FUNDING

It is the wish of the owners to remain a debt-free establishment. However, recognizing that in reality not
all variables are controllable, outside financing is a viable option. If fund needed in near future Friends
event management will choice this option to finance their activities.

Through careful planning on the part of the owners, the start-up costs for AEP are minimal. The start-up
cost investment funds were provided by each of owners to establish this business.

Estimated Investment Required = 10 million

Owner’s Investment 8 Million

Investment Required 2 Million

FUNDING

Owners’ Funding Name Amount (Rs)

Owner 1 Nisar Ahmed 1.5 Million

Owner 2 Minael Junijo 1.5 Million

Owner 3 Jaten Kumar 1.25 Million

Owner 4 Iqra Farooq 1.25 Million

Owner 5 Sanjina Rani 1.25 Million

Owner 6 Afifa Zafar 1.25 Million

Total 8 Million
INVESTMENT

Investor Investment

Investor 1 1 Million

Investor 2 1 Million

Total 2 Million

STARTUP EXPENSES AND CAPITALIZATION

Investing is to trace costs on the balance sheet for the principle of delaying the complete identification
of cost. However, it is useful to take benefit of the huge scale of costs as acquiring new assets in our AEP
company over the long term can increase costs. In this process, all needs are measured by the size of the
company.
Startup Cost & Capitalization

Description Amount Rs.

Capital Cost

Office Renovation Cost 400,000

Office Equipment, Furniture, & Fixtures 300,000

Decoration Items 100,000

Office Vehicle 2,000,000

Security Deposit (3-month Advance Rent) 150,000

Pre-operating Cost 100,000

Website and App Cost 650,000

Marketing 2,000,000

Total Capital Cost 5,700,000

Office Equipment Cost

Description Quantity Unit Cost (Rs.) Total Cost (Rs.)

Laptop 4 70,000 280,000

Printer 2 13,000 26,000

Tables 2 7,000 14,000

Chairs 12 2,500 30,000

Sofa Set 1 17,000 17,000

Split AC 2 45,000 90,000

UPS System 1 32,000 32,000

Internet Device 1 6,000 6,000

Others 5000 5000

Total 500,000

BUDGET OF DECORATION ITEMS AND ALL CUTLERIES

Description Quantity Unit Cost Total Cost (Rs.)

(Rs.)

