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.
2.1 The Business
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.
3.1 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.
|Research and Development||$23,000|
|TOTAL START-UP EXPENSES||$376,000|
|Other Current Assets||$280,000|
|Start-up Expenses to Fund||$376,000|
|Start-up Assets to Fund||$1,284,000|
|TOTAL FUNDING REQUIRED||$1,660,000|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$44,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,660,000|
|Loss at Start-up (Start-up Expenses)||$405,900|
|TOTAL CAPITAL AND LIABILITIES||$2,138,900|
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.
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.
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.
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.
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:
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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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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.
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.
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
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||192,000||203,520||215,731|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$10,425,000.00||$12,533,440.00||$15,375,342.40|
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.
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
|Year 1||Year 2||Year 3|
|Waiters & General Assistants||$40,000||$44,000||$48,400|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.13%||8.22%||8.31%|
|Long-term Interest Rate||8.38%||8.47%||8.53%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$133,500|
|Average Per-Unit Revenue||$236.00|
|Average Per-Unit Variable Cost||$0.68|
|Estimated Monthly Fixed Cost||$165,100|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$10,425,000||$12,533,440||$15,375,342|
|TOTAL COST OF SALES||$10,425,000||$12,533,440||$15,375,342|
|Gross Margin %||3.55%||5.70%||5.92%|
|Sales and Marketing and Other Expenses||$130,000||$133,000||$135,000|
|Total Operating Expenses||$312,700||$331,250||$350,300|
|Profit Before Interest and Taxes||$71,300||$426,056||$616,659|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$67,000||$72,360||$78,149|
|Net Cash Flow||$21,000||$20,000||$22,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$294,000||$329,280||$370,111|
|TOTAL LONG-TERM ASSETS||$23,000||$25,760||$28,980|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$18,900||$21,168||$23,793|
|TOTAL LIABILITIES AND CAPITAL||$305,000||$330,400||$371,700|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||151.10%||151.50%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||94.00%||96.54%||99.24%||97.80%|
|Profit Before Interest and Taxes||41.70%||42.83%||44.03%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$245,000||$258,720||$273,208||N.A.|
|Assets to Sales||0.86||0.87||0.87||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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