1. business and industrial


Sample
Business
Plan
Online
Event
Planning
Company
Coastal
Business
Strategies
This business plan has been submitted on a confidential basis solely for the benefit of selected, highly qualified
investors in connection with the private placement of the above securities and is not for use by any other persons.
Neither may it be reproduced, stored, or copied in any form. Do not copy, fax, reproduce, or distribute without
permission.
Contents
I. Executive Summary ………………………………………………………………... Page 4
I.A
I.B
Objectives
Mission Statement
II. The Industry and the Company and its Products or Services………………... Page 4
II.A
II.B
II.C
II.D
The Industry
The Company and the Concept
Products and Services
Entry and Growth Strategy
III. Market Research and Analysis………………………………………………….. Page 10
III.A
III.B
III.C
III.D
III.E
Customers
Market Size and Trends
Competition and Competitive Edges
Estimated Market Share and Sales
Ongoing Market Evaluation
IV. Economics of the Business………………………………………………………. Page 16
IV.A
IV.B
IV.C
IV.D
IV.E
Demand
Profitability
Revenue Growth
Fixed, Variable, and Semi-Variable Costs
Months to Breakeven
V. Marketing Plan…………………………………………………………………….. Page 18
V.A
V.B
V.C
V.D
V.E
Overall Marketing Strategy
Pricing
Sales Tactics
Service Guarantee
Advertising Strategies
VI. Design and Development Plans………………………………………………… Page 25
VI.A
VI.B
VI.C
VI.D
VI.E
Development Status and Tasks
Difficulties and Risks
Product Improvement and New Products
Costs
Proprietary Issues
VII. Manufacturing and Operations………………………………………………... Page 28
VII.A Operation Cycle
VII.B Geographical Location
2
VII.C Facilities and Improvements
VII.D Strategy and Plans
VII.E Regulatory and Legal Issues
VIII. Management Team……………………………………………………………… Page 32
VIII.A
VIII.B
VIII.C
VIII.D
VIII.E
VIII.F
VIII.G
VIII.H
Organization
Key Management Personnel
Management Compensation and Ownership
Other Investors
Employment and Other Agreements, Stock Options and Bonus Plans
Advisory Board
Other Shareholders, Rights, and Restrictions
Supporting Professional Advisors and Services
X. Overall Schedule…………………………………………………………..………. Page 36
XI. Critical Risks, Problems, and Assumptions…………………………………... Page 39
XII. The Financial Plan………………………………………………………………. Page 41
XII.A
XII.B
XII.C
XII.D
XII.E
XII.F
Pro Forma Income Statements
Pro Forma Balance Sheets
Pro Forma Cash Flow Analysis
Break-Even Chart
Cost Control
Highlights
XIII. Proposed Company Offering………………………………………………… Page 51
XIII.A
XIII.B
XIII.C
XIII.D
XIII.E
Desired Financing
Offering
Capitalization
Use of Funds
Investor’s Return
3
I. Executive
Summary
E‐Vents
is
an
event‐planning
company
that
allows
individuals
and
businesses
to
virtually
create
an
event
online.
The
hub
of
the
business
will
be
a
large
database
of
vendors,
suppliers,
venues,
etc.
that
will
register
with
us
to
join
the
network
in
order
to
be
searchable
by
our
customers.
In
exchange
for
the
free
advertisement
and
brand
positioning
suppliers
and
vendors
gain
by
appearing
in
our
database,
they
will
provide
their
product
or
service
at
a
discount.
This
discount
will
increase
our
profit
margins
as
well
as
provide
customers
an
incentive
to
plan
through
us.
There
is
currently
an
unmet
need
in
the
event‐planning
industry,
which
will
be
detailed
further
in
this
report.
The
Southeast
region
of
the
US
currently
contains
many
areas
with
little
access
to
professional
event
planners.
There
is
also
currently
no
website
that
fully
allows
customers
to
view
a
database
of
suppliers
and
vendors,
compare
them,
and
virtually
create
their
own
event.
A. Objectives
The
ultimate
objective
of
the
company
is
to
become
a
major
competitor
in
the
national
event‐planning
market.
The
implementation
of
this
business
plan
will
enable
E‐
Vents
to
position
itself
in
the
current
market,
rapidly
grow
due
to
the
innovative
concept,
and
eventually
obtain
large
shares
of
the
national
market.
Specific
goals
that
will
lead
to
the
achievement
of
these
objectives
are:
• Develop
a
large
database
of
various
suppliers,
vendors,
and
venues
• Establish
the
business
in
the
North
Carolina
event‐planning
market
thus
gaining
a
share
of
the
Southeast
region.
• Provide
customers
with
an
innovative
way
to
plan
events
that
has
not
previously
been
allotted
to
them.
• Provide
excellent
customer
service
and
build
and
maintain
strong
partnerships
to
ensure
loyalty
and
support
expansion.
B. Mission
Statement
As
a
customer‐focused
business,
it
is
our
goal
to
provide
high‐quality
options
conveniently
and
easily
obtained
at
affordable
prices.
We
will
strive
to
create
a
company,
database,
and
interactive
website
that
will
be
user‐friendly
and
give
individuals
and
businesses
choices
that
were
perhaps
previously
unavailable
due
to
financial,
geographical,
or
time
restraints.
II.
The
Industry
and
the
Company
and
its
Products
or
Services
A. The
Industry
The
event
planning
industry
is
sensitive
to
economic
factors
and
has
recently
experienced
a
decline
in
demand
due
to
the
recession,
dropping
an
average
annualized
rate
4
of
0.1%
to
$11.9
billion
between
2005
and
2010.
The
lack
of
disposable
income
for
many
resulting
from
this
downtown
has
led
to
many
budget
cuts
across
the
entire
industry.
Overall
attendance
and
event
duration
have
also
seen
a
decline
since
2008.
Operators
in
the
industry
are
reducing
their
profit
margins
in
attempts
to
maintain
current
client
bases
while
simultaneously
trying
to
attract
new
business.
Industry
competition
has
increased
with
reduced
revenue,
and
many
firms
have
been
forced
to
reduce
the
size
of
their
operations
to
simply
survive.
These
effects
can
also
be
seen
by
the
decrease
in
number
of
employees
at
each
company
as
well
as
the
number
total
operations
in
the
industry.
Between
2005
and
2010,
the
number
of
firms
operating
in
the
trade
show
and
event
planning
industry
declined
at
an
average
annualized
rate
of
1.5%.
Employment
dropped
by
the
same
rate.
The
following
are
key
statistics
and
historical
data
of
the
trade
show
and
event‐
planning
industry’s
overall
performance
throughout
the
last
several
years.
Revenue
Growth
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Revenue
$Mill
8,887.6
9,406.9
11,113.0
10,851.3
11,018.9
11,430.8
11,640.9
11,925.7
12,548.6
12,964.9
12,624.6
11,820.0
11,853.o
Growth
%
5.8
18.1
‐2.4
1.5
3.7
1.8
2.4
5.2
3.3
‐2.6
‐6.4
0.3
5
Industry
Overview
Key
Statistics
o Revenue:
$11.9
Billion
o Annual
Growth
05‐10:
‐.1%
o Annual
Growth
10‐15‐
4.6%
o Profit:
$474.1
Million
o Wages:
$3
Billion
o Businesses:
18,500
Analysis
of
Geographic
Concentration:
Industry
Structure
o Life
cycle
stage‐
Mature
o Revenue
volatility‐
Low
o Investment
Requirements‐
Low
o Industry
Assistance‐
None
o Concentration
Level‐
Low
o Regulation
Level‐
None
o Technology
Change‐
Medium
o Barriers
to
entry‐
Low
o Industry
Globalization‐
Low
o Competition
Level‐
High
B. The
Company
and
The
Concept
E‐Vents
will
be
an
online‐centered
event
planning
company.
The
basic
concept
of
the
business
is
that
a
customer
wanting
to
plan
an
event
would
log
onto
our
website.
From
there,
they
have
access
to
an
entire
database
of
vendors
and
subcontractors
of
event‐
related
products
and
services.
The
client,
from
the
privacy
of
their
own
home,
can
begin
6
planning
their
event
through
our
“virtual
event”
site.
They
will
search
through
different
vendors,
add
them
to
their
list
and
watch
their
event
unfold
before
them.
They
can
also
see
how
choosing
vendors,
locations,
etc.
will
affect
total
costs
as
well
as
get
visual
examples
of
the
appearance
of
the
event.
This
company
resolves
an
unmet
need
in
the
event
planning
industry.
Many
people
simply
do
not
know
where
to
start
when
planning
an
event.
They
may
not
know
the
names
of
florists
or
caterers
and
many
don’t
even
know
the
direction
they
want
to
take
the
event.
A
client
can
search
through
the
entire
database,
plan,
and
schedule
the
entire
event
themselves,
or
they
can
opt
to
meet
personally
with
one
of
our
event
planners
for
additional
guidance
and
vision.
That
staff
member
will
cater
to
the
client
and
make
sure
that
vision
is
fulfilled.
Vendors
will
register
with
our
company
in
order
to
appear
in
our
database.
As
the
database
will
increase
their
notoriety
and
sales,
we
will
have
negotiated
contracts
with
each
vendor
to
receive
their
services
at
a
discount.
This
discount
will
allow
us
to
offer
savings
to
our
clients
as
well
as
keep
portions
of
each
contract
for
profit.
The
types
of
vendors
in
the
database
will
be
a
full
array
of
the
different
services
and
entertainment
options
one
would
expect
for
hosting
an
event.
An
example
of
some
of
the
vendors
included
are:
Bars,
bands
from
various
genres,
catering
companies,
party
suppliers,
restaurants,
miscellaneous
entertainers,
party
coordinators,
party
organizers,
etc.
The
client
will
pay
one
bill
to
our
company
(eliminating
the
problem
many
customers
have
of
trying
to
keep
track
of
all
the
payments
they’ve
made
during
the
event
planning
process).
Therefore,
we
take
the
bill,
subtract
our
negotiated
discount,
pay
the
vendors,
and
keep
the
difference
as
profit.
Vendors
can
also
compete
in
some
form
of
reverse
auction
to
bid
for
our
clients’
business.
By
offering
a
“one‐stop
shop”,
we
eliminate
the
hassle
and
problems
associated
with
event
planning
problems.
C. Products
and
Services
E‐Vents
will
have
several
services
to
offer
our
customers
for
any
type
of
event.
From
large
corporate
events
to
small
birthday
parties,
the
website
will
be
positioned
to
cater
to
every
need.
Some
of
the
events
that
our
company
can
plan
include,
but
are
not
limited
to:
• Holiday
functions
• Corporate
Events
• Weddings
• Birthday
Parties
• Private
Parties
• Product
or
Service
Launch
Parties
• Bar
mitzvahs
and
Bat
mitzvahs
• Trade
Shows
and
Conventions
• Fundraisers
• Non‐Profit
• Fashion
Shows
7
•
•
•
•
•
Cocktail
Parties
Corporate
Outings
Anniversaries
Dining
Parties
And
More!
Venues
The
list
of
venues
in
which
E‐Vents
will
contract
with
will
constantly
be
updated
as
new
vendor
and
supplier
relationships
are
built.
At
E‐Vents,
we
give
the
client
the
ability
to
choose
from
several
venues
including
event
spaces,
restaurants,
night
clubs,
lounges,
bars,
centers,
and
hotels
to
name
a
few.
Pricing
will
be
venue‐specific
and
will
depend
on
the
time
of
year,
the
type
of
venue,
etc.
However,
by
planning
through
E‐Vents,
customers
are
able
to
enjoy
discounts
should
they
choose
a
venue
from
our
network.
Prices
vary,
but
we
will
require
15%
of
total
venue
costs
from
the
supplier.
This
can
be
justified
by
the
“free”
advertising
received
by
being
on
our
preferred
network
list
as
well
as
increased
business
for
the
venue
from
our
clients.
Thus,
we
can
offer
clients
who
use
E‐Vents
for
planning
5%
discounts
on
all
venues
and
still
make
10%
profit
on
each
deal.
Individuals
visiting
our
site
will
be
able
to
view
all
the
venues
per
location
along
with
a
rating
system
from
past
customers.
The
price
that
will
be
provided
to
our
clients
will
already
include
the
discounts
previously
mentioned.
For
example,
if
a
venue
would
normally
cost
$1000,
it
will
be
listed
at
$950
for
our
clients.
This
is
to
show
them
the
5%
discount
they
will
enjoy.
However,
the
venue
will
only
receive
$850,
or
85%
of
the
total
cost,
and
E‐Vents
will
keep
$100,
or
10%
of
the
total
cost,
as
profit.
We
believe
this
system
will
continue
to
drive
price
down
initially
when
venders
try
to
gain
business
as
well
as
when
substitutes
and
competition
emerge
as
they
try
to
retain
that
business
gained.
