Business Plan On Event Management

APPENDIX
BUSINESS PLAN
ON
EVENT MANAGEMENT
Group 3
B.B.A. 7th Batch,
3rd year 2nd semester,
Department of Finance,
Jagannath University.
February 14, 2016

Business Plan: Friends Event Management
Project Management
A Report on a Business Plan
On
Event Management
Submitted to
Roushanara Islam
Assistant Professor,
Department of Finance,
Jagannath University, Dhaka
Submitted by
Group-3
“L NO ROLL NO NAME
B MD. MONOAR HO““AIN
B EA“IN ARAFAT
B MD. AKRAM HO““AIN
B MD. “AIDUL I“LAM
B “UNJIDA PARVEN
B MD. “HAKHAWAT HO““AIN
B MD. RAJU AHAMED
B AYA“HA “IDDIQUA MOUE
B “UJON DA“
B MILON “AHA
Date of Submission: 14 February, 2016
Department of finance Jagannath university 1|P a g e

Table of Content
Title of Topics Page
No
Executive Summary 4
PART-I 1 Industry Analysis 5
1.1 Industry Size, Growth Rate, and Sales 5
Projections
1.2 Industry Structure 7
1.3 Nature of Participants 7
1.4 Key Success Factors 7
1.5 Industry Trends 7
1.6 Long-Term Prospects 8
PART-II 2 Company Description 8
2.1 Company History 8
2.2 Mission Statement 9
2.3 Products and Services 9
2.4 Current Status 10
2.5 Legal Status and Ownership 10
PART-III 3 Market Analysis 11
3.1 Market Segmentation and Target Market 11
Selection
3.2 Buyer Behavior 14
3.3 Competitor Analysis 15
3.4 Estimates of Annual Sales 15
PART-IV 4 The Economics of the Business 16
4.1 Revenue Drivers and Profit Margins 17
4.2 Fixed and Variable Costs 17
4.3 Operating Leverage, and Its Implications 18
4.4 Start-up Costs 19
4.5 Break-Even Chart and Calculation 19
PART-V 5 Marketing Plan 20
5.1 Overall Marketing Strategy 21
5.2 Product, Price, Promotions, and Distribution 21

5.3 Sales Strategy 26

PART-VI 6 Design and Development Plan 27
6.1 Development Status and Tasks 27
6.2 Challenges and Risks 27
6.3 Projected Development Costs 28
6.4 Proprietary Issues (Patents, Trademarks, 28
Copyrights, Licenses, Brand Names)
PART-VII 7 Operations Plan 29
7.1 General Approach to Operations 29
7.2 Business Location 29
7.3 Facilities and Equipment 30
PART-VIII 8 Overall Schedule 30
PART-IX 9 Financial Projections 31
9.1 Sources and Uses of Funds Statement 31
9.2 Assumptions Sheet 31
9.3 Pro Forma Income Statements 32
9.4 Pro Forma Balance Sheets 33
9.5 Pro Forma Cash Flows 34
9.6 Ratio Analysis 35
Appendix Page
 Table: Income Statement 1
 Table: Cash Flow 2
 Table: Balance Sheet 3

Executive Summary
Welcome to the future of event planning! Friends Event Management, The Event
Planning Specialists, brings to the community of Dhaka a new breath of air in the event
planning market. By combining old fashioned values, going the extra mile, and using
cutting edge event-planning software, Friends Event Management will lead the market,
providing the same quality results, every time.
Friends Event Management 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, Friends Event Management
aims to be the number one resource for any event.
In this whole business plan we describe our industry as well our aim to choosing this
business. We also broadly determine our service and facilities we provide to our client.
We charge our client at a very cost effective margin hence they will always getting
satisfied with our service.
We also provide our marketing plan, development plan and operation plan to this paper
work. We try to determine our breakeven analysis hence we are proud to say that we
can recover our initial investment within the first year of operation.
Last and final part of this report we provide our assuming financial projection which
generate on an average over 9% profit margin we will able to get at the end of year.

PART-I
1 Industry Analysis
Industry analysis is the important part of starting a new business. To start a new business we
must analyze its related industry. As we want to do business as an event management
business firm, we must analysis its industry, trends, participant and prospect of this business
in Bangladesh.
1.1 Industry Size, Growth Rate, and Sales Projections
The event management business in Bangladesh is not yet fully settled. There are few
recognized event management organizations in the country. The three recognized solely
event management organizations are Jetset PR, Antar Showbiz and Wizard. These firms are
devoted exclusively to the show business events.
But, the corporate market for event management has mostly been unexplored. Although
there is a demand for specialized event management organizations, there is few such
organizations that cater solely to this demand. The advertising firms made the most of this
circumstances, as they took up event management as a very profitable side business. The
initiative of handling thei lie t’s e e ts as sta ted Asiati ad age a d soo follo ed
by most of the advertising organizations. In fact Asiatic was so much interested to see the
turnover in this sector, that they have opened a distinct subsidiary called Asiatic EML, for the
only purpose of dealing thei lie ts’ e e ts. But othe tha that, o sig ifi a t o e e ts
e e take to eate a se i e fi fo the pu pose of a agi g the lie t’s e e ts
professionally.
Unitrend, Andes, and Asiatic EML can be recognized as major players in the industry of event
management. They have a high profile customer base like –
 Unilever Bangladesh
 British American Tobacco Bangladesh
 ACI

 Social Marketing Company (SMC)

