Entrepreneurship and Business Start-Up - Business Plan for PEC Events Management Company - Assignment Example

Proposed Business Plan PEC Events Management Company Business Plan Contents 0 Executive Summary 1 Objectives 2 2 Mission ment 2 3 Key Success Factors 3 2.0 Company History 3 2.1 Company Ownership 5 2.2 Start-up Summary 6 2.3 Company Location 6 3.0 Services 6 4.0 Market Analysis 7 4.1 Market Segmentation 9 4.2 Target Market Segment Strategy 12 4.2.1 Market Needs 13 4.3 Service Business Analysis 13 4.3.1 Competition and Buying Patterns 14 5.0 Strategy and Implementation Summary 15 5.1 Competitive Edge 16 5.2 Marketing and Sales Strategy 17 6.0 Management Summary 18 6.1 Personnel Plan 19 7.0 Financial Plan 19 7.1 Break-even Analysis 20 7.2 Projected Profit and Loss 20 7.3 Projected Cash Flow 20 Reference List 20 List of Tables 22 Table 2.2: Sources and Uses of Start-Up Funds (in ) 23 Table 4.0: Market Analysis Summary 24 Table 5.2: Sales Forecasts 2007-2011 24 Table 6.1: Personnel Plan 25 Tables 7.1 to 7.3: Financial Plan 25 1.0 Executive Summary PRO-ACT Events Consultants (PEC) is a full service company that provides complete consulting services for public and private events such as parties, concerts, and conferences. PEC will not do weddings and anniversaries because these are highly competitive market segments that we would want to touch. Our consultants are experienced and dedicated professionals with many years of social networking and event planning experience. PEC will be unique because of our people skills that enable us to know each of our clients intimately and give them our undivided attention. We listen to their needs and work with them to create and manage each event successfully. We help them achieve their personal, financial, professional, social, and artistic objectives. The people behind PEC are seasoned organisers and social network specialists who have a track record of successful event management experience dating back to several years. Our services include planning and executing for special events such as meetings, conferences, birthdays and special occasions, concerts, book launchings, exhibits, inaugurations, fund-raising, special dinners, victory parties, graduations, sports tournaments, and reunions. We offer full-service referrals to entertainers, caterers, musicians, florists, interior designers, and every other service that would contribute to the success of the event. Our slogan is "Every Event a Memorable Success!" 1.1 Objectives We want every event that we plan, organise and carry out to be successful, whether it is an intimate dinner for two or a conference for 100. We strategically established an upper limit to the number of participants to events we organise at this number for the first five years because of the unique financial model we employ of fixing the price we charge to competitive unit rates. We can increase these numbers much later. Regardless of the number of people at our events, we aim to take care of every detail for the event to provide the greatest pleasure and to make it a memorable experience. We offer a host of packages and services specifically tailored to the needs of each client and participant, and we are confident that this business venture will succeed and that our net income will increase according to our modest projections. 1.2 Mission Statement PRO-ACT Events Consultants (PEC) is a full service company that provides complete consulting services for any event, except weddings and anniversaries. Our consultants are experienced and dedicated professionals with many years of event planning experience. We are unique in that we give our clients our undivided attention and assure them that we are people they can trust. We listen to their needs and work with them to create the event of their dreams. We make everything possible. We have a professionally developed strategic plan that promises to make PEC one of the best places to work for in the world where everyone enjoys what one is doing, where the financial rewards are generous, and where everyday is a party! Our success is determined by the success of our clients, our people, and our service vendors such as florists, caterers, entertainers, and everyone who join us in organising the event. Our ambitious corporate vision foresees PEC as a publicly-listed global franchising corporation by 2017. 1.3 Key Success Factors We have identified the following key success factors: We will service the needs of our clients promptly and efficiently. We will manage the company by using the latest developments in technology, human resources management, financial management, and the social sciences to the extent that these are good for our clients and for us. We will maintain excellent working relationships with vendors such as florists, caterers, entertainers, etc. We will develop, improve, and maintain a professional image at all times. 