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JUL.30, 2021

Event Venue Business Plan Template

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Event Venue Business Plan Sample

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    Event venue business plan for starting your own agency

    As long as humans inhabit the earth and they meet and greet each other, there will be a business for event planner. In this document, you will learn the details of a business plan for event venue. If you are interested in knowing how to open an event center business, this document will provide you with all the information you need for that. This is a complete strategic business plan that can be used to start the business from scratch. Unlike a gift shop business plan, this is a more details document and covers all the aspects of starting a business.

    Executive Summary

    2.1 The Business

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    Daniel Event Agency will be a registered, insured, and bonded event management services provider in Miami, Florida. The business will specialize in providing all kinds of event management services from backyard birthday parties to corporate events with thousands of attendees. Daniel is starting an event venue because he has a lot of relevant experience. Most of the things in this business plan will resemble closely with those in a music festival business plan.

    2.2 Management of Event Venue Business

    If you want to know how to open an event center, you need to know the management structure of the business in detail. To run the business efficiently and smoothly, Daniel will hire two managers. They will be responsible for operations and marketing, respectively. The supreme authority in the business will reside will Daniel himself.

    2.3 Customers of Event Venue Business

    As people from, any field can need the services of an event management company, the customers of this event venue business plan pdf will be of a range of different types. These will include:

    • People who are looking for a one-time domestic or business event.
    • Private companies that need a permanent vendor for all their events.
    • Government agencies wanting to hire someone for their events.
    • Hotels and other service providers who want to arrange an event larger than their own scope.

    2.4 Business Target

    The target of Daniel Event Agency is to become the leading event organization services provider in all of Miami. The business target here will be vastly different than that in the case of an art gallery business plan. To do this, the business plan for bank will have the following objectives:

    • Gaining at least 10 permanent clients and entering into long-term contracts with them.
    • Establishing a name and becoming a respectable brand in the market.
    • Start providing services in other cities and eventually in other states.

    3 Years Profit Forecast - Event Venue Business Plan Template

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    Company Summary

    3.1 Company Owner

    Daniel Pearl will be the owner of this sample business plan for event venue. He is going to start this business because he has worked as an event planner for 10 years. He is the perfect man to start this business because he has the relevant experience and the passion to take the business to unprecedented heights.

    3.2 Why the Event Venue Business is being started?

    Daniel is starting the business due to three main reasons. Firstly, he has noticed that there is a severe gap in the provision of these services in the area. The services already available are not up to the mark of what the customers need, and he has assessed that the customers will welcome any new entrant. The second reason for starting this event venue rental business plan is that Daniel has recently won a lottery and wants to invest the money in a business. Thirdly, owning an event venue was always a dream for Daniel.

    3.3 How the Event Venue Business will be started?

    Step1: Planning the Feasibility

    The most important part of any wedding and event venue business plan is planning the feasibility of the business and that has been done by Daniel. It has been noted in the feasibility report that the business is not only feasible but will also be very successful if started and executed the right way.

    Step2: Developing a Brand

    As the business is aimed to target the upper echelon of the society of Miami, having an established brand name for the business is cardinally important. Daniel will sign contracts with celebrities and local prominent politicians to market the business and make a reputable and well-known brand.

    Step3: Establishing the Business 

    The next step of this business plan for an event planner is to establish the actual presence of the business. Daniel will buy a plot to establish the office and some halls for hosting functions and events.

    Step4: Going Online

    Once the business has a physical presence, establishing the online presence is the next thing to do. For this, Daniel’s team will make a website for the business and social media pages will also be made to support it.

    Step5: Promotion and Marketing

    Last, but not least, the business will be properly marketed to make sure the people who can be potential customers of the business know of its existence.

