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Shinny Pearl: The Chosen Event Planner - Business Plan Example

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The paper "Shinny Pearl: The Chosen Event Planner " highlights that since Shinny Pearl is only three months old in the market, the main strategy is to get new clients and through high-quality provision, great service, and ensuring client satisfaction the aim is to increase customer satisfaction…
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Extract of sample "Shinny Pearl: The Chosen Event Planner"

1.0 Shinny Pearl: The Chosen Event Planner 1 Shinny Pearl is a professional event planning agency that focuses on providing individuals and professional institutes with the best entertaining event planning through different fields as media, art, music, fashion, education, and theaters. Shinny Pearl not only give you the best of what you want, but also target on spotting new talents by helping them grow and get involved in the community through different events. Our main goal is to satisfy our potential customers, that is why we customized everything to suit their requirements and budget. We adapt events to fit your requirements, not the other way round. We only use the best suppliers; other event management agencies may use suppliers that make them the most money. Our company is always updated with the market demand and our research department makes sure that were updated with all the events going on in the region. 1.2 Objectives 1) To effectively assemble and manage numerous in-house and out-of-house events in South West London 2) Consistently meet client objectives and expectations with the optimal solution, and   3) Reliably manage a number of complex large-scale projects contemporaneously. 1.3 Keys to Success The main key to success at Shinny Pearl is a culture of innovativeness and quality achieved through: 1. Commitment by all members of the Shiny Pearl to provide quality and maintain professionalism at all times 2. Emphasis on pushing the bar of quality service higher and higher with each event planned and executed by the company 3. Offering competitive pricing on events planned and exceeding the expectations of the client as we believe a satisfied customer is a returning customer 1.4 Mission Shinny Pearl’s main mission is to be the company that ensures the customer gets a hustle free events planner riding the client of the planning burdens through professional, predictable, consistent event planning. To allow this, Shinny Pearl will incorporate effective communication mechanism between the company and the client. Internal event planning by the stakeholders including employees and management will also form the basis for effective collaboration and commitment to the course of the company by all through augmenting satisfaction to all. 1.5 Vision Shinny Pearl has a vision of being the best events company in South West London in three years of operations. This will undoubtedly not be achieved by being similar to other firms in the market. It is from this realization and the quest for the achievement of the vision that makes Shinny Pearl’s approach to event planning differently from the competition through quality, product range, strategy and focus to given market segments, training and development of employees, and attention to great service delivery. 1.6 Critical Issues Being at the initial stages of operation Shinny considers the following issues critical for the long term survival and sustainability of the firm. a. Ensuring that the needs of expansion do not supersede meeting of client quality needs, satisfaction, and tailoring or customizing the service provision to the requirements of the client b. Aim at being the best event planner in South West London through taking feedback positively and incorporating them in business, improving product offering with each successive business contact with the customer, great service, and quality provision. 2.0 Company Summary Shinny Pearl is an events company in the events and apparel industry involved in the organization, set up, planning, conducting, and monitoring of events that range from parties, product launches, corporate exhibitions and galas, fashion shows, and press conferences. Shinny Pearl began operations in Jan 4, 2014 at the Kings upon Thames area through setting up an office and has undertaken its operations for three months. Shinny Pearl is effective, efficient, and meets client demands in the event planning business. 2.1 Company ownership Shinny Pearl is owned by Daniel Levi who has 100% ownership through the generation of capital used for the start of the company in early January 2014. The capital used for the establishment of Shinny Pearl comprised of 60% personal savings and help from friends and family while the 40% is a loan from Citizens Bank 51 Main Street Kingston. The current dynamic environment and the need for business expansion have augmented the need for the business to seek for funds from investment institutions and other investors. 