2.0 Company History Planning any type of gathering takes a certain degree of dedication. Anyone in the event planning process must have the intention to see every event through to the end, from the time the guests arrive the last material item is taken out after the last guest leaves the event site. Event planning is a busy and fun process. Depending on the event, we or our clients may get to pick everything: from the event's sequence of activities, the main course or drinks to be served, the entertainers, giveaways, the climax and concluding events, and a thousand and one other details. For people who love obsessing and handling small details, event planning is an enjoyable activity, more especially if they love being with people and meeting new people (Goldblatt and Supovitz, 1999). Many years ago, there was not such a career choice as professional event planning and management, a task which secretaries, managers, and staff members organised in companies or mothers, siblings, and other relatives organised at homes (Allen, 2002). With the changes in corporate structures and family lifestyles over the last few decades, there has been a growing demand for professional event planners whose competitive advantage is economies of scale through their social networks and professional organisation expertise. The advent of technological advances also made it possible for event planners to carve a business niche in developed countries (Turner, 2004). Nowadays, busy corporate secretaries and mothers consider calling event planners before they throw the next party. Schools and charity institutions that want to raise funds organise golf tournaments, fund-raising dinners, or project launching events. Busy executives and their secretaries also do not have the time to organise romantic dinners for their partners. All these and more provide business opportunities for event planners. PEC is the brainchild of the founders, three friends who realised their common interests in organising events. In their first week at the university they attended together, they met each other and successfully organised a Freshman Orientation Night. From that initial venture, they went on to organise one successful event after another: student council campaigns, class parties, fund-raising dinners, rallies, fashion shows, reunions, etc. Whilst studying, they continued organising events after school and weekends, and began thinking of a professional business to launch after graduation. The founders decided to start a business doing what they did best: managing special events. PEC will utilise the founders' skills in networking and special events planning. PRO-ACT Events Consultants (PEC) was established as a start-up company that would provide professional special events management services to help their clients achieve their personal and business objectives. 2.1 Company Ownership This business will start out as a simple proprietorship that is equally owned (1/3 each) by the three founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will be most appropriate for the future needs of the business. Each founder contributed 1/3 of required working capitalisation from the savings they realised, taken from earnings deposited in a joint bank account opened since the start of their informal business partnership. The founders have a good working relationship that has effectively honed their organising skills, personal chemistry, division of labour, and creativity. 2.2 Start-up Summary The company founders will handle day-to-day operations and will work collaboratively to ensure that this business venture is a success. We estimate that our start-up costs will be 3,100 (including legal costs, logo design, advertising, direct mail, and related expenses). An additional 7,400 will be required in the bank account as working capital for the first two months of operation. The start-up costs are to be financed in equal portions by the owners' personal funds, with each one investing 3,500. Table 2.2 shows the start-up investments, its sources, and how it would be used as start-up working capital for the business. 2.3 Company Location The business will be housed in a 30 square metre room in the home of one of the founders. However, the business hopes to pick up so it can afford to rent office space by the middle of 2008. Initial investments would include the equipments that have been purchased for business use from working capital funds. 3.0 Services We are a full-service events consultant group and provide the following services: etiquette advice, event scheduling, discounted invitations and products, vendor confirmation, rehearsal attendance, supervision of both ceremony and reception setup and budget planning. 