Services
As
a
“one‐stop‐shop”,
E‐Vents
will
offer
all
services
typically
expected
of
an
event‐
planning
company.
Just
as
with
venue
reservation,
we
will
require
15%
of
total
costs
from
all
vendors
and
suppliers
who
want
to
gain
access
to
our
clients
by
joining
our
network.
Thus,
again,
our
clientele
will
receive
5%
off
all
services
and
we
retain
10%
of
the
total
cost
as
profit.
At
the
time
of
the
initial
launch
of
E‐Vents,
we
would
like
to
have
at
least
three
options
from
which
clients
can
choose
for
each
service
offered.
However,
as
the
business
grows
and
more
vendors
and
supplier
join
the
network,
we
expect
the
number
of
options
to
greatly
and
rapidly
increase.
This
initial
“three‐option”
choice
will
include
a
standard
or
basic
service,
a
value‐
added
service
(this
could
be
minor
upgrades,
better
reputation,
higher
quality,
etc.),
and
finally
the
luxury
service
offered
at
a
price
premium.
This
will
allow
clients
to
quickly
determine
what
they
can
expect
to
receive
with
their
projected
budget.
After
choosing
one
of
the
packages,
customers
can
easily
add
different
options
and
choose
from
many
vendors
to
tailor
the
campaign
to
meet
their
exact
needs.
Of
course,
as
always,
E‐vents
planning
8
staff
is
always
available
for
consultations
and
planning
assistance
should
the
customer
request
additional
advice.
Through
extensive
research
and
analysis
of
the
current
industry,
we
have
been
able
to
determine
what
vendors
and
suppliers
in
each
of
the
initial
three
packages,
“Standard”,
“Value‐Added”,
and
“Luxury”,
might
charge.
The
prices
do
not
reflect
that
10%
of
total
costs
E‐Vents
will
receive
as
profit
for
the
5%
savings
we
will
offer
our
clients
as
incentives
to
plan
through
our
company.
The
following
table
shows
price
estimates
for
different
services.
D. Entry
and
Growth
Strategy
We
will
focus
on
smaller,
social
events
initially.
As
all
of
the
team
members
are
in
North
Carolina,
we
will
concentrate
on
the
local
state
market
in
the
beginning.
Compared
to
other
current
event
planners
in
the
market,
E‐Vents
will
provide
an
innovative
website,
E‐Vents.com,
that
allows
clients
to
plan
their
events
virtually.
In
addition,
our
website
will
allow
reverse
auctions
where
vendors
will
compete
for
customer
business.
In
such
auctions,
no
matter
which
vendors
receive
bids,
the
ultimate
winners
are
our
customers.
Another
competitive
advantage
is
that
vendors
will
be
required
to
provide
5%
discount
to
our
customers.
To
start,
we
will
engage
in
social
networking
sites,
such
as
9
Facebook.
Social
networking
sites
should
be
very
effective
in
finding
target
customers.
A
beginning
promotion
contest
with
a
top
prize
of
$15,000
towards
an
event
will
help
us
gain
enough
publicity
to
capture
initial
customers.
To
obtain
large
business
accounts,
we
will
use
the
Value‐in‐Use
Assessment
tools
to
persuade
potential
corporate
clients.
This
will
occur
once
we
have
sustained
a
credible
position
in
the
local
and
social
markets.
Since
our
target
customers
are
generally
familiar
with
Internet
and
comfortable
with
online
transactions,
we
will
keep
putting
advertising
dollars
towards
online
websites
and
social
media
forums.
In
addition,
contest
promotions
will
be
offered
online
from
time
to
time
to
help
maintain
a
loyal
customer
base.
Considering
the
fact
that
more
and
more
people
will
have
access
to
Internet,
we
think
the
pool
of
our
target
customer
will
continue
to
grow
over
time.
All
of
these
factors
can
contribute
to
our
growth
in
future.
III.
Market
Research
and
Analysis
A. Customers
The
customers
we
primarily
target
are
those
who
may
not
have
the
time
or
organizational
skills
needed
to
plan
a
special
event,
or
those
who
place
a
high
value
on
convenience
and
transaction
ease.
Customer
benefits
will
be
realized
through
the
convenience
of
“one‐stop
shopping”,
cost
savings
through
the
company’s
network
of
vendors,
and
ability
to
virtually
see
the
entire
project
in
advance.
Changes
in
disposable
income
and
budgets
of
customers
will
affect
price
sensitivity
as
well
as
the
number
of
add‐on
services
they
are
willing
to
purchase.
Therefore,
it
can
be
projected
that
companies
and
individuals
with
higher
disposable
incomes
and
larger
budgets
will
use
our
services
more
frequently
and
with
more
value‐added
services
and
vendors.
The
age
of
the
population
and
population
growth
are
also
relevant
to
the
industry.
Data
shows
that
individuals
between
20
to
34
years
old
tend
to
be
high
users
of
event
planning
companies.
This
can
be
explained
by
increasing
incomes,
budget
constraints
as
individuals
of
this
age
tend
to
be
buying
assets,
such
as
houses,
and
starting
families.
This
age
group
also
tends
to
historically
have
the
most
time
constraints
as
well.
This
can
be
explained
by
longer
hours
spent
in
attempts
to
advance
a
career,
time
spent
with
family,
etc.
Between
2006
and
2008,
the
median
annual
income
for
families
in
North
Carolina
was
about
$46,000.
Households
in
Raleigh,
the
state’s
capital
boasted
median
annual
incomes
of
$53,926,
well
above
the
state
average.
The
average
age
of
the
population
was
36.8
years,
and
only
12
percent
of
the
total
population
were
65
years
or
older.
The
following
chart
shows
the
age
distribution
of
households
between
2006
and
2008.
From
the
chart,
it
can
be
estimated
that
between
30
to
40%
of
the
state’s
population
will
fall
into
our
target
age
group
of
20
to
34
years
old.
10
The
Age
Distribution
of
People
in
North
Carolina
in
2006­2008
B. Market
Size
and
Trends
In
2010,
the
industry
saw
about
$11.9
billion
in
national
revenues.
According
to
IBIS
World,
the
Southeast
region
of
the
US
accounted
for
approximately
20.3%
of
these
revenues
and
22.5%
of
the
industry’s
employees.
The
Southeast
is
the
industry’s
second
largest
market,
yet
only
25.2%
of
the
nation’s
total
population
inhabits
the
area.
The
following
is
a
detailed
map
showing
the
distribution
of
industry
businesses
across
the
US.
From
this
map,
it
can
be
seen
that
there
is
not
a
major
competitor
in
the
national
market
located
in
North
Carolina.
Thus,
a
potential
need
not
being
met
by
the
current
market
is
identified.
11
The
recent
recession
has
greatly
affected
the
annual
growth
rates
of
the
industry,
dropping
the
typically
seen
average
annual
increases
of
4
to
5%
to
an
average
annual
decline
of
0.1%.
However,
recent
studies
suggest
that
most
industry
professionals
feel
the
recession
is
coming
to
and
end
and
past
growth
rates
can
be
expected
to
return
in
the
coming
years.
The
industry
is
unevenly
distributed
across
the
nation
with
low
concentration.
While
concentrated
markets
can
be
favorable,
we
feel
this
leaves
ample
room
for
growth
in
the
North
Carolina
region.
One
unimpressive
trend
in
the
Southeast
region’s
market
is
that
of
historically
low
employee
wages.
For
instance,
22.5%
of
the
national
industry’s
employees
are
located
in
the
Southeast,
yet
these
individuals
account
for
only
19%
of
the
industry’s
wages.
Currently,
one
of
the
major
trends
sweeping
not
only
the
event
planning
market,
but
every
other
market
as
well
is
that
of
social
media
integration.
As
more
and
more
businesses
and
individuals
rely
on
social
media
networks,
advertising
and
promotion
via
these
sites
will
also
greatly
increase.
Along
these
same
lines
is
the
development
of
the
“Hybrid
Event”.
These
events
combine
both
physical
and
virtual
elements
to
planning
events.
Through
hybrid
events,
attendance
can
be
increased
by
allowing
participation
both
on
the
ground
and
around
the
world.
Although
it
is
largely
believed
that
the
worst
of
the
economic
downturn
has
come
and
gone,
the
market
is
predicted
to
continue
to
see
budget
cuts
throughout
the
remainder
of
2010.
A
subsequent
trend
will
then
be
a
focus
on
cost‐saving
strategies.
This
could
prove
to
potentially
be
a
great
competitive
advantage
for
our
company.
Industry
professionals
believe
that
focus
will
shift
from
attaining
the
perks
of
creativity
and
large
budgets
to
getting
more
“bang
for
the
buck”.
With
reduced
budgets
and
greater
attention
on
cost
saving,
it
will
be
increasingly
important
for
professionals
to
prove
ROI
(Return
on
Investment)
for
their
clients.
This
will
result
in
more
open
lines
of
communication
between
the
planner
and
client
as
well
as
a
greater
need
of
reassurance
that
targeted
business
objectives
are
being
met
while
greater
returns
are
seen.
As
the
cost
of
traveling
continues
to
increase
throughout
the
nation,
it
can
be
predicted
that
more
companies
will
be
planning
localized
events.
Thus,
it
will
be
important
to
build
stronger
relationships
with
local
suppliers
and
vendors.
C. Competition
and
Competitive
Edges
Competition
for
this
business
can
be
found
in
any
of
the
non‐virtual
event
planning
companies
already
in
the
market.
For
a
fee,
an
event
planner
is
hired
who,
in
return,
contracts
with
various
vendors
and
handles
all
logistics
and
particulars
regarding
the
event.
The
strength
of
these
existing
competitors
is
that
they
can
provide
full
A‐Z
services,
12
handling
virtually
all
needs
of
the
client
personally.
The
event
planner
takes
much
of
the
burden
from
of
the
client
and
creates
an
event
to
meet
the
client’s
requests.
This
reduced
burden
on
the
customer
is
a
major
strength
is
a
major
factor
in
the
decision
to
hire
an
event‐planning
company.
One
weakness
of
the
existing
event
planner
is
that
the
customer
incurs
high
costs
in
return
for
specialized
and
personal
attention.
In
addition,
the
planning
professional
typically
has
a
set
of
preferred
vendors
to
use
for
the
variety
of
services.
These
vendors
are
not
necessarily
chosen
through
a
low‐cost
strategy.
Overall,
hiring
an
event‐planning
business
shifts
the
control
of
the
event,
as
well
as
control
of
the
price,
out
of
the
hands
of
the
client.
A
client
interested
in
being
more
“hands
on”
with
greater
control
will
see
our
business
as
the
best
alternative.
With
the
lower
incomes
and
budgets
currently
associated
with
the
national
market,
hiring
outside
professionals
to
plan
events
is
not
always
an
option.
In
terms
of
competition
concentration,
IBIS
World
estimated
that,
in
2009,
the
top
four
players
in
the
industry
accounted
for
less
than
1%
of
the
available
market
share,
leaving
the
industry
with
a
very
low
level
of
concentration.
According
to
the
report,
the
industry
is
also
highly
fragmented
with
a
large
number
of
small
operators.
US
Census
Bureau
data
indicates
that
there
are
a
substantial
number
of
non‐employer
operators
in
this
industry,
which
comprise
over
98%
of
total
establishments.
Due
to
the
small
business
nature
of
the
industry,
these
figures
are
not
expected
to
greatly
change
over
the
long
term.
Basis
of
Competition
outlines
the
factors
influencing
the
level
of
rivalry
between
operators
in
the
industry
(internal
competition)
and
operators
from
other
industries
(external
competition).
IBIS
World
analysis
suggests
that
competition
is
currently
high
and
can
be
expected
to
continue
increasing.
The
report
shows
that
competition
is
overwhelmingly
price‐based
due
to
the
large
number
of
small
business
operators
as
well
as
the
relative
ease
and
low
cost
of
entry.
The
capital
requirements
for
starting
a
business
are
historically
low,
as
is
the
initial
cost
of
entry.
According
to
IBIS
World,
major
players
in
the
industry
often
represent
large
corporate
clients
and
regional
tourism
destinations.
Nearly
two‐thirds
of
existing
firms
have
less
than
five
employees
and,
although
sole
proprietors
account
for
approximately
80%
of
industry
enterprises,
they
currently
generate
only
6.5%
of
total
revenue.
It
is
expected
that
the
number
of
independent
event
planners
will
continue
to
rise
as
a
proportion
of
total
industry
activity.
Much
of
this
industry
is
based
on
professional
networking,
and
social
networking
sites,
such
as
LinkedIn
and
Facebook,
have
made
this
much
easier.
While
the
impact
of
these
sites
is
expected
to
be
relatively
minimal,
it
could
impact
long‐term
demand.
13
D.