 GQBall Pen
 BRAC
 PranRfl
 Saudia Airlines
 Samsung
Unitrend and Andes are basically advertisement agencies, which provide event management
as supplementary service. As stated before, Asiatic EML is a subsidiary of advertising agency
Asiatic.
Other than Asiatic EML, CEMS (Conference and Exhibition Management System) is currently
the only firm delivering event management services.
By this analysis we found a very little growth in this industry, though it has a very good
potential in doing well in Bangladesh in upcoming year.
Sales projection
If we start this business our analysis says there will be 10% growth per annum in sales. Bearing
that in mind our sales projection will be as follows:
Sales Projection
70000000
65876800 60000000
60693600
55176000 50000000
50160000
40000000
30000000
20000000
10000000
0
2016 2017 2018 2019
Sales

1.2 Industry Structure
Event management industry is new model of doing business in Bangladesh. But most of the
people associates with this sector encourage people to adopt this business with having some
experience. In this industry people are encouraging to come especially youth have a very
much passion over this business industry. To start a business in this sector people face less
o petito as it’s a g o i g i dust a d a ie s a e also uite lo . “o people a easil
enter this industry. By analyzing all of this we refer event management as a business we can
do in Bangladesh.
1.3 Nature of Participants
Most of the participant in this sector are willing to provide service to corporate client and
corporate events rather individual events and individual client. Though most of them
provide services to both individual and corporate client. As we adopt this business, our aim is
to satisfy both individual as well as corporate clients through our quality services.
1.4 Key Success Factors
To achieve success in this business is proper management and handling pressure situation
with strong commitment. And most importantly satisfy your client through quality services.
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 satisfaction of the client's wishes.

 Competitive pricing for the quality of services offered.
 Significant revenue made on each event planned.
1.5 Industry Trends
Event management industry is a growing industry. Though event management industry

started its journey after liberation war and successfully operating in last two decades but it
did ’t g o that u h like othe i dust did. But it has a huge scope in Bangladesh and in is

one of the growing sector in Bangladesh and good business for youth as they are more willing
toward this sectors.
1.6 Long-Term Prospects
Event management has a bright prospect in Bangladesh. As Bangladesh economy is growing

more big events will organize by corporate house and individual people are want and willing
to make their events more lucrative. So demand for this business services will increase and
more event management company will join together to booming this industry. In many survey
reports shows that it will be one of the growing business in upcoming years. So we can assume
a bright future and long run prospect of this business.
PART-II
2 Company Description
In company description we provide our organization overall assessment in brief to aware our
reader what our organization is and what is its mission and legal formation and so on.
2.1 Company History

Name of the Venture
The name of our event management firm will be known as Friends Event Management. As we
start this usi ess all frie d together that’s hy e hoose this a e for our e ture.
We also hoose a tagli e a d that is Events that people talk about .
Why Choose Event Management Business

As we observing our business world, and event management business is trending all over the
world. This idea has come over our mind as we see lots of international and national event on
TV as well as on our personal appearance in different events which encourage us to choose
this as our business. Moreover in this industry is small enough currently where we have to
face less competitors. So assuming all this thing we think this is the business we can choose
as our own business and thus the idea of Friends Event Management turn into our business
goal.

2.2 Mission Statement

Mission
Mission of Friends Event Management will be to provide its customer services to their utmost
satisfaction.
Vision
Friends Event Management initiates its dedication to serve the community with quality
services and set an example of professionalism and moral business practices in the industry.
The vision of Friends Event Management is positioned towards becoming the market leader
in event management through hard work and commitment, maintaining the leadership and
carrying the flag of uncompromising quality into the unforeseen future with constant value
addition and a strong line of innovation.
2.3 Products and Services

Although Friends Event Management is primarily a service business, we also offer
products to support our customers in planning the event themselves. The following
products are tools used inside our operation for the best possible results:
1. 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.
2. 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.

3. Resources Manual
This valuable guide acts as a review for all the resources located in the surrounding
area. A 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.
Friends Event Management provides 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 will plan every year:
1. Meetings, Trainings, and Retreats.

2. Conferences and Workshops.
3. Birthdays, Anniversaries, Graduations and Holidays.
4. Weddings, Receptions, and Showers.
5. Company picnics, banquets, and award ceremonies.
2.4 Current Status

As Friends event management is a new business firm, its first aim to complete its legality and
forming a name and its way of operation. Frie d’s event management also set its milestone to
recover its investment during the first year of its operation. Friends events management will do
and take every possible initiative to recover its investment through providing its variety range
of services to its potential client and earn a moderate profit margin from every events it
organize. Friend event management also want to celebrate its first anniversary as high profitable
organization and want to expand its market all over Bangladesh.
2.5 Legal Status and Ownership

Primarily Friends Event Management will operate the business as partnership basis. But in near
future ownership will change as per necessity. It has also aim to turn into a company under
company act 1994.
Friends Event Management will be a service oriented company that is the firm will provide
intangible goods or perform useful labor on behalf of another person.
Department of finance Jagannath university 10 | P a g e

The company will start its ope atio as soo as it’s o pletes its e essa p o edu e, if
everything goes as planned by the proprietor.
For the purpose of registration the entrepreneur must acquire the following licenses.
1. Trade License – From Dhaka City Corporation(North or South as Per Location)

2. Article of Incorporation – From Registrar of Joint Stock Company(when it will turn into
a company)
3. Tax Certificate – From National Board of Revenue
PART-III
3 Market Analysis
The market analysis is distinctly different than the industry analysis. Whereas the industry
analysis focuses on the industry that a firm will participate in (i.e., toy industry, software
i dust , e ’s lothi g i dust ), the market analysis breaks the industry into segments and
zeroes in on the specific segment (or target market) to which the firm will try to appeal. In
this part we segment our market and select our target market. We also analysis our possible
competitors.
3.1 Market Segmentation and Target Market Selection
Market Segmentation
In Bangladesh, the prospect for event management businesses is very good. The huge market
out there has not been explored yet. This market can be distributed into three major
segments.
 The corporate clients

