V.I.P. Entertainment & Events

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The business plan and analysis for my event and entertainment company founded in 2006.

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V.I.P. Entertainment & Events

  1. 1. Raising the bar……<br />V.I.P Entertainment & Events <br />2010 Business Plan and Analysis<br />
  2. 2. V.I.P Entertainment & Events <br />Table of Contents<br /><ul><li>Company Summary…………………………………………………………………………………………………….. Page 3
  3. 3. The Event Industry……………………………………………………………………………………………………... Page 4
  4. 4. Mission Statement ……………………………………………………………………………………………………... Page 5
  5. 5. Business Philosophy……………………………………………………………………………………………………. Page 6
  6. 6. Industry Forecast …………………………………………………………………………………………………….... Page 7
  7. 7. Products and Services …………………………………………………………………………………………………. Page 8
  8. 8. Pricing …………………………………………………………………………………………………….................. Page 9
  9. 9. Package Enhancements ……………………………………………………………………………………………….. Page 11
  10. 10. Event Staff & Security ………………………………………………………………………………………………….. Page 15
  11. 11. Market Analysis Summary …………………………………………………………………………………………….. Page 16
  12. 12. 5 Year Market Growth Analysis ………………………………………………………………………………………. Page 17
  13. 13. Target Market Strategy…………………………………………………………………………………………………. Page 18
  14. 14. Strategy and Implementation Summary…………………………………………………………………………….. Page 19
  15. 15. 3 Year Projected Sales Forecast ……………………………………………………………………………………… Page 20
  16. 16. 3 Year Projected Direct Cost of Sales……………………………………………………………………………….. Page 21
  17. 17. Management Summary ………………………………………………………………………………………………… Page 22
  18. 18. Personnel Plan ……………………………………………………………………………………………………......... Page 23
  19. 19. Financial Plan …………………………………………………………………………………………………….......... Page 24
  20. 20. Projected Profit & Loss …………………………………………………………………………………………………. Page 26
  21. 21. Projected Cash Flow …………………………………………………………………………………………………….. Page 28
  22. 22. Projected Balance Sheet ………………………………………………………………………………………………… Page 29
  23. 23. Start-Up Summary …………………………………………………………………………………………………….... Page 31</li></li></ul><li>Company Summary<br /> Founded in 2006 on a part-time basis, V.I.P is a small business designed to meet the needs of the ever-changing social world. San Francisco, CA is the current home office with plans to expand to branch offices within four years. V.I.P staff of two, with numerous contract vendors, plans events, writes event-planning products, and trains local students in the art of event planning. V.I.P is invested in the community in which it resides.<br /> V.I.P is, in part, the answer to the demands of the social world, on the working family, a heavily-burdened office, an out-of-town business, or a special occasion in need of special recognition. As a business, we understand the needs of public and private organizations. As we all have families, we understand the needs of setting special time apart from other events in our lives. V.I.P strives to accomplish these goals in San Francisco/Oakland Bay Area and eventually other areas.<br />Company Ownership<br /> V.I.P 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, and it is these documents that 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 embody the vision and mission of V.I.P.<br />V.I.P Entertainment & Events <br />
  24. 24. The Event Industry<br /> Event Management is a multi-million dollar industry, growing rapidly, with mega shows and events hosted regularly. Surprisingly, there is no formalized research conducted to access the growth of this industry. The industry includes fields such as meetings, incentives, conventions, and events, exhibitions, conferences, and seminars as well as live music and sporting events.<br />V.I.P Entertainment & Events <br />
  25. 25. Mission statement<br />Raising the bar in event production! <br /> Leave everything to us, we will handle all creative, technical, and logistical elements using only the top vendors and entertainers in the industry. We provide worry-free and budget conscious event planning and entertainment to businesses and individuals alike who desire a quality high-end event within their budgets. <br /> Based in the Oakland/SF Bay Area to become the leading force in event productions and customer satisfaction with a loyal customer following. As a member of ISES (International Special Events Society), we strive for excellence in communication, administration, and growth. <br />V.I.P Entertainment & Events <br />
  26. 26. Business Philosophy<br /> If your event doesn’t exceed your expectation and meet your objectives, we haven’t done our job.<br />Marketing<br /> Our service will be marketed mainly to those involved in the entertainment industry and those needing to produce a high-end corporate event.<br /> The entertainment industry uses events as a vital marketing tool that will provide steady revenue from loyal repeat clients. Those in the corporate sector also use events as a marketing tool and method of advertising or communicating to the general public as well.<br />V.I.P Entertainment & Events <br />
  27. 27. Industry Forecast<br /> Gone are the days of experimentation and excess and extravagance. Less is now more. The carefully considered, back-to-basics approach to life, living and finances will continue to impact the live events and meetings industry with tighter budgets, resulting in fewer, more strategically relevant, targeted and smaller face-to-face meetings and events, both locally and internationally. As citizens and consumers increase their scrutiny of governments, industry and commerce with demands for responsible choices, equity, and integrity, we will see this reflected in cautious business approaches and increased corporate governance. For this industry, the pitching process is probably only set to become more competitive and convoluted as suppliers are scrutinized more and more thoroughly.<br />-- Biz 2010 Trend Report<br />V.I.P Entertainment & Events <br />
