The document proposes establishing an event management company called M.A.D. that will focus on organizing surprise events for individuals. The company aims to target middle to high income individuals by providing high quality, personalized events at an affordable price point. M.A.D. plans to leverage technology and develop long-term customer relationships to establish itself in the growing UK event management industry.

1. NEW BUSINESS PROPOSAL
M.A.D
My Auspicious Day
EVENT MANAGEMENT COMPANY
SUBJECT:- Managerial Skills and
Entrepreneurial Management
By:- Davidson Peetala
Student ID:- L0215KMKM0611
EXECUTIVE SUMMARY :

2. M.A.D( My Auspicious Day) is a event management company .
The MISSION: To provide a unique experience by giving fast and efficient service, by
maintaining the standards to establish growth in the industry.
The VISSION: To be a market leader with main focus on service and then the profits.
The event management industry in UNITED KINGDOM has been growing fast. People
like Ron Dennis (McLaren) own 50% of shares in a medium scale event management
company which proves the potential of the industry. Even though there are well
established event companies, the researcher after working with some of them like Purple
grape, Absolute taste felt there are still areas which are not being focused . As per the
online survey by the researcher the most commonly known events are those which large
groups attend The researchers event group would like to give an opportunity to the
medium to large socio economic group people to think they can also have an event
organized for their beloved ones. The main focus of the researcher is to organize
surprise events(birthday’s, love proposals, anniversaries, get together , reunion) and also
small scale events which are mostly related to small groups. There are better standards
which can be brought into the large scale events, the researcher wants to use the small
scale and surprise events as entry strategies, after being established in the market
would like become a competitor and later be a leader.
Business Potential : The below figures show the potential forecast of events in U.K.
Sector
estimated
value in 2010(£
billions)
estimated
value in 2015(£
billions)
estimated value
in 2020(£
billions)
conferences and meeting 18.8 21.8 25.2
exhibitions and trade
shows 9.3 10.8 12.4
incentive travel 1.2 1.4 1.6
corporate hospitality 1 1.2 1.3
outdoor events 1 1.2 1.3
festival and cultural
events 1.1 1.3 1.4
music events 1.4 1.7 2
sports events 2.3 2.8 3.2

3. TOTAL for dicretionary
events 36.1 42.2 48.4
Source: Britain for events (2011,pp.3)
Strategies for Competitive Advantage: The most of the event companies hire their
employees on contract basis, because of which the employees don’t take up
responsibility, the researcher by giving the employees an opportunity to invest in the
company will get them fully focused and committed towards the development of the
company. The researcher would like to maintain a proper database of all the clients. This
will give the researcher an opportunity to remind the clients if they would like to have an
event organized on their auspicious day. The researcher would also get the different
cloth, fashion brands to sponsor M.A.D by setting a deal of wearing the brands for the
events. Using Up Selling, Cross Selling, and Switch Selling techniques to make sure no
client goes without making a deal. The researcher will also take feedbacks seriously and
use the technology to the best possible extent.
Revenue and Profit forecast: The event companies have some of their own assets and
the rest are taken on a day hire basis. There are good numbers of suppliers to provide
necessary equipment for any functions of the event. Keeping these factors in mind the
researcher will need less capital to start the business and make the break even easily
achievable. From the approximate financial repots stated in this proposal the capital
required for the researcher to start the company will be approximately £ 67,000 pounds.
Looking at the potential of the industry, the researcher would like to get maximum money
invested through his own resources.
As per the approximate sales forecast the researcher estimates to breakeven and run
into profits by the end of first year.
The Team: There will be only three levels in the organization:
C.E.O.
MANAGEMENT TEAM.
CONTRACT AND HIRE BASED EMPLOYEES.
M.A.D will offer good work experience to freshers and students by providing them part
time and full time employment on contract or daily hire basis.