 The non-corporate clients
 The Bangladesh Government
 The Corporate Clients

This section includes various multinational companies, local public and private limited
companies, financial and non-financial institutions, joint ventures and franchises,
small businesses, NGOs, research institutions, private and public educational
institutions, showbiz companies, social marketing companies, theater groups, cultural
forums etc.
The corporate clients are located in Gulshan, Dhanmondi and Motijheel – which will
be the key area of attention while conducting the marketing accomplishments.
 The Non-Corporate Clients

Due to changes in our socio-cultural and economic condition, people are spending
more time at work. As a result, they have less time to spend on social affairs like
marriages, get together or a may be a birthday party for the children, or concert and
other family function as well as social functions. These people make up the non-
corporate client segment of the event management market.
 The Bangladesh Government

Another major segment in this market is the Bangladesh Government. Each year the
Bangladesh Government hosts a variety of programs. Which firm will be in care of
these programs are decided by tenders.
Target market determination
As has been mentioned earlier, the market for event management has been unexplored. But,
at the same time, this market is too huge to be targeted by a small firm like Friends Event
Management. To be successful Friends Event Management will have to emphasis its attention
to segments or niches that the big players have unnoticed or ignored. This way, Friends Event
Management will be able to avoid conflict with the major players in the market by specializing
along market, customer, service and marketing mix lines. Through smart targeting, Friends
Event Management will be able to receive as much profit as the market leaders.
The corporate clients, particularly the MNCs are very much willing to involve in long-term
contracts with professional event management organizations. But most of them already have

contracts with various advertisement companies for their event management. They are not
willing to dismiss their contract nearly and would like to engage both an event management
firm as well as advertising firms on a short term basis to see just how much value
professionalism adds to the process of event management. But, the number of events that
these corporate clients are going to initiate is likely to increase by more than 10%-15% in
the coming year. Most substantial increase will take place for the manufacturing firms and
MNCs. This will present Friends Event Management with the opportunity to have contracts
with recognized MNCs.
Friends Event Management will also target the local manufacturing companies, local service
companies, private and public educational institutions, financial and non-financial
institutions, and small businesses. As it is very doubtful that the number of events the
corporate customers initiate would decrease in coming future, the firm is looking at a very
positive market indicator.
Friends Event Management will also target the Government programs and bid for them. This
will give Friends Event Management a boost in image, which will help the firm to capture the
attention of the whole market.
A study revealed that the personal customers are very much interested in event management
services.
 66% of the consumers said that they are willing to appoint an event management
company to organize their events if the price is affordable.
 59% of the customers claimed that they do not possess the necessary expertise to
conduct a big personal event successfully without outside help.
 68% of the customers claimed that they would appoint an event management
company to save time. 22% will do it because it will make their life hassle free.
These customers will form Friends Event Management non-corporate target group. The firm
will focus on the residential areas of Gulshan, Dhanmondi, Baridhara, Uttara, and Banani – as
these locations represent the affluent income groups among the general population who can

afford Friends Event Management services. We also focus on old town area especially as their
taste and trend changing in very positive way.
After all analysis, Friends Event managements target market will be
 MNCs, and other big and small local companies which want professionalism and o e-
stop se i e i a agi g thei e e ts. These o pa ies a e ode atel satisfied
with the current event management situation, and see room for improvement.
 People who are well aware of the huge amount of time and hassle it takes to arrange
an event personally and also well aware of the usefulness of the professional help in
arranging their personal event.
 The Bangladesh Government who sponsors a number of events every year.
3.2 Buyer Behavior

Now question arise about buyer behavior toward event management firm. Most of the non-
corporate client want to do their event by their own. But time has changed. People are now
willing to make their event better and lucrative. So they heading toward event management
firm to make their important event memorable and want to fill more relax during those
event by transferring responsibility. Number of Event Management firms offer cost effective
price for non-corporate events so as ours. We need to capture this opportunity and provide
them quality service which improve buyer attraction more toward event management firm
rather organize event by their own.
On the other hand as Bangladesh economy growing more new local and foreign MNCs are
investing in Bangladesh and organize their corporate event through professional event
management firms. We also capture their attention through professionalism.
At last Government Events are more crucial some of these event telecast worldwide. So
government always want to see their events world-class. So government also like to arrange
event through professional companies. We also concentrate on this.

3.3 Competitor Analysis

For Friends Events Management, one of the major competitive environmental components
is the existing competitors of the company. These are the various advertising organizations
that are operating in our country as they are providing most of the event management
services at present to the corporate clients. Other than that there are two event management
companies, Asiatic EML and CEMS (Conference and Exhibition management System), who are
providing somewhat similar services can also pose a possible threat. Jetset PR, Antar Showbiz
and Wizard are also prime competitors for us in this business operation.
The potential competitors are those companies that would enter the market after our
introduction. The firm will have to keep an eye on these new competitions to see what kind
of value addition they are capable of, in order to stay one step ahead of the competition.
The low or non-existent obstacles to entry and exit compound the competition condition
further. The lack of effective barriers to entry and exit may present crucial danger to the
growth of our business as the industry matures.
In future more and more organizations will look for professional event management services
to manage their events effectively. Friends Event Management intends to take full advantage
of this opportunity. The business plan provides pros and cons of establishing a profitable
business venture. The report went to great details in recognizing the potential risks and
threats, is simply because the entrepreneur wants to stay a step ahead of the problems that
can hinder the progress of this venture. In identifying the potential risks, the author was as
thorough as she could, simply because using such foresight Friends Event Management will
be able to stay away from all sorts of trouble.
3.4 Estimates of Annual Sales
Sales Forecast
1st Six Months
Provided in 1 Total Number of
Month events provided
during the time
period
Customized Corporate Events 2 12

Creative Corporate Events 1 6

Customized Personal Events 2 12
2nd Six Months

Provided in 1 Total Number of
Month events provided
during the time
period
Customized Corporate Events 3 18
Creative Corporate Events 2 12
Customized Personal Events 2 12
PART-IV
4 The Economics of the Business
This section begins the financial analysis of a business, which is further fleshed out in the
financial projections. It addresses the basic logic of how profits are earned in the business and
ho a u its of a usi ess’s p odu t o se i e ust e sold fo the usi ess to eak
e e a d the sta t ea i g a p ofit.

