Question

Write a proper business plan on a simple entrepreneurship business.

Answer 1

Executive summary

1. Description of the idea

Rainbow party planners is a full service company that provides complete services for weddings, reunions and anniversaries. Its staff is dedicated to make the occasion a truly memorable one. It gives its customers its undivided attention, thereby, making it a unique experience. It listens to the needs of the clientele and works with them to create the event of their dreams. Clients' wishes become the company’s commands. So whether if the client wants a Western, North Indian, South Indian or a more traditional wedding, the company fulfills their wishes. The company services include weddings, receptions, anniversaries, budget planning as well as a package of florists, hair stylists, entertainers, interior designers, caterers, musicians, etc.

The company mainly aims at reducing the extravagant expenses of large scale occasions like weddings, while at the same time dishing out combinations tailored to the needs of the clients. This business venture will be a success and will project a modest profit by the second year.

1. Customer perspective- need gap

Though event planning is a huge success, it has its loopholes. For example, if we consider the case of weddings, making sure the nuptial is a success is one part while accommodating the invitees comfortably is another. Rainbow concentrates equally on both these aspects. This includes their transport from travel stations to their respective destinations. The best part is the satisfaction of the customer since Rainbow sets into motion whichever varieties and models have been asked by the customer, rewarding their tastes opulently.

1. Value Proposition

Rainbow offers a fair price to the customer and values transparency at all times. Allocation of event resources will be done with prior intimation. The investment of the clientele will be returned with considerable profit. Rainbow possesses a collaborative and an innovative team. On the upside, it boasts of a healthy working relationship with respective vendors and link-ups.

1. Market Size

The event management industry is expected to project a 5,000 crore size by 2015. This can be attained with a compounded annual growth of 14%. According to industry experts, annual wedding and events is pegged at around Rs 1,500-1,800 crore.    

The market trend for event planning has seen a surge within the last four years, a response to customers' impetus to outsource non-essential tasks. This industry space has gotten more competitive for several reasons:

•Increased demand has increased the number of competitors.

•With the increase of general event planner service providers, there has also been an emergence of specialized event planners that only offer one or two types of event planning services.

•The trend for outsourcing is not specific to the event planning industry, but can be seen in many industries like IT assistance, accounting, payroll, and design work.

1. Revenue Model and Pricing

The organised sector accounts for around 40% of the total events industry besides which there is a large unorganized sector which can be exploited for sizeable business opportunities.

Events will be classified based on their largesse and planned with finesse. The pricing may range from a few thousands for a party to lakhs for a wedding, crores in case of an extravagant event.

1. Financials

The source of finance for the company would be numerous:

Government Grants

The applicant organization has to demonstrate that the event has considerable strategic regional importance.

Sponsorship

The company has to cautiously gain sponsors and come out with flying colours in various events, with or without expertise. A professional approach is recommended and practicality is suggested.

Merchandising sales

The company can merchandise goods like clothing, glassware or any cool souvenirs that are bound to attract the customer. These tend to provide a good income if marketed effectively.