4.0 Market Analysis Generally speaking, special events occur for the following purposes: Celebrations (fairs, parades, weddings, reunions, birthdays, anniversaries) Education (conferences, meetings, graduations) Promotions (product launches, political rallies, fashion shows) Commemorations (memorials, civic events) This list is not an exhaustive one, but as the examples illustrate, special events may be business related, purely social or somewhere in between. Planners of any special event may handle any or all of the following tasks related to that event: Conducting research Creating an event design Finding a site Arranging for food, decor and entertainment Planning transportation to and from the event Sending invitations to attendees Arranging any necessary accommodations for attendees Coordinating the activities of event personnel Supervising at the site Conducting evaluations of the event How many of these activities our business will engage in would depend on the size and type of particular events, which will, in turn, depend on the events in which PEC has decided to specialise. According to the world's expert in events management, Dr. Joseph Goldblatt of the International Special Events Society (ISES), the total global market for special events - conferences, concerts, meetings, fund-raisers, etc. - amounted to 350 billion in 2006. Data from the ISES (2007) showed that the U.S. market, with approximately 1 million special events, is the dominant market with a total of 150 billion being spent during the year alone. Europe is in second place with 700,000 events and a market size of 100 billion. Asia (Japan, China, and India mostly) is in third place with 400,000 events and a market size of 40 billion. The U.K. market, according to the U.K. Chapter of the ISES (Corringham, 2007) was estimated at 20 billion in 2006, growing at 20% yearly, and representing over 95,000 special events organised. Since industry standards are such that an average of 15% of the total cost of the event is paid as projects fees to special events organisers, we estimate the total annual revenues earned by events management firms to be 3 billion. According to Goldblatt (et al., 1999, 47), good special events planners can generate as high as 40% profit margins, which gives a high-end figure of 8 billion in annual earnings for the industry. These figures give us the baseline of the target market for PEC's business. According to ISES U.K., there were a total of 210 members of the society by end-2006. These members - events managers, caterers, photographers, audio-visual technicians, florists, etc. - form a social network which PEC aims to penetrate to gain professional status in the soonest possible time. Table 4.0 shows a summary of the Special Events Market. 4.1 Market Segmentation Broadly speaking, there are two markets for event planning services: corporate and social. The term "corporate" includes not only companies but also charities and non-profit organizations. Charities and non-profit organisations host gala fundraisers, receptions and athletic competitions, among other events, to expand their public support base and raise funds. Thousands of these events occur each year, and although the large ones require specialised event planning experience, there are smaller local events with which to start out (Allen, 2004; Allen, 2002). Companies host trade shows, conventions, company picnics, holiday parties and meetings for staff members, board members or stockholders. In one year alone, the total number of meetings held in the United States was almost 1 million, according to a Meetings Market Report (ISES, 2007) conducted by Market Probe International Inc. The same report showed that organisations spent a total of 70 billion on meetings that same year. Social events include weddings, birthdays, anniversary parties, religious celebrations, teen parties, children's parties, reunions and so on. This is more easily organised and can offer a good training ground for new and inexperienced events managers who would want to work for PEC, which can handle all these events or just specialise in one or more of them. The market for social events, especially birthdays and anniversaries, is expected to continue to increase over the next few years, as baby boomers mature. This group has children getting married, parents celebrating golden anniversaries, and their own silver wedding anniversaries to commemorate. The founders of PEC made a strategic decision not to go into wedding and wedding anniversary planning, but would take on all the rest within the social market segment (Moran, 2004; Allen, 2004). During the first five years, PEC plans to break into the market with a bang. We estimate the total special events that we could handle in the first year at 100 events, with total revenues for PEC amounting to 170,500 by the end of the first year of operation. Our revenue and expense projections are shown in Table 7.2. The market projections are grouped into social, corporate, non-profit, public, and event services. Initially, these are the events the founders and a team of assistants would be able to handle, but the figures begin to increase by the second year, reaching 400 events by 2011. The event planning market covers a wide variety of segments (Allen, 2004). We will focus on the following market segments where we can provide the best possible services. Social Market: The social circuit is a good source of business. While typically smaller than corporate events, these one-time affairs can lead to referrals and word of mouth that would fortify our reputation and widen our