of each service. Therefore, the sole proprietor must
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embody the vision and mission of Eventel.

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Start-up Summary

Through careful planning on the part of the founders, the startup costs for
Eventel is minimal. It began as a home-based business with little overhead, and
it continues to demand fewer outlay of funds as a service-based business. The
start-up cost investment funds were assets saved from prior earnings by the
owners who did event planning on a part-time basis before establishing
themselves as a business. Read More 

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Startup Expense

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 Start-up Expenses
Legal [Amount]
Stationery etc. [Amount]
Brochures [Amount]
Consultants [Amount]
Insurance [Amount]
Rent [Amount]
Research and Development [Amount]
Expensed Equipment [Amount]
Other [Amount]
Total Start-up Expenses
[Total Amount]

Start-up Assets
Start-up Assets Needed
Cash Balance on Starting Date [Amount]
Start-up Inventory [Amount]
Other Current Assets [Amount]
Total Current Assets [Amount]

Long-term Assets [Amount]

Total Assets [Total Amount]
Total Requirements

Funding
Funding
Owner Contribution
Other
Total Investment

Location

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 Eventel is located inside the city limits of Portland, Oregon. It is a home-based
business. Most meetings with clients are conducted in social settings, such as
restaurants, coffee houses, the client's home, facilities wishing to be used for
the event, or over the phone. Although the demand has not yet reached its
peak, Eventel will eventually move from its home base into a small office
complex, also within the city limits of Portland, Oregon. When the company has
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reached its finished point, Eventel will have branch offices in Portland, Eugene,

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Office Design

The company will maintain a

high degree of professionalism. All
offices are equipped with the latest
in business technology, such as
telephone systems, computers, fax
machines, email, duplicators, Read More 
printers, and software. Each location

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Products and Services

Products and Services

Although Eventel is primarily a service business, we also offer products to aid

our customers in planning the event themselves. The following products are
tools used inside our operation for the best possible results:

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The Party Pack is a complete kit for any party. It includes decorations, lighting
effects guide, disposable theme cameras, cutlery, plates, napkins, cups, punch
mix (or recipe), snack supplies (or recipe), tablecloths, theme music (where
applicable), invitations, thank-you cards, and a step-by-step guide to planning,
putting together, and hosting the event.
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Party Pack
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These booklets include a calendar to map out the event, a step-by-step guide
on what is needed for and how to put together a successful, worry-free event,
resource information, popular refreshments with recipes, games, and tips to
put their event in the record books. The events available include birthdays for
all ages, meetings, retreats, parties, vacations, and special occasion
celebrations such as graduations, holidays, showers, weddings, and Read More
receptions.

Step-by-Step Guides
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Due to be released in June 2000, this cutting-edge tool will allow the client all
the resources and visual aids for their event planning. They will be able to play
with decoration themes, listen to theme music, design invitations, thank-you
cards, and RSVP cards, use the interactive planning calendar, and much more.
This software will bring their event into the millennium with cutting edge
technology that is designed to save time and money. Read More 

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Event Planning Software
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This valuable guide acts as a review for all the resources located in the
surrounding area. A ranking is given to the various services, such as caterers,
decorators, disc jockeys, bands, and facilities. This manual gives the client the
freedom of making a choice based on experience.

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Resources Manual
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As a member of the Portland community, it is our mission to support our

community. Ten hours each month will be devoted to training area students in
event planning. This will aid them in planning proms, graduation parties, river
clean-ups, homecoming, and other important events. This is a priority of
Eventel. It will not be cut back as the business grows.
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Eventel provides event planning in a wide range of applications. We guarantee

Event Planners Training Institute

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Competitive Comparison

Eventel, although young, draws from the age-old tradition of going above and
beyond what is expected, every time. Our systems for event planning have
been drawn up, evaluated, practiced, worked, and reworked to ensure
maximum efficiency while minimizing the possibility of error. We employ local
vendors who have the same desire to be the best at what they do while
providing un-matchable services. Thus, we give back to the community byMore
Read
providing jobs outside of our organization. We encourage new and upcoming

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Market Analysis

The following sections describe the market segmentation, strategies, and

industry analysis.