4. For the Investors: By investing 90% in the start up of the company the researcher shows
the confidence in the growth and expansion of the company. Since the risk factors are
very few and the expansion of the industry is unlimited, people will be invited to invest in
the expansion and growth of the company.
Legal structure: Even though the researcher and his family are investing in the company,
an official bond will made which will clearly state the role, rights and ownership duties of
each and every investor .The Legal structure and agreements of the company will be
very clear about what each person’s role in the company is and what their demands can
be with also keeping in mind the safety regulations.
Timing: As the Olympics are approaching most of the event companies are focusing
upon the major deals involved through the Olympics. By doing so many may neglect the
small events during this time. So the researcher would like to take this particular period
to enter into the market and create a brand name for the company.
BUSINESS DESCRIPTION:-
History: Modern western society tends to create events which celebrate individual
milestones, anniversaries and achievements” When looked into the modern society,
each and every reason to celebrate can be turned into an event. The event management
industry is a multi billion industry with so many chances to succeed. When looked into
the modern economy, finding a business which can do well without being much effected
by the economy, a event organizing company is one. The financial reports of the
companies like dalewarenorth and compass group which are some of the major event
companies show the evidence that the event management companies are doing well.
The fact that the boss of McLaren Mr. Ronald Dennis holds fifty percent shares of a
medium sized event company ABOSOLUTE TASTE does prove the potential of the
event management industry. As per the Britainforevents.com (2011) the estimated
business for the events in Britain are worth £ 36 billion and in a recent report submitted
by All Party Parliamentary Group for Events (APPG) suggest how the events can boost
the economy of Britain.
Suppliers: In general, the significant growth of the event industry had resulted in wide
range of specialist suppliers. They may work in direct event related function areas like
lighting, sound production staging, entertainment and catering or associated areas like
transport, legal and security services. This view has been supported by the work of
Bowdin ,et al. (2011). Since the industry is a well known and has enough and easy
resource requirements it will be easy to find good suppliers with less bargain power.
Ownership and Agreement: With the potential and opportunity event industry offers and
with 3 years of experience in the hospitality industry and event management companies
like Purple Grape and Absolute Taste, the researcher has got an internal view of the

5. industry perhaps would like to invest 40% of the total company’s share and 40% will be
supported by the family members of the researcher . The rest of the 20% will be left open
for the employees to invest.
Legal considerations: The legal aspects do include the health and safety regulations,
rights and limitations of the employees and the company registration through companies
house. The other factors to be considered will the legal agreement specifying the roles of
each family member in the company.
BUSINESS OPPORTUNITY:-
As per raj .et al(2009) ‘Event management is the capability and control of the process of
purpose, people and place’. Some of the commonly know events are :
1. Charity events.
2. Festival events.
3. Music concerts.
4. Cultural events.
5. Religious events.
6. Personal and private events.
As per the online survey from surveymonkey.com (2011), the researcher found that
music concerts and festival events are most visited and 92% would like to surprise their
beloved ones, but none did mention they ever attended any surprise events.
Potential customers: The researcher would like to mainly target the middle socio
economic groups and above. Event management companies like Purple Grape,
Absolute taste and compass group which are established in the market, they target the
audience by highlighting the commonly known events. The researcher’s company would
like to target the customers by highlighting the concept of surprising a person on their
auspicious day. The researchers company will give the opportunity to each and everyone
who loves to organize an event but backs off assuming it would cost really high.
Geographical area: The per recent reports submitted by the parliamentary group for
events the estimated value of the event industry in 2010 is 36.1 billion pounds and is
expected to reach 42.2 billion by 2015 which shows the promise which event industry
carries. The concept of events will not require a good looking office in the most costly

6. areas of United Kingdom so the researcher will have his office set up in the outskirts of
London which can cover both London and county’s around London.
Competitors: ‘Competitors are people who are intent on driving you out of business’
Finch (2010, pp.35)
Competitors can be categorized into two types
1. Existing competitors: To provide an event to organize surprise party’s will not be a
big issue for the companies who had been in the market for some time. The
companies like JLC, Delawarenorth and absolute taste have their brand well
established in the market
But also at the same time this could also be an advantage for the
researcher, since the companies are well established they may not really have to
worry about the researcher since he is targeting specific events, which will be an
advantage for the researcher to establish his brand in the market.
2. New entrants: There are small companies in the recent past who are offering this
service.
The researcher had been working in the industry from the last 3
years which will give an extra advantage to withstand the competition.
MARKETING STRATEGIES:
The researcher keeping in mind the different product life cycles will plan accordingly to
provide a good marketing strategy .
Using Porter’s model of industry evolution and product life cycle , the marketing
strategies can be planned for the company. Porter’s model distinguishes three broad
stages in the evolution of the market, such as :
1. Emerging industry
The two main issues are the uncertainty of the buyers who will be uncertain about
the success of the product and Second will be the uncertainty among the sellers
about the demand levels, customer needs and technological developments.
2. Transition to maturity
This phase talks about the falling industry profits, slowdown in growth less product
innovation.
3. Decline
The decline will be the stage which will be result of competition from substitutes
and also changing customer needs.
This had been supported by the work of Lancaster and Massingham (2011, pp.457,458).