    Startup Cost - Event Venue Business Plan Template

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    Start-up Expenses
    Legal $238,000
    Consultants $0
    Insurance $30,000
    Rent $30,000
    Research and Development $23,000
    Expensed Equipment $51,000
    Signs $4,000
    TOTAL START-UP EXPENSES $376,000
    Start-up Assets $340,000
    Cash Required $380,000
    Start-up Inventory $50,000
    Other Current Assets $280,000
    Long-term Assets $234,000
    TOTAL ASSETS $1,284,000
    Total Requirements $1,660,000
    START-UP FUNDING
    Start-up Expenses to Fund $376,000
    Start-up Assets to Fund $1,284,000
    TOTAL FUNDING REQUIRED $1,660,000
    Assets
    Non-cash Assets from Start-up $1,674,000
    Cash Requirements from Start-up $377,900
    Additional Cash Raised $52,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $2,138,900
    Liabilities and Capital
    Liabilities $29,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $44,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $73,000
    Capital
    Planned Investment $1,660,000
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,660,000
    Loss at Start-up (Start-up Expenses) $405,900
    TOTAL CAPITAL $2,065,900
    TOTAL CAPITAL AND LIABILITIES $2,138,900
    Total Funding $1,660,000

    Services

    Note

    As there are a number of different services provided by business event venues, it is important to decide which services we will be providing. It is also one of the most important parts of any business plan for event venue. Let’s see what services this event venue rent business will provide.

    Event Management

    This will be the main service provided by the business. Just like a business plan for a trampoline park, this will be the major source of income.

    Event Decor

    For the clients who do not want full event management services and only want someone for the décor of the event venue, we will provide these services.

    Event Catering

    Some clients only want event managers to take care of catering and they do the rest by themselves. These services will be for such customers.

    Event Planning

    For the people who want to get the event planned by professionals and executed it on their own, these services will be provided.

    Marketing Analysis of Event Venue Business

    Marketing analysis is one of the most important things for starting and successfully running an event venue. For this reason, Daniel has conducted a detailed marketing analysis and planned how he will be approaching the business. The things that are important for an event space business plan are in the coming paragraphs.

    5.1 Market Trends

    It is important that you have a look at the trends of the market before opening an event venue. That’s why we have made this a part of this event venue business plan template. It has been observed that the trend of holding events has sharply increased but the number of companies providing this service has largely stayed the same.

    5.2 Marketing Segmentation

    The expected customers of the business will be divided into the following market segments:

    Marketing Segmentation - Event Venue Business Plan Template

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    5.2.1 Private Customers

    This segment of the market will be the largest in number but the projects we get from this segment will be smaller ones. This will include private parties, birthdays, and weddings.

    5.2.2 Corporate Customers

    This segment will give us bigger projects, but the number of clients will be lower in this segment of the market. These customers will hire us for multi-day corporate events with hundreds or even thousands of attendees.

    5.2.3 Business Customers

    Small businesses will also be an important market segment for us.

    5.2.4 Government Agencies

    Local, state, and federal government agencies will form a major part of the business. They will hold large events but the number and frequency of these events will be lower.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Private Customers 34% 39,000 41,000 42,000 43,000 44,000 10.00%
    Corporate Customers 27% 30,000 32,000 33,000 35,000 37,000 10.00%
    Business Customers 23% 22,000 23,000 25,000 27,000 28,000 10.00%
    Government Agencies 16% 15,000 17,000 19,000 21,000 23,000 11.00%
    Total 100% 106,000 113,000 119,000 126,000 132,000 10%

    5.3 Business Target

    • To provide reliable and dependable event management services to the people of Miami.
    • To make partnerships with major corporations in the are and become their permanent event planners.
    • To make a brand in event management and planning that people can trust.
    • To start making profit within the first six months

    5.4 Product Pricing

    We will keep the price of our services and products below the average price offered by the competition. This will help us get customers. This approach will be used for the first six months and then we will offer the services at a high price to make profit.

    Marketing Strategy

    In order to start and successfully run a business plan event venue, you need to have a proper marketing strategy for it and that is what we are going to discuss in this part of this event venue business plan template. We need to make sure that we approach the target market the right way and get customers that can make the best profit for us in the business. To do that, the following marketing strategy was made.

    6.1 Competitive Analysis

    • It has been noted in the detailed analysis of the market that there is not even a single company providing comprehensive event venue services in the area.
    • The companies that do provide this service do not have the capacity to meet the demands of the public.
    • There is not even a single established company in this market segment and if we make a brand we can earn serious money.
    Any questions? Get in Touch

    6.2 Sales Strategy

    • Daniel Event Agency will be marketed using print, electronic and social media channels in the area we want to do the business in.
    • We will offer the services at lower costs and with better quality than the competition to gain customers.
    • We will partner up with well-known companies in the area to make a name for the business and will use that as a competitive edge.