Estimated
Market
Share
and
Sales
Although
the
event
planning
industry
as
a
whole
is
large
in
terms
of
dollars,
it
is
heavily
fragmented
because
service
providers,
i.e.
caterers,
stylists,
photographers,
music
bands,
etc.,
tend
to
be
small
and
independently
operated.
Typically,
most
event
planners
provide
set
packages,
giving
customers
few
opportunities
to
choose
their
favorite
providers.
Our
product
will
be
different
in
that
customers
can
build
their
event
packages
prior
to
working
personally
with
a
planner
and
maintain
total
control
of
which
services
and
vendors
to
use.
By
empowering
customers
and
providing
tools
to
help
them,
our
business
will
increase
customer
satisfactions,
build
strong
relationship
with
users,
and
improve
customer
retention.
In
addition,
there
are
always
cost‐conscious
customers
who
want
to
low
prices,
but
are
limited
by
their
time
and
necessary
knowledge
to
negotiate
with
different
service
providers
directly.
For
such
customers,
our
website
can
provide
a
reverse
auction
to
let
service
providers
compete
so
that
customers
can
receive
the
best
possible
rates
available
in
the
market.
With
the
development
of
Internet
and
mobile
computing
devices,
people
in
general
are
becoming
more
computer‐savvy.
The
trend
is
that
more
and
more
people
will
be
comfortable
online
shopping
and
transactions.
Our
website
will
bring
the
Internet
to
the
event
planning
market
to
meet
these
demands.
Since
we
plan
to
focus
on
the
relatively
small
Southeast
region
before
expanding
nation‐wide,
our
initial
market
share
will
be
small.
However,
this
number
is
expected
to
increase
at
a
rapid
pace
given
our
unique
competitive
advantages.
The
following
Table
shows
the
projected
market
shares
for
the
next
three
years.
Market
share
in
percentage
Market
share
in
dollars
2011
0.1%
2012
0.4%
2013
1%
X1
X2
X3
For
the
next
three
years,
our
expected
annual
growth
rate
is
around
115.44%.
It
may
appear
to
be
an
unusually
high
figure,
but
many
start‐ups
in
the
industry
have
realized
similar
rates.
Due
to
our
high
differentiation,
we
expect
to
see
rapid
growth.
14
E. Ongoing
Market
Evaluation
Between
2010
and
2011,
the
trade
show
and
event
planning
industry
is
expected
to
rebound
as
corporate
profits
begin
to
rise
again
and
the
economy
stabilizes.
During
periods
of
economic
growth,
the
number
and
length
of
events
increase
as
companies
have
more
money
to
spend
on
marketing
activities
and
events.
This
growth
will
stimulate
profits
for
players
in
the
industry
as
well
as
increase
the
marketing
budgets
for
conventions
and
exhibitions.
Economic
improvement
will
help
with
business
and
consumer
sentiment
and
will
result
in
an
increase
in
the
number
of
shows
with
fewer
cancellations.
Between
2010
and
2015,
it
is
forecasted
that
industry
revenues
will
increase
at
an
average
annualized
rate
of
4.6%.
This
can
be
seen
in
the
table
below.
Year
Revenue
$Mill
Growth
%
2010
11,853.0
2011
12,484.0
5.3
2012
13,109.0
5.0
2013
13,627.0
4.0
2014
14,203.0
4.2
2015
14,812.0
4.3
2016
15,182.3
2.5
The
following
chart
summarizes
past
and
projected
profits
compared
to
wages
as
well
as
the
ratio
of
employees
per
establishment.
15
IV.
Economics
of
the
Business
In
determining
if
E‐Vent
was
a
viable
business
venture;
our
management
team
had
to
look
at
the
economics
of
the
entire
industry.
Researching
market
conditions
of
the
overall
industry
has
led
us
to
valuable
information.
While
initially
developing
E‐Vent,
the
founding
team
researched
US
industry
data
to
view
statistics
and
analyze
the
current
and
projected
conditions.
A. Demand
The
event
planning
industry
is
sensitive
to
economic
factors
and
has
recently
experienced
a
decline
in
demand
due
to
the
recession.
Overall,
the
industry
suffered
a
drop
at
an
average
annualized
rate
of
0.1%
between
2005
and
2010
leaving
total
industry
revenues
at
about
$11.9
billion.
Even
though
this
statistic
is
not
favorable
for
our
business,
industry
experts
expect
demand
to
increase
as
the
recession
continues
to
show
signs
of
stabilizing.
Therefore,
we
predict
that
we
are
entering
the
market
at
a
perfect
time
to
realize
profits
in
a
time
of
economic
recovery.
As
businesses
begin
to
increase
profit
margins
and
attract
new
customers,
the
demand
for
events
and
party
planning
services
should
jump
with
the
budget
increases
typically
associated
with
increased
profit
margins.
B. Profitability
Operators
in
the
industry
are
reducing
their
profit
margins
to
maintain
their
current
client
base
while
simultaneously
trying
to
attract
new
business.
Over
the
last
couple
of
years,
profitability
has
been
low
due
to
the
recession,
but
the
services
offered
are
still
desired
by
businesses
and
clients
when
hosting
an
event.
In
2009,
total
revenues
were
about
$11.9
billion
with
total
profits
of
$474.1
million.
We
expect
both
revenues
and
profitability
to
increase
within
the
next
several
years
as
the
economy
improves
and
disposable
income
increases
allow
for
individuals
to
make
more
use
of
our
services.
16
C. Revenue
Growth
The
event
planning
industry
experienced
high
growth
in
early
2000
with
an
18.1%
increase.
The
industry
had
a
small
decrease
in
2001
of
‐2.4%,
stabilizing
with
consistent
revenue
growth
until
the
recession
in
2008.
This
year,
the
industry
has
experienced
0.3%
revenue
growth,
and
we
expect
revenue
to
continue
to
rise
as
market
conditions
improve.
The
web
presence
created
with
E‐Vents
will
be
a
unique
offering,
and
we
project
the
company
will
surpass
current
online
event
planning
companies’
revenues
due
to
our
product
selection,
innovative
idea,
and
pricing
formula
for
potential
customers.
D. Fixed,
Variable,
and
Semi­Variable
Costs
The
majority
of
our
costs
will
come
from
running
and
supporting
our
website,
which,
for
many
customers,
will
serve
as
our
storefront.
The
most
significant
costs
will
be
for
customer
support
to
ensure
satisfaction
and
build
customer
relationships,
vendor
support
to
keep
products
and
services
available,
web
hosting,
and
maintenance.
Our
costs
are
reduced
due
to
the
fact
that
we
are
a
third
party
negotiating
between
various
venders
and
clients.
E‐Vents
will
initially
need
to
spend
a
substantial
amount
on
advertising
to
push
our
presence
in
the
market.
Advertising
will
continue
to
be
a
necessary
expense
incurred
as
our
market
share
increases.
We
will
immediately
forward
90%
of
cash
received
from
customers
to
vendors
through
an
automatic
payment
system.
Because
we
do
not
actually
hold
the
funds
in
our
system,
the
remaining
10%
is
used
as
our
revenue
base
for
cash
flow
and
other
financial
projections.
Most
of
our
expenses
can
be
classified
as
fixed
costs;
and
the
average
monthly
fixed
cost
is
expected
to
be
about
$132,600
during
the
first
year.
We
find
that
the
capital
needed
to
start
our
business
and
execute
daily
activities
is
relatively
low,
especially
if
we
have
several
storefronts
spread
throughout
the
country.
This
means
that
dominating
the
online
market
will
be
vital
to
the
company’s
success.
E. Months
to
Breakeven
Chart
A
Chart
B
17
The
average
monthly
break‐even
sales
amount
is
$132,600,
which
is
equal
to
the
total
amount
of
fixed
costs.
This
amount
seems
to
be
high
for
our
new
venture
for
the
first
month
but
our
initial
equity
injection
will
help
satisfy
our
cash
flow
needs.
We
do
not
project
that
we
can
achieve
that
amount
of
sales
per
month
during
most
of
the
first
year.
As
a
result,
we
may
lose
money
in
the
first
year.
Charts
A
and
B
show
our
breakeven
figures.
Chart
A
shows
breakeven
for
the
first
year,
while
Chart
B
projects
the
average
breakeven
for
each
month
in
2012.
As
sales
grow,
we
plan
to
increase
spending
only
in
the
areas
that
supplement
sales
to
insure
that
the
company
can
support
rapid
growth.
The
average
monthly
fixed
cost
in
the
second
year
is
estimated
at
$244,690.
We
calculate
that
the
breakeven
point
should
be
reached
in
the
second
quarter
in
2012.
V.
Marketing
Plan
A. Overall
Marketing
Strategy
The
Target
Market
The
target
markets
for
the
event
planning
industry
can
typically
be
divided
into
two
categories:
The
social
market
and
the
corporate
market.
Corporate
events
can
include
such
events
as
charity
fundraisers,
galas,
athletic
competitions,
trade
shows,
conventions,
and
parties.
The
market
for
corporate
events
is
very
large
as
companies
place
high
value
on
planning
events
that
will
be
long
remembered
and
discussed.
Therefore,
it
is
typically
recommended
that
those
starting
new
event
planning
companies
begin
by
planning
social
events
to
gain
clientele
and
experience.
Considering
the
nature
of
our
business,
it
can
be
projected
that
the
majority
of
our
initial
business
would
come
from
individuals
rather
than
corporations.
The
social
market
can
include
weddings,
birthdays,
parties,
reunions,
etc.
According
to
statistics,
most
people
who
utilize
event
planners
for
social
events
tend
to
reside
in
the
middle‐
to
upper‐income
levels
and
have
some
disposable
income,
but
perhaps
not
much
spare
time
to
spend
planning.
These
clients
typically
have
household
incomes
of
at
least
$60,000.
While
our
business
will
still
focus
on
these
two
large
categories
of
target
markets,
our
audience
could
prove
to
vary
slightly
from
these
norms.
For
instance,
our
clients
will
be
those
who
want
desire
the
advantages
of
an
event
planner,
but
perhaps
do
not
have
the
disposable
income
that
is
normally
associated
with
the
ability
to
hire
one.
It
should
be
important
to
note
that
our
business
is
not
for
those
who
cannot
afford
event
planning
at
all.
Though
there
are
initial
cost
savings
and
advantages
by
being
able
to
virtually
view
an
event
as
it
unfolds,
our
clients
will
still
most
likely
be
meeting
with
personal
event
planners,
who
serve
as
the
middle‐man
between
the
customer
and
prospective
vendors.
18
We
do
expect
to
serve
more
social
customers
than
corporate,
at
least
in
the
initial
phases
of
the
business.
However,
as
technology
and
the
Internet
continue
to
advance,
we
hope
that
more
corporations
will
turn
to
services
such
as
ours
to
plan
their
business
events.
SWOT
Analysis
Strengths
and
Weaknesses
(Internal
Analysis)
and
Opportunities
and
Threats
(External
Analysis)
The
basis
of
any
SWOT
analysis
is
the
environmental
scan.
By
conducting
extensive
research
of
the
industry
and
markets,
we
can
better
understand
our
position
in
the
industry,
as
well
as
discover
steps
that
need
to
be
taken
in
order
to
become
major
competitors.
There
are
many
ways
to
conduct
this
research.
One
of
the
key
steps
we
will
take
is
to
analyze
the
market
in
order
to
determine
the
limits
or
“trading
area”
of
our
business.
Since
we
assume
we
will
be
starting
with
social
events
to
gain
clientele,
we
can
estimate
that
our
trading
area
will
be
local
at
first.
However,
once
we
gain
corporate
clients,
we
project
that
trading
area
to
grow
to
a
national
level
over
time.
When
this
happens,
our
market
will
expand
from
the
state
of
North
Carolina
to
the
entire
US.
By
accessing
the
Bureau
of
Labor’s
Consume
Expenditure
Survey,
we
can
gain
information
about
how
individuals
in
the
US
tend
to
spend
their
money.
This
will
allow
us
to
see
where
our
advertising
and
promotion
dollars
will
be
more
efficiently
spent.
After
scanning
the
environment,
more
insight
can
be
gained
by
interviewing
potential
clients,
conducting
surveys
and
leading
focus
groups
to
gain
access
to
the
opinions
of
consumers.
Strengths
and
Weaknesses
(Internal
Analysis)
One
of
our
biggest
strengths
in
the
initial
phase
of
our
start‐up
will
be
the
flexibility
that
many
entrepreneurs
realize
with
their
small
size.
The
ability
to
make
quick
decisions
for
our
clients
and
for
our
business
as
a
whole
could
prove
to
be
a
key
factor
in
our
success.
We
also
have
the
advantage
of
utilizing
new
technology
and
the
Internet
in
ways
that
many
19
event‐planning
companies
have
not
done.
Therefore,
we
have
the
potential
to
reach
a
far
greater
market.