4.1 Revenue Drivers and Profit Margins
Our key revenue drivers will be our corporate and individual events. As government event are
difficult to get and it has lot of option. On the other hand corporate and individual events
will take place all over the year moreover it will generate a handsome amount of revenue in
favor of Friends Event management. Individual event are also a great source of revenue
generation as weeding take place each month more or less and also other events too.
Margin is also crucial element in any business. As event management will provide service in
order to generate revenue. It will decide to charge 8-15% margin of profit in each events it
organize. It may also will to charge 20% if some creative event with great value added service
it provide to its potential client.
4.2 Fixed and Variable Costs
Every business have to bear some fixed cost to operate its business. The fixed cost of a
service business is lesser than other business. Friends Event Management fixed cost are
given as follows:
FIXED COST
Particulars Cost (in Taka)
Registration 40000
Furniture 250000
Décor 150000
Air Conditioner 200000
Telephone (T&T) 50000
Computers 300000
Scanner 10000
Printer 20000
Photocopier 150000
Total 1170000
As friend event management provide services so it has to bear lot of variable cost which also
the largest portion of its overall cost. The variable amount will be different according to event
requirement. The variable cost are in following categories:

Variable Cost
Venue Costs Food and Catering Audio/Visual
-Room Rental -Meals -Microphones
-Security Deposit -Beverages -Screens and Projectors

-Bartender/Server
-Insurance Coverage -Internet Access
Labor Fees
-Tax and -Other Specialized
-Parking
Service/Gratuity Fees Equipment
Event Rentals Décor Vendors Entertainment

-Linens, Table Skirting, and Chair
-Accent Lighting -Musicians or DJ
Covers
-Tents, Staging, and Amusement -Flowers and
-Speaker Fees
Attractions Centerpieces
-Physical Items Not Provided by -Contract Riders (food,
-Balloons
Venue lodging, transportation)
-Labor and Delivery for
Setup/Teardown
4.3 Operating Leverage, and Its Implications
A fi ’s operating leverage is an analysis of it’s fixed versus variable costs. Operating leverage
is highest in companies that have a high proportion of fixed costs relative to their variable
costs. In contrast, operating leverage is lowest in companies that have a low proportion of
fixed costs relative to a ia le osts. The i pli atio s of the fi ’s p oje ted ope ati g
leverage should be discussed.
As Friends Event management have its fixed cost lower its variable cost and the portion is
very little so that we can expect Friends Event Management operating leverage will be way
lower and hence it will recover its investment in its first year of business operation.

4.4 Start-up Costs
Through careful planning on the part of the founders, the start-up costs for Friends Event
Management are minimal. The start-up cost investment funds were provided by each of owners to
establish this business.
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. If fund needed in near future
Friends event management will choice this option to finance their activities.
Start Up Cost
Particulars Cost (in Taka)
Registration 40000
House Rent @ 24,000 (Advance for 3 72000
months)
Furniture 150000
Décor 100000
Air Conditioner 200000
Telephone (T&T) 50000
Computers 100000
Scanner 10000
Printer 5000
Photocopier 100000
Stationary 2000
Advertisement & Publicity 618000
Miscellaneous 50000
Additional Cash 500000
Total 1,925,000.00
4.5 Break-Even Chart and Calculation
The break-even point is based on the assumption that we will produce 72 events per Year
and average profit approximately Tk. 63,333 per event. In the current situation, we average
more than this assumption for our public and private organization events

Friends Event Management want to charge its client at a reasonable rate and its contribution
margin will be 9.09%. In that way firm will recover its investment within first year.
So break even sales will amount to Tk. 11699871. Fortunately, Friends Event management
will be able to achieve this target in the first year of operation.
Break even
25000000
20000000
15000000
Total Cost
Sales 10000000
5000000
0
0 5000000 10000000 15000000 20000000
PART-V
5 Marketing Plan
The marketing plan focuses on how the business will market and sell its product or service. It
deals with the nuts and bolts of marketing in terms of price, promotion, distribution, and
sales.
The est a to des i e a o pa ’s a keti g pla is to sta t a ti ulati g its a keti g
strategy, positioning, and points of differentiation, and then talk about how these overall
aspects of the plan will be supported by price, promotional mix and sales process, and
distribution strategy.

5.1 Overall Marketing Strategy
Friends Event Management will be aggressively courting companies as well as individual to

win future contracts. Friends Event Management will offer a superior service at a lower cost
due to specialization. By concentrating specific services in specifically, Friends Event
Management will become capable at these services and perform the services better than
other similar organization as passage of time.
Friends Event Management will increase company visibility through a website, local
Chamber of Commerce networking, and participation in fair, print and electronic media and
mostly in different social site like twitter, Facebook etc... The website will be quite detailed
and provide a visitor in-depth information about the services Friends Event Management
offers, the corresponding high level of quality, and the cost savings that can be achieved by
using Friends Event Management.
Lastly, Friends Event Management will be active in the many trade shows. The use of trade
shows allows potential client of Friends Event Management to make initial contacts with us
for a wide range of businesses events that would otherwise be difficult to approach.
5.2 Product, Price, Promotions, and Distribution

 Product & Service
Although Friends Event Management is primarily a service business, we also offer

products to support our customers in planning the event themselves. The following
products are tools used inside our operation for the best possible results:
 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.
 Resources Manual
This valuable guide acts as a review for all the resources located in the surrounding
area. A 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.
Friends Event Management provides 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 will plan every year:
1. Meetings, Trainings, and Retreats.

