Who is entrepreneur? An entrepreneur seeks to reform or revolutionize the pattern of production by exploiting an invention or an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products.
As the instructions of the course teacher to submit the life story of a local entrepreneur, I personally interviewed a person who is a successful entrepreneur. He is my cousin Mr. XYZ. At first he described how he started the business and when he planned the business. Then he supplied me the detailed business plan, which is given later here.
He told me that from his juvenile he was planning a business of his own. So, he got admitted into Jahangirnagar University in Economics to know the economical aspects of business in 1994. Though it was illegal, he got admitted to National University in B.Com.(pass) in the same year to know the financial aspects of business. From that year he started working with some choreographers and interior designers. He completed his Honours in Economics successfully in 2000. Then he found himself in need to know about hospitality management. He joined Spectre Convention Centre in 2000. There he got six months experience on hotel management and the art of hospitality. In 2001 he found himself in need to know the practical business world esp. corporate culture. At the same year he entered into Bangladesh Edible Oil limited. In the meantime he completed M.Sc. in Economics in 2001 from Jahangirnagar University. After 2 years successful journey in Edible Oil he found different lackings in media and advertising. He realized no business could be successful without advertising. In 2002 he joined into a production house named ZERO PLUS as a director of sales and marketing. In 2003he got admitted into AIUB in MBA. There he came close to some successful businessmen. At the end of 2003 few of his friends decided to start a new venture, an EVENT MANAGEMENT FIRM named TEMS EVENT MANAGEMENT. This firm is still running.
Business Activities of the firm:
To arrange the social events from wedding ceremony to death anniversary.
To arrange and manage all kinds of fair, such as book fair, film fair, education fair, IT fair, software fair, car fair, RMG fair, Science fair etc.
To make advertisement and entertainment program.
To make interior and exterior decoration and product promotion activities.
To carry on the business of all kinds of technological equipment’s supply, installation, commercial operation and allied business.
To arrange educative program such as quiz competition, debate competition, Math Olympiad, Science Olympiad, Programming competition etc.
To arrange free treatment program for the poor.
To arrange seminar, symposium, discussion, meeting on any important issue.
Persons involved in the firm:
Though Mr. Khairul Alam Sabuz is all in all here, yet he has included other five members who are very efficient persons in their respective fields and who help him a lot in running the business. They are recruited as director admin, director operation, director finance, director creative. He is the Managing Director of TEMS EVENT MANAGEMENT.
After introducing his venture, my cousin gave me a detailed description of event management. Here I have presented it in brief.
What is Event Management ?
Event management is the application of the management practice of project management to the creation and development of festivals and events.
Event Management involves studying the intricacies of the brand identifying the target audience, devising the event concept, planning the logistics and coordinating the technical aspects before actually executing the modalities of the proposed event. The recent growth of festivals and events as an industry around the world means that the management can no longer be ad hoc.
Events and festivals, such as the Asian Games have a large impact on their communities and, in some cases, the whole country. The industry now includes events of all sizes from the Olympics down to a breakfast meeting for ten business people. Every industry, charity, society and group will hold events of some type/size in order to market themselves raise money or celebrate.
Event management is considered one of the strategic marketing and communication tools by companies of all sizes. From product launches to press conferences, companies create promotional events to help them communicate with clients and potential clients. They might target their audience by using the print and electronic media, hoping to generate media coverage which will reach thousands or millions of people. They can also invite their audience to their events and reach them at the actual event.
Services of Event Management Company:
Event management companies and organizations service a variety of areas including corporate events (product launches, press conferences, corporate meetings and conferences), marketing programs (road shows, grand opening events), and special events like concerts, award ceremonies, film premieres, launch/release parties, fashion shows, commercial events, private (personal) events such as weddings and Clients hire event management companies to handle a specific scope of services for the given event, which at its maximum may include all creative, technical and logistical elements of the event. (Or just a subset of these, depending on the client’s needs, expertise and budget).
The Event Manager is the person who plans and executes the event. Event managers and their teams are often behind-the-scenes running the event. Event managers may also be involved in more than just the planning and execution of the event, but also brand building, marketing and communication strategy. The event manager is an expert at the creative, technical and logistical elements that help an event succeed. This includes event design, audiovisual production, scriptwriting, logistics, budgeting, negotiation and, of course, client service. It is a multi-dimensional profession.