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Market Segmentation

The breakdown of the market for event planning falls in a wide, very diverse
grouping. Individuals, as well as organizations, demand the services we
provide. In order to provide the greatest depth of information, the market
segments have been broken down into private and public organizations, and
age groups.
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Private organizations make up the single largest portion of Eventel' client base.
Private organizations such as businesses, corporations, and political parties
host the most events on the largest scales, therefore, these events generate
larger revenues per event. The majority of larger-scale holiday functions will fall
under this segment.
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Private Organizations and Businesses

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Government agencies host many events every year. Eventel hopes to alleviate
the pressure of event planning for public employees. The second single largest
segment, the public sector, can save money and give back to its community at
the same time. These events are moderate in scale with middle to low
revenues generated. Emphasis is placed on the visibility of the event for public
viewing. The majority of organizational family functions will fall under Read
this More
segment.

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Public Organizations
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Under 24: Persons under the age of twenty-four (24) using an event planner are
rare at best. We hope to tap the early college graduates who have begun their
professional careers but have not yet started their families. These events will
focus mainly on themes with moderate to high energy appeal. The revenues
generated will range from moderate to high, depending on the event. The
majority of weddings will fall into this segment. Read More 

Age Breakdowns
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Customer Segmentation

Under 24: 3.8 %

Other: 11.7 %
Age 25 to 55: 11.5 %

Age 56 and over: 6.7 %

Public Organizations: 22.2 %

Private Organizations: 44.1 %

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 Potential
Custome Growth Year1 Year2 Year3 Year4 Year5 CAGR
rs
Under 24
Age 25 to
55
Age 56
and over
Private
Organizati
ons
Public
Organizati
ons
Other
Total

Target Market Segment Strategy

Our target markets are middle to upper-middle-class families, couples,

individuals, or private and public organizations. We chose these groups
because they are most able to afford event planners, and have the least
amount of time to spare for event planning in general. Families demand
attention, employees are overburdened, and overwhelming detail needed to
plan large events are too large a constraint to place on people not trained
Read in the
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area of event planning.

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Service Business Analysis

Eventel is in a unique position of competition. We compete against hotels with

conference facilities, conference centers, other event planners both on the large
and small scale, persons within an organization who are assigned the task of
organizing an event, and people who wish to organize their own events without
the benefit of assistance. The benefits and drawbacks of each of our
competitors as compared with the services we offer are hardly a match in More
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quality and price.

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 Strengths: On-site facilities, equipment, and support staff. Ability to transport
and house persons for overnight stays. Able to internalize the costs of
transportation and equipment.

Weakness: Often very expensive, impersonal, rely on unskilled labor for support
staff. The error rate is high due to high volume and traffic from other events
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happening at the same time.

Hotels and Conference Centers

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Strengths: Have been in the market longer, have established a reputation and
client base.

Weakness: Reputation precedes them, no systems-based businesses designed

to produce consistent results; focus on smaller events, specialized events are
main focused rather than all events; do not have the supporting products to
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market with, or instead of, event planning services.

Other Event Planners

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Strengths: Internalized cost of planning the event; able to add tiny personalized
touches that have meaning within the group or family.

Weakness: Consumes time that could be spent on other things; don't have
access to the best prices, services, and other needed resources available.
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Employees or Persons wishing to do it themselves

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Marketing and Sales

Marketing and Competition

We have discussed our client base as being predominately middle to upper-

middle-class individuals, couples or families, public and private organizations.
We must then look at the needs of these markets and cater to them. We
promise the same great results, every time.