2. Conferences and Workshops.
3. Birthdays, Anniversaries, Graduations and Holidays.
4. Weddings, Receptions, and Showers.
5. Company picnics, banquets, and award ceremonies.
6. Government events
To organize above events we will try our best and categorized them into 4 category. They
are-
1. Customized Corporate Events

2. Creative Corporate Events
3. Customized Personal Events

4. Government Events
In order to provide better services to its customers than the competitors, Friends Event
Management will maintain a number of databases and use all available technology to keep
up to date with our service and always in search of provide our client something new.
 Customer database
 Venue database
 Using Internet Effectively
 Pricing of the Service
Price is the most thoughtful element of marketing mix. Once set at a level, it is hard for
any firm to change it. As a new comer in the market, Friends Event management has to
be cautious in pricing its services. After bearing in mind a number of elements, Friends
Event management has decided to offer its customers a number of packages – all based
on markup pricing.
10% Mark Up Package
This package is for the corporate clients and to be used in bids for Government programs.
Currently, all other companies are charging 15% mark-up on existing cost as agency
charge. Friends Event management is charging only 10% – to send a message that the
firm is not only providing superior services, but actually providing them with much lower
cost. This is a strategy that Friends Event management will use to lure clients from the
competitors.
It will also attract small corporations, who at present are unwilling to hire event
management services due to high costs associated with it.

8% Mark Up Package
This package is also for the corporate clients – those who are interested in sponsoring
charity programs. For example, a company wants to sponsor a concert to raise funds for
children suffering from cancer. If they hire Friends Event management to organize the
concert, the firm will charge them 8% mark up on cost instead of usual 10% mark up on
cost.
15% Mark Up Package
This package is for non-corporate clients. In this case the firm is charging higher with 15%
mark up over prices. The purpose is sending a message that Friends Event management is
not interested in small events and also to communicate to the market that the firm is
providing quality services at a premium price. Friends Event management is claiming that
the firm is looking for prestige and professionalism – and someone looking to cut cost in
a birthday party is not the person the firm is looking for.
In sometime customers may want to reduce the price. However in most of the cases Friends
Event management will try to overlook these requests as they will hamper the firm’s
business in long run and it will be able to assure the customers that the cost is a result of
quality the firm is providing.
 Distribution of Services
Friends Event Management is looking to distribute its services in two ways.
 Traditional distribution network.

 Non-conventional Distribution network
Traditional Distribution Network
In this process the customers will call Friends Event Management or come to its office
in search of help to organize events.
Non-conventional Distribution Network

 To find new market, we will try to use our sales force and other channels to get
customers. Our sales people will go to corporate offices to find potential clients,
to induce them to use our service.
 The clients can get entrance to the website at any time of the day and make
enquiries about the events that he/she has in mind. This is a process that is not yet
followed in our country. This online service will include ordering for the event,
reviewing and complimentary the budget and monitoring the progress. This will
save both time and money of both parties.
 Promotion
Business promotion is the most important task in marketing plan. However Friends
Event Management also decide to adopt every promotional activity to promote our
business. As new firm Friends Event Management will take following promotional
strategy:
 Networking
For most planners, networking is at the top of the list in terms of developing a
strong client base. Networking can help our business in two ways. If people have
met us and know what services we offer, they may refer business to us or use our
service themselves. Furthermore, networking with hotels, caterers and so on will
give us a chance to meet some of the people whose services we may need as we
plan events.
 Advertising
Friends Event Management will start advertising on newspapers ten days before
the inauguration. The firm may choice two Bangla and one English daily (preferably
Daily Prothom Alo, Bangladesh Protidin and Daily Star). The Ad on first four days
will try to create public awareness about the event management organization. On
the 10th day which would be the inauguration day, the firm will give a full-page
ooklet o those pape s a out F ie ds E e t Ma age e t’s o ga izatio al
activities, services and other related topics.
Friends Event Management will also advertise in online portal to reach attention
of every possible viewer. Friends Event Management will also advertise in
Different weekly or monthly magazine to promote our business.

Electronic media also help to advertise our business. We will choice 2-3 TV channel
to promote our business primarily.
We also advertise through mobile operator. By sending message to every mobile
use i Ba gladesh e a ea h a i u u e of ie e ’s atte tio .
 Banners
Banners will be put on prime points on Dhaka city for the launching and long-term
promotional campaign. The locations chosen for the banners are Firmgate, Banani,
Mirpur, Dhanmondi, Gulshan, Motijhil, Ramna etc.
 Social Site
Social site like Facebook and twitter are also good way of promoting business. In
this way we open our official page which will be linked with our official site. In this
way we can capture young people who has very much interest in event
management business and also want to organize event will pay their attention
toward us. We also can get feedback from them to improve our service.
5.3 Sales Strategy
Friends Event Management deals with a varied market of clients. Within each market
segment, closing of deals will differ. Each approach is described as follows:
1. Private and Public Organizations