Event Management as an Industry: Event Management is a multi-million dollar industry, growing rapidly, with mega shows and events hosted regularly. Surprisingly, there is no formalized research conducted to assess the growth of this industry. The industry includes fields such as the MICE (Meetings, Incentives, Conventions and Events), exhibitions, conferences and seminars as well as live music and sporting events.The logistics side of the industry is paid less than the sales/sponsorship side, though some may say that these are two different industries.
Career : Career opportunities are in the following Industries :
1. Event Management
2. Event Management Consultancy
3. Hotel, travel and hospitality Industries
4. Advertising Agencies
5. Public Relations Firms
7. News Media
8. Non-profit organization
9. Integrated marketing communications companies
Categories of Events:
Events can be classified into four broad categories based on their purpose and objective:
1. Leisure events e.g. leisure sport, music, recreation.
2. Cultural events e.g. ceremonial, religious, art, heritage, and folklore.
3. Personal events e.g. weddings, birthdays, anniversaries.
4. Organizational events e.g. commercial, political, charitable, sales, product launch.
Welcome to the future of event planning! TEMS, The Event Planner, brings to the community of Dhaka a new breath of air in the event planning market. By combining old fashioned values, going the extra mile, and using cutting edge event-planning software, TEMS will lead the market, providing the same quality results, every time.
TEMS is an equal opportunity business making its expertise and its products available to help its customers plan their own events. Party Packs (complete kits for their event), make hosting a party a snap, right down to the refreshments. The event planning software brings interactive event planning as close as their personal computer. Through these and other affordable products and services, TEMS aims to be one of best resources for any event.
TEMS is a small business aimed at the big time. In order to reach its lofty goals, TEMS must focus on the mission behind the vision. It will take all the employees, owners, founders, and vendors daily living the vision that TEMS represents. The vision manifests itself in three ways:
1. Be one of the top ten event planning specialists in Dhaka city.
2. Justly compensate the employees, owners, and founders of TEMS.
3. Produce the same quality results, every time.
In an ever changing, fast-paced world, success is determined by good choices for lasting effects. Communication is essential. TEMS strives to be the best choice of clients by helping to ease their event planning burden. Through consistent, predictable professionalism, TEMS will ensure a worry and hassle-free event at a reasonable price. But, not all our clients will be external. TEMS has internal clients to serve. TEMS will strive to provide the same predictable and professional working environment to its employees and contracted vendors, justly compensating them for their services. It is also a priority to make a comfortable living wage for its owners, founders, full-time staff, and their families.
Keeping in tune with the needs of the market, utilizing the latest technology and trends, all while ensuring the client receives the individual attention they deserve, is the vision and daily mission of TEMS; The Event Planner.
Keys to Success
Our keys to success include the commitment to quality by every person who is part of the team. Each of us will be responsible to push ourselves to a higher level of professionalism in three areas:
1. Consistent, accurate fulfillment of the client’s wishes.
2. Competitive pricing for the quality of services offered.
3. Significant profit made on each event planned.
Founded in 2007 on a part-time basis, TEMS is a small business designed to meet the needs of the ever changing social world. TEMS’ staff of two, with numerous contract vendors, plans events, writes event-planning products, and trains area students in the art of event planning. TEMS is invested in the community it resides in.
TEMS is, in part, the answer to demands of the social world, on the working family, heavily-burdened office, out-of-town business, or special occasion in need of special recognition. As a business, we understand the needs of public and private organizations. As parents and family members, we understand the needs of setting special time apart from other events in our lives. TEMS strives to accomplish these goals in DHAKA.
TEMS is established as a sole proprietorship with the intention of selling the business when it is established to one of the employees invested in the vision of event planning. All aspects of the business will be documented to ensure clients can count on the same results every time. It is these documents that will become the basis of ownership. The sole proprietor will use his or her name as the guarantor of each service. Therefore, the sole proprietor must embody the vision and mission of TEMS.
Through careful planning on the part of the founders, the start up costs for TEMS are minimal. It began as a home-based business with little overhead, and it continues to demand fewer outlay of funds as a service-based business. The start-up cost investment funds were assets saved from prior earnings by the owners who did event planning on a part-time basis before establishing themselves as a business.
It is the wish of the founders to remain a debt-free establishment. However, recognizing that in reality not all variables are controllable, outside financing is a viable option. Both founders own homes and have a perfect credit rating.
Company Locations and Facilities
TEMS is located inside the city limits of DHAKA. It is a home-based business. Most meetings with clients are conducted in social settings, such as restaurants, coffee houses, the client’s home, facilities wishing to be used for the event, or over the phone. Although the demand has not yet reached its peak, TEMS will eventually move from its home base into a small office complex, also within the city limits of Dhaka. When the company has reached its finished point, TEMS will have branch offices in many parts of the Dhaka city.