By
offering
the
convenience
of
the
Internet,
the
social
market
will
have
access
to
event
planning
in
areas
where
they
have
previously
not.
For
instance,
studies
have
shown
that
a
population
base
of
at
least
50,000
is
needed
to
support
an
event‐
planning
business.
Therefore,
those
with
some
disposable
income
who
happen
to
live
in
smaller
towns
may
not
have
had
the
option
to
hire
an
event
planner
because
there
will
typically
not
be
one
located
in
that
region.
One
of
our
biggest
weaknesses
could
prove
to
be
gaining
clientele.
We
are
starting
a
business
without
extensive
event‐planning
experience
or
a
client
base.
We
will
have
to
work
harder
to
build
customer
relationships
than
we
would
if
we
were
starting
a
business
after
working
in
the
industry
for
a
while
with
relationships
already
established.
We
will
also
need
to
work
to
build
our
image.
Though
we
do
offer
a
service
that
focuses
on
convenience
and
affordability,
we
do
not
want
to
be
perceived
as
“cheap”.
We
need
to
be
viewed
as
a
luxury.
Our
marketing
plan
will
need
to
take
this
into
great
consideration.
Clients
will
need
to
be
ensured
that
they
are
getting
high‐quality
services.
It
will
be
important
for
them
to
realize
that
we
are
able
to
realize
cost‐savings
due
to
the
nature
of
business
and
not
because
quality
is
sacrificed.
Opportunities
and
Threats
(External
Analysis)
Data
accessed
through
IBIS
World
gives
great
insight
into
the
current
market.
One
of
the
greatest
opportunities
a
new
business
can
embark
upon
is
an
unfulfilled
consumer
need.
Looking
at
the
low
concentration
of
event‐planning
services
in
North
Carolina,
it
can
be
seen
there
is
a
need
that
is
not
being
met.
We
are
optimistic
about
this
need
because
Southeast
region
of
the
US
brings
in
the
second
largest
revenues
in
the
industry.
However,
as
most
of
these
large
players
are
located
in
Georgia
and
Florida,
it
can
be
determined
that
North
Carolina,
with
its
ever‐growing
urbanization,
can
greatly
benefit
from
a
major
player.
Also,
by
accessing
new
technologies
and
trends,
we
have
the
opportunity
to
reach
a
larger
market
than
typically
would
have
been
possible
in
previous
years.
It
will
be
important
to
realize
that
a
threat
exists
in
the
emergence
of
substitute
services.
We
can
expect
a
number
of
companies
to
offer
similar
services
after
ours
gains
notoriety.
Companies
with
large
client
bases
and
loyal
followings
could
pose
a
threat
should
they
begin
to
offer
similar
products
and
services.
Should
we
have
to
compete
with
other
major
event‐planning
businesses
for
access
to
vendors
and
suppliers,
it
could
pose
a
huge
threat
to
our
company.
Event‐planning
companies
are
not
our
only
competition.
Florists,
caterers,
etc.
often
will
take
on
event‐planning
responsibilities
on
the
side
in
order
to
bring
in
additional
revenues.
Goals
and
Objectives
Currently,
the
Southeast
region
accounts
for
20.3%
of
total
revenues
in
the
industry.
With
low
concentration,
there
are
only
a
few
major
competitors
in
the
market.
Even
though
sole
proprietors
account
for
80.2%
of
the
businesses
in
the
industry,
they
only
account
for
6.5%
of
total
revenues.
North
Carolina
currently
only
contains
about
1.7%
of
the
enterprises
in
the
country.
From
this
data,
we
can
estimate
that
the
North
Carolina
market
currently
accounts
for
approximately
$40
million
of
annual
revenues.
20
After
establishing
our
business,
our
first
major
goal
will
be
to
become
the
competitor
for
North
Carolina,
gaining
a
significant
share
of
the
local
market.
This
will
not
only
increase
our
positioning,
but
will
most
likely
increase
the
state’s
share
as
overall
revenues
increase
from
our
business
increases.
The
second
goal
will
be
to
expand
operations
throughout
the
Southeast
region
and
become
a
major
competitor
in
the
larger
market.
We
hope
to
gain
a
respectable
portion
of
the
20.3%
share
the
Southeast
region
currently
holds
of
the
entire
industry,
possibly
increasing
that
number
as
well
with
our
individual
growth
in
size
and
revenues.
Finally,
we
hope
to
expand
nationally
with
operations
throughout
the
US,
joining
the
small
group
of
major
competitors
in
the
national
industry.
Specific
forecasts
for
a
product(s)
or
service(s)
According
to
IBIS
World,
industry
revenue
is
expected
to
increase
5.3%
in
2011
to
about
$12.5
billion
as
the
economy
continues
to
improve.
Industry
prices
can
be
expected
to
increase
as
demand
for
event‐planning
rises.
However,
our
clients
will
always
be
able
to
enjoy
the
discounts
we
can
offer
through
the
nature
of
our
network
of
vendors
and
suppliers.
B. Pricing
In
order
to
maintain
a
competitive
position
in
the
market,
we
are
initially
taking
a
“low‐cost
provider”
marketing
strategy.
As
previously
described,
all
customers
will
receive
a
5%
discount
on
all
products
and
services
when
purchased
through
our
site.
This
figure
does
not
account
for
instances
in
which
a
reverse
auction
bid
might
occur
for
certain
clientele
business.
As
client
base
grows
and
large,
business
accounts
are
gained,
we
expect
our
network
of
vendors
to
compete
for
customer
business.
Our
website
will
allow
reverse
auctions
to
occur
between
buyer
and
seller
at
these
times.
This
will
continue
to
drive
down
price
and
give
us
a
competitive
advantage
over
other
event‐planning
companies.
In
order
to
ensure
that
we
still
make
profits
in
these
situations,
we
will
still
require
10%
of
total
costs
from
each
supplier
or
vendor.
C. Sales
tactics
E‐Vents
will
not
only
have
to
sell
itself
to
potential
clients,
but
to
suppliers
and
vendors
as
well.
While
advertising,
promotions,
and
public
relations
will
gain
the
majority
of
our
clients,
especially
individuals
planning
social
and
personal
events,
different
strategies
will
be
needed
to
promote
our
business
to
other
companies,
i.e.
the
vendors
and
suppliers.
It
will
be
extremely
important
to
build
long‐term
relationships
with
these
partners
in
order
to
retain
their
services
on
our
database
as
competition
begins
to
increase.
Strategic
B2B
Marketing
tactics
will
be
necessary
in
locating,
forming,
and
maintaining
these
business
relationships.
We
plan
to
use
personal
selling
and
relationship
building
techniques
in
order
to
21
obtain
and
retain
the
business
of
these
large
accounts.
An
effective
marketing
tool
that
we
will
implement
will
be
that
of
the
“Value‐in‐Use
Assessment”.
These
assessments
are
extremely
time‐consuming
and
costly
to
perform,
but
the
benefits
greatly
outweigh
the
cost
if
the
account
is
won
and,
more
importantly,
potentially
long‐lasting
and
profitable.
For
these
elite
few,
research,
analysis,
field
assessments,
surveys,
and
interviews
will
be
conducted
in
order
to
gain
understanding
of
their
market
positioning,
needs,
wants,
etc.
Through
this,
we
will
be
able
to
determine
what
specific
business
elements
and
factors
these
clients
believe
to
be
of
high
value.
For
some
clients,
price
will
be
the
most
important
factor.
Others
might
place
high
importance
on
collaborative
relationships
with
open
exchange
of
industry
knowledge.
No
matter
what
the
customer
values,
the
assessment
itself
is
an
incentive
to
choose
our
business
as
the
customer
gains
access
to
all
information
we
find
during
the
research
and
analysis
process.
Many
times
they
learn
information
about
their
own
company
previously
not
even
known
to
them.
After
the
assessment,
a
“value
word
equation”
is
created
for
each
element
in
which
that
customer
places
high
value.
This
expresses
benefits
we
can
offer
in
monetary
terms.
For
instance,
by
identifying
next
best
alternatives
to
our
company,
we
can
create
equations
to
show
customers
exactly
what
the
savings
would
be
by
choosing
our
company
or
a
specific
vendor
on
our
list
over
the
next
best
alternative.
Another
useful
equation
might
show
the
potential
partner,
in
monetary
terms,
the
savings
that
will
be
realized
through
the
partnership
by
eliminating
some
of
the
time,
money,
and
effort
used
to
attempt
to
tap
into
new
markets,
find
new
customers,
advertise,
etc.
Once
a
contract
is
won,
it
will
be
necessary
to
maintain
a
close
relationship
with
continuous,
open
lines
of
communication.
It
is
estimated
that
new
analysis
and
research
should
be
conducted
at
least
once
per
year
for
each
of
these
top‐tier
clients,
and
information
and
value
equations
should
be
updated
as
competition
and
substitutes
continue
to
emerge.
On
top
of
the
5%
discount
all
clients
receive
simply
by
choosing
vendors
in
our
network,
promotions
will
be
held
throughout
the
year
showcasing
different
types
of
events
or
featured
vendors.
These
promotions
will
be
directed
towards
obtaining
new
clientele
as
well
as
giving
current
customers
who
perhaps
have
not
utilized
our
services
in
some
time
an
incentive
to
return
to
the
site
and
view
new
options.
D. Service
Guarantee
In
order
to
ensure
customer
satisfaction
and,
in
turn,
retain
clients
and
build
relationships,
we
plan
to
offer
certain
guarantees.
If
a
client
is
unsatisfied
with
a
certain
vendor
or
supplier
they
have
chosen,
it
will
be
standard
policy
that
they
will
be
reimbursed
for
up
to
40%
of
the
costs
of
that
particular
supplier.
In
addition,
depending
on
the
severity
of
the
issue
that
led
to
the
negative
perception,
different
actions
will
automatically
be
taken.
These
actions
could
be
that
the
vendor’s
rating
on
our
site
is
lowered,
complete
refunds
to
the
client
in
question
may
be
ordered,
or,
in
the
most
severe
situations,
they
22
could
be
removed
from
our
preferred
network
completely.
While
this
strategy
will
help
protect
the
company
against
customers
who
choose
to
defect
based
on
dissatisfaction
with
vendors,
it
will
be
important
to
build
and
maintain
supplier/vendor
relationships
to
give
each
vendor
incentive
to
perform
well.
This
is
important,
as
it
can
be
costly
to
retain
a
customer
who
is
not
satisfied
with
some
vendors
on
our
list.
Also,
selecting
which
businesses
are
added
to
the
database
will
need
to
be
an
extensive
process
to
ensure
that
even
those
clients
choosing
lower‐cost,
standard
services
will
receive
high
quality
results.
We
want
our
clients
to
always
feel
they
are
getting
their
money’s
worth.
E. Advertising
Strategies
The
advertising
promotion
strategy
will
be
focused
mostly
towards
online
websites
and
social
media
forums.
Advertising
dollars
will
initially
be
spent
on
“push
mediums”
and
promotional
websites
to
generate
general
awareness.
Public
relations
will
also
be
an
integral
part
of
our
initial
strategy.
Press
Release
distribution
sites
will
be
utilized
in
order
to
increase
notoriety
and
hopefully
encourage
local
media
to
write
articles
and
opinion
pieces
about
our
business.
Long‐term
advertising
dollars
will
be
used
on
national
websites
and
ads
in
print
publications,
potentially
expanding
to
television
ads.
Contest
Promotion
The
company
will
kick
off
by
holding
a
contest
in
which
the
winner
gets
their
event
planned
at
no
charge
up
to
$15,000.
These
services
can
be
put
toward
the
event
or
party
of
the
winner’s
choice.
The
contest
will
be
launched
through
the
company
website,
and
promotions
will
be
placed
on
various
vendor
websites,
Facebook,
and
Twitter.
The
contest
will
run
for
six
weeks,
at
which
time
a
winner
will
be
randomly
picked
from
all
registered
participants.
A
heavy
focus
on
press
and
public
relations
will
occur
at
this
time
in
order
to
ensure
optimal
participation
in
the
event
and
to
gain
notoriety
for
the
overall
business.
Press
release
distribution,
networking,
and
advertising
can
be
estimated
at
$2,000.
The
promotion
will
not
only
gain
great
initial
notoriety,
but
will
be
integral
in
building
our
initial
client
database,
as
every
contest
participant
has
to
register
their
information.
Total
expected
cost:
$17,000
Social
Media
The
company
will
continue
to
network
and
promote
its
services
through
the
use
of
social
media
platforms,
such
as
Facebook
and
Twitter.
A
blog
on
our
website
will
be
written
and
updated
weekly
to
publish
useful
tips
and
general
advice
on
planning.
Updates
to
the
blog
will
be
posted
regularly
to
the
company’s
Facebook
and
Twitter
accounts.