Sales will be settled one to two days after the end of the event. A follow-up phone call
will be placed notifying the client of the total cost, number of attendees, and
information about the billing packet that will arrive at their offices. Feedback forms
will be included in these packets to ensure the client is being served as they deem
appropriate. Form letter thank-you card will be sent following each event.
2. Individuals
Sales will be concluded with a follow-up phone call one to two days after the event.
The phone call will explain the total cost of the event, number of attendees, and
information concerning the billing. Individual parties of any age group are placed on a

billing cycle. Invoices will be sent out the 25th of the month and will be due the 10th
of the following month. Feedback forms will be included in these packets to ensure
the client is being served as they deem appropriate. Thank-you cards will follow each
individual event.
Friends Event Management will take following sales strategy too:
 Relationship build up
 Networking
PART-VI
6 Design and Development Plan
Design and deployment section deals with how we try to develop our service as we will deal
with service oriented business and how we design each of event. Many seemingly promising
start-ups never get off the ground because their product development efforts stall or the
actual development of the product or service turns out to be more difficult than expected.
For that we provide great emphasis on our development work.
6.1 Development Status and Tasks
We always want to develop new and creative event planning service, for that we always use
new technology. We will use event planning software to present a visualize event as per client
requirement which will help our event planning more easily. We also keep up to date with all
over the world to provide our client international flavor of their events. We also use 3-D model
to visualize our event plan to our client for their satisfaction.
6.2 Challenges and Risks
All Event management firm should engage in a continual process of examination and review
of their existing events to ensure that the environment is safe for participants, officials,
volunteers and spectators.

This process of examination becomes even more important in the planning process for new
events. A failure to assess the risks involved in events can be disastrous as a result of:
 Loss of reputation
 Financial loss
 Damage to facilities
 Injury to players
 Over-stressed workers
 Loss of equipment
 Over-resourcing of one objective leading to under-resourcing of other objectives
Our main challenges to operate this business are as follows:
 Major strength of our competitor unknown which may be a challenge to face as

new comer
 Providing satisfactory customer service
 Creating a unique brand value in this industry which differentiate us from other
 Most important challenge is to proper management
 To make every event memorable as our tagline reflect
6.3 Projected Development Costs
Project development cost will vary along with different event requirement. But we want keep
our all project cost as low as we can though efficient management of resources. We also want
to provide our client a lucrative event plan at a best rate. Bearing in mind that all the support
system, do their job in professional manner in developing each project and keep cost as low
as we can without compromising our quality service.
6.4 Proprietary Issues (Patents, Trademarks, Copyrights, Licenses,

Brand Names)
Proprietary issue is an important task to deal with. As we want to start anew business we
must register a patent, trademark and also formalize our copyright issue and most
importantly Brand name.

To complete this formality we must follow the rules and regulation provided by Department
of Patents, Designs and Trademarks (DPDT) of Bangladesh government. They will provide us
our name of brand which we proposed if available, our own patent and own trademark and
copyright facility.
PART-VII
7 Operations Plan
The operations plan section of the business plan outlines how our business will be run and
how our service will be served. We have to strike a careful balance between adequately
describing this topic and providing too much detail.
7.1 General Approach to Operations
To provide service we need employee, as we all know business like event management need
young employees as they are energetic and core element of our business. We will emphasis
toward creative employees who can help us in planning event more creative. We will hire
fresher as well people with experience belong to this sector. All employee will be good at
different work such as it, computer operation, management, and designer, marketing and
sales. But most of recruitment will be contractual basis rather permanent except specialize
employee. As we need lot of volunteers to accomplish each event we recruit them part time
basis.
We also maintain good relation with our support services like catering, decorator, designer,
flower shop and other related parties.
7.2 Business Location
The location of the office for Friends Event Management will be decided when the firm will
go into operation. The place for the office will be decided based on the suitability of the
prospective clients of the company. The probable places are Dhanmondi or Paltan or Motijhil.
Banani is also in the list of probable location, if that is convenient for the clients. We will do
more research on it to determine the best location for our office.

7.3 Facilities and Equipment
The company will maintain a high degree of professionalism. Whole office will be equipped
with the latest in business technology, such as telephone systems, computers, fax machines,
email, duplicators, printers, and software. In office location will have a secure storage area
for supplies and equipment used in events, such as walkie-talkies, cellular phones, portable
fax machines, and laptops.
PART-VIII
8 Overall Schedule
A schedule should be prepared that shows the major events required to launch the business.
The s hedule should e i the fo at of ilesto es iti al to the usi ess’s su ess. We also
try to show our milestones chart of crucial event in first year of operation provided as follows:
Activity Start time Days to Complete

Pre launching promotion 1-Apr 90
Rent office 21-Jun 10
Hiring Employee 1-Jun 30
Office Furniture Purchase and decor 25-Jun 5
Grand opening 1-Jul 5
First event organize 5-Jul 10
Reaching break even 21-Oct 8
Start developing plan 1-Jan 30
Half annual review 1-Jan 5
Official Tour 25-Jan 4
50 event organize 22-Mar 10
Firm position analysis 16-Jun 15
Grand anniversary celebration 21-Jun 10
Annual Review 30-Jun 1

PART-IX
9 Financial Projections
The final section of our business plan presents pro forma (or projected) financial projections.
Having completed the previous sections of the pla , it’s eas to see h the fi a ial
projections come last. They take the plans e’ve developed and express them in financial
terms.
9.1 Sources and Uses of Funds Statement
Our main source of fund will come from the contribution of the owners and borrowing. The
portion of funding given as follows:
Particular Amount Percentage