The company will maintain a high degree of professionalism. All offices are equipped with the latest in business technology, such as telephone systems, computers, fax machines, email, duplicators, printers, and software. Each location will have a secure storage area for supplies and equipment used in events, such as walkie-talkies, cellular phones, portable fax machines, and laptops.
Products and Services
Although TEMS is primarily a service business, we also offer products to aid our customers in planning the event themselves. The following products are tools used inside our operation for the best possible results:
1.Party-Pack: The Party Pack is a complete kit for any party. It includes decorations, lighting effects guide, disposable theme cameras, cutlery, plates, napkins, cups, punch mix (or recipe), snack supplies (or recipe), tablecloths, theme music (where applicable), invitations, thank-you cards, and a step-by-step guide to planning, putting together,and hosting the event.
2.Step-by-StepGuides: These booklets include a calendar to map out the event, a step-by-step guide on what is needed for and how to put together a successful, worry-free event, resource information, popular refreshments with recipes, games, and tips to put their event in the record books. The events available include birthdays for all ages, meetings, retreats, parties, vacations, and special occasion celebrations such as graduations, holidays, showers, weddings, and receptions.
3.Event-Planning-Software: This cutting-edge tool will allow the client all the resources and visual aids for their event planning. They will be able to play with decoration themes, listen to theme music, design invitations, thank-you cards, and RSVP cards, use the interactive planning calendar, and much more. This software will bring their event into the millennium with cutting edge technology that is designed to save time and money.
4.Resources-Manual: This valuable guide acts as a review for all the resources located in the surrounding area. A ranking is given to the various services, such as caterers, decorators, disc jockeys, bands, and facilities. This manual gives the client the freedom of making a choice based on experience.
TEMS, although young, draws from the age-old tradition of going above and beyond what is expected, every time. Our systems for event planning have been drawn up, evaluated, practiced, worked, and reworked to ensure the maximum efficiency while minimizing the possibility of error. We employ local vendors who have the same desire to be the best at what they do, while providing un-matchable services. Thus, we give back to the community by providing jobs outside of our organization. We encourage new and upcoming small businesses who provide a service within our need base to step up to the challenge of being the best through their contract with TEMS.
Our products will serve the function of aiding those that cannot afford the cost of an event planner. We wish to make our event planning tips available to those who need a helping hand. TEMS is a member of the community. Through event planning, TEMS gets the opportunity to laugh when the community laughs and cry when the community cries, to rejoice when the community rejoices and to help put the pieces back together when things change or begin to fall apart. We care about the things that have meaning in the lives of our neighbors.
Market Analysis Summary: The following sections describe the market segmentation, strategies, and industry analysis.
Market Segmentation: The breakdown of the market for event planning, falls in a wide, very diverse grouping. Individuals as well as organizations demand the services we provide. In order to provide the greatest depth of information, the market segments have been broken down into private and public organizations, and age groups.
Private organizations make up the single largest portion of TEMS client base. Private organizations such as businesses, corporations, and political parties host the most events on the largest scales, therefore, these events generate larger revenues per event. The majority of larger scale holiday functions will fall under this segment.
Government agencies host many events every year. TEMS hopes to alleviate the pressure of event planning for public employees. The second single largest segment, the public sector, can save money and give back to its community at the same time. These events are moderate in scale with middle to low revenues generated. Emphasis is placed on the visibility of the event for public viewing. The majority of organizational family functions will fall under this segment.
3. Age Breakdowns
o Under 24: Persons under the age of twenty-four (24) using an event planner are rare at best. We hope to tap the early college graduates who have begun their professional careers but have not yet started their families. These events will focus mainly on themes with moderate to high energy appeal. The revenues generated will range from moderate to high, depending on the event. The majority of weddings will fall into this segment.
o Ages 25-55: The persons that fall into this age group are employed, middle to upper-middle class families. The reason they choose event planners is they are too busy to do it themselves. Therefore, TEMS will be on hand for questions, contact will be moderate in length but occur regularly so as not to disturb the daily life of the families. These events will generate moderate revenues, with a few generating low revenues. The majority of special occasion planning will occur in this market segment.
o Ages 56 and above: Persons over the age of 55 have reached the turning point of life. Many are retiring, others are celebrating anniversaries of significant years, and still others are seeing that their children’s special events are taken care of. These events will generate moderate to high revenues depending upon the income level of the family (direct correlation to social status). Most holiday parties, and other special occasions, such as wedding receptions and reunions, will occur in this market segment.
|Age 25 to 55|
|Age 56 and over|
Target Market Segment Strategy
Our target markets are middle to upper-middle class families, couples, individuals, or private and public organizations. We chose these groups because they are most able to afford event planners, and have the least amount of time to spare for event planning in general. Families demand attention, employees are overburdened, and overwhelming detail needed to plan large events are too large a constraint to place on people not trained in the area of event planning.