Chairs 600 1,200 720,000

Chair Covers 600 250 150,000

Sofas (2 seaters) 200 3,290 658,000

Round Glass Tables 60 5,000 300,000

Buffet Table 12 8,000 96,000

Table Covers 70 400 28,000

Stage equipment 12 5500 66,000

Sofa Set 12 9,500 114,000

Carpet 12 2,500 30,000

Crockery budget 500 2000 1000000

Cooler 12 1,500 18,000

Decoration Accessories 1000 120 120,000

Total 3,300,000
FINANCIAL PLAN

Income Statements

Income Statements YEAR 2021

Revenue/ Net Sales 5720000

Variable Cost 400000

Staff Salaries 500000

Utilities 650000

Gross Profit 4170000

General and Administrative Exp

Rent Exp 600000

Promotional Exp 450000

Internet Exp 50000

Amortization Exp 540000

Depreciation Exp 600000

Total 2240000

Operating Income 1930000

Earnings Before Taxes 1930000

Tax 8% 154400

Net income 1775600

Income Statements YEAR 2022

Revenue/ Net Sales 8000000

Variable Cost 480000

Staff Salaries 600000

Utilities 700000

Gross Profit 6220000

General and Administrative Exp

Rent Exp 720000

Promotional Exp 500000

Internet Exp 60000

Amortization Exp 600000

Depreciation Exp 620000

Total 2500000

Operating Income 3720000

Earnings Before Taxes 3720000

Tax 8% 297600

Net Income 3422400

Income Statements YEAR 2023

Revenue/ Net Sales 11500000

Variable Cost 550000

Staff Salaries 650000

Utilities 800000
Gross Profit 9500000

General and Administrative Exp

Rent Exp 840000

Promotional Exp 600000

Internet Exp 70000

Amortization Exp 720000

Depreciation Exp 700000

Total 2930000

Operating Income 6570000

Earnings Before Taxes 6570000

Tax 8% 525600

Net Income 6044400

Cash Flow

Alpha Event Planners

Cash Flow Statement

Year 01 Year 02 Year 03

Operating Expenses

Revenue 5720000 8000000 11500000

Less: Value Added cost (Branding) 572000 800000 1150000

Other Expenses 1100000 1320000 100000

Salaries 500000 600000 650000

Rent 600000 720000 840000

Investing Activities 920000 880000 920000

Utilities 650000 700000 800000

Advertising 200000 100000 30000

Internet Expense 50000 60000 70000

Miscellaneous expenses20000 20000 20000

Profit 3128000 5000000 9330000

Annual Balance Sheet

Alpha Event Planners

Annual Balance Sheets

PARTICULARS

Year 00 Year 1 Year 2 Year 03

Amount Amount Amount Amount

Current Assets

Cash 5720000 8000000 11500000

Account Receivables

Office Supplies 1000000 1000000 1000000 1000000

Prepaid rent (3 Months)150000 150000 160000 170000

Fixed Assets

Vehicles 2000000 2000000 2000000 2000000

Office Equipment 300000 300000 300000 300000

Cupboard 15000 15000 15000 15000

Air conditioner 90000 90000 90000 90000

Laptops280000 280000 280000 280000

Ups 32000 32000 32000 32000

Total Assets 3867000 9587000 11877000 15387000

Liability and Owners Equity

CURRENT LIABILITIES 0 0 0

Accounts Payable 0 0 0

Owners’ Equity

Nisar Ahmed 1500000 1500000 1500000 1500000

Minael Junijo 1500000 1500000 1500000 1500000

Jaten Kumar 1250000 1250000 1250000 1250000

Iqra Farooq 1250000 1250000 1250000 1250000

Afifa Zafar 1250000 1250000 1250000 1250000

Sanjina Rani 1250000 1250000 1250000 1250000

Investor 1 1000000 1000000 1000000 1000000

Investor 2 1000000 1000000 1000000 1000000

Retained Earnings (last Year)

Retained Earnings (This Year) 0 (413000) 1877000 5387000

TOTAL LIABILITIES AND PARTNERS EQUITY 3867000 9587000 11877000

15387000
Cash Budget

Alpha Event Planners

Cash Budget

Year 01 Year 02 Year 03

Beginning Year Cash 5720000 8000000 11500000

Increase/ Decrease in Year -413000 1877000 5387000

Ending Year Cash 5307000 9877000 16887000

Cash Budget

PARTICULARS

Year 00

Amount

Current Assets
Cash 10000000

Account Receivables 0

Office Supplies 1000000

Prepaid rent (3 Months)150000

Fixed Assets

Vehicles 2000000

Office chairs/tables 300000

Cupboard 15000

Air conditioner 90000

Laptops280000

Ups 32000

Depreciation 0

Total Assets 13867000

REFINING THE PLAN

Major Concerns

Problems and Issues

Our business may have to bear up with the following issues when starting:

Budget issues:

There are high chances that the actual budget of the event and the budget allocated for the event will
not match. That is the biggest challenge we can face and it is the most difficult to communicate through
just the mobile application.

Low contribution from Investors:

Investor may not be as open-handed with their money on our next event as they were on the last one.
This is because with improving technology and updated fashion the cost of catering different events will
increase from event to event.

Technological advancements:

Technological changes are a fact and with our application we will have to ensure that we keep updating
are application on a regular basis and if we don’t our customers may shift to other competitors. This
improved technology will add to costs but it is very important for us to keep up with it.

Security issues:

The problem here is twofold. Firstly, it is difficult to predict and understand the level of security that is
needed for each event. Secondly, red-alert level security is not feasible for every event that contributes
to the other element of the security issue budget. Higher-level security will require high costs for us.

Risk and Obstacles

Application crash:

If at any time during the process of booking different arrangements for an event the application crashes,
it can be a huge risk because all data stored there regarding the event can be easily lost.

Power cut:
A power cut during the event is our worst nightmare. It has the potential to ruin the entire event and
then no arrangements for this means that the impression on our client will be extremely poor and this
can affect our profitability at a very high level.

Rising costs during the planning:

Our client will have already set the budget on which we will receive the 40% advance payment but
during the planning of the event through the application, some costs may rise pushing the expenses out
of the budget.

Loss or damage of equipment:

When the event is over, it will be a huge disappointment to discover something missing or broken. This
will mean we will have to spend a fraction of our earnings from the event to replace the piece of
equipment or decorations.

Political Instability:

Some roads may be blocked, either by rioters or by the police or due to any political instability. If this
happens on the day of the event or close to day of the event, the event may have to be cancelled and it
will be very difficult to inform the client through the application. This is a sure way to lose a lot of money
for the planners and the client, both. This is a huge risk with almost no way out.

Alternative Actions to Be Taken

 We can invest in back up power, supply like generators. Depending on the kind of event, we
would need large generators which would require a lot of capital. This would be a challenge in the initial
stages of the business but, eventually, we would find that the need outweighs the cost

 We will have to do a thorough research on all possible venues in the city to make sure we know
how to set a client up with the perfect one for their event. We would also have to have visit venues to
make sure they are the right size and fit the profile of the event and there are no surprises. It is also
important to have contacts with the owners of as many venues as possible to get the best prices and
have wide array of knowledge on the available venues.
 To make sure we have prices in our control as much as possible we should avoid making
estimates and guesses, get prices from vendors in written, decide before hand how long the quotes will
be valid for and have backups where ever possible.

 Conclusively, The AEP is a business which can be very successful in the fast-growing market of
Pakistan which has now become more accepting and reliant on technology. Customers now want to
experience more services online and want to make all the process of arranging different events easily.
They are willing to try more of such services. Online purchases have increased on a very large scale in
the past few years. It is all about trying out the service once and then if given the best of services,
customers are becoming loyal to different business operating online through different mobile
applications. This unique selling point of providing event management services through the mobile
application has given The Alpha Event Planners the potential to become new a trend setter in the
market and as we keep updating our application with improving technology, we can become one of the
most successful businesses in this industry.