When marketing to individuals, the idea of releasing them from the task, freeing
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their time for family and friends, and the promise of a worry-free event are the

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Sales Strategy
Eventel deals with a diverse market of clients. Within each market segment, the closing of sales will
differ. Each approach is described as follows:

Sales will be concluded one to two days after the end of the event. A follow-up
phone call will be placed informing the client of the total cost, a number of

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attendees, and information about the billing packet that will arrive at their
offices. Feedback forms will be included in these packets to ensure the client is
being served as they deem appropriate. Form letter thank-yous will be sent
following each event. Read More 

Private and Public Organizations

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Sales will be concluded with a follow-up phone call one to two days after the
event. The phone call will explain the total cost of the event, number of
attendees, and information concerning the billing. Individual parties of any age
group are placed on a billing cycle. Invoices will be sent out on the 25th of the
month and will be due on the 10thof the following month. Feedback forms will
be included in these packets to ensure the client is being served as they deem
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appropriate. Thank-you cards that will follow each individual event.

Individuals
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Sales Forecast
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Sales Forecast

Sales

Private Public Other

30.00k

25.00k

20.00k

15.00k

10.00k

5.00k

0
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

By beginning on a smaller scale, Eventel has the foresight to grow at a rapid pace to keep up with
demand. We wish to maintain a steady rate of sales growth; however, we understand that sales of
products and services will vary in different months. As noted in the graph and chart, rapid increases
during the holiday season will boost sales, then allow that growth to level off at a steady rate.

Sales Year1 Year2 Year3

Private $206,170 $276,099 $299,002
Public $113,185 $178,490 $193,000
Other $33,794 $40,081 $62,777
Total Sales $353,149 $494,670 $554,779

Direct Cost of Sales:

Direct Cost of Sales Year1 Year2 Year3

Private $312 $330 $355
Public $210 $246 $346
Other $132 $151 $189
Total $654 $727 $890

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Management and Operations

Management Summary

Information and expense details are presented in the subtopics Organizational

Structure and Personnel Plan.

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Organizational Structure

The management team within Eventel will be small in the beginning. The
primary employee is the founder, who plans events, then contracts with
caterers, decorators, disc jockeys, and bands to fill out the event. A contract
labor site manager will be on hand to work the events as a liaison and vendor

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coordinator. Thus, there are two main employees with various levels of
vendors. Read More 

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Personnel Plan
Personnel Plan Year1 Year2 Year3
Event Specialist $36,000 $40,000 $42,000
Site Manager $11,097 $13,750 $14,560
Other $8,947 $9,560 $10,000
Total People 7 8 9
Total Payroll $56,044 $63,310 $66,560

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Financial Plan

Financial Plan

Service-based businesses require little funds to start up, and as they grow and
expand, fewer funds to maintain. The charts and graphs that follow will show
that investment up front allows Eventel to function debt-free with little
overhead. This gives Eventel a quicker break-even point and increased profit
margins from the start. As Eventel grows, the debt-free philosophy will be
maintained until it is impossible to function during growth periods without
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financial assistance.

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Important Assumptions

Tax rates are noted for information. We carry no loan burden that would be
affected by these rates. What hits Eventel the hardest (but not nearly are bad
as other service businesses), is the tax rate of 23.5%, which is nearly one-
quarter of the total sales. As Eventel continues to grow, these numbers will be

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reference rather than influence.
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General Assumptions
General Assumptions Year1 Year2 Year3
Plan Month 1 2 2
Current Interest Rate 8.92% 8.92% 8.92%
Long-term Interest Rate 7.99% 7.99% 7.99%
Tax Rate 24.04% 24.04% 24.04%
Sales on Credit % 60.00% 60.00% 60.00%
Other 0 0 0

Key Financial Indicators

The break-even point for Eventel is based on the assumption that we will produce 22 events per month
and average approximately $521 per event. In the current situation, we average more than this

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assumption for our public and private organization events. These currently make up 18 of the 22
average events hosted per month.