Owners Contribution 1,500,000 76.92%
Borrowing 450,000 23.08%
Total 1,950,000 100%
9.2 Assumptions Sheet
Tax rates are noted for information. We carry no loan burden that would be effected by these
rates. What hits Friends Event Management, the hardest (but not nearly are bad as other
service businesses), is the tax rate of 35%, which is nearly one and half quarter of the total

sales. As Friends Event Management continues to grow, these numbers will be reference
rather than influence.
Table: General Assumptions
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 12.00% 12.00% 12.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 35.00% 35.00% 35.00%
Other 0 0 0
9.3 Pro Forma Income Statements
Leading the industry in event planning requires the use of the resources available at the
lowest cost. We spend less money on overhead than another event planners. This savings
allows us to market in creative ways and spend funds on expansion into other areas when the
time is right.
Income Statement
Years 2016 2017 2018
Net sales 50,160,000.00 55,176,000.00 60,693,600.00
Cost of goods sold 45,600,000.00 50,160,000.00 55,176,000.00
Net Operating Income 4,560,000.00 5,016,000.00 5,517,600.00
Salaries 2,532,000.00 2,785,200.00 3,063,720.00

Utilities 60,000.00 66,000.00 72,600.00
Rent 288,000.00 316,800.00 348,480.00
Other 50,000.00 55,000.00 60,500.00
Depreciation 56,500.00 56,500.00 56,500.00
Interest@12% 54,000.00 59,400.00 65,340.00
Operating expenses 2,930,500.00 3,217,900.00 3,534,040.00
EBT 1,629,500.00 1,798,100.00 1,983,560.00

Tax @ 35% 570,325.00 629,335.00 694,246.00
Net Income 1,059,175.00 1,168,765.00 1,289,314.00

9.4 Pro Forma Balance Sheets
Friends Event Management is set up for success. According to the numbers, we start out fair
and end up amazing. By FY2018, we will be gain healthy net worth with a profit margin of over
10% to 20%. We are operating with little to zero debt, boosting the net worth even higher.
Balance Sheet
Years 2016 2017 2018
Cash 1,565,675.00 2,786,590.00 4,133,269.00
other current assets 850,000.00 858,500.00 867,085.00
Inventory 400,000.00 440,000.00 484,000.00
Prepaid expenses 200,000.00 220,000.00 242,000.00
Total Current Assets 3,015,675.00 4,305,090.00 5,726,354.00
Fixed assets 508,500.00 559,350.00 615,285.00
Total Assets 3,524,175.00 4,864,440.00 6,341,639.00
Accounts payable 100,000.00 110,000.00 121,000.00

Short-term loan 450,000.00 495,000.00 544,500.00
Net income 1,059,175.00 1,168,765.00 1,289,314.00
Accrued & other liabilities 150,000.00 165,000.00 181,500.00
Total Current Liabilities 1,759,175.00 1,938,765.00 2,136,314.00
Long-term debt 100,000.00 110,000.00 121,000.00

Other long-term liabilities 0.00 0.00 0.00
Total Long-term Liabilities 100,000.00 110,000.00 121,000.00
Shareholders' equity 1,665,000.00 2,815,675.00 4,084,325.00
Total Liabilities and Equity 3,524,175.00 4,864,440.00 6,341,639.00

9.5 Pro Forma Cash Flows
Our cash situation is great. Though we begin with little additional cash, our increased growth
permits us to make up for lost time. Our cash balance is continuously above the mark with
the cash flow not too far behind. We have no negatives in our cash analysis.
Cash Flow Statement

Years 2016 2017 2018
Beginning balance 500,000.00 1,565,675.00 2,786,590.00
Cash inflow
Profit before interest and taxation added back 1683500.00 1857500.00 2,048,900.00
Depreciation Provision for the year 56500.00 62150.00 68,365.00
Increase in bank borrowing for working capital 0.00 45000.00 49,500.00
Total cash inflow 2,240,000.00 3,530,325.00 4,953,355.00
Cash outflow
Capital expenditure for the project 0.00 56,500.00 62,150.00
Interest 54,000.00 59,400.00 65,340.00
Other expenditure(Preliminary and preoperative 50,000.00 55,000.00 60,500.00
expense)
Tax 570,325.00 629,335.00 694,246.00
Total cash outflow 674,325.00 743,735.00 820,086.00
Ending Cash Balance 1,565,675.00 2,786,590.00 4,133,269.00

9.6 Ratio Analysis
Data on our business ratios is shown in the table below. Though it may not reflect the
overall scenario as it is prepared based on projection and all necessary data are not
available but we try to do this analysis as follows:
Ratio Analysis for year 2016

BALANCE SHEET RATIOS: Stability (Staying Power) Result
Current Assets 3015675
1.Current Ratio 1.71
Current Liabilities 1759175
Cash + Accts. Rec. 850000
2.Quick Ratio 0.48
Current Liabilities 1759175
Total Liabilities 1859175
3.Debt-to-Worth 1.11
Net Worth 1665000
INCOME STATEMENT RATIOS: Profitability (Earning Power)

Gross Profit 4560000
4.Gross Margin 0.0909
Sales 50160000
Net Profit Before Tax 1629500
5.Net Margin Sales 50160000
0.0324
ASSET MANAGEMENT RATIOS: Overall Efficiency Ratios

Sales 50160000
6.Sales-to-Assets Total Assets 3524175
14.23
Net Profit Before Tax 1629500
7.Return on Assets Total Assets 3524175
0.46
8.Return on Net Profit Before Tax 1629500

0.9786
Investment Net Worth 1665000
ASSET MANAGEMENT RATIOS: Working Capital Cycle Ratios

9.Accounts Payable Cost of Goods Sold 45600000
456
Turnover Accounts Payable 100000
10.Average Payment 360 360
0.7894
Period Accts. Pay. Turnover 456

APPENDIX
Table: Income Statement
Income Statement
Years 2016 2017 2018 2019 2020
Net sales 50,160,000.00 55,176,000.00 60,693,600.00 66762960.00 73439256.00

