BUSINESS ENTREPRENEURSHIP

“EVENT ORGANIZER” BUSINESS PLAN

By:
Ni Luh Putu Mas Ashita Trisnayanti
119211323

ACCOUNTING INTERNATIONAL PROGRAM

FACULTY OF ECONOMIC AND BUSINESS
PENDIDIKAN NASIONAL UNIVERSITY
DENPASAR
2021
I. Business Idea

1. What skills do I have to start a business?

To start a kind of business which will be explained below, I think

these skills I have are compatible my business.

 Willing to learn: Education is a long-life process. Some people

think that learning stops when they graduate college or earn a

special certification, but this is not the case. To start a business,

everyone have to have this essential skill as a successful

entrepreneur in all fields of business, including the business I am

about to start.

 Creativity: This skill will support me in increasing the variety of

products and designs according to customer desires.

 Project management and planning: After having the opportunity

to take part in several freelance projects, I think this is one of the

skills I already have. I know how to manage my resources

effectively, including the times, money, and staffs who will help

me achieve my goals.

 Organizational skills: The experience of joining the committee in

freelance projects made me learn a lot about organization. So that

my ability to organize also increases. I am also very capable and

comfortable to be placed and working in a team.

2. What factors will influence the demand for my product and service?

There are some various factors that will influence the demand for

my product and service:

  Price

 Expectations, tastes, and preferences

 Competition

 Economic condition

 Income levels

3. What type of business will I start?

The type of business I will start is about products and services as

one package. It is an event organizer, which can provide a products and

also services at the same time as requested by customer. In specific, the

kind of event can be wedding, birthday, anniversary, or any other

ceremony with a touch of Balinese ornate accents or any customer

requests, because their satisfaction is our top priority.

4. What type of business ownership is right for me?

I will make this business as a family business and will cooperate

with friends who have the same interest as me. So I think a partnership is

the right one as a type of business ownership than the other types to run

this business.

A partnership can involves two or more people who agree to share

in profits or losses of a business. A primary advantage is that the

partnership does not bear the tax burden of profits or the benefit of

losses. Profits or losses are passed through to partners to repost on their

individual income tax return. As compared to a sole proprietorship,

which is essentially the same business form but with only one owner, a

partnership allowed the owners to draw on the resources and expertise of

the co-partners. So that is mean, I want to share all things in this business

with partners.
II. Opportunity & Market Analysis

1. How should I conduct market research?

Market research is the process of determining the viability of a new

service or product through research conducted directly with potential

customers. Market research allows a company to discover the target

market and get opinions and other feedback from consumers about their

interest in the product or service.

I do market research in the following ways:

 Determine the purposes of this research

 Look at my industry’s outlook

 Pinpoint target customer

 Compare with competitors

 Gather additional data

 Analyze the findings

 Put the analysis into action

The reason why I have to do market research is to equip myself

with the information I need to make informed business decisions about

start-up, innovation, growth, and the 7Ps marketing mix, that are product,

price, place, promotion, people, process, and physical evidence.

2. Who are my competitors?

Certainly are the competitors who are in the same sector. But still,

to find out who my competitors are, I may ask my future customers

where they came from or if they are used other business in the past. I
 may also ask them why they choose us as their event decoration

organizer.

3. What are my product and pricing strategies?

As the other event decoration organizer, the products and services I

will serve are mostly the same such as tent, chair, table, flower bouquet,

catering set, photo booth, etc. But there are things that make my business

decorations different from the others are authentic designs and can be

flexible to any concept as customer requests.

Pricing a product is one of the most important aspects of the

marketing strategy. There are 5 common pricing strategies I found, they

are:

 Cost-plus pricing: simply calculating the costs and adding a

mark-up.

 Competitive pricing: selling a price based on what the

competition charges.

 Value-based pricing: setting a price based on how much the

customer believes what the selling is worth.

 Price skimming: setting a high price and lowering it as the

market evolves.

 Penetration pricing: setting a low price to enter a competitive

market and raising it later.

From the 5 common pricing strategies above, I decide to choose

penetration pricing as my pricing strategy for my business because by

giving low prices first, we will find it easier to find customers, which in
 the end will become repeat customers by continuing to trust the offer and

quality provided. Customers who have had experience with my business

can even participate in promoting this business indirectly to their

acquaintances or what is commonly known as the word of mouth

marketing.

