BUSINESS PLAN

Elegant (Event &Wedding Planners)

Submitted To:

Sir Zeeshan shaukat chudhary

Submitted By:

Name Roll No

Tehreem Gull 125

Saima Noor 130

Naima Rauf 134

Masooma Naqvi 137

Madiha Riaz Bhatti 139

Nida Kazmi 162

Section

“B” (Morning)

HAILEY COLLEGE OF COMMERCE

University of Punjab

Submission Date: 16/05/2011

BUSINESS PROCESS MODEL

A Business Process Model (BPM) is commonly representing a sequence of activities. It typically shows events, actions and links or connection points, in the sequence from end to end.

Sequence is significant and essential to most aspects of business process modeling, but there are exceptions to this especially at the higher level of organizational operations.

EVENT MANAGEMENT AND WEDDING PLANNING

Introduction

We are going to start a business that will allow soon-to-be-wed couples to easily research and book any wedding vendor that they will need from one website without having to search through hundreds of different websites. The company will allow vendors to set available dates and time in an online booking system that websites viewers will be able to search. Website viewers will also be able to view possible reception sites using the latest technology. The purpose of this business plan is to evaluate the viability of an online wedding planning business. If it is viable, an entrepreneur will be able to use the plan to obtain venture funding for the business.

Customer Value Proposition

Adding value for customers, whether internal or external customers, is at the centre of a Business Process Model. It starts with a customer need and ends with the satisfaction of that need.

Welcome to the future of event planning! Elegant, The Event Planning Specialists, brings to the community a fresh air in the event planning market. By combining old-fashioned values, going the extra mile, and using cutting-edge event-planning software, Elegant will lead the market, providing the same quality results, every time.

Elegant is an equal opportunity business making its expertise and its products available to help its customers plan their own events? Party Packs (complete kits for their event), make hosting a party a snap, right down to the refreshments. The event planning software brings interactive event planning as close as their personal computer. Through these and other affordable products and services, Elegant aims to be the number one resource for any event.

Party Pack

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.

Step-By-Step Guides

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 receptions.

Event Planning Software

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.

Resources Manual

A valuable guide acts as a review for all the resources located in the surrounding area. 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.

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:

Consistent, accurate fulfillment of the client's wishes.

Competitive pricing for the quality of services offered.

Significant profit made on each event planned.

Provide value to the customers.

No compromise over quality.

Revenue Model For Wedding Planner And Event Management

Sales Revenue

Our business of wedding planner and event management earns major part of revenue i.e. 70% by providing our products and services to customers according to their desires and expectations as its major and special event of any one’s life .Our products and services in includes:

Day and night events and weddings

The Planning and coordination with the customers as well as with own team

Mehendi

The Venue (halls and lawns)

Stages

The Décor

Photography

Videography

Air conditioning

Transport and car hires

Generators

DJ music generates high profits

Fashion designers for dresses

Jewellery designers

Invitation cards

Menu for Events and Weddings Ceremonies

We also provide menu for all events and wedding ceremonies

Soup

Salad

B.B.Q

Chicken

Mutton

Chinese

Deserts

Beverages

Noodles

Fish and a lot more

Advertising

The business model shows our business generating revenues from advertising fees from all different types of event and wedding vendors. We earn advertising revenue by giving advertisements of

Caterers

Photographers

Transporters

Jewellery designers

Dress designers

Musicians etc.

Affiliate

Affiliate revenue model is actually commission based .In our business we display the products and services offered by caterers, photographers, dress designer, fashion designers on our website. In this way we earn revenue in these three ways.

Per-Click Programs

This per click affiliate revenue program leads to payment of predetermined amount of revenue for each click as a revenue. It can be generated by clicks from visitors of website or subscribers or can also by both visitors as well as website in our business this revenue is generated by click of website visitors. Per click amount generated in our business is 1 to 25 PKR. But the revenue generated is lower than other programs of this type as click through revenue is easier to make.

Per-Sale Programs

It is the second method of affiliate revenue through we are generating revenue in our business. It is simply referred to “commission”. We receive some percentage commission on sales (i.e. dress designers , makeup artists etc.) originated from our websites .this percentage ranges from 5% to 15% but in our business this percentage is 20 % to 25%.as sales are hard to generate then click through so payment or compensation is higher.