2.2 Start up summary The idea for the start of an events company came about due to the lack of an events company in the area and the increased number of events that were being held by the student community, corporate, businesses, and other institutions. Levi figured out the difference in the community if their events were planned and organized professions to tailor it to their needs and ensure they flourished and succeeded meeting their goals and needs in the process. Shinny Pearl has been in the events business for the last three months and has been able to hold successful events including entertainment galas, several parties, product launching, a fashion, and a press conference. For the three months, the company has been successful in making good relations with the media, augmenting the acceptance among the South West London community, increasing the number of employees in the company who are well trained, and overcoming many startup challenges. The startup challenges include assessing skilled personnel leading to the expenditure of the company in training and development of the employees to suit the professionalism and culture of Shinny Pearl. The other challenge that had to be overcome by Shinny Pearl is gaining the confidence of the community and consumers on the ability of the company that has been gained through excellent delivery and word of mouth advertising by clients served through the various products offering by the company. 2.3 Legal issues There are legal issues that Shinny Pearl had to comply with before the start of the operations. These include acquiring a license for the operation of the business at the Kinston upon Thames area where the city council had to be paid for licensing and certification before the business commences. This licensing required compliance to essential requirements for the operation of an event planning company (Young, 2007). This led to the delay in starting the company since these stringent working environment had not been anticipated but due to the skilled and motivated management and ownership they were complied with and licensing done. The other legal requirement hurdle before the start of operations was the need to have a business name that would not be similar to an existing business, not a trademark of another company, and differentiated the company. Further, there was a need for all employees working in the catering section including chefs, waiters, and bakers having a health certificate before being allowed to serve people during events for health assurance and compliance to catering health needs and safety. 2.4 Location Shinny Pearl is located in at the Penrhyn Road in Kingston upon Thames Surrey KT1 2EE with three offices involved in relating with the clients, taking orders, and communicating with the clients as well as developing the products to tailor them to client needs. The place has enough room for the location of the tools and instruments for event planning. The premises lease contract runs for five years and has a renewal clause. 3.0 Products Best events aims at meeting the needs of the customers through the provision of a wide range of planning services of events. These events range from indoor to outdo events depending on the type of event, needs of the client, and the suitability of the client to be held as an indoor event or an outdoor event. The needs of the varied markets are met through a vibrant employee team trained on customer service, communication, hospitality, and decorations for the most auspicious event to exceed the expectations of the clients. The products offered at Shinny Pearl include: Product Launches While planning a product launch, we study the product and use our expertise and creativity to tailor an event that will portray the right message to the right target market. We ensure the theme of the event, the invited personalities, colors, and event management is tailored for the launch of the product to ensure success and ability to meet the needs of the consumers. Press Conferences We have the capability and the net to ensure that your press conferences is well planned and well attended by the media. This is ensured through a good relation that we have developed with the media since the incorporation of the company ensuring all the media houses invited in the press conference will attend and ensure the success of your press conference. Best events also engages in setting up all the other facets of the press conference including the seating arrangement, invitation of stakeholders, tailoring the press release among other issues for the success of the press conference. Fashion shows Shinny Pearl is an events company that makes you relax and enjoy the fashion show! We handle all aspects of production: securing designers, venue, model casting, makeup, hair, photography, styling, video, lighting, sound, program book, public relations, press, media, legal aspects, and show staging. Grand Opening Shinny Pearl makes sure the grand opening of a restaurant, business, partnership, firm, company, or any other institution including education institutions meet client needs, introducing the most creative ideas, and making sure that the opening is appealing and successful. Providing you with different options that suite exactly what you want (formal, informal style). We will also involve all aspects needed; government, newspapers, TV, radio stations, and community groups into the grand opening. Exhibitions Our professional team will be capable of providing you with high standards planning quality. Our first aim is to provide you with effective activities and professional services that are in tandem with international standards and conception. Our center’s exhibition planning committee can provide you with the following services: 1. Discuss topic choice 2. Market research and study 3. Planning 4. Location choice 5. Exhibition location decorations 6. Invitation 7. Translation 8. Advertisement 9. Packaging of exhibition goodie bags 10. Product promotion 11. Exhibition Logo design 12. Exhibition poster design 13. Enterprise promotion