7. The other theory which is close to this is the Product life cycle theory ‘All products and
services entering the market have beginning, middle and near but not necessarily final
end’ Gabay(2011, pp.10).
Keeping these methods and theories in consideration a proper planned strategy will
prove to be very important for each and every stage of a service or product.
Pricing and costing : The pricing strategies are used to improve the long run and short
run profits ,expand the market share, discourage new entrants and also to improve the
sales of the weaker products and services. This view had been supported by Lancaster
and Massingham (2011, pp.162). Since it is a new company the researcher would like
to concentrate on getting his brand name establishes in the market and also consider the
startup expenses . So the profit margin will be less initially. Depending on the demand
the researchers company would like to be flexible on charges and price rates. Using
the penetration pricing strategy the pricing and costing will be calculated for the
company.
Sales projection: Considering the facts of from the annual report submitted by the Britain
for events on estimated revenue from the events in UK, it is evident that each sector of
events are doing well and are generating huge revenues. Keeping this in mind and
anticipating the sales for the first three years of the researchers company an report has
been made on approximate assumptions.

8. The estimated sales forecast for the next three years of the company.
SALES FORCAST FOR THE M.A.D COMPANY
Sales Forecaste (3 years)
M.A.D. event management
year 1 year 2 year 3
Estimated events per year 180 280 360
Estimated revenue per event £ 800 £ 1000 £1300
Estimated people served per
event 20 20 20
total revenue £ 144,000 £ 280,000
£
468000
Further using Break event point analysis will help us to understand the understand where
the total revenue matches the total cost which will be neither loss nor profit. This view
has been supported by Lancaster and Massingham (2011, pp.171). The break even
point can be calculated from the following information
Selling price per event — variable cost per unit = contribution per unit.
Total fixed costs
Break even quantity = unit contribution
Marketing plan: The overall marketing plan of the researcher is to enter the event
management industry by utilizing the feasible penetration areas. The event industry had
been showing growth in the recent past, and to enter the industry to establish the
researcher opted to chose the brand creation technique by targeting groups which are
middle socio-economical. Keeping in mind the internal marketing the researcher has
involved its top employees to invest in the company which will give them an extra reason
to work towards the success of company. The researcher will also consider the evolving
market concept. The concepts of marketing based on developing and maintaining long
term relations with the customers will be referred to as relationship marketing. This
concept has been supported by Lancaster and Massingham (2011, pp.29). The
researcher believes in the concept of word of mouth marketing. By providing a good
service and creating a good impression the company can grow faster and easily create a
brand name for itself. Understanding the buyers behavior through the Focus group

9. research will help what is being expected by the customers and also for the strategic
marketing.
BUSINESS OPERATIONS: The researcher would like to provide people a better service
with cost effectiveness and competitive service to survive in the market. Using the supply
chain management effectively the objective of the researcher can be achieved. Turning
the idea of a customer into a reality does need a good skills. Starting the initial planning
of what has to be done till actually executing the plan will need good efforts and thinks.
The main objectives to be covered on planning a event are :
1. Organizing a suitable venue according to the guest likes.
2. Getting the necessary equipment to organize the event.
3. Getting the employees booked to work for the event.
4. Having a step by step approach towards the entire event.
5. Understanding the customers attending the event .
In this process using the supply chain management techniques of a very well planned
approach from the start till the end will help the researcher provide a good service to
the customers.
Operating cycle : The important aspects which the researcher uses in operating plan are
setting the targets to achieve, budgets to be met and also fulfill the mission and vision of
the company .The operating cycle can also be considered as working capital
management. Working capital management for a event management company will be

10. very important since there will be good amount suppliers and the cash flow will be very
constant having a good working capital procedure will help the M.A.D to understand its
current position which will give the researcher an opportunity to plan the monthly budgets
and also improve his financial status.
Services offered: The services offered by the researcher initially will be the events which
a person can organize on providing a surprise to a person on their auspicious day and
using this penetration strategy to enter into the event management field . Once the
M.A.D creates a name for itself in the market the researcher would like to move further
and expand the company by providing all other events with the concept of providing fast
service at the same time maintaining good standards and also by being very flexible.
Personnel: There will be only three level in the organization.
ORGANISATIONAL CHART
The researcher wants to make sure that each and every employee of the company is
felt important and takes the ownership of the company. By just putting in three levels in
the company it becomes easy for the researcher to know the potential of the employees