customer base. In a children's party, for example, our potential clients can include our current customer for their child's next birthday as well as all the other parents in attendance. We also recognise that social event clients make strong emotional investments in the event leading to very high expectations (e.g. consider how parents want the birthday party of their children to be the best). Corporate Market: The corporate market covers private organizations and businesses, corporations, and political parties. These events are typically larger, with higher revenue potential, and higher chances of repeat business. Corporate events include company outings, trade show events and exhibitions, board member or stockholder meetings, conferences and seminars, product launches, award dinners, team building events, even fashion shows. Our work would include conducting research, creating an event design, choosing the venue, making hotel selections and reservations, organising transportation, arranging the food/dcor/entertainment, determining extracurricular activities for event participants, supervising the site, coordinating the actual event, and conducting evaluations of the event. Corporate clients have high expectations in terms of quality and creativity, as well as flawless execution in terms of logistics and operations. Non-Profits: Charities and non-profit organisations including research think tanks regularly host gala fund-raisers, receptions, conferences and seminars, among other events, to raise awareness on issues they support, expand their public and donor base, and raise funds. Whilst non-profits may have lesser high-revenue projects lined up for event planners, their functions and events are generally considered good training grounds for event planners. Public Organisations: The Government is a productive source of projects. Events typically range from high profile international meetings to conferences and award ceremonies. Event Services: In addition to working on our event specialty, we can also provide services that other event planners and meeting professionals may need. Examples of these services include tent scenery and backdrop, staffing, catering, audio-visual, professional speakers, restroom trailers, costumes and inflatable, transportation, etc. Other support products include event planning software, or step-by-step guides for those who wish to organise the event themselves and not hire an event planner. On top of all these, we want to develop PEC as a good training ground for professional event planners, one of the leading companies in the business, and a trusted name in the profession. 4.2 Target Market Segment Strategy PEC will offer its services mostly to the corporate market which would offer higher margins and absolute revenues because of their event size. We will position ourselves as experienced providers of events planning services. Unlike most of its competitors such as caterers, florists, etc., PEC will be offering a full range of services and thus provide the convenience of a one-stop shop for its clients. This would significantly reduce our clients' time and efforts preparing for such important events. Moreover, by utilising numerous supplier networks that PEC owners have established, we could exploit economies of scale and price ourselves more competitively compared to our more established competitors, and pass on to our clients substantial cost savings (Goldblatt and Supovitz, 1999). Using the corporate network as our main point of entry, we would exploit this angle of penetration by marketing our ability to organise social events that are lower in margins but which have a powerful and sustainable impact. Our experience has shown that good customer experience with our services during intimate and small-group social events can provide many opportunities to engage in corporate event management projects. We plan to develop our network of individual events managers to whom we would farm out our projects for a minimal fee. These individual managers can work as sub-contractors on a short- to medium-term basis, and we expect them to go on their own and compete with us in the long-term. We don't mind the competition, because we know that it would only help us to become better. And besides, we know that it would push PEC to be ahead of the curve. We also believe that the pie is big enough for everybody, that we are in a growth sector, and the best thing that we could do is to help the sector grow and identify people who have the skills that we need so we can establish profitable and professionally fruitful relationships with them in the future. 4.2.1 Market Needs The market needs for events planning services are strongly shaped by the customers' desire to have a perfectly planned and executed event. Corporate special events are an important component of any company's marketing strategy. Our clients have specific sets of objectives such as product launches, sales increases, corporate strategy, crisis management, human resource development, etc. in mind when they decide to hold a special event. They need events managers whom they could trust with intimate details of corporate strategy that would be risky for them to share. This is why professionalism, trust and confidence are very important qualities events managers should possess, and this is why PEC makes this a cornerstone of our mission. PEC will provide full confidentiality about information we secure from clients. This is a critical aspect of our work that we take seriously. 