brochures design Entertaining Galas Shinny Pearl specializes in providing memorable corporate events that meet the budget of the client, venue requirements, and needs of the gala in terms of quality, performances, attendance, and overall success to meet company needs. Shinny Pearl producers can create theatrical production shows complete with singers, dancers and aerialists, speakers, orchestrate headline entertainment with digital video production elements or design a gorgeous décor scheme for your gala. 4.0 Marketing Analysis summary This part of the business plan details the characteristics of the market and the mechanisms in place at Shinny Pearl to overcome challenges and understand the market better. The overall market situation is that there has been an increase in the need for market planners due to a dynamic environment, will be depicted in the industry analysis, segmentation of the market on the basis of strategy and need, and presence of competition that lower the ability of the firm to augment sales and profitability. 4.1 Market segmentation, industry, and competition This section analysis the market segmentation, strategy and the target market as well as the industry analysis and the competition faced by Shinny Pearl in the course of business operations. 4.2 Market Segmentation Event planning spans a large market with the groups having diverse characteristics. This is because individuals, corporations, institutions and other types of business organizations demand the services offered by Shinny Pearl. This has led to the breakdown of the market into three segments for the provision of in-depth information with the segments being age groups, and organizations. However, organizations are a large market segment leading to the segmenting them into public and private organizations. 1. Age groups Below 24 years: this group rarely makes use of event planners, but events organized by this group as part of the institutions of learning are mainly targeted. These events include after school parties, graduation parties, and alumni parties where there is need for an efficient event planner for the success of these activities and meeting the required attendee number. The amount of energy themes incorporated in these parties depends on the needs of the client but mainly require high energy appeal themes. Depending on the event organized and planed, there is a possibility of generating medium to high revenues. 25-50 Years: this group is the main segment of the individual market to Shinny Pearl because this market segment is employed, busy and has a high demand for event planners. There is a need for infrequent but adequate communication with this market segment to ensure they provide the characteristics of the events they need as well as ensure the duties and family lives of the people are not disturbed. Ages 51 and above: this age bracket segment of the market is one that is common with the celebration of anniversaries and they also aim at ensuring special occasions of their children and grand children are well planned and these events are successful and memorable. This market age group segment boosts of holiday parties, reunions, wedding receptions, anniversaries, and get together. 2. Organizations Organizations are the largest market segment of Shinny Pearl market owing to the large amounts of money at their disposal and the high need for organizations to organize events. Events aid organizations in presenting financial statements, communication to the consumers on their products, launching of new products, team building and motivation, and making press conferences and board meetings. Owing to this, organizations are divided into public and private markets. a. Public organizations There are many events held by government organizations in a given year and it Shinny Pearl aims at alleviating event planning pressures for the employees in public organizations. This will allow government organizations to save a lot of time and ensure the events are handled in a professional and successful manner. b. Private organizations and other businesses Private organizations forms the biggest segment of the market share of Shinny Pearl as it comprises the events organized by corporations, businesses, political parties, schools, universities, colleges, and other institutions. These private organizations conduct high scale events especially during the holiday season or national campaign period. The capacity of these private organizations to generate high revenues for the firm is high and allows the company to augment sales and increase popularity in a large margin. 4.3 Target market strategy The target market of Shinny Pearl is middle to high class families, individuals, couples, public, and private organizations, and other businesses. The reasoning behind the choice is the ability to afford the services of an event planner and the dynamic business environment and busy schedules limiting time for event planning. This leaves this market segments with no time to plan and organize parties, get together and other events making room for Shinny Pearl to be the outsourcing destination for these activities. The increase business activities and other important activities, increased income levels, pressure at the work place, need for augmented interpersonal relations at the workplace, pressure for increased profits for businesses, demand for results by stakeholders, and increase population will increase the demand for event planning services. 