The
blog
stories
will
be
tagged
and
contain
various
links
to
help
build
search
engine
optimization
for
the
company’s
website.
Users
will
also
be
able
to
chat
through
forums
with
each
other.
These
forums
will
allow
customers
to
post
pictures
of
their
event,
rate
vendors,
give
advice
and
tips,
etc.
23
Total
cost
for
social
media
advertising
is
minimal.
Advertisements
on
Facebook
are
purchased
using
“Cost
per
Click”
and
daily
budgets
can
be
set
and
changed
at
any
time.
Currently,
it
is
normal
to
spend
up
to
$40
per
week
advertising
on
Facebook,
depending
on
the
number
of
clicks
an
ad
receives.
Therefore,
annual
costs
could
be
estimated
for
the
first
year
at
around
$2,000.
Google
Word
Ads
The
company
will
invest
advertising
dollars
into
purchasing
“Google
Ad
Words”
so
that
the
company's
website
will
appear
in
search
engines
when
people
are
searching
for
key
terms
related
to
event
planning
services.
This
pull‐level
advertising
will
drive
qualified
traffic
to
the
company
website
and
ensure
that
they
are
individuals
actively
searching
for
event
planning
services.
Direct
Marketing
By
creating
a
“Listserv”,
potential
and
current
customers
can
sign
up
to
receive
emails
and
newsletters.
Specials,
updates,
news,
and
events
will
be
sent
directly
to
these
clients.
Depending
on
the
contact
list
size
and
how
frequently
emails
and
newsletters
were
issued,
cost
could
vary.
For
instance,
until
the
number
of
people
on
our
list
reaches
500,
email
blasts
and
online
newsletters
can
be
sent
at
any
time
for
no
cost.
However,
once
a
larger
list
is
achieved,
it
will
be
necessary
to
purchase
a
database
system
that
will
allow
us
to
monitor
the
large
number
as
well
as
ensure
automatic
responses,
mass
emailing
sending,
creative
design
techniques,
etc.
Targeted
Advertising
Niche
websites
and
magazines
will
be
a
great
way
to
reach
our
target
audience.
For
instance,
“The
Knot”
is
a
bridal
magazine
and
website.
Local
and
national
advertising
can
be
done
on
their
site
in
order
to
reach
those
in
need
of
social
event
planning.
Distribution
As
a
majority
of
our
business
will
be
conducted
via
our
interactive
website,
the
majority
of
our
products
and
services
will
be
distributed
online.
Personal
attention
and
event‐planning
consultation
will
begin
with
initial
in‐office
consultations.
However,
personal
attention
detail
can
also
be
distributed
through
the
website.
Personal
meetings
will
be
for
those
clients
who
require
additional
help
and
those
who
are
willing
to
pay
the
cost
associated.
We
predict
that
our
high‐end,
large,
strategic
customers
will
be
the
most
likely
to
take
advantage
of
these
physical
services.
Distribution
for
all
marketing
and
promotional
materials
will
initially
focus
on
North
Carolina.
Once
we
are
established
as
the
major
competitor
in
the
state,
we
will
expand
that
focus
to
the
entire
Southeast
region.
Press
releases
will
be
written
about
the
company,
its
launch
promotion
contest,
etc.
and
distributed
to
the
major
press
release
distribution
sites
24
(i.e.
PRWeb,
BusinessWire,
and
PR.com).
The
advantage
of
these
sites
is
that
geographic
areas
of
distribution
can
be
chosen.
From
this,
press
and
media
in
North
Carolina
will
have
access
to
the
information
and
we
will
not
have
to
worry
about
wasting
cost
on
press
in
other
areas
who
would
not
be
interested
in
the
subject.
We
feel
this
will
be
one
of
our
most
effective
distribution
tools
as
press
in
all
towns,
even
smaller
ones,
can
pick
up
the
story
and
write
articles
and
opinion
pieces
on
E‐Vents.
This
could
prove
especially
helpful
in
reaching
those
towns
with
fewer
than
50,000
people
that
may
not
have
access
to
event
planning
services.
As
previously
mentioned,
extensive
focus
will
be
placed
on
advertising
through
niche
websites
and
magazines.
The
major
advantage
of
this
type
of
advertising
is
that
the
reader
or
visitor
is
actively
looking
for
the
services
we
provide.
For
instance,
event‐
planning
magazines,
bridal
websites
and
magazines,
corporate
business
sites
and
trade
magazines,
and
local
North
Carolina
sites
and
publications
will
be
our
most
effective
targets
in
the
initial
growth
phase
of
the
company.
VI.
Design
and
Development
Plans
The
design
and
development
stage
of
the
event
planning
business
consists
of
the
creation
of
specialized
software/databases,
customer
interfaces,
and
other
Internet
capabilities
to
be
able
to
search
a
pre‐determined
list
of
vendors,
themes,
and
price
points.
A. Development
Status
and
Tasks
There
are
several
key
steps
that
will
need
to
be
taken
in
the
design
and
development
phase.
For
instance,
one
of
the
first
things
that
will
need
to
be
accomplished
is
the
initial
search
for
vendors
and
suppliers
as
well
as
the
negotiation
and
relationship‐establishment
with
those
businesses.
Legal
consultation
will
be
utilized
in
the
drafting
of
contracts
to
ensure
all
aspects
of
the
partnership
are
clearly
stated
and
understood.
Next,
software
for
customer
interaction
and
interfacing
will
need
to
be
researched
and
compared
using
cost‐benefit
analysis.
Research
has
shown
that
user
interface
database,
software,
and
website
design
can
cost
around
$20,000.
This
is
the
figure
we
will
use
in
drafting
projected
development
costs
for
the
first
year.
At
the
same
time,
possible
locations
for
the
main
office
will
need
to
be
determined.
The
leasing
of
office
space
can
be
a
timely
process,
so
it
will
be
important
to
progress
as
quickly
as
possible
once
a
decision
has
been
made
on
where
the
business
should
be
located.
An
assumption
can
be
made
that
an
“executive
suite”
will
need
to
be
rented
to
allow
management
and
the
entrepreneurial
team
to
have
individual
offices,
access
to
conference
and
presentation
rooms,
and
reception
and
waiting
areas.
We
also
want
to
continue
to
try
to
keep
costs
as
low
as
possible
initially,
so
a
basic
executive
suite
package
will
be
purchased
for
the
first
year.
Larger
offices,
upgrades,
and
new
locations
will
be
chosen
once
the
company
is
better
established.
By
researching
office
rentals
in
the
two
largest
cities
in
North
Carolina,
Raleigh/Durham
and
Charlotte,
we
estimate
monthly
rent
for
this
25
space
to
be
approximately
$2,000.
Though
actual
numbers
may
vary,
this
is
the
best
estimate
based
on
our
comparison
and
will
be
used
in
our
first
year
projected
development
costs.
Before
any
other
key
steps
can
be
taken,
it
will
be
necessary
to
develop
a
time
line
leading
up
to
the
official
launch
of
the
business.
This
time
line
will
need
to
include
each
and
every
integral
step
that
must
be
completed
in
order
to
for
the
launch
to
be
successful.
Once
a
detailed
time
line
has
been
established,
the
next
step
will
be
to
purchase
or
lease
office
equipment,
including
the
computers
that
will
be
necessary
in
order
to
run
the
business.
Then,
the
database
and
customer
interaction
software
we
have
chosen
will
be
implemented.
Intensive
training
sessions
and
tutorials
will
be
mandatory
for
the
entire
founding
entrepreneurial
team.
Assuming
that
all
founding
members
will
each
require
a
computer
and
a
computer
will
be
needed
for
reception,
we
estimate
about
$5,000
will
be
needed
to
purchase
this
equipment.
Next,
salaries
and
wages
will
need
to
be
determined
for
all
staff
and
planners.
Typically,
event
planners
are
paid
on
an
hourly
basis.
Therefore,
each
planner
on
our
team
will
receive
$50
per
hour
for
his
or
her
services,
when
needed.
The
hired
receptionist
will
receive
between
$10
and
$15
per
hour
based
on
his
or
her
experience
and
the
position
will
be
full‐time.
The
entrepreneurial
team,
acting
as
planners,
consultants,
and
managers
will
be
distributed
what
profits
are
left
after
costs
and
other
wages
are
subtracted.
Therefore,
salaries
will
continue
to
increase
as
profits
increase.
Once
these
guidelines
have
been
determined,
we
can
begin
hiring
ancillary
staff
and
additional
planners
if
needed.
All
employees
must
attend
mandatory
education
and
training
sessions
to
ensure
that
each
staff
member
knows
every
detail
of
the
business.
This
will
ensure
better
service
for
our
customers.
Finally,
the
business
will
officially
launch,
beginning
with
the
contest
promotion
to
win
a
free
event.
B. Difficulties
and
Risks
As
with
most
businesses,
a
major
difficulty
will
be
the
simple
fact
that
not
every
customer
can
be
pleased.
There
is
elevated
risk
in
this
business,
as
we
are
promoting
ourselves
as
the
“one
stop
shop”
for
everyone’s
event‐planning
needs.
Some
customers
will
not
be
satisfied
with
the
options
offered
in
our
database.
Some
strategic
planning
can
help
reduce
this
risk.
By
networking
and
contracting
with
multiple
vendors
in
each
category
(i.e.
floral,
caterer,
etc.),
we
hope
to
provide
the
most
number
of
people
with
the
greatest
number
of
options.
Another
difficulty
could
arise
if
some
customers
have
complaints
regarding
pricing
strategies.
Building
relationships
will
allow
us
to
document
customer
behavior,
likes,
dislikes,
elements
of
importance,
etc.
By
knowing
what
to
emphasize
for
each
customer,
risk
associated
with
pricing
dissatisfaction
can
be
reduced.
We
estimate
that
an
initial
difficulty
will
be
convincing
potential
clients
to
use
web
interface
to
purchase
access
to
a
virtual
database
and
its
event
planning
tools.
This,
26
however,
should
be
overcome
after
the
business
gains
notoriety
and
a
positive
image
is
perceived
through
word‐of‐mouth
tactics.
Naturally,
we
assume
that,
as
technology
continues
to
rapidly
advance,
it
will
be
imperative
to
upgrade
software,
databases,
equipment,
etc.
There
is
always
a
risk
associated
with
these
changes.
Downtime,
training,
and
customer
dissatisfaction
with
having
to
learn
a
new
system
could
all
prove
to
be
troubles
faced
during
times
of
new
technology
implementation.
Finally,
one
of
the
biggest
risks
we
will
face
in
this
business
is
the
possibility
of
losing
contracts
with
vendors
and
suppliers.
Reasons
could
vary
from
a
poor
relationships
to
vendors
switching
to
new
and
emerging
substitute
sites.
Placing
an
emphasis
on
building
and
maintaining
good
customer
and
supplier
relationships
can
greatly
help
reduce
this
risk.
C. Product
improvement
and
New
Products
Once
we
face
the
threat
of
substitutes
and
similar
businesses,
it
will
be
essential
to
continuously
develop
new
improvements,
services,
and
products.
For
instance,
enhancements
might
include
offering
gift
and
guest
registries
through
our
site,
the
ability
to
send
email
invitations,
text
blasts,
social
media
posts
via
our
site,
video
conferencing
or
“hybrid
event”
services
for
those
with
guests
not
able
to
physically
attend
an
event,
and
honeymoon
and
travel
all‐inclusive
packages.
D. Costs
The
following
table
shows
expected
design
and
development
costs
for
the
first
year.
27
E. Proprietary
issues
Our
online
technology
could
prove
to
be
a
proprietary
issue
since
we
believe
it
will
be
unique
to
this
industry.
Other
companies
may
try
to
duplicate
our
services
by
viewing
and
studying
our
website.
It
would
be
wise
to
require
the
software
development
company
to
sign
an
agreement
prohibiting
them
from
building
identical
software
and
databases
for
similar
companies.
Other
provisions
will
be
determined
when
the
specific
technology
is
decided
upon
and
a
company
is
chosen.
Legal
consultation
will
be
used
to
draft
contracts
with
terms
to
which
both
parties
mutually
agree.
VII.
Manufacturing
and
Operations
As
an
online
service
company,
we
will
not
have
a
manufacturing
function
because
we
do
not
actually
sell
or
store
physical
inventory.
However,
as
a
third‐party
contractor,
it
will
be
important
for
us
to
ensure
that
our
partners’
inventories
and
services
are
defect‐
free
and
delivered
on
time.
We
also
have
many
other
functions,
including
our
physical
headquarters
and
the
interactive
website
and
database
that
require
complex
“supply
chains”
and
logistical
systems.
A. Operation
cycle
The
interactive
website
will
be
the
hub
of
all
activities.
Therefore,
we
will
need
to
have
the
software
and
site
developed
and
ready
for
testing
and
training
as
soon
as
possible.