Benchmark

Sales Gross Margin Operating Expenses Collection Days

Inventory Turnover

0
Year1 Year2 Year3

Break-even Analysis
The break-even point will appear more rapidly for Eventel than for other types of home-based
businesses. Start-up costs are limited to minimal equipment, there is little or no staff to pay in the
beginning, and contracted companies will handle any additional equipment required for the planned
events.

Break-even Analysis
Monthly Units Break-even 22
Monthly Revenue Break-even $11680

Assumptions
Average Per-Unit Revenue $521.00
Average Per-Unit Variable Cost $75.00
Estimated Monthly Fixed Cost $10,000

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Income Statement (5 Year Projections)
Year1 Year2 Year3 Year4 Year5
Revenues
Product/Service-A $151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B $100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues $252,000 $555,660 $612,615 $675,408 $744,638

Expenses & Costs

Cost of goods sold $57,960 $122,245 $122,523 $128,328 $134,035
Lease $60,000 $61,500 $63,038 $64,613 $66,229
Marketing $20,000 $25,000 $25,000 $25,000 $25,000
Salaries $133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses $3,500 $4,000 $4,500 $5,000 $5,500

Total Expenses & Costs $271,850 $412,775 $435,504 $454,131 $473,263

EBITDA ($19,850) $142,885 $177,112 $221,277 $271,374

Depreciation $36,960 $36,960 $36,960 $36,960 $36,960
EBIT ($56,810) $105,925 $140,152 $184,317 $234,414
Interest $23,621 $20,668 $17,716 $14,763 $11,810
PRETAX INCOME ($80,431) $85,257 $122,436 $169,554 $222,604
Net Operating Loss ($80,431) ($80,431) $0 $0 $0
Income Tax Expense $0 $1,689 $42,853 $59,344 $77,911

NET INCOME ($80,431) $83,568 $79,583 $110,210 $144,693

Net Profit Margin (%) - 15.00% 13.00% 16.30% 19.40%

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Balance Sheet (5 Year Projections)
Year1 Year2 Year3 Year4 Year5
ASSETS
Cash $16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable $0 $0 $0 $0 $0
Inventory $21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets $37,710 $113,340 $184,482 $286,712 $423,416

Fixed assets $246,450 $246,450 $246,450 $246,450 $246,450

Depreciation $36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets $209,490 $172,530 $135,570 $98,610 $61,650

TOTAL ASSETS $247,200 $285,870 $320,052 $385,322 $485,066

LIABILITIES & EQUITY

Debt $317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable $9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities $327,631 $282,733 $237,332 $192,391 $147,443

Share Capital $0 $0 $0 $0 $0
Retained earnings ($80,431) $3,137 $82,720 $192,930 $337,623
Total Equity ($80,431) $3,137 $82,720 $192,930 $337,623

TOTAL LIABILITIES & EQUITY $247,200 $285,870 $320,052 $385,322 $485,066

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Cash Flow Statement (5 Year projections)
Year1 Year2 Year3 Year4 Year5
CASH FLOW FROM OPERATIONS
Net Income (Loss) ($80,431) $83,568 $79,583 $110,210 $144,693
Change in working capital ($11,340) ($1,625) ($2,350) ($2,133) ($2,409)
Depreciation $36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations ($54,811) $118,902 $114,193 $145,037 $179,244

CASH FLOW FROM INVESTMENTS

Investment ($246,450) $0 $0 $0 $0
Net Cash Flow from Investments ($246,450) $0 $0 $0 $0

CASH FLOW FROM FINANCING

Cash from equity $0 $0 $0 $0 $0
Cash from debt $317,971 ($45,424) ($45,424) ($45,424) ($45,424)
Net Cash Flow from Financing $317,971 ($45,424) ($45,424) ($45,424) ($45,424)

SUMMARY
Net Cash Flow $16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period $0 $16,710 $90,188 $158,957 $258,570
Cash at End of Period $16,710 $90,188 $158,957 $258,570 $392,389

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