    6.3 Sales Monthly

    Sales Monthly - Event Venue Business Plan Template

    6.4 Sales Yearly

    Sales Yearly - Event Venue Business Plan Template

    6.5 Sales Forecast

    Unit Sales - Event Venue Business Plan Template

    Sales Forecast
    Unit Sales Year 1 Year 2 Year 3
    Event Management 55,000 58,300 61,798
    Event Decor 34,000 36,040 38,202
    Event Catering 60,000 63,600 67,416
    Event Planning 43,000 45,580 48,315
    TOTAL UNIT SALES 192,000 203,520 215,731
    Unit Prices Year 1 Year 2 Year 3
    Event Management $60.00 $69.60 $80.74
    Event Decor $56.00 $64.96 $75.35
    Event Catering $54.00 $62.64 $72.66
    Event Planning $55.00 $63.80 $74.01
    Sales
    Event Management $3,300,000.00 $4,057,680.00 $4,989,323.33
    Event Decor $1,904,000.00 $2,341,158.40 $2,878,688.37
    Event Catering $3,240,000.00 $3,983,904.00 $4,898,608.36
    Event Planning $2,365,000.00 $2,908,004.00 $3,575,681.72
    TOTAL SALES $10,809,000.00 $13,290,746.40 $16,342,301.77
    Direct Unit Costs Year 1 Year 2 Year 3
    Event Management $58.00 $66.00 $76.00
    Event Decor $54.00 $61.00 $71.00
    Event Catering $52.00 $59.00 $68.00
    Event Planning $53.00 $60.00 $70.00
    Direct Cost of Sales
    Event Management $3,190,000.00 $3,847,800.00 $4,696,648.00
    Event Decor $1,836,000.00 $2,198,440.00 $2,712,370.40
    Event Catering $3,120,000.00 $3,752,400.00 $4,584,288.00
    Event Planning $2,279,000.00 $2,734,800.00 $3,382,036.00
    Subtotal Direct Cost of Sales $10,425,000.00 $12,533,440.00 $15,375,342.40

    Personnel plan

    The next thing that is an important part of a business plan for event venue is a plan of the staff that will be needed to run the business. As most of the work done by an events agency is on contract basis, most of the staff needed for the projects will be hired on daily wages when required. The requirement of a permanent staff for the business will not be that high.

    Any questions? Get in Touch

    7.1 Company Staff

    The following people will be needed to run the business:

    • Daniel Pearl, the owner will be the CEO of the business.
    • 2 managers will be hired for operations and marketing.
    • 1 décor planner.
    • 1 accountant.
    • 3 drivers.
    • 4 waiters & general assistants
    • 2 cooks
    • 1 office attendant.

    7.2 Average Salary of Employees

    Personnel Plan
    Year 1 Year 2 Year 3
    Operations Manager $14,000 $15,400 $16,940
    Marketing Manager $13,000 $14,300 $15,730
    Decor Planner $11,000 $12,100 $13,310
    Accountant $8,000 $8,800 $9,680
    Drivers $28,000 $30,800 $33,880
    Waiters & General Assistants $40,000 $44,000 $48,400
    Cooks $20,000 $22,000 $24,200
    Office Attendants $8,000 $8,800 $9,680
    Total Salaries $142,000 $156,200 $171,820

    Financial Plan

    The last part of this event venue rental business plan is the financial part of things. A lot of money will be needed from the moment working on the business is started to the time it starts making profit. The costs for starting this business, just like a amusement park business plan can be divided into the following:

    • The cost needed to buy land and construct the halls for events.
    • Salary of the employees.
    • Money needed for buying vehicles for the business.
    • Cost of marketing and advertisement of the business.
    • Cost of buying the stuff needed to run the business.