Once
the
official
website
is
ready,
we
expect
to
begin
receiving
online
orders
within
a
few
weeks
of
the
launch
date.
This
extra
time
should
prove
essential
as
we
work
with
our
vendors
to
enter
their
information
into
our
system,
continue
systems
testing
and
training,
and
ensure
that
all
functions
of
the
site
and
database
are
working
properly.
Once
the
system
is
fully
functioning,
maintenance
and
continuous
improvement,
customer
and
vendor
support,
advertising,
and
administration
will
be
our
major
operating
cash
outflows.
Cash
inflows
will
occur
at
several
points
in
every
customer’s
planning
process.
The
first
will
be
received
as
the
customer
initially
registers
and
pays
online
for
access
to
our
database
and
planning
tools.
A
second
cash
inflow
from
that
same
customer’s
transaction
will
occur
each
and
every
time
that
customer
reserves
a
venue,
supplier,
or
vendor.
As
part
of
our
agreement
with
vendors,
we
will
take
out
10%
from
all
cash
received
and
forward
the
rest
to
vendors.
The
amount
the
vendor
pockets
will
have
already
factored
the
5%
discount
every
customer
receives.
In
the
other
words,
we
do
not
have
a
traditional
operating
cycle
as
one
would
find
in
a
manufacturing
company.
People
only
need
event
planning
services
for
special
occasions.
Some
special
occasions
are
seasonal.
During
summer
or
other
busy
months,
we
may
need
to
hire
temporary
workers
to
meet
the
demand
for
customer
service
support.
28
B. Geographical
Location
Our
website,
E‐Vents.com,
will
be
the
primary
method
of
serving
our
customers.
Since
our
service
will
be
mostly
Internet‐based,
any
person
who
gets
Internet
access
could
potentially
be
a
customer.
However,
we
will
focus
on
North
Carolina
market
initially
because
it
will
take
time
to
build
our
vendor
database
and
we
will
need
to
build
a
company
that
can
support
large
sales
growth.
As
all
co‐founders
reside
in
North
Carolina,
we
will
position
our
headquarters
in
Greenville,
NC.
There
are
many
strategic
reasons
for
this
location
decision:
• The
area
is
a
rapidly
growing,
well‐diversified
service
center
for
eastern
NC.
• Population
increased
23.3%
during
the
1990s.
(PCDC,
n.d.)
• The
labor
force
expanded
21.8%
and
employment
grew
by
21.2%
between
1990
and
2000.
(PCDC,
n.d.)
• Pitt
County
is
leading
retail
center
in
central,
northern,
and
eastern
North
Carolina.
• Pitt
County
provides
tax
incentives
to
encourage
businesses
to
join
the
community.
• East
Carolina
University
and
Pitt
Community
College
can
provide
well‐trained
candidates
for
employees,
as
well
as
provide
immediate
access
to
a
large
pool
of
potential
clients
in
our
target
age
group.
• The
average
hourly
rate
for
the
region
is
$17.57,
which
is
lower
than
the
national
average,
$20.18
(Bureau
of
Labor
Statistics,
n.d.).
Utilizing
a
workforce
of
college
students
and
young
adults
can
help
maintain
low
payroll
costs,
thus
increasing
profit
margins.
C. Facilities
and
Improvements
The
main
facilities
in
the
first
year
will
be
the
data
center
where
the
site
and
database
are
hosted
and
the
physical
office
space
in
Greenville.
A
reliable
data
center
will
be
critical
for
success
as
the
website
will
need
to
be
accessible
and
functioning
at
all
times.
Renting
servers
from
well
established
hosting
company
could
be
more
cost
effective
than
building
a
data
center.
Therefore,
we
will
hire
Rackspace
(http://www.rackspace.com/)
as
our
host,
and
rent
all
severs
from
their
data
centers.
Rackspace’s
reputation
in
the
enterprise‐level
hosting
market
and
100%
network
uptime
guarantee
led
us
to
choose
them
for
our
hosting
and
server
needs.
The
company
offers
a
wide
range
of
services
options.
We
plan
to
use
their
“managed
dedicated
servers”
and
“cloud
servers”.
Dedicated
server
will
be
obtained
through
yearly
contracts.
Cloud
servers
will
be
acquired
as
needed
without
specific
terms.
Based
on
current
pricing
information,
the
total
cost
for
12
months
of
service
will
be
around
$44,180.
The
table
below
illustrates
major
projected
expenses
for
web
hosting.
29
Monthly
Unit
Price
Quantity
12
Months
Dedicated
Server
$959
20
$19,180
Cloud
Server
$500
50
$25,000
Total
$44,180
Table
7.C.1
Hosting
expense
for
the
next
12
months
Growing
companies
require
more
and
more
resources
to
supplement
that
growth.
To
support
our
projected
growth,
spending
on
hosting
will
increase
about
50%
per
year
for
the
next
three
years
to
support
the
rapid
growth
in
sales.
High
investment
in
quality
web
service
should
ensure
stronger
customer
satisfaction
and
help
achieve
our
high
sales
goals.
The
following
diagram
depicts
the
forecast
of
hosting
expenses
for
the
next
three
years.
Figure
7.C.1
Hosting
expense
for
the
next
three
years
Commercial
leasing
prices
in
Greenville
are
reasonable.
The
main
purposes
of
the
physical
office
space
will
be
for
general
and
administrative
functions,
face‐to‐face
client
meetings,
presentations,
designing
and
planning
by
hired
event
planners,
processing
orders,
updating
site
information,
etc.
Since,
when
compared
to
the
amount
of
business
conducted
solely
through
the
interactive
website,
the
amount
of
face‐to‐face,
customer
business
conducted
at
the
physical
location
is
expected
to
be
very
small.
As
a
result,
proximity
to
central
or
higher‐traffic
areas
of
the
city
is
not
a
top
priority
in
choosing
a
location.
Currently,
the
most
ideal
space
appears
to
be
one
located
at
2405
Charles
Blvd.
The
2,016
square
feet
available
will
be
sufficient
for
the
initial
phase
of
the
company.
This
will
30
allow
office
space
for
the
founding
team,
a
small
conference
room,
reception
area,
and
design
and
planning
space.
Currently,
the
space
rents
for
$1,800
each
month
or
$21,600
a
year.
Since
we
will
most
likely
be
expanding
within
a
few
years,
long‐term
commitments
will
be
avoided
and
we
expect
to
sign
a
one‐year
agreement
initially.
To
maintain
as
low
as
possible
costs,
furniture
and
major
office
equipment
will
be
leased
at
first.
Leasing
will
allow
us
to
save
money
and
remain
flexible
should
we
need
to
make
quick
changes
in
the
near
future.
The
actual
lease
fees
will
depend
on
the
number
of
employees
that
will
be
regularly
utilizing
the
physical
space.
However,
we
can
estimate
that
the
monthly
lease
payment
is
likely
to
be
about
$1,500.
The
computer,
telephone,
fax,
and
other
networking
devices
in
the
office
will
also
be
obtained
through
leasing.
We
estimate
the
monthly
payment
for
this
equipment
to
be
about
$2,500
per
month.
As
operations
expand
and
sales
grow,
more
workers
will
be
needed.
Furniture
and
equipment
purchasing
decisions
will
be
revisited
at
those
times
and
other
routes,
such
as
purchasing
for
long‐term
investment,
may
be
taken.
However,
during
a
period
of
rapid
growth,
the
ability
to
be
flexible
will
prove
to
be
a
great
competitive
strength,
and
leasing
where
feasible
is
a
great
way
to
promote
flexibility.
D. Strategy
and
Plans
The
website
will
be
the
center
of
operations
at
all
times.
To
shorten
development
times
and
reduce
overall
costs,
we
will
collaborate
with
a
software
development
company
that
specializes
in
e‐commerce
sites.
Major
initial
development
will
be
done
within
the
software
company.
However,
we
will
require
that
our
IT
staff
be
present
during
this
development
so
that
the
necessary
training
and
experience
is
gained
and
they
will
be
able
to
effectively
manage
the
site
once
it
is
fully
operational.
Quality
assurance
of
the
website
will
be
responsibility
of
our
in‐house
testing
team.
Mandatory
continuous
tests
will
be
performed
daily
to
ensure
the
website
is
free
of
defects
that
could
lead
to
downtime
and
other
causes
of
customer
dissatisfaction.
Occasionally,
a
third
party
might
be
consulted
for
larger
projects
and
major
technological
updates.
E. Regulatory
and
Legal
Issues
The
event
planning
industry
is
not
heavily
regulated.
In
fact,
there
are
virtually
no
regulations
at
the
federal
or
state
levels.
However,
as
an
online‐centered
company,
problems
and
risks
associated
with
Internet
will
absolutely
apply
to
our
business.
We
need
to
take
measures
to
ensure
that
software
is
protected
at
all
times
and
contingency
plans
are
always
in
place.
Customers
and
vendors
will
need
to
be
assured
that
their
information
is
privately
stored
and
will
never
be
shared.
Not
only
could
a
leak
of
personal
information
lead
to
detrimental
regulatory
and
legal
repercussions,
the
negative
perceptions
customers
have
for
companies
who
do
not
protect
their
information
can
rapidly
spread
to
others
and
destroy
a
reputation.
31
Password
protected
pages,
strong
legal
assistance,
partnership
and
customer
contracts,
privacy
agreements,
and
virus
protection
software
are
all
ways
in
which
the
issues
associated
with
online
business
can
be
mitigated.
VIII.
Management
Team
All
owners
of
E‐Vents
Planning
are
committed
to
the
success
of
this
endeavor.
Cumulatively,
the
team
has
more
than
20
years
of
business
experience.
Our
knowledge
base
includes,
but
is
not
limited
to
event
planning,
marketing,
information
technology,
public
relations,
advertising,
non‐profit
foundation
management,
and
business
ownership
and
management.
All
founders
also
have
documented
competences
in
customer
service
and
professional
relationship
skills.
There
are
several
positions
that
need
to
be
filled
in
order
to
operate
on
a
day‐to‐day
basis.
Any
individuals
chosen
to
join
the
E‐vents
team
will
need
to
be
highly
recommended
and
competent
in
their
experience
field.
Paying
a
slight
premium
for
quality
employees
will
be
more
cost
effective
than
attempting
to
repair
the
damage
of
a
poor
job
done
or
a
customer
dissatisfied
by
an
unqualified,
lower‐paid
employee.
Regardless
of
their
official
position
and
title
in
the
company,
each
individual
hired
will
be
a
part
of
the
E‐vents
“team”.
Every
team
member
needs
to
have
extensive
knowledge
of
all
functions
and
operations
of
the
business
so
that
miscommunication
and
logistical
errors
can
be
minimized.
Every
team
member
will
receive
mandatory
“in‐field”
training
and
we
will
also
provide
regular
performance
incentives
geared
towards
motivating
individuals
to
provide
excellent
customer
service,
maintain
relationships,
etc.
A. Organization
Starting
as
a
small
establishment,
we
will
begin
with
a
core
staff
(see
Key
management
personnel).
As
the
company
expands,
a
Chief
Executive
Officer,
who
will
report
to
the
Advisory
Board,
will
be
designated.
This
person
will
be
responsible
for
carrying
out
the
strategies
devised
within
the
board.
As
revenues
increase,
it
will
be
essential
that
someone
is
on
board
to
run
the
financial
aspects
of
the
business.
The
Chief
Financial
Officer
will
report
directly
to
the
CEO,
and
ultimately
the
Advisory
Board.
Other
positions
that
will
need
to
be
filled
are
Human
Resources
and
Marketing
managers.
32
Chief
Executive
Officer
Advisory
Board
Chief
Financial
Officer
Accounting
IT
Dept
Human
Resource
Manager
Marketing
Manager
Office
Manager
Event
Planner
Example
of
Organization
Chard
for
E­Vent
Online
Planning
Company
B. Key
Management
Personnel
Office
manager
–
This
position
will
be
responsible
for
handling
the
scheduling
of
meetings
between
planners
and
their
clients.
They
will
also
handle
the
daily
decision‐
making
and
office‐related
activities.
As
Office
Manager,
other
ancillary
responsibilities
will
include
maintaining
office
supply
inventory,
purchasing,
and
assisting
with
other
office
functions.
This
person
will
also
meet
with
potential
vendors
and
suppliers
to
negotiate
specific
terms
and
details.
This
person
will
begin
as
a
part‐time
(hours)
position
evolving
into
a
full‐time
position
as
the
business
expands.
Event
Planner(s)
–
The
primary
responsibilities
for
this
position
include
talking
with
customers
by
phone,
email,
or
face‐to‐face
meetings.
Since
most
transactions
will
occur
online,
the
event
planner
will
serve
as
an
avenue
of
expertise
for
the
potential
client
who
has
never
planned
an
event
or
who
requires
more
input.