4.3 Service Business Analysis Planners are often people who got their start in one particular aspect of special events. Most of the events managers we know started out as successful suppliers of catering services before deciding to plan entire events. Many other planners have similar stories. This explains why planners often not only coordinate entire events but may, in addition, provide one or more services for those events (Turner, 2004; Allen, 2004). Event planners may also have started out planning events for other companies before deciding to go into business for themselves. Many people we know planned in-house events for a Big Four bank for 15 years and then worked for another event planning company before striking out on her own. Because of the amount of details that go into events planning, most of the professionals in the industry are women, but there are an increasing number of men who are getting into the business. The events management services market is fragmented with the overwhelming majority of the incumbents offering only a limited line of services. There are numerous florists, hair stylists, and caterers to choose from. However, there are very few companies that provide the full range of services associated with events planning and execution. 4.3.1 Competition and Buying Patterns Competitive analysis conducted by the company owners has shown that there are 210 business outfits currently offering some sort of events planning services in the U.K., 170 of which are concentrated in the London area. However, the majority of our competitors offer only a limited line of services like catering, flower arrangements or gifts. In fact, of these competitors, there are only 15 that offer a range of services comparable with what we plan to offer our customers. We have compiled a list of our main competitors and concluded that we have the ability to compete with most of them because of the size of our social network. Our market research has also shown that customers anticipate the complete events consulting services to be expensive and they budget accordingly. In fact, lower prices are very often associated with poor service quality. By aggregating a complete range of events services under one roof, PEC can offer its customers the ease of one-stop shopping and a unique value for money proposition that would be attractive for them. 5.0 Strategy and Implementation Summary PEC has a simple strategy: we intend to provide our customers with a wide range of services custom-tailored to their individual needs. Therefore, whether they require a complete package or simply consult on a particular service, we can help. We can organise special events for groups ranging in size from 2 to 2,000. Our success will depend on the commitment by every member of our team to the following key strategic objectives: Fulfil client's vision and demand beyond their expectations: As a service-orientated business, we will survive if we can consistently meet our clients' demands, deliver exceptional and personalised performance, and we have the right skills expected of an event manager. We will ensure that our team is updated on the latest trends and that our people are highly motivated to deliver. Control our costs: Controlling the rising costs of arranging events is critical to the success of our business, especially now with tight budgets for both corporate and social events. Lower costs would be healthier for our bottom line as customers want to see value for their money. Competitive pricing for the quality of services offered: Our price would reflect the value of our services. We will guard against under- or over-pricing by using price as a competitive strategy. Significant profit margins on each event: The industry standard is to generate margins of 15% to 40% of every project budget that would be sufficient to cover overhead costs. We will target being on the higher end of this range. Extensive database of suppliers, vendors, and contacts: PEC's founders are familiar with the use of technology to maintain and update our database, to communicate efficiently with each other, and to get the best price for anything. This includes our ability to track all the events we are organising. Team chemistry: We have some years of practice in the field and have made many mistakes and learned from them. We know each other well, but we will need to develop the skills to work with a larger network of professionals. Low-cost, high-tech back office support: We will work towards developing a low-cost support system that would help us keep track of project details, from deadlines to costs to final reports and post-project analysis. 