    8.1 Important Assumptions

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.13% 8.22% 8.31%
    Long-term Interest Rate 8.38% 8.47% 8.53%
    Tax Rate 24.00% 24.66% 25.88%
    Other 0 0 0

    8.2 Break-even Analysis

    Break-even Analysis - Event Venue Business Plan Template

    Break-Even Analysis
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $133,500
    Assumptions:
    Average Per-Unit Revenue $236.00
    Average Per-Unit Variable Cost $0.68
    Estimated Monthly Fixed Cost $165,100
    Any questions? Get in Touch

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss
    Year 1 Year 2 Year 3
    Sales $10,809,000 $13,290,746 $16,342,302
    Direct Cost of Sales $10,425,000 $12,533,440 $15,375,342
    Other $0 $0 $0
    TOTAL COST OF SALES $10,425,000 $12,533,440 $15,375,342
    Gross Margin $384,000 $757,306 $966,959
    Gross Margin % 3.55% 5.70% 5.92%
    Expenses
    Payroll $142,000 $156,200 $171,820
    Sales and Marketing and Other Expenses $130,000 $133,000 $135,000
    Depreciation $2,200 $2,350 $2,480
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $3,500 $3,600 $3,800
    Payroll Taxes $30,000 $31,000 $32,000
    Other $0 $0 $0
    Total Operating Expenses $312,700 $331,250 $350,300
    Profit Before Interest and Taxes $71,300 $426,056 $616,659
    EBITDA $71,300 $426,056 $616,659
    Interest Expense $0 $0 $0
    Taxes Incurred $14,260 $85,211 $123,332
    Net Profit $57,040 $340,845 $493,327
    Net Profit/Sales 0.53% 2.56% 3.02%

    8.3.1 Profit Monthly

    Profit Monthly - Event Venue Business Plan Template

    8.3.2 Profit Yearly

    Profit Yearly - Event Venue Business Plan Template

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Event Venue Business Plan Template

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Event Venue Business Plan Template

    8.4 Projected Cash Flow

    Projected Cash Flow - Event Venue Business Plan Template

    Pro Forma Cash Flow
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $52,000 $56,160 $60,653
    Cash from Receivables $20,000 $21,600 $23,328
    SUBTOTAL CASH FROM OPERATIONS $72,000 $78,480 $84,758
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $72,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $41,000 $42,000 $45,000
    Bill Payments $26,000 $28,000 $29,000
    SUBTOTAL SPENT ON OPERATIONS $67,000 $70,000 $74,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $67,000 $72,360 $78,149
    Net Cash Flow $21,000 $20,000 $22,000
    Cash Balance $29,000 $31,000 $33,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $271,000 $303,520 $333,872
    Accounts Receivable $22,000 $24,640 $27,695
    Inventory $4,200 $4,704 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $294,000 $329,280 $370,111
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,100 $21,392 $24,066
    TOTAL LONG-TERM ASSETS $23,000 $25,760 $28,980
    TOTAL ASSETS $295,000 $330,400 $371,700
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,000 $21,280 $23,919
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $18,900 $21,168 $23,793
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $17,000 $19,040 $21,401
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $54,500 $59,405 $65,346
    Earnings $197,000 $214,730 $236,203
    TOTAL CAPITAL $288,000 $313,920 $345,312
    TOTAL LIABILITIES AND CAPITAL $305,000 $330,400 $371,700
    Net Worth $301,000 $328,090 $360,899

     

    8.6 Business Ratios

    Ratio Analysis
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.24% 8.02% 8.89% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.18% 10.17% 11.27% 9.80%
    Inventory 5.38% 5.96% 6.60% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 151.10% 151.50% 152.00% 158.00%
    Long-term Assets 11.56% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.91% 4.95% 4.99% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.61% 7.67% 7.74% 7.38%
    NET WORTH 101.50% 102.31% 103.25% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 95.06% 97.63% 100.36% 99.00%
    Selling, General & Administrative Expenses 94.00% 96.54% 99.24% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.70% 42.83% 44.03% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 34 34.4 35.26 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.70% 75.00% 75.00%
    Pre-tax Return on Assets 96.00% 100.80% 105.84% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.50% 34.54% 35.61% N.A.
    Return on Equity 56.00% 57.74% 59.53% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 33 34.65 35 N.A.
    Accounts Payable Turnover 15 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $245,000 $258,720 $273,208 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.86 0.87 0.87 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29.5 30 30.2 N.A.
    Sales/Net Worth 2.1 2.2 2.3 N.A.
    Dividend Payout 0 0 0 N.A.

     

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