Cost of goods sold 45,600,000.00 50,160,000.00 55,176,000.00 60693600.00 66762960.00
Net Operating Income 4,560,000.00 5,016,000.00 5,517,600.00 6069360.00 6676296.00
Salaries $2,532,000 2,785,200.00 3,063,720.00 3063720.00 3063720.00

Utilities 60,000.00 66,000.00 72,600.00 79860.00 87846.00
Rent $288,000 316,800.00 348,480.00 383328.00 421660.80
Other 50,000.00 55,000.00 60,500.00 66550.00 73205.00
Depreciation $56,500 $56,500 56,500.00 56500.00 56500.00
Interest@12% $54,000 59,400.00 65,340.00 71874.00 79061.40
Operating expenses $2,930,500 $3,217,900 $3,534,040 3721832.00 3781993.20
EBT $1,629,500 $1,798,100 $1,983,560 2347528.00 2894302.80

Tax @ 35% $570,325 $629,335 694,246.00 763,671.00 840,038.00
Net Income 1,059,175.00 1,168,765.00 1,289,314.00 1583857.00 2054264.80
Department of Finance Jagannath University 1|Page

APPENDIX
Table: Cash Flow
Cash Flow Statement

Years 2016 2017 2018 2019 2020
Beginning balance 500,000.00 1,565,675.00 2,786,590.00 4133269.00 6992082.00

Cash inflow
Profit before interest and taxation added back 1683500.00 1857500.00 2,048,900.00 3649958.00 3702931.80
Depreciation Provision for the year 56500.00 62150.00 68,365.00 56500.00 56500.00
Increase in bank borrowing for working capital 0.00 45000.00 49,500.00 54450.00 59895.00
Total cash inflow 2,240,000.00 3,530,325.00 4,953,355.00 7894177.00 10811408.80
Cash outflow
Capital expenditure for the project 0.00 56,500.00 62,150.00 68365.00 75201.50
Interest 54,000.00 59,400.00 65,340.00 71874.00 79061.40
Other expenditure(Preliminary and 50,000.00 55,000.00 60,500.00 66550.00 73205.00
preoperative expense)
Tax 570,325.00 629,335.00 694,246.00 763,671.00 840,038.00
Total cash outflow 674,325.00 743,735.00 820,086.00 902095.00 992304.40
Ending Cash Balance 1,565,675.00 2,786,590.00 4,133,269.00 6992082.00 9819104.40

APPENDIX
Table: Balance Sheet
Balance Sheet
2016 2017 2018 2019 2020
Cash 1,565,675.00 2,786,590.00 4,133,269.00 6992082.00 9819104.40
other current assets 850,000.00 858,500.00 867,085.00 875755.85 884513.41
Inventory 400,000.00 440,000.00 484,000.00 532400.00 585640.00
Prepaid expenses 200,000.00 220,000.00 242,000.00 266200.00 292820.00
Total Current Assets 3,015,675.00 4,305,090.00 5,726,354.00 8666437.85 11582077.81

Fixed assets 508,500.00 559,350.00 615,285.00 676813.50 744494.85
Total Assets 3,524,175.00 4,864,440.00 6,341,639.00 9343251.35 12326572.66
Accounts payable 100,000.00 110,000.00 121,000.00 133100.00 146410.00

Short-term loan 450,000.00 495,000.00 544,500.00 598950.00 658845.00
Net income 1,059,175.00 1,168,765.00 1,289,314.00 1583857.00 2054264.80
Accrued & other liabilities 150,000.00 165,000.00 181,500.00 199650.00 219615.00
Total Current Liabilities 1,759,175.00 1,938,765.00 2,136,314.00 2515557.00 3079134.80
Long-term debt 100,000.00 110,000.00 121,000.00 133100.00 146410.00

Other long-term liabilities 0.00 0.00 0.00 0.00 0.00
Total Long-term Liabilities 100,000.00 110,000.00 121,000.00 133100.00 146410.00

Shareholders' equity 1,665,000.00 2,815,675.00 4,084,325.00 6694594.35 9101027.86
Total Liabilities and Equity 3,524,175.00 4,864,440.00 6,341,639.00 9343251.35 12326572.66

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APPENDIX

February 14, 2016

Date of Submission: 14 February, 2016

Department of finance Jagannath university 1|P a g e

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5.3 Sales Strategy 26

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1.1 Industry Size, Growth Rate, and Sales Projections

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 Social Marketing Company (SMC)

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1.2 Industry Structure

1.3 Nature of Participants

1.4 Key Success Factors

 Consistent, accurate satisfaction of the client's wishes.

1.5 Industry Trends

Event management industry is a growing industry. Though event management industry

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1.6 Long-Term Prospects

Event management has a bright prospect in Bangladesh. As Bangladesh economy is growing

2.1 Company History

Why Choose Event Management Business

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2.2 Mission Statement

2.3 Products and Services

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Friends Event Management provides event planning in a wide range of applications. We

1. Meetings, Trainings, and Retreats.

2.4 Current Status

2.5 Legal Status and Ownership

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1. Trade License – From Dhaka City Corporation(North or South as Per Location)

3.1 Market Segmentation and Target Market Selection

 The corporate clients

 The Corporate Clients

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 The Non-Corporate Clients

 The Bangladesh Government

Target market determination

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After all analysis, Friends Event managements target market will be

3.2 Buyer Behavior

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3.3 Competitor Analysis

3.4 Estimates of Annual Sales

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Creative Corporate Events 1 6

2nd Six Months

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4.1 Revenue Drivers and Profit Margins

4.2 Fixed and Variable Costs

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-Room Rental -Meals -Microphones

-Security Deposit -Beverages -Screens and Projectors

Event Rentals Décor Vendors Entertainment

4.3 Operating Leverage, and Its Implications