5.1 Competitive Edge The competitive advantage of PEC lies in our team's working chemistry and experience, extensive social network, lower overhead, positive image, the excellent social and communication skills of one of the founders, and the common obsession with hard work and details that we all enjoy sharing amongst one another. Our network also includes access to technology experts who know how to enhance the quality of the special events we manage using proprietary know-how that is known only to a few people in the industry. We also have a good business adviser who will guide us through the process of growing our company and professionalising our systems. This adviser has many years of experience as operations executive of a FTSE 100 company. The adviser will be properly compensated on the basis of net income at the end of the year. 5.2 Marketing and Sales Strategy Due to the high emotional investment required by events management, we will rely only on personal contacts and word-of-mouth marketing through our social network. Our main selling point to each client is to help them save time and money and relieve them of worries so they can focus on making the event enjoyable and successful. We will take care of sweating out the details, identifying and solving problems, and making sure that they get value for their money. Our client will be the orchestra conductor whilst PEC will be the baton. Networking will be our key marketing strategy so we can meet and know people who may refer business to us or use our services. We would network with companies, hotels, caterers, florists, schools, and participate in meetings of the ISES, join the society to be updated on what is happening in the business, and attend as many social gatherings as we could. Word-of-mouth is important in creating a good reputation. We would also keep our ears to the ground to get hold of any negative feedback, either from customers or competitors. Advertising would be useful as a branding strategy to create awareness and name recognition. We have also decided not to use direct mail for now, as we expect that we would have as much projects as we could comfortably handle. Web site marketing can help in a similar way to advertising to establish our presence in the market and provide potential customers with basic contact information and our existing customers with a forum for their feedback or to communicate with us. Our web site design should reflect the qualities of our company: full-service professionalism, trust and confidence, and value for money. Table 5.2 shows the Sales Forecasts, indicating the number of events that we would manage and the number of participants that we expect to attend for each market segment. 6.0 Management Summary The three partners will share our duties: I will be the Managing Director responsible for back-end support and administration, one will be in-charge of Marketing, and the other will be in-charge of Finance and Logistics. We will increase our client networks from the current 28 to reach 240 within the year (client base of 80 per partner). All the partners are knowledgeable about all areas of planning, budgeting, marketing, and events management. We plan to join ISES as soon as the business is registered and take it from there. Of the three partners, the combination of skills and expertise is such that two are good at social events, two are good at corporate events, two are good at small groups (up to 50), and two are very good at organising for large groups. 6.1 Personnel Plan Initially, PEC's staff will include the three owners, all of whom would be working full time, and a staff assistant. As the personnel plan shows, we expect to hire an additional events management consultant in the next year to work full time but would not be included in management decisions. We have a Board of Directors consisting of the three founders and a Business Advisor who would get paid from the company bonus scheme every quarter. Table 6.1 contains the Personnel Plan which indicates the projections on the number of staff who would be joining PEC in the next five years. This does not take into account the possibility of hiring trainees who would want to learn more about the business and who may eventually work for PEC. Trainees will be paid allowances from project budgets. 7.0 Financial Plan The financial plan of PRO-ACT Events Consultants is shown in Tables 7.1 to 7.3. We will start the business using equity from the three partners and we aim to stay debt-free by operating within our means, using profits to expand. This is prudent, but at the same time ambitious as we need to generate above-average profits if we want to realise our long-term strategies. We will keep fixed and overhead costs to a minimum and charge all costs to each project, thus ensuring that every project would be profitable, by using a cost-plus fee of 15% which is consistent with industry standards. This way, for every 1,000 expense in the project, we would charge a minimum of 150 in fees. In addition, we would charge a 5 service fee per participant to handle contingencies, overhead and depreciation. This would share the event risk between PEC and the main event sponsor. PEC would therefore have two main revenue streams: the project fee ranging from 15% to 40% that would be based on the event expenses, and the service fee that would be fixed at 5 per event participant. 