11. and also get them motivated. To specify the third level will the employees who will be
looking for part time employment, since the event management business is un
predictable the researcher chose to have mostly part time employees. The students in
U.K. these are eager to do part time jobs and grab some good experience. By providing
them an opportunity to come up with ideas which will improve the researcher will try to
make them feel they are important to the company. The researcher will also provide
training sessions for these employees which will help them develop themselves also at
the same time understand the standards of the company.
TECHNOLOGY: Usage of the technology is vital in any industry. Choosing the right
equipment which can be used is an important aspect in event management industry. The
most commonly used systems to enter and create the planning and execution of events
in these days are the most advanced computers, but the researcher would like to use
MICROS operating system apart from the computers. Using MICROS will provide you
an easy and simple access to you sales and inventory. It is a quick day end report which
can give all the detailed explanations of each and every object sold , used and the
revenue produced. The latest technology which is been very widely used these days is
“could”. Usage of “cloud” in event industry can benefit a lot by providing :
1. Cost: the capital expenditure can be converted into operational expenditure as a
result reducing the cost.
2. Local independence: The systems can be accessed using web browser
irrespective of the device they use.
3. Peak load capacity: The peaks in demand can be easily managed using cloud.
4. Reliability : The reliability will be improved .
5. Maintenance: The cloud computing cannot be installed in user’s computer which
will allow the provider to support and upgrade the software. This view has been
supported by Parry(eventindustrynews,2008).
FINANCES: The entrepreneur starting from scratch should always try to put money from
his own resources. Since it can bring in the confidence in the investors and also gives
the researcher an opportunity to prove that his idea was good. The entrepreneur can
also move from the phase of idea to reality which will help him further to develop and
enhance his business plan. Making a good financial statements perhaps will be
important. This view has been supported by Siciliana (2003, pp.194,195)
Startup expenses
equipment needed to run the events £ 10,000

12. consulting services £ 10,000
promotion and advertising £ 8,000
personal expenses £ 10,000
Legal and agreements £ 3,000
technological support system £ 6,000
Capital expenditure £ 20,000
Total £ 67,000
PROFIT AND LOSS ACCOUNT
YEAR 1 YEAR 2 YEAR3
revenue ( sales)
events £ 144,000 £ 280,000 £ 468,000
brand sponsors — £ 25,000 £ 30,000
Total revenue(sales) £ 144,000 £ 305,000 £ 498,000
Operating Expenses
equipment to run the event £ 10,000 £ 35,000 —
Personal £ 10,000 £ 30,000 £ 50,000
Technological support system £ 6,000 £ 12,000 £ 10,000
Legal and agreements £ 3,000 — —

13. capital expenditure £ 20,000 £ 20,000 £ 20,000
consulting services £ 10,000 £ 20,000 £ 30,000
promoting and advertising £ 8,000 £ 15,000 £ 20,000
Total Operating Expenses £ 67,000 £ 132,000 £ 130,000
Profit Before Tax £ 77,000 £ 173,000 £ 368,000
taxes(10%) £ 7,700 £ 17,300 £ 36,800
Net profit £ 69,300 £155,700 £ 331,200
Cash flow for M.A.D.
year 1 year2 year3
Cash received
Cash from operrations
£
144,000
£
280,000
£
468,000
Cash from sponsors — £ 25,000 £ 30,000
subtotal cash from
operations
£
144,000
£
305,000
£
498,000
Aditional cash received
investment of employees £ 6,700 — —
New long term liabilitites — — —
Sales of other current
assets — — —
New investment — — —
sales of longterm assests — — —
New other liabilities — — —
subtotal cash received
£
150,700
£
305,000
£
498,000

14. Ependitures
Personnel £ 10,000 £ 30,000 £ 50,000
Consulting services £ 10,000 £ 20,000 £ 30,000
Advertising £ 8,000 £ 15,000 £ 20,000
Technology support system £ 6,000 £ 12,000 £ 10,000
Legal and agreements £ 3,000 — —
capital expenditure £ 20,000 £ 20,000 £ 20,000
equipment to run the event £ 10,000 £ 35,000 —
subtotal spent on
expenditures £ 67,000
£
132,000
£
130,000
Additional cash spent
Taxes £ 7,700 £ 17,300 £ 36,800
dividends — — —
Long term liabilities principal
repayment — — —
purchase of extra assets — — —
subtotal £ 74,700
£
149,000
£
166,800
Net cash flow £ 69,300
£
156,000
£
331,200
Cash balance
REFERENCES:

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December]
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December]
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