4.4 Industry Analysis There are different event planners in the events industry depending on the type of clients they tailor their services. These are the event planners serving the two main common segments of the market the government/private and the social segments of the market. Those who serve the business the government/private market segment include association planners, corporate planners, conventional service planners, and government planners. The social segment is served by party and event planners who deal with the provision of events such as weddings, social corporate events, and parties. Shinny Pearl serves both segments the government/business and the social sector as a means of ensuring the needs of the company in form of sales and profitability are met. There has been an ever increasing need for the services of event planners in the industry due to increased dynamism in the economic environment that has translated in increased business activities, multicultural employment, operations in distant countries, and multinational corporations emerging. Individuals have a lot of work and travel a lot in the course of performance of their work reducing time available for event planning. Organizations need to cement the culture of the organization and ensure interaction of employees to promote efficiency and production requiring events that they have to outsource to event planners for efficient, time saving, low cost, and quality delivery. 4.5 Competition Event planning is a field that faces competition from hotels with conference and accommodation facilities; do it yourself organizations, and individuals, other event planners. The quality and efficiency by Shinny Pearl is high and customized compared to the ability of the competition to meet the needs of the clients. Shinny Pearl has a unique position due to the ability of overcoming some of the weaknesses harbored by the competitors in the course of its operations and makes it better placed for the provision of event planning services. The main competitors are analyzed in the following part with an exposition of their strengths from their characteristics and the weaknesses in the course of their operations. a. Hotels with conference facilities and accommodation Hotels with conference facilities and accommodation have strengths in terms of equipment, facilities, offering accommodation for events that last more than a day, and transport internalization. However, they have some weaknesses including use of personnel who are not skilled in event planning, require high payments from the customers, lack of personal touch to the needs of the consumer, and the inability to focus on the event in question due to an overlap of the other business areas by the hotels with conference and accommodation facilities. b. Do it yourself Individuals The main advantage this group has is the ability to add a personal touch to the event that is identical to the members of the organization, family, or class. This gives them an upper hand in terms of the choice of the planner for the event. However, the main weakness for the choice is the lack of planning and event management skills, inability to plan all the parts that make up an effective and successful event. The other weakness to this kind of competition is the high amount of time used on planning that could be used for other activities and the lack of access to low priced services. This reduces the success of the process but due to the advantage of personal and touch and the inability to spare money for event planners makes them a competition due to the decision to do it themselves. c. Other event planners Despite having been no other event planners in the King upon Thames area, other planners from beyond the area were invited to organize and plan events before the start of Shinny Pearl. They form the other part of the competition and have a main strength of having had a customer base in the area before the start of Shinny Pearl, developed human resource, experience and reputation in the event planning business. The main weakness is the lack of consistency and quality in event planning due to their operation in a large area leading to overstretching of their resources. The other weakness of the existing event planners in the market is lack of a wide range of event planning products that [play supporting roles to make the business all accommodating for divergent needs of different business. This has led to the ability of Shinny Pearl to wrestle market share from these firms. 5.0 Strategy and Implementation Summary Since Shinny Pearl is only three months old in the market, the main strategy is to get new clients and through high quality provision, great service, and ensuring client satisfaction the aim is to increase customer satisfaction. Ensuring an increase in customer retention is the other strategy that is being employed by Shinny Pearl in an aim to augment the market share in the event planning business in South West London and beyond. 1 Marketing strategy The marketing strategy for the business will mainly be an emphasis on great service, quality provision, building lasting relations with customers, and focusing on the target markets. 5.2 The Market – Qualitative Market survey before the start of operations at Shinny Pearl revealed that 65% of the population is high-income earners while the remaining 35% are middle-income earners. These findings make it a conducive market area since the products offered are affordable to both the market segments except for high-end that is mainly required by the high-income earners. The area has a population of 45,000 people consisting of 15% of the elderly people, 45% are children while the remaining 50% are the middle-aged. 5.4 The Market Qualitative From a market survey conducted, we realized that 85% of the population we have served is satisfied with the quality and affordability of our services and we aim at pushing the bar even higher. 