1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a wedding planning and consulting firm while showcasing the expected financials and operations over the next three years. The Wedding Planner, Inc. (“the Company”) is a New York based corporation that will provide wedding planning, design, and management services to customers in its targeted market. The Company was founded by John Doe.
1.1 Operations
As state above, Mr. Doe intends to arrange wedding events that range from $7,500 to over $100,000. The Wedding Planner will develop and manage each step and aspect of a client’s wedding day event. Mr. Doe will personally manage every event that is hosted by the Company. For each event, the Company will receive ten to twenty five percent of the aggregate budget for the event. This is a sliding scale, and as the event becomes more costly, the percentage fees received by the Wedding Planner will decrease. The business will also receive per hour fees for services related to design and wedding day consulting. The third section of the business plan will further describe the services offered by the Wedding Planner.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Mr. Doe’s mission is to develop the Wedding Planner into a premier wedding planning business within the target market.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the event management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Wedding Planner, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Wedding Planner requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Wedding Planner, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Wedding Planner. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
Below is a description of the planning and consulting services offered by the Wedding Planning.
3.1 Wedding Planning and Management Services
The primary revenue source for the business will come from services related to planning and managing weddings. Mr. Doe will charge a percentage fee (10% to 25% on a sliding scale) depending on the size and scope of the event. Each aspect of the wedding will be managed by Mr. Doe and his staff.
3.2 Consulting
The Company will also generate secondary revenues from per hour consulting fees for brides and bridegrooms that are seeking general advice for their wedding event, but not necessarily want the Wedding Planner to actively manage each aspect of the wedding. Management expects that 15% of the Company’s revenues will come from these services.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the event planning industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes. This may present certain difficulties with revenue generation as people will spend less on their wedding day events.
4.2 Industry Analysis
The US Economic Census indicates that there are approximately 5,000 companies that specialize in event management. Each year, these businesses aggregately generate more than $5 billion dollars a year of revenue and provide jobs for more than 40,000 people. The growth of this industry has remained in lockstep with the growth of the economy in general. The number of business’ operating within this industry has increased 15% over last five years while gross receipts have increased almost two fold. This industry has exploded as the economic tastes of Americans have changed significantly over the last five years as the overall wealth of the country has grown. As Americans now have more access to capital and an increased borrowing capacity, their ability to spend money on luxury items/services has also increased. With this, the number of people having extravagant and expensive weddings/events has had a marked increase over the last five years. In 2005, the average wedding (excluding transportation costs) exceeded $25,000. In the same year, Americans spend nearly $125 billion dollars on weddings. This trend is expected to continue as the economy remains strong.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Wedding Planner intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Wedding Planner.
5.1 Marketing Objectives
- Establish relationships with banquet halls and country clubs within the target market.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe will promote the business through a number of traditional marketing and advertising channels. The foremost marketing strategy that the business will use is to develop connections with local banquet halls and hotels that outsource their event planning to third party wedding/event planners like the Company. This will greatly decrease the amount of advertising required by the business as once a rapport is established with these vendors; they will continually refer business to Mr. Doe. The Company will also maintain a strong level of print and media advertising among local newspapers, event planning publications, wedding publications, and other news medium. The business will also maintain listings in the local Yellow Books. The Wedding Planner will also use an internet based strategy. This is very important as many people seeking local services, such as wedding/event planners, now the Internet to conduct their preliminary searches. Mr. Doe will register the Wedding Planner with online portals so that potential customers can easily reach the business. The Company will also develop its own online website, which will showcase the elegance of events that the Wedding Planner can provide to its clients.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- The Wedding Planner will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The business’s revenues are somewhat sensitive to the overall condition of the economic markets. In the event of a steep economic decline, Management expects that its revenue will decrease as people host weddings at alternative, less expensive venues. In the event of a decline in revenues, the business will be able to maintain profitability because the business generates significantly high gross margins.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