The
event
planner
will
also
act
as
a
liaison
between
the
customer
and
vendors.
Network
Administrator(s)
–
The
network
administrator
will
make
sure
all
equipment
and
the
website
properly
functioning.
This
person
will
work
with
the
leasing
companies
to
make
sure
required
equipment
is
leased
correctly
and
maintenance
is
up‐to‐
date
for
all
software
and
the
website.
C. Management
Compensation
and
Ownership
Key
management
personnel
will
receive
salaries
comparable
to
others
in
the
region.
Modest
compensation
will
be
paid
to
the
advisory
board
in
the
first
year
of
operation
to
help
compensate
for
the
high
initial
costs
already
projected
for
the
first
year.
These
salaries
are
expected
to
increase
as
revenues
increase.
The
advisory
board
will
be
paid
for
33
participation
in
business
meetings
with
personnel.
Stock
ownership
will
not
be
offered
at
this
time.
Founders
are
expected
to
initially
contribute
$20,000
each
to
the
business.
This
will
not
cover
the
total
start‐up
costs,
so
we
will
need
to
seek
external
funding.
Expected
costs
for
the
first
quarter
will
require
that
we
obtain
an
additional
$900,000
in
equity
financing
(see
Other
investors).
The
table
below
outlines
the
payroll
for
key
management
personnel
over
the
next
three
years.
In
year
one,
we
are
planning
on
a
modest
salary
of
$20,000
per
owner
(Advisory
Board).
This
salary
will
increase
by
3.5%
in
fiscal
year
2011
and
again
by
1.75%
in
fiscal
year
2012.
Table:
Key
Management
Personnel
Personnel
Plan
Office
Manager
Event
Planner
Network
Administrator
Advisory
Board
Total
Payroll
Year
1
Year
2
Year
3
$48,000
$40,000
$52,000
$100,000
$49,680
$41,400
$53,800
$103,500
$50,550
$42,125
$54,742
$105,311
$240,000
$248,380
$252,728
D. Other
Investors
We
have
a
lofty
goal
of
acquiring
$900,000
during
the
first
quarter
of
the
start‐up
period.
Equity
financing
in
the
first
three
months
will
consist
of
contributions
from
the
founders,
FFF
(family,
friends,
and
fools),
private
investors,
and
venture
capitalists.
Although
we
do
not
anticipate
having
a
board
of
directors
at
this
time,
equity
financing
may
dictate
that
a
more
formal
board
be
formed
in
the
future.
E. Employment
and
Other
Agreements,
Stock
Options
and
Bonus
Plans
Employees,
vendors,
and
suppliers
of
E‐Vents
Online
Planning
Company
may
be
asked
to
sign
a
non‐disclosure
statement
that
they
will
not
reproduce
or
use
the
knowledge
gained
at
E‐Vents
Planning
to
start
a
competing
company.
F. Advisory
Board
E‐vents
Online
Company
will
not
have
a
board
of
directors.
However,
the
founders
will
serve
as
members
of
an
Advisory
Board.
This
board
will
be
responsible
for
major
business
decisions
regarding
the
company’s
mission
and
vision,
financing,
growth,
marketing
and
other
major
functions.
Supporting
Professional
Advisors
and
Services
We
will
require
the
services
of
several
other
professionals
in
order
to
make
sure
we
are
compliance
with
state
and
federal
regulations,
and
in
an
attempt
to
maximize
our
34
positions
in
the
market
and
industry.
The
knowledge
and
experience
they
possess
will
be
beneficial
to
us.
This
list
may
vary
according
to
our
business
needs
at
the
time.
• Accountant
• Banker
• Insurance
agent
• Attorney
• Consultants
IX.
Sustainability
and
Impact
E‐Vents
Planning
recognizes
the
importance
of
making
a
positive
impact
on
social,
economic,
and
environmental
areas
closest
to
our
business
and
beyond.
One
of
the
greatest
ways
for
us
to
achieve
this
is
through
our
suppliers
and
those
with
whom
we
do
business.
The
focus
of
our
business
is
online
commerce.
One
of
the
most
important
topics
today
involves
predatory
companies
taking
advantage
of
people
online.
Our
goal
is
to
secure
and
safeguard
information
obtained
from
our
customers.
It
is
imperative
that
customer
sensitive
information
is
safe.
We
would
like
to
see
laws
implemented
that
would
penalize
those
who
knowingly
take
part
in
this
kind
of
criminal
activity.
Green
Initiatives
Our
office
will
use
recycled
products
when
possible,
as
part
of
our
‘E‐Vent
Green’
initiatives.
Advertising,
brochures,
flyers,
and
any
printed
business
materials
will
be
printed
on
recycled
paper
products.
Since
our
business
is
online,
we
will
minimize
use
of
printed
materials
as
much
as
possible,
and
optimize
our
use
of
online
communication
mediums.
In
addition,
we
will
use
office
equipment
that
is
Energy
Star
compliant
in
an
effort
to
conserve
energy.
Our
company
will
practice
energy
efficiency
though
modified
power
use
and
turning
off
computers
and
equipment
when
the
office
is
not
in
operation.
It
would
be
very
difficult
for
us
to
make
a
big
impact
with
our
green
initiatives
without
requiring
that
our
vendors
and
suppliers
adopt
the
same
energy‐saving
and
environmental
friendly
objectives.
We
will
spotlight
our
attention
on
those
who
are
already
‘green’.
These
suppliers/vendors
will
receive
priority
placement
in
our
directory.
In
addition,
we
will
flag
on
our
website
those
vendors
that
are
environmentally
friendly
and
have
sustainability
businesses
practices
with
a
green
leaf
icon
since
we
know
this
information
is
important
to
our
customers.
We
would
like
to
work
with
those
who
are
not
yet
‘green
compliant’
on
going
green,
to
help
them
achieve
these
goals
within
a
predetermined
time
frame.
Healthy
Choices
Customers
today
are
more
health
conscious
and
environmentally
savvy
than
a
decade
ago.
This
will
drive
some
of
the
choices
made
for
food
suppliers
at
certain
events.
Depending
on
these
vendors,
customers
who
choose
organic
menu
options
may
be
assessed
an
up
charge
due
to
increased
cost.
35
We
will
provide
visibility
and
promotion
on
our
website
to
vendors
supplying
health
alternatives,
organic
and
local
farm
food
options.
Community
Support
In
addition,
we
value
the
surrounding
community
where
our
business
is
located
and
the
communities
that
we
service.
We
will
consistently
seek
ways
to
support
the
areas
where
our
customers
are
located.
We
recognize
the
value
of
supporting
the
community
and
its
impact
on
customer
loyalty.
Our
community
support
programs
will
include:
• Annual
donation
of
up
to
.80%
of
pre‐tax
profits
to
local
food
banks
in
the
markets
we
serve
• Offer
internship
at
our
company
to
college
student
studying
or
majoring
in
hospitality
• Annually
offer
up
to
five
$1,000
scholarships
to
freshman
students
studying
e‐
commerce,
web
security,
entrepreneurship,
hospitality
• Host
networking
events
annually
to
let
people
know
of
our
services;
pay
temporary
workers
hourly
wages
to
greet
guests,
give
directions,
etc.
As
we
begin
to
plan
more
events,
more
vendors
and
suppliers
will
be
doing
more
business.
This
helps
support
the
local
economies
in
which
these
vendors
reside
as
they
have
a
need
to
hire
employees
and
grow
their
businesses.
X.
Overall
Schedule
Overall Schedule
36
Schedule to Website and Official Company Launch
XI.
Critical
Risks,
Problems,
and
Assumptions
As
we
develop
our
business,
we
are
fully
aware
of
potential
risks
to
the
business
and
the
consequences
of
adverse
outcomes
related
to
our
industry,
company,
employees,
market
appeal,
and
financing.
We
are
considering
contingency
plans
in
the
event
these
adverse
outcomes
should
occur
in
order
to
be
prepared
to
navigate
our
business
successfully
out
of
any
challenging
situations.
For
the
company
to
be
successful
we
have
certain
assumptions
concerning
sales
projections,
profits
and
financing
that
will
impact
the
businesses
success.
Our
income
forecast
is
shown
below
over
the
next
three
years.
Sales
2011
2012
2013
(In
$1,000’s)
$11,900
$47,600
$119,000
The
following
is
a
detailed
explanation
of
each
of
these
potential
risks,
including
how
they
might
impact
our
business,
and
our
efforts
to
either
avoid
or
respond
if
these
events
were
to
occur.
Potential
issues
and
risks
that
face
the
business
could
include:
1) Lack
of
economic
recovery
or
another
recession:
We
currently
are
developing
this
business
assuming
that
the
economic
conditions
are
currently
in
recovery.
The
event
planning
industry
suffered
a
.1%
decline
in
demand
between
2005
to
2010.
Our
business
needs
to
see
growth
in
the
industry
to
help
leverage
the
establishment
of
our
business
and
fuel
its
growth.
Currently,
we
are
projecting
that
our
average
monthly
break‐even
sales
amount
is
$132,600
in
the
first
year,
and
we
are
37
expecting
that
after
the
first
year
we
will
be
able
to
reach
the
break‐even
point
through
sales
revenue.
A
double‐dip
recession
could
jeopardize
our
ability
to
reach
this
goal
in
the
time
frame
that
is
projected.
2) Not
enough
cash
to
adequately
support
the
business:
As
detailed
in
the
plan,
we
need
an
estimated
$900,000
to
fully
operate
E‐Vent.
We
expect
that
SBA
Loans,
Private
Investors,
and
Institutional
Loans
will
supply
this
for
a
determined
timeframe,
after
which
time
we
believe
the
business
profits
will
support
this
cash
flow
need.
In
the
event
sales
and
revenues
do
not
escalate
as
expected,
we
will
seek
alternative
methods
of
temporary
funding,
such
as
additional
loans
or
investment
support
until
sales
needs
are
achieved.
After
estimating
sales,
we
found
that
the
business
will
break‐even
in
the
second
quarter
in
2012
as
depicted
by
the
Figure
12.D.2
below.
Figure
12.D.2
Monthly
break‐even
for
2012
3) Increased
costs
that
are
in
excess
of
estimates:
Since
our
business
is
mainly
a
middleman
between
the
consumer
and
the
event
vendors,
we
don’t
increase
costs
to
impact
our
estimates
other
than
its
potential
impact
on
increased
sales.
If
costs
go
up,
consumers
and
companies
will
be
less
likely
to
spend
money
on
events
and
celebrations.
We
are
hopeful
that
given
the
reduction
in
price
consumers
receive
by
working
through
our
website,
they
would
be
more
likely
to
use
our
services,
which
will
support
overall
sales.
Our
service
offers
a
cost
benefit
to
companies
and
consumers
that
they
currently
do
not
have
and
we
believe
that
this
will
positive
impact
our
market
share
in
the
industry.
4) Technical
problems
with
our
website:
A
key
aspect
of
our
consumer
offer
is
our
website
that
enables
to
consumers
to
self
design
their
dream
event.
It
is
vital
that
our
website
is
functioning
appropriately
at
all
times
for
consumer
access
and
ease‐of‐use.
To
ensure
that
we
do
not
encounter
technical
38
problems,
we
will
seek
back‐up
network
support
for
the
website
and
are
utilizing
a
website
design
service
can
help
us
plan
for
consistent
and
reliable
operations
of
the
site.
5) Security
issues
with
website
and
customer
information:
For
customers
to
feel
comfortable
making
purchases
on
our
site,
they
need
to
trust
that
their
personal
information
is
secure.
We
will
be
utilizing
the
latest
security
technology
available
on
the
website
to
ensure
that
all
transactional
and
personal
confidential
information
from
customers
is
managed
appropriately.
We
will
ensure
that
all
necessary
security
measures
are
taken
to
protect
the
website
from
outside
risks.
6) Customer
dissatisfaction:
Customer
satisfaction
and
positive
word‐of‐mouth
is
essential
for
the
success
of
our
business.
We
will
be
working
to
ensure
our
customers
are
satisfied
with
their
experience
using
our
services,
and
believe
in
recommending
our
service
to
friends
and
family.
We
will
ensure
satisfaction
by
first
expecting
top
quality
customer
service
by
all
vendors
and
employees
of
our
business.
In
addition,
we
will
conduct
regular
after
event
customer
satisfaction
surveys
to
track
our
progress
and
ensure
immediate
resolution
of
any
trending
customer
concerns.
7) Competition
from
another
company:
Currently,
no
other
companies
in
the
marketplace
are
offering
a
service
that
mirrors
our
consumer
offer.
We
will
constantly
be
evaluating
the
competitive
landscape
and
marketplace
to
determine
what
other
alternative
services
are
available
to
consumers.
We
are
committed
to
innovating
and
continuously
evolving
our
consumer
offer
as
necessary
to
meet
consumer
demand
and
stretch
beyond
any
capabilities
of
existing
competition.