7.1 Break-even Analysis Table 7.1 summarises our break-even analysis. This sets monthly targets in revenues that each partner would generate to cover the overhead expenses. 7.2 Projected Profit and Loss Our projected profit and loss is shown in Table 7.2. Included are project and service fees, taxes at 30%, and Advisory fees payable at year-end. Investment recovery is one year. 7.3 Projected Cash Flow Table 7.3 shows the quarterly cash flow projection for the first year. Working capital will be sufficient for first quarter operations, after which the cash flow situation will ease. Tax payments and Advisory fees would be realised in the fourth quarter. Reference List Allen, J. (2002). The business of event planning: Behind-the-scenes secrets of successful special events. New York: Wiley. Allen, J. (2004). Event planning: The ultimate guide to successful meeting, corporate events, fundraising galas, conferences, conventions, incentives and other special events. London: Macmillan. Blaxter, L. (2001). How to research. London: Open University Press. Burns, P. (2002). Entrepreneurship and small business. London: Macmillan. Carter, S. (Ed.) (2000). Enterprise and small business. London: FT Prentice Hall Chaston, I. (2002). Small business marketing management. London: Macmillan. Corringham, C. (2007). Interview by the author. 14 May 2007. Friedmann, S. (2003). Meeting and event planning for dummies. Vermont: FD Press. Goldblatt, J. and Supovitz, F. (1999). Dollars and events: How to succeed in the special events business. New York: Wiley. ISES (2007). International Special Events Society homepage. Retrieved 10 May 2007, from: Moran, J. (2004). How to start a home-based event planning business (Hone-based business series). London: Globe Pequot. Murphy, M. (1996). Small business management. London: FT Pitman. Turner, K. (2004). Start your own event planning business: Your step-by-step guide to success. Boston: Entrepreneur Press. Wickham, P., (2004). Strategic entrepreneurship. London: FT Prentice Hall. List of Tables Table 2.2: Sources and Uses of Start-up Funds Table 4.0: Market Analysis Table 5.2: Sales Forecasts 2007-2011 Table 6.1: Personnel Plan Tables 7.1 to 7.3: Financial Plans Table 2.2: Sources and Uses of Start-Up Funds (in ) Sources Equity Partner 1 3,500 Partner 2 3,500 Partner 3 3,500 Total Equity: 10,500 Uses Start-up Legal 200 Supplies 400 Marketing materials 500 Insurance 300 Research & Development 200 Equipment 1,500 Total Start-up: 3,100 Working Capital (2 months) Transportation 1,800 Office expenses 1,400 Marketing activities 1,200 Advances 3,000 Total Working Capital: 7,400 Total Uses: 10,500 Table 4.0: Market Analysis Summary Source: ISES, 2007 Meetings Value Growth By Region ('000s) ( billions) % U.S. 1,000 150 16 Europe 700 100 25 U.K. 20 95 20 Asia 400 40 30 Table 5.2: Sales Forecasts 2007-2011 2007 2008 2009 2010 2011 By Event Social 50 60 75 90 100 Corporate 30 60 90 180 180 Non-profits 10 20 30 30 30 Public 10 20 40 40 40 Event Services 0 10 20 30 50 Total Events: 100 170 255 370 400 By Participants Social 400 480 600 720 800 Corporate 1,200 2,400 3,600 7,200 7,200 Non-profits 300 600 900 900 900 Public 200 400 800 800 800 Event Services 0 80 160 240 400 Total Participants: 2,100 3,960 6,060 9,860 10,100 Table 6.1: Personnel Plan PEC Consultants 2007 2008 2009 2010 2011 Partners 3 3 3 4 5 Assistant 1 2 4 5 6 Advisor 1 1 1 1 1 Total Personnel: 5 6 8 10 12 Tables 7.1 to 7.3: Financial Plan Table 7.1: Break-even Analysis Overhead 2007 2008 2009 2010 2011 Partner Salaries 60,000 66,000 72,000 104,000 135,000 Staff Cost 12,000 24,000 48,000 60,000 72,000 Office Expenses 44,400 57,720 63,492 69,841 76,825 Other overhead 1,500 1,650 1,815 1,997 2,196 Total Overhead: 117,900 149,370 185,307 235,838 286,021 Monthly Break-even: 9,825 12,448 15,442 19,653 23,835 Project Income/Partner: 3,275 4,149 5,147 6,551 7,945 Table 7.2: Profit-and-Loss Projections 2007 2008 2009 2010 2011 Revenues Project Fees 160,000 272,000 408,000 592,000 640,000 Service Fees 10,500 19,800 30,300 49,300 50,500 Total Revenues: 170,500 291,800 438,300 641,300 690,500 Expenses Overhead (1) 117,900 149,370 185,307 235,838 286,021 Taxes (2) 15,780 42,729 75,898 121,639 121,344 Advisor Fees, etc. 15,000 16,500 18,150 19,965 21,962 Total Expenses: 148,680 208,599 279,355 377,441 429,327 Net Profit 21,820 83,201 158,945 263,859 261,173 (1) Rent increase in Year 2. (2) 30% Table 7.3: Cash Flow for Year 1 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total Beginning Balance 7,400 7,925 18,450 38,975 Inflow 30,000 40,000 50,000 50,500 170,500 Outflow (29,475) (29,475) (29,475) (60,255) (148,680) Net Cash Flow 525 10,525 20,525 (9,755) 21,820 Ending Balance 7,925 18,450 38,975 29,220 Read More