4. How do I promote my product?

Nowadays, to promoting a business can easily be done in various

ways. I promote my products and services through several common ways

that are:

 Social media posts

 Customer reviews

 Blog posts

 Online advertisements

Promoting my products and services in the above ways can

actually reduce marketing costs, because I don't need to do the old-

fashioned way of printing sheets which then have to be distributed to

everyone or glued it everywhere. Besides that, this method is also not

environmentally friendly. After all, most people now use smart gadgets,

so the online-based promotion method above is considered very effective

and efficient.

5. How do I sell my products?

This business is a product and service business, where I offer

assistance to make it easier for customers to fulfill their desires by

renting out event needs according to customer requests. I will also use
my business services to decorate the location of the event that has been

determined at an agreed price.

III. Financial Strategies

1. What are my business costs?

My business costs are around Rp.50.000.000. With this amount of

capital, I assume that I can buy equipment to support property, some raw

materials and rent a warehouse in a year.

2. Where will I get the capital?

I use my personal saving, and ask partners and family to do the

same to get capital. Since I am going to go down this path, I must be

clear on the terms and write them all down, so no fights arise. But if the

capital collected is not sufficient, then what I have to do is apply for a

loan to the bank.

3. How do I measure the economics of one unit?

To measure the economics of one unit of sale, I will use this

formula:

4. How do I develop an income statement and track cash flow?

By viewing and observing the income statement and cash flow

track at the end of the period to assess whether expenses are effective or

not. This will be very helpful in developing business. Because to develop

a business, I need to have the ability to increase income or reduce

expenses and the income statement can present that information.

Through the income statement and cash flow track, I can see the

increase in revenue or loss the company has received. Then it is also

necessary to conduct an evaluation, so that furthermore my partners and I

can minimize the risk of loss.

5. How do I develop a balance sheet?

At the end of the accounting cycle in a company, the calculations

on the balance sheet will state how the company has performed during a

period. From the balance report, various data about a business can be

found, so that it can be used as an evaluation reference. This balance

sheet aims to show the financial position of a company in a certain

period, usually when the books are closed and the remaining is

determined at the end of a fiscal year or calendar year.

I also apply this. In making a balance report, there should be no

mistakes. Therefore, I also ask for help from financial advisors to help

minimize mistakes so as not to cause business losses for partners and me.

6. What is my break-even point?

For my break-even point analysis, I assume running costs of

approximately Rp90.000.000 per month, which include payroll,

maintenance, insurance, warehouse rent and other fixed costs. I have to

target about 10 events for average Rp100.000.000 per month to break

even, which one event price is Rp10.000.000, based on my assumptions.

Then for the net profit per month, calculated from the total income

of Rp100.000.000 minus the running cost per month of Rp90.000.000, I

get the result of Rp10.000.000.

My business capital is Rp50.000.000, with the above calculations,

then my business will be is expected to break even in the fifth month of

operations.
7. What kind of accounting system should I use?

The accounting system is an overview consisting of manual or

computerized records of financial transactions for the purpose of

recording, categorizing, analyzing and reporting financial management

information in a timely manner. The accounting system has various

functions such as collecting and storing transaction data, processing data

into information for decision making, and controlling the organization.

I will use a management accounting system, which has the goal of

providing accounting information to partners for planning, controlling,

and managing business operations.

IV. Organizational Structures

1. How should I staff my business? How will I manage my business?

The way I staff/manage my business is by sharing tasks with

partners, because partnerships require all parties to have the same rights,

responsibilities and duties. Previously, my prospective partner and I

would make a Memorandum of Understand (MoU) or some kind of

contract with the aim that all rights and responsibilities will be written

and finally legally binding. The parties who have become my partners,

including myself, can immediately run business as usual as written in the

contract. To run this business well I will assume that I need 10 workers

including myself and also partners.

Regarding profit sharing, it will usually be based on a contract that

has been signed by my partners and me. For tax matters, each partner and

I will of course pay different amounts. Even though in a profit sharing

partnership (both loss and profit) it is carried out equally, each person

will still pay income tax according to his own calculations.

To run this business I will assume that I need 10 workers including

myself and also partners.

2. Do I need the help of outside experts?

I need help from outside experts such as hire financial advisor and

legal representative. I put them on the organizational structure as public

partners. I hire a financial advisor to assist in all aspects of planning to

financial implementation and strategic steps with the aim of increasing

 company value. And for legal representative, acts as the legal face of the

company and is signatory for all company operational activities.