Market Opportunity (What market space do you intend to serve, and its size?)

The breakdown of the market for event planning falls in a 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.

Private Organizations and Businesses

Private organizations make up the single largest portion of Elegant' 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.

Public Organizations

Government agencies host many events every year. Elegant 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 this segment.

Age Breakdowns

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. The majority of weddings will fall into this segment.

The persons that fall into the age group 25-55 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, Elegant 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.

Many people in this age group 56 and above 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 (direct correlation to social status). Most holiday parties and other special elegant, such as wedding receptions and reunions, will occur in this market segment.

Other

This segment has no direct information to compile for a description. It consists of any event planned that does not fit into one of the above categories.

Potential Customers Growth 2009201

02011 2012 2013 CAGR

Under 24 3% 18 19 20 21 22 5.14%

Age 25 to 55 15% 33 38 44 51 59 15.63%

Age 56 and over 9% 31 34 37 40 44 9.15%

Private Organizations 60% 40 64 102 163 261 59.83%

Public Organizations 30% 62 81 105 137 178 30.17%

Other 10% 5 6 7 8 9 15.83%

Total 31.95% 189 242 315 420 573 31.95%

Competitive Environment

There are numerous competitors in the business of wedding planning and event management. As elegant is a pure click to click business most of its competitors are indirect conducting click to brick business .They have both a proper website for customer information and order placement as well as a proper outlet in different cities of Pakistan .

They are providing there we blink brands, display Ad, profile, E-cards, details and email online.

Most of their services include:

Corporate Events

Wedding Decoration

Walkways and Entrance

Bridal Stage Decoration

Designers Backdrops

Flower Arrangements (Local/Imported)

Thematic Décor

Head Table Décor

Wedding Cake Presentation

Mehndi Décor (Ethnic/Western)

Other Mehndi Facilities

DJ, Sound Systems, Multimedia and Dance Floor

Bid Packing

Java Presentation

Designers Mehndi Thals

Bridal Room Decoration

Menu Designing and Menu Planning (as Per Budget)

Milads

Seating Plans (Farshi Seating’s Lounges etc)

Dress Designing and Makeup Recommendation

Give Aways

Birthdays

Hotel Bookings

Major Competitors

Main competitors are as follows

Harmann’s Events

45-D-1, MM Alam Road, Gulberg III, Lahore, Pakistan

Harmann Events is widely recognized as a wholesome, complete events solutions factory. It’s a team of young, creative, enthusiastic and dynamic professionals with a sparkling stream of ideas having vast experience in the field of Events & Entertainments. Their expertise covers all the aspects of events including Planning, Management & Coordination and Execution. They deliver cost effective events without compromising on the final output.

Event Décor

56/5 Chawinda Lane, Cant GPO, Lahore Cantt

Mrs Naureen Waqar is one of the most reputed and respected name in the field of event management and her company CDA[Creative Designer Absolute] excels in creating extremely exciting ideas into reality for all her prestigious clients. Making your event a real memorable one I always strive to be innovative n creative and for this ongoing process of improvement I am always very vigilant and fully involved in the project.

Aura Events By Sheema

St 15 House 17 A Cavalry Ground Extension Lahore Cantt, Pakistan

Aura Events by Sheema is an established and specialist event décors and is one of the oldest in the field. Believe in giving our clients a free hand, enabling them to breathe their individuality, creativity and innovation into their event. They therefore, work with our clients, unique ideas and create on Aura of originality, imagination and enchantment, fulfilling their dream of a once-in-a –lifetime fairytale wedding.

Event Management Company

163-Garden Block, Garden Town, Lahore

There Business Philosophy: Committed to give best event management services at competitive price, they listen, strategize and then implement our planning of various events to exceed our clients' expectations.

S.G Events & Eastern Caterers

Office No 4, 2nd Floor, Lahore Centre, Main Boulevard, Gulberg, Lahore, Pakistan

SG Events – Official Event Management Company for Sania & Shoiab Walima ceremony dated 27th April 2010.