  28. 28. Products and Services<br />We provide event planning in a wide range of applications. We guarantee satisfaction in the areas of appearance, performance, and taste. The following is a sampling of the types of events we plan every year.<br />Live concerts and entertainment industry celebrations<br />Conference and workshops<br />Anniversaries, Award ceremonies, Press announcements<br />Company picnics, banquets, and marketing launches<br />V.I.P Entertainment & Events <br />
  29. 29. Pricing<br />What your event entails is not restricted to what is listed. Our packages and additional items are to give you a general idea of what your party will cost you, then you can customize it to your needs.<br />Due to high demand for our services, there is a minimum budget requirement of $5,000 dollars (however this is not applicable to existing clients.)<br />Event Management fees<br /> Corporate Event Management Fee 10% of Total Event Cost<br /> Live Music and Entertainment Events 15% of Total Event Cost<br /> V.I.P. Event Management Fee 20% of Total Event Cost<br />V.I.P Entertainment & Events <br />
  30. 30. V.I.P Entertainment & Events <br />
  31. 31. Package enhancements -Catering<br />Catering Options<br />V.I.P Entertainment & Events <br />
  32. 32. Package enhancements – Lighting & Sound<br />Catering Options<br />V.I.P Entertainment & Events <br />
  33. 33. Package enhancements – Entertainers/special guests<br />V.I.P Entertainment & Events <br />
  34. 34. Package enhancements – Additional décor and equipment<br />Centerpieces or bouquets $25 - $75<br />Scenic Backdrops or Props P.O.A.<br />Tents $1,000- $10,000<br />Concert Stages $5,000 - $25,000<br />Carnival Rides P.O.A.<br />Theme party equipment<br /> (i.e. Monte Carlo night, Pampering) P.O.A.<br />Firework displays P.O.A.<br /> Please request any equipment needed for rental such as projectors, fountains, popcorns machines etc. Prices usually range from $17-$75.<br />V.I.P Entertainment & Events <br />
  35. 35. Event Staff & Security<br />Event Support Staff $10/hourly<br />Security Stagg $10/hourly<br />Maitre D’ $15/hourly<br />Flair Bartenders $25/hourly<br />Cocktail Mixologists $20/hourly<br />Event Managers $50/hourly<br />Event Technicians $20/hourly<br /> How much security and staff you need would depend on the venue, size of your party, and type of event.<br />V.I.P Entertainment & Events <br />
  36. 36. Market Analysis Summary<br />Individuals, as well as organizations demand the services we provide. In order to provide more complete and accurate information, the market segments have been broken down into private organizations and age groups.<br />Private Organizations and Businesses<br />Private organizations make up the single largest portion of our client base. Private organizations such as businesses, corporations, and the media 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.<br />Age Breakdowns<br />Under 24: Persons under the age of twenty-four using an event planner are rare at best. We hope to tap 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..<br />Ages 25-55: The persons that fall into this age group are employed, middle-to upper-middle-class families. The reason they choose event planners is they are too busy to plan the event themselves. Therefore, we will be available for questions. These events will generate moderate revenues, with a few generating low revenues. The majority of special occasion planning will occur in this market segment.<br />Ages 56 and above: Many people in this age group are retiring, others are celebrating anniversaries of significant years, and still others are seeing to their children's' special events. These events will generate moderate to high revenues depending upon the income level of the family. Most holiday parties and other special occasions, such as anniversaries and reunions, will occur in this market segment.<br />V.I.P Entertainment & Events <br />
  37. 37. 5 Year Market Growth Analysis<br />V.I.P Entertainment & Events <br />
  38. 38. Target Market Strategy<br />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 huge events are too large a constraint to place on people not trained in the area of event planning.<br />The fast pace of the world we live in leaves little time for extra things we would like to do, like planning events, parties, and social get-togethers. We fill the need by being available to take on the burden of planning so that people can spend time on more important things, like family and friends. The demand for this service can only increase.<br />Industry Analysis<br />We are 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 quality and price.<br />V.I.P Entertainment & Events <br />