3. How do I train and motivate employees?

Training is the key to efficiency. When employees undergo

training, it improves their skills and knowledge of the job and builds their

confidence in their abilities. This will improve their performance and

make them work more efficiently and effectively. Below are some ways

to train and motivate my employees:

 Identify employee strengths

 Strengthening employee bonds

 Incorporate training in organizational culture

 Keep it interesting

 Enhance long-term career development

 Give regular feedback and reward

4. What organizational structure is right for my business?

An organizational structure is a system that outlines how certain

activities are directed in order to achieve the goals of an organization. It

also determines how information flows between levels within the

company. An organizational structure is either centralized or

decentralized. For my business, it will rise in decentralized organizations,

as is the case with many technology startups. This allows my business to

remain fast, agile, and adaptable, with almost every employee receiving a

high level of personal agency.

 The type of organizational structure that fits this business is

functional structure, which is the common organizational structures are

implemented in the real world.

Public-Private
Partner

Private Partners Public Partners

Design Maintenances Operations Investors

Contractors

Financial Legal
Advisor Representative
V. Business Management

1. How do I manage expenses, credit and cash flow?

 Record all income and expenses

 Monitor my business cash flow regularly

 Get business credit cards to cushion my business cash flow.

 Conduct evaluation after reading financial statement

2. How do I manage production and distribution?

This business plan will always carry out decoration design

innovations, perhaps with the addition of details or property development

according to the trends that are currently developing in the community to

match the market or even create this business trend itself. And for the

distribution I will plan it to be as efficient and effective as possible so as

not to waste costs, so that profits can also be large, but still not forgetting

the safety of workers and the quality of the products.

3. How will I manage my operations?

One of the main tasks of anyone in operations management is to

monitor and analyze current operations and develop strategies to improve

constantly. Likewise, I will do to manage the management of my

business operations. Considering that this is a partnership business, all

partners must participate to oversee the entire company and ensure that

everything runs as smoothly as possible. It's a job that is constantly

changing, so there is always room for improvement.

4. How do I manage purchasing?

Since this business is rental business, so I am assuming I don't

purchasing new products very often every time I get a customer to

decorate their event. I just need to do maintenance as will be explained

later. However, I will continue to collect data on what items need

updating. This purchasing applies regularly if I need decorations made

from nature, because they can only be used once and do not last long.

5. How do I manage inventory?

I manage inventory in some ways:

 Track all product information: I will make sure to keep records of

product information for the items in my inventory. I might also

consider tracking the cost of each item over time so that I am

aware of factors that can change costs, such as scarcity and

seasonality.

 Provide warehouse: Apart from being a place to store inventory,

warehouses are also used as a place to design and arrange

property decorations.
VI. Plan for Growth

1. How can I plan for business growth?

I plan my business growth by implementing the basic growth

strategies, these are:

 Market penetration: This is an attempt to increase market share

using my current products and services. I will pursue this

strategy by lowering the prices of products and services, or by

increasing my marketing efforts to distance potential customers

from competitors.

 Product development: Product development means creating

new products to serve the same market. For instance, my

business initially only produced decorations and rented out

property, then I expanded my production line by providing a

photo booth along with the photographer.

 Market development: This strategy seeks to increase sales of

the company's current products in new markets. For example,

maybe I will do a franchise in several cities in Indonesia.

 Diversification: It is means move to a line of business that is

completely different from the previous business, involves

creating a totally new product or new service for a completely

new market. For example, my business launched a new type of

business in the make-up and hair-do field, where previously I

only produced property decorations.

2. What are the challenges of growth?

Growing a business may not be as smooth as imagined and planned

at first, because usually there are challenges in the process. The number

of competitors is one of the challenges in this business growth.

Therefore, I will continue to strive to create more unique innovations that

can be applied and are certainly different from competitors.

Because this business is a partnership business, there is a

possibility of a difference in understanding between partners. But before

that happens, of course, I will make a MoU agreement that is legal in law

so that unwanted things do not happen in the future. In addition, to

increase the sense of belonging and kinship to this business, I must be

able to implement the right business system.

3. How will I expand my business?

Same as the point of plan for business growth, I use those

strategies to expand my business. Another thing is, I will carry out

promotions involving several online platforms and may also conduct

analysis by distributing questionnaires to find out what customers want

from this business so that I can develop and expand this business.

4. Can I franchise or license my business?

For the short term, I don't plan to franchise this business yet.

However, it is still possible to do so if enthusiasts of my products and

services have reached out of town, because now I still planning to be

based only in Bali, specifically in Denpasar and its surroundings. And I

don't think it's necessary for a license because this business is common

although with different characteristics as mine.

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