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Online weddingplanning


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Online weddingplanning

  1. 1. Online Wedding Planning   A Business Plan presented to Dr. Kenneth I. Goldberg of National University In partial fulfillment of the requirements for the degree of Master of Business Administration   By Federico A. Garcia, III June 15, 2002
  2. 2. Topics for presentation <ul><li>Purpose of the business plan </li></ul><ul><li>Description of the Business </li></ul><ul><li>Industry </li></ul><ul><li>Market Research </li></ul><ul><li>Marketing Plan </li></ul><ul><li>Design and Development </li></ul>
  3. 3. Topics for Presentation <ul><li>Operations Plan </li></ul><ul><li>Critical Risks </li></ul><ul><li>Financial Analysis </li></ul><ul><li>Conclusions and Recommendations </li></ul>
  4. 4. Purpose of the Business Plan <ul><li>Own experience in planning a wedding </li></ul><ul><li>Evaluate viability of an online wedding planning business </li></ul><ul><li>Add value to MBA program </li></ul>
  5. 5. Description of the Business <ul><li>Wedding research for planners </li></ul><ul><li>Online booking system for vendors </li></ul><ul><li>Ability to view reception sites </li></ul><ul><li>Wedding planning tools </li></ul><ul><li>Business model </li></ul>
  6. 6. Business Model <ul><li>$40/mo = $480/yr for contact information </li></ul><ul><li>$125/mo = $1500/yr for IPIX technology and access to booking system. </li></ul>
  7. 7. Industry Analysis <ul><li>Wedding Industry + Information Retrieval Systems or Online Content Providers Industry </li></ul><ul><li>Wedding Industry - $70 Billion </li></ul><ul><li>Online Content Providers Industry averages -$432,000/yr. </li></ul>
  8. 8. Dominant Economic Characteristics <ul><li>Market Size </li></ul><ul><li>Number of Companies in the industry </li></ul><ul><li>Customers </li></ul><ul><li>Profitability </li></ul><ul><li>$70B for wedding industry </li></ul><ul><li>Very few large companies </li></ul><ul><li>2.4 million marriages </li></ul><ul><li>For wedding industry it looks great, future prospects uncertain for dot.coms </li></ul>
  9. 9. Market Research <ul><li>Website viewers </li></ul><ul><ul><li>24,000 marriages in San Diego </li></ul></ul><ul><li>Half use Internet to plan wedding </li></ul><ul><li>Over 1300 Wedding related businesses in San Diego </li></ul>
  10. 10. Competition <ul><li>,,, </li></ul>SITES % Of Respondents Visiting 37% 35% 34% 23%
  11. 11. Other Competition <ul><li>Local Competition </li></ul><ul><ul><li>,, </li></ul></ul><ul><li>Substitute Products </li></ul><ul><ul><li>Wedding coordinators and consultants </li></ul></ul>
  12. 12. Competitive Advantages <ul><li>Search capability </li></ul><ul><li>Viewing reception locations </li></ul><ul><li>Online scheduling system for vendors </li></ul>
  13. 13. Marketing Plan <ul><li>Brand-name awareness </li></ul><ul><ul><li>Search engines </li></ul></ul><ul><li>Build membership </li></ul><ul><ul><li>Electronic announcements </li></ul></ul><ul><ul><li>Use of applications (calendar, checklist, guest-list manager) </li></ul></ul><ul><li>Establish Strategic relationships </li></ul><ul><li>Advertising </li></ul>
  14. 14. Design and Development <ul><li>Tasks </li></ul><ul><ul><li>Website development </li></ul></ul><ul><ul><li>Domain registration </li></ul></ul><ul><ul><li>Web hosting services </li></ul></ul><ul><ul><li>Hiring </li></ul></ul><ul><li>Proprietary issues with IPIX </li></ul>
  15. 15. Operations <ul><li>Location – Oceanside </li></ul><ul><li>Strategy and plans </li></ul><ul><ul><li>Organization Building </li></ul></ul><ul><ul><li>Technology Infrastructure </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Development of Site </li></ul></ul>
  16. 16. Critical Risks <ul><li>Business Model </li></ul><ul><li>Technology Issues </li></ul><ul><ul><li>Proprietary Technology </li></ul></ul><ul><ul><li>Lack of Exclusivity </li></ul></ul><ul><li>Online Booking system </li></ul><ul><li>Strong brand loyalty to competitors </li></ul>
  17. 17. Financials <ul><li>Funds Required - $440,000 </li></ul><ul><ul><li>Development Costs </li></ul></ul><ul><ul><li>Operating Expenses </li></ul></ul>
  18. 18.   Year 1 Year 2 Year 3 Year 4 Revenue 234,000 320,000 800,000 1,600,000             Year 1 Year 2 Year 3 Year 4 Net profit -237,580 -178,547 8,106 359,342             Year 1 Year 2 Year 3 Year 4 Equity capital needed 440,000 50,000 0 0 Borrowing anticipated 0 25,000 50,000 -5,000             Year 1 Year 2 Year 3 Year 4 Total debt 2,268 28,102 57,756 10,511 Total equity 202,420 73,873 81,979 441,321
  19. 23. Conclusion <ul><li>It is viable but risky </li></ul><ul><li>Success depends on successful penetration of local market and expansion into other markets </li></ul><ul><li>Recommending do not pursue the venture. </li></ul>