5.5 Pricing Strategy The prices we bill our clients will differ according to the size of the event being organized but the main emphasis will be to ensure that the costs of the event to the company, payment of salaries, rent and other operation costs are covered for the specific project and a mark up. However, emphasis and care is made to ensure the prices quoted are competitive and the customer receives value for their money. 5.6 Promotion strategy Promotion strategies used by the company include: a. Advertising The main advertising strategies we have are word of mouth, advertisement in the print, audio, and visual media. b. Social media and the internet We have developed a website and pages in social media sites including Facebook and twitter where clients can access information, get clarification, see product description, pictures, and location. The twitter handle and facebook name is ShinnyPearl and the Shinny Pearl website is www.shinnypearlevents.com Clients can also reach us via mail through shinnypearlevents@gmail.com and shinnypearlevents@live.com c. Sales Brochure We give visitors sales brochures detailing the main aspects of our business and the contact they can reach us on in order to make plans or inquire for further information. d. Direct mail Direct mail is another promotion strategy where clients are given information on the products we offer, the prices, and the benefits of event planning with the company. e. Local media event sponsorship We have a deal signed with a local media house where each Sunday one of our best events is aired live. This increases our rating among event planners and reaches many people increasing our grip and span in the market. 5.7 Competitive Edge Shinny Pearl has a motivated work force developed through training and culture inculcation in the three months of operation, quality delivery, great service, and attention to details giving it a competitive edge over the competition. 5.8 SWOT Shinny Pearl has different sections and capabilities in the internal and the external environment. Shinny Pearl internal environment has strengths and weaknesses that has allowed the company to overcome challenges and be successful within the events environment in South West London. The external environment is full with opportunities and threats where opportunities are available for the company to take and make the future of the business great while setting measures to overcome the threats facing the firm in the external environment (Forest renewal bc, 1996). Strengths Shinny Pearl specializes in event planning leading to the provision of specialized and quality services to the clients and offering this at lower costs. The other strength of Shinny Pearl is high motivation of employees who are well trained and have a high quality great service quality in carrying out events. Good relationship with suppliers and customers also allows the company to outsource services at lower costs and provide best quality to clients who refer others to the company. Weaknesses Shinny Pearl has been faced with a difficulty in augmenting the visibility of the company since it is in its startup phase. There is a need for funds to augment the services of Shinny Pearl to large areas of South West London but lack of access to these funds limits the operations of the firm currently despite the high demand in these areas for the company’s services. Opportunities One opportunity available for Shinny Pearl is venturing into the organization of sports events in the future as they have the ability of raising a lot of revenue and increasing the recognition of the company in the area and other areas. Another opportunity for Shinny Pearl is the increased rate at which corporations and institutions are outsourcing event planning activities in the region. The other opportunity is that the costs of performing business in the event planning and apparel industry are low. Threats The main threat facing Shinny Pearl is the reduced economic growth that affects the ability of people, corporations, and institutions to organize events affecting the company by association. There has been increased entry of new firms to the event planning business with an entry of two firms following the entry of Shinny Pearl and its success in the preceding three months. This will result in increased competition and the need to augment efficiency and reduce costs by the companies in the event planning business. The other threat is the need for the employees training on event planning and communication and develops a high quality and great service culture of Shinny Pearl for effectiveness and success. 