  39. 39. Strategy and Implementation Summary<br />Marketing and Competition<br />As mentioned, our client base is predominantly middle-to upper middle class individuals, couples, or families, and private organizations. We look at the needs of these markets and cater to them. <br />For individuals, the idea of freeing up their time with a promise of a worry-free event are the buzzwords and concepts. Marketing is by word of mouth and letting the events speak for themselves.<br />For organizations, the idea of greater efficiency for the money, and a professional event without error, would be the key concept. Groups, especially large ones, do not wish deal with problems due to oversight. If the guarantee of worry-free, error-free events is available at a cost benefit to them, there seems to be no other choice.<br />Sales Strategy<br />Sales are to be concluded 1 to 2 days after the end of an event. A follow-up via phone informs them of what to expect in the billing statement sent to them along with forms requesting feedback.<br />V.I.P Entertainment & Events <br />
  40. 40. 3 Year Projected Sales Forecast<br />V.I.P Entertainment & Events <br />
  41. 41. 3 Year Projected Direct Cost of Sales<br />V.I.P Entertainment & Events <br />
  42. 42. Management Summary<br />Organization Structure<br />The management team within V.I.P 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 coordinator; therefore there will be two main employees with various levels of vendors.<br />When V.I.P. reaches its expansion goals, each office will have one to two event planners, an office assistant, two to three site managers for the events, and a product and marketing specialist. This team will function as one with constant communication through weekly staff meetings, e-mail, and message boards. All jobs are interrelated. The performance of one affects the performance of the others; therefore, each team member expects nothing the best from each other. <br />As it functions currently, we see no gaps in the management of this organization. Should V.I.P grow beyond it’s estimated size, more positions in specialized areas will need to be added as well as additional site support and office assistance. To fill these positions, V.I.P is looking for energetic, teachable, detail-oriented persons who want the potential to grow and improve their skills within the organization. V.I.P. wants to be the best, therefore, they will hire those who want to succeed.<br />V.I.P Entertainment & Events <br />
  43. 43. Personnel Plan<br />** This table shows the estimated personnel needs.<br />V.I.P Entertainment & Events <br />
  44. 44. Financial Plan<br />Service-based businesses require little funds to start up and, as they grow and expand, less funds to maintain. The charts and graphs that follow will show that investment up front allows V.I.P to function debt-free with little overhead. This gives V.I.P a quicker break-even point and increased profit margins from the start. As V.I.P grows, the debt-free philosophy will be maintained until it is impossible to function during growth periods without financial assistance.<br />Important Assumptions<br />Tax rates are noted for information. We carry no loan burden that would be affected by these rates. What hits V.I.P the hardest (but not nearly as bad as other service businesses), is the tax rate of 23.5%, which is nearly one quarter of the total sales.<br />V.I.P Entertainment & Events <br />
  45. 45. Key Financial Indicators<br />The break-even point for V.I.P is based on the assumption that we will produce 22 events per month and average approximately $521 per event. Currently, we average more than this assumption for our public and private organization events. These make up 18 of the 22 average events hosted per month.<br />The break-even point will appear more rapidly for V.I.P 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.<br />Break-Even Analysis<br />Monthly Units Break-even 22 <br />Monthly Sales Break-even $11,682 <br />Assumptions:<br />Average Per-Unit Revenue $521 <br />Average Per-Unit Variable Cost $75 <br />Estimated Monthly Fixed Cost $10,000<br />V.I.P Entertainment & Events <br />
  46. 46. Projected Profit & Loss<br />V.I.P Entertainment & Events <br />
  47. 47. Projected Profit & Loss (cont’d)<br />V.I.P Entertainment & Events <br />
  48. 48. Projected Cash Flow<br />V.I.P Entertainment & Events <br />
  49. 49. Projected Balance Sheet<br />V.I.P Entertainment & Events <br />
  50. 50. Projected Balance Sheet (cont’d)<br />V.I.P Entertainment & Events <br />
  51. 51. Start-Up Summary<br />Start-Up Plan<br />Through careful planning on the part of the founders, the start-up costs for V.I.P are 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.<br />It is the wish of the founders to remain a debt-free establishment. However, recognizing that in reality not all variables are controllable, outside financing is a viable option. Both founders own homes and have a perfect credit rating.<br />Start-up Expenses<br />Legal $150 <br />Stationery, etc. $300 <br />Brochures $185 <br />Consultants $75 <br />Insurance $125 <br />Rent $150 <br />Research and development $0 <br />Expensed equipment $1,985 <br />Other $142 <br />Total Start-up Expense$3,112<br />Start-up Assets Needed<br />Cash Requirements $2,300 <br />Start-up Inventory $0 <br />Other Short-term Assets $0 <br />Total Short-term Assets$2,300<br /> Long-term Assets $0 <br /> Total Assets$2,300<br /> Total Start-up Requirements: $5,412 <br /> Left to finance: $0 <br />V.I.P Entertainment & Events <br />
  52. 52. Start-Up Summary (cont’d)<br /> Start-up Funding Plan<br />Investment<br /> Gina Alexander $6,400 <br /> Other $265 <br /> Total investment$6,665<br /> Short-term Liabilities<br /> Unpaid Expenses $0 <br /> Short-term Loans $2,000 <br /> Interest-free Short-term Loans $0 <br /> Subtotal Short-term Liabilities$2,000<br /> Long-term Liabilities $0 Total Liabilities$2,000<br /> Loss at Start-up ($6,365) <br /> Total Capital $300 <br /> Total Capital and Liabilities$2,300<br /> Checkline $0<br />V.I.P Entertainment & Events <br />

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