The Palm (Clifton)

Comm-5, Block-4, Opp. Beach Park, Clifton Karachi

The Tradition of Celebration Facing the fresh and breathtaking Clifton Beach seashore, lays a cluster of eye-catching, pollution free marriage lawn& picturesque background.

Royale Wedding & Event Planners

Office#3, 1st Floor, Fazal Arcade ( Lords Center), F-11 Markaz, Islamabad

On perhaps one of the biggest days of your life, why leave anything to chance? There team of Weddings Planners and weddings coordinators will take care of all the details, such as the wedding decoration, Catering, Food and drinks, music, photographer / videographer, Venue selection and booking, wedding dresses, wedding gifts, etc.

Zoreed Raza - La Celebrators

Zoreed Raza - La Celebrators & Hakim Sons come together to provide you with great Wedding packages. Hakim Sons is an international recognized brand in Photography & Studio Work and now combined with La Celebrators experience in the Wedding field, they will provide the customers with the best of both worlds, fulfilling their desires for the perfect event.

Another Indirect Competitor

PakWeddingServices.com

This Web Site is for those who are living in Pakistan or abroad and are looking for service providers to make the wedding a success with minimum effort. We have captured most of the service providers available in Pakistan to make your wedding a success.

If you are looking for any wedding related service, we are here to connect you to the BEST Pakistan Based Wedding Businesses.

The Best Wedding Services Resources in Pakistan, Starting from Wedding Planners to Complete Range of Pakistani Wedding Services.

Competitive Advantage

The products and services of elegant event organizer are same as that of its competitors but the

advantage lies in

Cost Reduction

without compromising on quality

Being a new company we are charging penetration prices in order to attract the

customers.

Customers will get the quality products on relatively lower prices.

Online Chat Forum

Our website along with gallery and details of product and services provides an online

chat forum,

Where the customers can exchange their ideas with our experts and get their

opinions.

24 hr chat service will enable the customer to feel more understood by the company

from which he is going to get services.

Personalization

Our company treats every individual customer important and design all its services

and products solely

According to the needs and dreams of the customer.

Strategy & Implementation

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 their time for family and friends, and the promise of a worry-free event are the buzzwords and concepts. Our marketing is predominantly by word of mouth or visual connection to large events these individuals have participated in or worked at.

When marketing to public or private 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 to deal with problems that arise due to oversight on their part. If the guarantee of worry-free, error-free events is available at a cost benefit to them, there really appears to be no better choice.

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 huge events are too large a constraint to place on people not trained in the area of event planning. 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.

Elegant fills 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, considering the rise in incomes, population, and need for interpersonal relations in the workplace.

Sales Strategy

Elegant deals with a diverse market of clients. Within each market segment, closing of sales will differ.

Organizational Structure

The management team within Elegant 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.

When Elegant 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 but the best from each other.

As it functions currently, we see no gap in the management of this organization. We need more positions in specialized areas will need to be added as well as additional site support and office assistance. To fill these positions, Elegant is looking for energetic, teachable, detail-oriented persons who want the potential to grow and improve their skills within the organization. Elegant wants to be the best therefore; we will hire those who want to succeed.

Management

Management of our company is very experienced and dedicated. We have divided our management in three different levels: first-level management, middle-level management, and top-level management. These levels of management are classified in a hierarchy of importance and authority, and are also arranged by the different types of management tasks that each role does. Each management level knows the specifications of their different responsibilities and likely job title.

First-level management is mainly responsible for controlling and overseeing all the departments in the organization

Middle-Level Management is responsible to the top management for the functioning of their department. It define and discuss information and policies from top management to lower management, and most importantly it inspire and provide guidance to lower level managers towards better performance..

First level management of our company focuses more on the controlling and direction of management functions. For instance, they assign tasks and jobs to employees

Key Management Personnel

Top-level managers play a significant role in the mobilization of an organization that’s why we have hired experienced and qualified personnel such as:

Chairman and Managing Director of our co. is a Post Graduate in Commerce and brings with him 17 years of experience in sales management, financial management, strategic marketing, e-business and general management in the IT and finance sectors.