5.9 Sales strategy and projection As depicted in the market analysis, Shinny Pearl deals with diverse market segments that require different strategies to suit their special characteristics and meet the personal requirements. Fifty percent of the payment forecast for a given event is made before the event is taken and done while the remaining amount will be given when the true costs are known after the event and this will be communicated through a bill. This leads to the use of different sales approaches as depicted in the following paragraphs: a. Private and public organizations Sales are made from this part of the market using a phone call and fax for official use purposes and for record keeping sent to the company a day after the event. The fax contains the bill, appreciation cards are to the offices of the organizations, and feedback forms will be given to incorporate the ideas of the clients in the performance of functions at Shinny Pearl. The mail gives the organization a week to remit the payment for the services and provide insight on major improvement areas they believe the organization can undertake in future. b. Individuals The main ways for collection o payment for the organization of an event is through a phone call made to the individuals a day after the event. This call will be made o in form the client of total costs, number of attendant, and the sending of the bill to their homes or offices as provided in the contact for they filled during the making of the order. Appreciation cards are sent together with the bill and feedback forms will be given to incorporate the ideas of the clients by the client. The sales forecast for rest of the year incorporating actual sales between January and April 2014 is depicted in the graph below Month/ Sales Forecast $ Actual January 10, 000 7,000 February 12,000 10,000 March 14,000 13,000 April 20,000 N/A May 24,000 N/A June 30,000 N/A July 34,000 N/A August 30,000 N/A September 40,000 N/A October 42,000 N/A November 4,7000 N/A December 70,000 N/A Graph of Sales forecast against Months in the first year of operation (2014) 6.0 Management Summary Organization structure Daniel Levi is involved in the planning of events and contracting decorators, bands, and disk jockeys for the events while a marketing specialist ensures the marketing, market penetration, and advertising issues of the business are in order. There are two office assistants with training on communication and event planning who take on planning, negotiation, and discussion with clients on their needs on the event being planned. There are three chefs, four waiters, and a driver in full employment with the company while other roles are performed through contracting of vendors. With increased in business growth there will be a need for the business to seek more employees for management and general operations but currently the firm is being run fine. 6.1 Personnel plan The details of the payment plans for the employees in the organization are as follows: Personnel Plan for 2014 Employee(s) Number Payment $ Daniel Levi 1 4,000 Marketing manager 1 3000 Planners/office assistants 2 5,000 Driver 1 2,500 Waiters 4 8,000 Chefs 3 9,000 Total 12 31,500 7. Financial statements This chapter details the financials of Shinny Pearl. 7.1 Assumptions There are different assumptions made at the company in the preparation of financial statements for the company as represented in the following table: Assumptions FY 2014 FY 2015 FY 2016 Plan 1 2 3 Current Interest Rate 10% 10% 10% Long Term Interest Rate 9% 9% 9% Tax Rate 24% 24% 24% Credit Sales 50% 50% 50% Projected Cash flows The company begins with a small amount of cash but this will improve as projected cash flows shows: FY 2014 ($) FY 2015 ($) FY 2016 ($) Operations Cash Received Cash sales 150,000 175,000 200,000 Receivables cash 70,000 150,000 175,000 Total operations cash 220,000 325,000 375,000 New Borrowing 4,000 4,500 7,000 Total Cash Received 224,000 329,500 382,000 Cash Outflow Expenses payment 116,340 90,500 97,980 Accounts Payable 21,000 34,000 70,000 Total cash outflow 137340 124,500 167,980 Cash Balance 86,660 205,000 214020 Projected profit and loss account FY 2014 ($) FY 2015 ($) FY 2016 ($) Sales 300,000 350,000 400,000 Direct costs of goods 600 740 830 Other costs 190 200 170 Gross Margin 299,210 349060 399,000 Gross Margin % 99.74% 99.73% 99.75% Expenses Salary 71,500 74,000 80,000 Sales and marketing 40,000 10,000 7,000 Lorry Depreciation 1000 1000 1000 Rent 1000 1000 2000 Utilities 2300 3300 4400 Insurance 200 200 200 Leases 340 1000 3380 Total expenses 116,340 90,500 97,980 Profits before interest and Taxes 182870 258,560 301020 Interest Expense 270 330 440 Taxes 43888.80 62,054.40 72244.80 Net Profit 138,711.20 196,175.6 228335.20 Net Profit/Sales 46.24% 56.05% 57.08% The operations of Shinny are solid with increased sales and profitability of 46.24% for 2014, 56.05% for 2015, and 57.08% for 2016 depicting a good position for the company for a great financial future. Projected Balance Sheet FY 2014 ($) FY 2015 ($) FY 2016 ($) Assets Current Assets Cash 86,660 205,000 214020 Receivables 70,000 150,000 175,000 Inventory 4000 4000 4000 Total current Assets 160,660 359,000 393020 Fixed Assets Lorry 10,000 10,000 10,000 Other assets 0 13,113.20 65,450.8 Depreciation (1000) (1000) (1000) Total Assets 169,660 368,000 467,470.8 Liabilities Current Borrowing 4,000 4,500 7,000 Accounts Payable 2000 7000 8000 Total Current Liabilities 6,000 11,500 13,000 Long-term Liabilities N/A Total Liabilities 6,000 11,500 13,000 Retained Earnings 0 138,711.20 196,175.6 Earnings 138,711.20 196,175.6 228335.20 Paid in Capital 24,948.80 20,000 30,000 Total Capital & Liabilities 169,660 368,000 467,470.8 References ABRAMS, R. M. (2003). The successful business plan: secrets & strategies. Palto Alto, Calif, Planning Shop. BLACKWELL, E. (2008). How to prepare a business plan. London, Kogan Page. FOREST RENEWAL BC. (1996). Business plan. Victoria, B.C., Forest Renewal BC. MCKEEVER, M. P. (2002). How to write a business plan. Berkeley, CA, Nolo. YOUNG, P. (2007). Business plan. Chandni Chowk, Delhi, Global Media. Read More
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