Term Paper

On
New Business Plan
Course: Introduction to Business
Course Code: EM 501 (Sec: A)
Batch: 38th
Submitted to:
Mr. Mohammad Abdul Jabber
Assistant Professor
Department of Management Faculty of Business Studies (Evening)

Submitted by:
A) Md. Ariful Islam
ID: 3-18-38-005
B) Zurkani-Al-Refayee
ID: 3-18-38-004
C) Nazirul Islam Tutul
ID: 3-18-38-027
D) Md. Shah Mokhdum Rahman
ID: 3-18-38-012
Department of Management Faculty of Business Studies (Evening)
Submission Date: 7th April 2018
 Letter of Transmittal

07th April, 2018

Mr. Mohammad Abdul Jabber

Assistant Professor

Business Faculty, University of Dhaka

Subject: Report on starting of a new business plan.

Dear Sir,

We are really thankful to you for giving us such an opportunity to prepare a report on starting of a
new business plan. We are delighted and happy to submit this term paper to you. We have given our
best to prepare this term paper along with; we tried hard to give as much relevant information to
make this report informative and precise within the given time period.

Therefore, we request you to accept our report. We would also thank you for your supervision and
support throughout the report preparation.

Your Sincerely,

Group Name: Beacon

A) Md. Ariful Islam
ID: 3-18-38-005
B) Zurkani-Al-Refayee
ID: 3-18-38-004
C) Nazirul Islam Tutul
ID: 3-18-38-027
D) Md. Shah Mokhdum Rahman
ID: 3-18-38-012

Course Code: EM 501

Course: Introduction to Business (Sec- A)
Business Plan: Friends Event Management

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Business Plan: Friends Event Management

Table of Content
Title of Topics
Page No
Executive Summary
5
1 Industry Analysis
5
1.1 Industry Size, Growth Rate, and Sales Projections
6
1.2 Industry Structure
PART-I 7
1.3 Nature of Participants
7
1.4 Key Success Factors
7
1.5 Industry Trends
7
1.6 Long-Term Prospects
8
2 Company Description
8
2.1 Company History
8
2.2 Mission Statement
PART-II
9
2.3 Products and Services
10
2.4 Current Status
10
2.5 Legal Status and Ownership
11
3 Market Analysis
11
3.1 Market Segmentation and Target Market Selection
PART-III 13
3.2 Buyer Behavior
14
3.3 Competitor Analysis
15
3.4 Estimates of Annual Sales
16
4 The Economics of the Business
16
4.1 Revenue Drivers and Profit Margins
16
4.2 Fixed and Variable Costs
PART-IV
17
4.3 Operating Leverage, and Its Implications
18
4.4 Start-up Costs
18
4.5 Break-Even Chart and Calculation
PART-V 19
5 Marketing Plan

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Business Plan: Friends Event Management

20
5.1 Overall Marketing Strategy
20
5.2 Product, Price, Promotions, and Distribution
5.3 Sales Strategy 24
25
6 Design and Development Plan
25
6.1 Development Status and Tasks
26
PART-VI 6.2 Challenges and Risks
26
6.3 Projected Development Costs
6.4 Proprietary Issues (Patents, Trademarks, Copyrights, Licenses, Brand 26
Names)
27
7 Operations Plan
27
7.1 General Approach to Operations
PART-VII
27
7.2 Business Location
28
7.3 Facilities and Equipment
28
PART-VIII 8 Overall Schedule
29
9 Financial Projections
29
9.1 Sources and Uses of Funds Statement
29
9.2 Assumptions Sheet
PART-IX
28
9.4 Pro Forma Balance Sheets

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Business Plan: Friends Event Management

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.

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Business Plan: Friends Event Management

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 their client’s events was started by Asiatic ad agency
and soon followed 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 their clients’ events. But other than that, no significant movements were taken to create a service
firm for the purpose of managing the client’s events 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)
 GQ Ball Pen
 BRAC
 Pran RFL
 Saudia Airlines
 Samsung

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Business Plan: Friends Event Management

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:

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 competitor as it’s a growing industry and barriers
are also quite low. So people can easily enter this industry. By analyzing all of this we refer event management
as a business we can do in Bangladesh.

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Business Plan: Friends Event Management

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 didn’t grow that much like
other industry 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.

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Business Plan: Friends Event Management

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 business all friend together that’s why we choose this name for our venture.

We also choose a tagline and 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.

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Business Plan: Friends Event Management

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.

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Business Plan: Friends Event Management

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. Friend’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. The company will start its operation as soon as it’s
completes its necessary procedure, 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.

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Business Plan: Friends Event Management

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 industry, men’s clothing industry),
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.

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Business Plan: Friends Event Management

 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.

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Business Plan: Friends Event Management

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 “one-stop” service in
managing their events. These companies are moderately 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.

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Business Plan: Friends Event Management

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.

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Business Plan: Friends Event Management

3.4 Estimates of Annual Sales

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Business Plan: Friends Event Management

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 how many units of a business’s
product or service must be sold for the business to “break even” and then start earning a profit.

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:

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Business Plan: Friends Event Management

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:

4.3 Operating Leverage, and Its Implications

A firm’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 variable costs. The
implications of the firm’s projected operating leverage should be discussed.

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Business Plan: Friends Event Management

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.

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

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Business Plan: Friends Event Management

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.

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 best way to describe a company’s marketing plan is to start by articulating its marketing 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

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Business Plan: Friends Event Management

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

A) 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,

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Business Plan: Friends Event Management

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.

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Business Plan: Friends Event Management

B) 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.

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C) Distribution of Services
Friends Event Management is looking to distribute its services in two ways.

 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.

D) 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

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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 booklet on those papers about Friends Event Management’s organizational 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 will also advertise through mobile operator. By
sending message to every mobile user in Bangladesh we can reach maximum number of viewer’s
attention.

 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

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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:

o Relationship build up
o 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.

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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

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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.

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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 has been prepared that shows the major events required to launch the business. The schedule
should be in the format of milestones critical to the business’s success. We also try to show our milestones
chart of crucial event in first year of operation provided as follows:

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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 plan, it’s easy to see why the financial projections come last. They
take the plans we’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:

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.

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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 FY2020, 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. A hypothetical balance sheet for
upcoming year has been shown below:

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