Our
positioning
in
the
marketplace
is
our
unique
offering
within
the
event
industry
similar
to
some
of
the
existing
online
travel
planning
sites,
and
we
will
be
ruthless
in
our
commitment
to
ensure
that
our
website
remains
cutting
edge
and
superior
in
its
offering
to
our
customer
base.
8) Difficulties
in
securing
the
necessary
vendors
for
services:
In
our
business
model,
it
is
vital
that
vendors
actively
seek
to
become
one
of
the
vendors
that
E‐Vent
will
offer
to
its
clients.
With
this
being
said,
at
the
forefront
of
our
business
is
the
relationship
between
E‐Vent
and
the
multiple
vendors
that
will
be
offered
from
the
site.
In
securing
these
vendors,
E‐Vent
will
use
marketing
materials
and
promotional
packages
to
attract
these
vendors
to
our
business
and
to
showcase
their
services
to
potential
clients.
It
is
beneficial
for
vendors
to
join
our
network
to
increase
sales
on
their
end,
attract
new
clients,
create
a
steady
flow
of
clients,
and
to
create
more
of
an
online
presence
via
E‐Vent
so
securing
these
vendors
poses
no
real
risk
to
these
businesses.
We
feel
that
we
won’t
meet
that
much
resistance
in
securing
new
vendors
and
the
satisfaction
of
our
vendors
is
equally
as
important
as
our
customers.
39
9) Difficulties
in
successfully
marketing
the
business:
In
marketing
our
business
we
could
run
into
difficulties
in
marketing
our
business.
E‐Vent
plans
on
taking
the
traditional
marketing
strategies
and
mixing
it
with
new
social
media
advertising
and
“out‐of‐the‐box”
advertising
campaigns
to
give
E‐Vent
a
marketing
advantage
over
competitors.
These
efforts
will
include
hitting
all
social
media
outlets,
gorilla
marketing
campaigns,
promotional
advertising,
newsletters
and
giveaways,
mailers,
and
other
forms
of
marketing
that
will
help
us
reach
our
target
market.
We
feel
that
we
have
placed
enough
money
in
advertising
to
cover
the
expenses
of
these
marketing
campaigns
and
E‐Vent
will
continue
to
push
to
be
ahead
of
the
marketing
curve
in
successfully
reaching
our
target
market
with
an
effective
and
efficient
approach.
Minimizing
Risks
E‐Vent
has
indicated
the
critical
risks
that
can
affect
the
business
so
being
able
to
minimize
these
risk
will
be
imperative
for
its
success.
In
being
able
to
minimize
these
risks,
we
will
actively
seek
the
advice
of
professionals
in
various
fields
(accounting,
insurance,
banking,
law,
etc.)
to
better
analyze
situations
and
decisions.
E‐Vent
will
look
to
create
a
network
in
which
we
can
reach
out
to
various
fields
for
advice
to
better
the
chances
of
E‐
Vent’s
success.
As
we
are
an
online
business
that
offers
product
to
clients
from
a
list
of
vendors,
we
will
be
responsible
in
providing
services
to
clients
but
our
liability
will
be
limited.
It
will
be
up
to
our
vendors
to
provide
the
utmost
customer
satisfaction
and
quality
to
our
clients
and
will
be
just
as
responsible
for
their
services
as
if
they
were
performing
theirs
services
on
their
own
account.
Insurance
Protection
E‐Vent
will
have
e‐business
insurance
that
will
provide
specialized
protection
for
our
online
business.
This
insurance
will
include
loss
of
revenue
protection.
Loss
of
revenue
protection
will
protect
E‐Vent
if
our
web
site
host
goes
out
of
business
or
our
internet
connection
is
lost
for
an
extended
period
of
time,
we
will
be
covered.
This
will
also
include
Libel/Slander
protection
from
anyone
online
that
might
try
to
publish
untrue
things
about
E‐Vent
that
can
misconstrue
our
business.
Theft
will
be
covered
by
our
e‐
business
insurance
protecting
identity
and
data
theft
as
they
can
pose
huge
risks
for
the
company.
We
will
also
carry
the
basic
insurance
packages
that
are
expected
for
a
company
(liability
insurance,
worker’s
compensation,
business
insurance,
etc.)
to
operate
while
protecting
the
business
and
its
employees.
Vendor/Customer
Relationship
One
of
the
biggest
risks
that
our
business
holds
is
our
vendor’s
ability
to
meet
our
client’s
expectations.
We
feel
that
we
can
minimize
this
risk
by
finding
reputable
and
trustworthy
vendors
in
which
we
can
confidently
recommend
to
our
clients
and
know
that
they
will
deliver
on
their
end.
E‐Vent
will
closely
and
carefully
monitor
how
vendors
performed
for
our
clients
through
surveys
and
follow‐ups
to
make
sure
that
they
were
satisfied
with
their
event
and
how
things
could
have
been
better.
In
the
situation
that
E‐
40
Vent
has
vendors
that
routinely
have
dismal
ratings
from
our
clients,
we
will
handle
the
situation
by
discussing
with
the
vendor
how
they
can
better
their
service
or
find
a
replacement
that
will
better
serve
our
clients.
By
doing
this,
it
will
help
ensure
that
E‐Vent
has
the
best
and
most
dependable
vendors
available
for
our
clients
to
choose
from.
XII.
The
Financial
Plan
A. Pro
Forma
Income
Statements
As
a
primarily
online
service,
certain
assumptions
can
be
made.
First,
credit
will
generally
not
be
extended
to
customers.
Second,
payments
will
be
made
via
e‐checks,
credit
cards,
or
debit
cards.
Therefore,
accounts
receivables
entries
commonly
found
in
other
service
companies
would
most
likely
not
normally
exist
in
ours.
Should
this
occur,
it
would
be
for
established
and
top‐priority
customers.
We
do
not
expect
this
situation
during
the
start‐up
phases
of
the
company,
as
relationships
will
have
not
been
established.
In
addition,
we
assume
our
tax
rate
for
the
next
years
will
be
35%.
In
the
income
statements,
sales
mean
the
total
cashes
we
received
from
customers.
Because
we
have
contractual
obligations
to
forward
90%
of
them
directly
to
vendors,
our
system
will
automatically
to
do
so
immediately
after
receiving
cashes.
Table
12.A.1
shows
major
costs
as
percentage
of
total
sales
estimated
for
the
first
three
years.
We
have
to
spend
a
lot
initially
to
build
website
and
sale
infrastructures.
However,
as
sales
increases,
we
expect
the
controllable
costs
as
percentages
of
sales
will
be
decreasing
over
time.
Table
12.A.2
shows
the
projected
income
statements
for
next
three
years.
Percentages
of
major
costs
2011
2012
2013
Cost
of
good
sold
(vendors
90%
90%
90%
pricing)
Hosting
0.37%
0.14%
0.08%
Customer
Support
Cost
4%
2%
1%
Vendor
Support
Cost
2%
1%
1%
Website
maintenance
0.084%
0.042%
0.017%
Advertising
4.20%
2.10%
1.26%
General
administration
2.521%
0.945%
0.454%
Table
12.A.1
Estimated
major
costs
as
percentages
of
total
sales
41
Income
Statement
(in
$1,000)
2011
2012
2013
Sales*
$11,900.00
$47,600.00
$119,000.00
Cost
of
goods
sold
(Vendor
pricing)
$10,710.00
$42,840.00
$107,100.00
Gross
revenue
$1,190.00
$4,760.00
$11,900.00
Costs
and
expense
Cost
of
service
Hosting
$44.18
$66.27
$99.41
Customer
support
+
Relationship
$500.00
$1,000.00
$1,500.00
Management
Vendor
support
$200.00
$400.00
$600.00
Total
cost
of
service
$744.18
$1,466.27
$2,199.41
Research
and
development
Website
development
$20.00
$‐
$‐
Website
maintenance
and
improvement
$10.00
$20.00
$20.00
Total
R&D
$30.00
$20.00
$20.00
Selling,
general
and
administrative
Contest
promotion
+
advertising
$17.00
$‐
$‐
Google
ad
words
$300.00
$600.00
$900.00
Selling,
other
$200.00
$400.00
$600.00
General
and
administrative
$300.00
$450.00
$540.00
Total
selling,
general
and
administrative
$817.00
$1,450.00
$2,040.00
Total
costs
and
expenses
$1,591.18
$2,936.27
$4,259.41
Income
from
operations
$(401.18)
$1,823.73
$7,640.59
Interest
and
other,
net
$77.64
$77.64
$77.64
Income
before
taxes
$(478.82)
$1,746.09
$7,562.95
Taxes
$(167.59)
$443.54
$2,647.03
Net
income
$(311.23)
$1,302.54
$4,915.92
Note:
*
total
cash
received
from
customer
Table
12.A.2
Pro
forma
income
statements
for
the
next
three
years
42
Figure
12.A.1
Income
forecasts
for
the
next
three
years
Because
most
costs
incurred,
such
as
hosting
and
customer
support
costs,
are
not
directly
related
to
the
amount
of
sales,
they
will
be
calculated
as
fixed
costs.
Thus,
our
future
income
is
very
sensitive
to
sales.
With
our
current
projections,
it
can
be
expected
that
the
company
will
not
make
a
profit
the
first
year.
Should
actual
sales
be
20%
or
more
below
what
is
anticipated,
an
even
larger
first
year
loss
will
occur
and
a
profit
will
not
be
realized
in
the
second
year
either.
However,
as
current
projections
show,
it
is
expected
that
a
profit
will
be
reached
by
year
2.
B. Pro
Forma
Balance
Sheets
We
assume
that
the
majority
of
our
external
financing
activities
will
occur
in
the
first
three
months
of
2011.
Founders
will
supply
initial
funding
to
start
the
company.
External
financing
activities
will
be
discussed
in
more
details
in
Section
XIII
Proposed
Company
Offering.
Table
12.B.1
lists
the
balance
sheet
for
the
next
three
years.
43
ASSETS
Current
assets:
Balance
sheet
(in
$1,000)
1st
half
2nd
half
2011
2011
Cash
and
cash
equivalents
Short‐term
investments
$500.59
$‐
$421.18
$‐
Total
current
assets
Property,
plant,
and
equipment
$500.59
$‐
$421.18
$‐
Total
assets
LIABILITIES
AND
OWNERS'
EQUITY
Current
liabilities
Accounts
payable
Employee
compensations
and
benefits
Short‐term
liabilities
$500.59
$421.18
2012
$2,167.27
$‐
$2,167.27
$‐
$2,167.27
$‐
$‐
$‐
$‐
$20.88
$‐
$42.73
$‐
$46.82
2013
$9,286.67
$‐
$9,286.67
$‐
$9,286.67
$‐
$‐
$42.73
Tax
$‐
$‐
$443.54
$2,647.03
Total
current
liabilities
$20.88
$42.73
$490.36
$2,689.76
Long‐term
debt
$379.12
$357.27
$353.18
$357.27
Other
liabilities
$‐
$‐
$‐
$‐
Total
Liabilities
$400.00
$400.00
$843.54
$3,047.03
Owners'
equity
$500.00
$500.00
$21.18
$1,323.72
Retained
earnings
$(399.41)
$(478.82)
$1,302.54
$4,915.92
Total
Owner's
equity
$100.59
$21.18
$1,323.72
$6,239.64
Total
liabilities
and
owners'
equity
$500.59
$421.18
$2,167.27
$9,286.67
Table
12.B.1
Balance
sheets
for
the
next
three
years
C. Pro
Forma
Cash
Flow
Analysis
Table
12.C.1
lists
the
monthly
cash
flow
projections
for
2011.
In
January
2011,
we,
the
founding
team
of
E‐Vents,
will
commit
$100,000
to
the
company
from
personal
fundraising
efforts.
On
average,
each
founder
will
contribute
$20,000
into
the
company.
However,
internal
funding
alone
will
not
be
sufficient
for
the
total
amount
needed
for
44
executions.
An
estimated
$900,000
from
external
equity
financing
activities
will
be
necessary
for
all
major
company
goals
to
be
reached
and
provide
some
cushion
when
sales
are
below
expectations.
For
February
and
March,
the
amounts
are
$300,000
and
$400,000,
respectively.
According
to
the
forecast,
we
will
lose
money
for
all
months
in
2011.
Figure
12.C.1
illustrates
the
monthly
net
cash
flow
in
2011.
In
addition,
cash
flow
statements
for
2012‐2013
are
also
projected
and
listed
in
Table
12.C.2.
Figure
12.C.2
illustrates
the
quarterly
net
cash
flow
for
2011‐2012.
Figure
12.C.1
Monthly
net
cash
flow
in
2011
45
Figure
12.C.2
Quarterly
net
cash
flow
for
2011‐2012
46