He provides executive guidance to all activities and operations on behalf of its shareholders. He has a successful track record of starting new and innovative operations and built winning management teams while helping raise much needed capital

During his 19-year career, Chief Sales Officer has spent nearly 15 of these years in technology consulting, and another 4 as part of the IS management team

Director is a Graduate in Commerce and a Post Graduate in Business Administration. He has more than 18 years experience in marketing and overall business development and has experience in reputed companies. He is in-charge of business development and administrative matters

Company Secretary is a Graduate in Statistics and holds a Bachelors Degree in General Law. He brings with him about 40 years of experience in Corporate Laws, Secretarial, Legal and Administrative functions in multinational organizations

Break-Even Analysis

Amount in Rs

Monthly Units Break-even 22

Monthly Sales Break-even 11,682

Assumptions:

Average Per-Unit Revenue 521

Average Per-Unit Variable Cost 75

Estimated Monthly Fixed Cost 10,000

Leading the industry in event planning requires the use of the resources available at the lowest cost. As noted in the table, we spend less money on overhead than other event planners with an outside office or office space in their own facility. This savings allows us to market in creative ways and spend funds on expansion into other areas, when the time is right.

Projected Profit and Loss

Amount in Rs

2011 2012 2013

Sales 343,149 494,670 554,779

Direct Cost of Sales 654 727 890Other 196 203 221

Total Cost of Sales 850 930 1,111Gross Margin 352,299 493,740 553,668

Gross Margin % 99.76% 99.81% 99.80%Operating expenses:

Advertising/Promotion 1,800 2,200 2,600Travel 1,200 1,500 1,650

Miscellaneous 1,980 2,000 1,869Payroll Expense 56,044 63,310 66,560Payroll Burden 6,725 7,597 7,987Depreciation 110 102 96

Leased Equipment 0 0 0Utilities 516 0 0

Insurance 258 0 0Rent 1,440 0 0

Contract/Consultants 141,033 0 0Total Operating Expenses 211,106 76,709 80,762

Profit Before Interest and Taxes 141,193 417,031 472,906Interest Expense Short-term 235 334 430Interest Expense Long-term 0 0 0

Taxes Incurred 33,125 97,924 111,032Net Profit 107,833 318,773 361,444

Net Profit/Sales 30.53% 64.44% 65.15%

Projected Balance Sheet

Amounts in Rs

Assets

Short-term Assets 2011 2012 2013

Cash 118,622 436,595 810,994Accounts Receivable 25,533 35,765 40,111

Inventory 137 150 179

Other Short-term Assets 0 0 0Total Short-term Assets 144,292 472,510 851,284

Long-term Assets

Capital Assets 0 0 0

Accumulated Depreciation 110 212 308Total Long-term Assets (110) (212) (308)

Total Assets 144,182 472,298 850,976

Liabilities and CapitalAccounts Payable 15,249 8,761 9,916

Short-term Notes 3,200 4,280 5,360

Other Short-term Liabilities 0 0 0Subtotal Short-term Liabilities 18,449 13,041 15,276

Long-term Liabilities 0 0 0

Total Liabilities 18,449 13,041 15,276

2011 2012 2013Paid in Capital 24,265 39,015 54,015

Retained Earnings (6,365) 101,468 420,241Earnings 107,833 318,773 361,444Total Capital 125,733 459,256 835,700Total Liabilities and Capital 144,182 472,298 850,976Net Worth 125,733 459,256 835,700

SWOT Analysis

Strength

Dedicated and experienced management

On-site facilities and equipment

Supporting staff

Good customer service

Able to internalize costs of equipment

Strong financial position

Weakness

Overdependence on Clients

Specialized are main focused rather than all events

Do not have the supporting products to market

Often very expensive

Impersonal

Reputation precedes them

Rely on unskilled labor for support staff

Opportunities

Vast market to serve

Diverse grouping

Larger revenues per event

Healthy environment

Threats

Competitors have established a reputation and client base

The error is high

Untrendy

Difficult to serve the different markets segments

Difficult to produce consistent results

Consumers are price sensitive