The fast pace of the world we live in leaves little time for extra things we would like to do, like plan events, parties, and social get-togethers. TEMS fills the need by being available to take on the burden of planning so that people can spend time on more important things, like family and friends. The demand for this service can only increase considering the rise in incomes, population, and need for interpersonal relations in the workplace.
Service Business Analysis
TEMS is in a unique position of competition. We compete against hotels with conference facilities, conference centers, other event planners both on the large and small scale, persons within an organization who are assigned the task of organizing an event, and people who wish to organize their own events without the benefit of assistance. The benefits and drawbacks of each of our competitors as compared with the services we offer are hardly a match in quality and price.
- Hotels and Conference Centers
Strengths: On-site facilities, equipment, and support staff. Ability to transport and house persons for overnight stays. Able to internalize costs of transportation and equipment.
Weakness: Often very expensive, impersonal, rely on unskilled labor for support staff. The error rate is high due to high volume and traffic from other events happening at the same time.
- Other Event Planners
Strengths: Have been in the market longer, have established a reputation and client-base.
Weakness: Reputation precedes them, no systems-based businesses designed to produce consistent results; focus on smaller events, specialized events are main focused rather than all events; do not have the supporting products to market with, or instead of, event planning services.
- Employees or Persons wishing to do it themselves
Strengths: Internalized cost of planning the event; able to add tiny personalized touches that have meaning within the group or family.
Weakness: Consumes time that could be spent on other things; don’t have access to the best prices, services, and other needed resources available.
Strategy and Implementation Summary
Marketing and Competition :
We have discussed our client base as being predominately middle to upper-middle class individuals, couples or families, public and private organizations. We must then look at the needs of these markets and cater to them. We promise the same great results, every time.When marketing to individuals, the idea of releasing them from the task, freeing their time for family and friends, and the promise of a worry-free event are the buzz words and concepts. Our marketing is predominantly by word of mouth or visual connection to large events these individuals have participated in or worked at.
When marketing to public or private organizations, the idea of greater efficiency for the money and a professional event without error would be the key concept. Groups, especially large ones, do not wish to deal with problems that arise due to oversight on their part. If the guarantee of worry-free, error-free events is available at a cost benefit to them, there really appears to be no better choice.
Sales Strategy :TEMS deals with a diverse market of clients. Within each market segment, closing of sales will differ. Each approach is described as follows:
- Private and Public Organizations
Sales will be concluded one to two days after the end of the event. A follow-up phone call will be placed informing the client of the total cost, number of attendees, and information about the billing packet that will arrive at their offices. Feedback forms will be included in these packets to ensure the client is being served as they deem appropriate. Form letter thank-yous will be sent following each event.
Sales will be concluded with a follow-up phone call one to two days after the event. The phone call will explain the total cost of the event, number of attendees, and information concerning the billing. Individual parties of any age group are placed on a billing cycle. Invoices will be sent out the 25th of the month and will be due the 10th of the following month. Feedback forms will be included in these packets to ensure the client is being served as they deem appropriate. Thank-you cards will follow each individual event.
By beginning on a smaller scale, TEMS has the foresight to grow at a rapid pace to keep up with demand. We wish to maintain a steady rate of sales growth; however, we understand that sales of products and services will vary in different months. As noted in the graph and chart, rapid increases during the holiday season will boost sales, then allow that growth to level off at a steady rate.
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales|
N.B. Recent data has not given for some limitations and secrecy of the firm. Monetary unit is in dollar.
6.0 Management Summary: Information and expense details are presented in subtopics Organizational Structure and Personnel Plan.
6.1 Organizational Structure: The management team within TEMS will be small in the beginning. The primary employee is the founder, who plans events, then contracts with caterers, decorators, disc jockeys, and bands to fill out the event. A contract labor site manager will be on hand to work the events as a liaison and vendor coordinator. Thus, there are two main employees with various levels of vendors.
When TEMS reaches its expansion goals, each office will have one to two event planners, an office assistant, two to three site managers for the events, and a product and marketing specialist. This team will function as one with constant communication through weekly staff meetings, email, and message boards. All jobs are interrelated. The performance of one effects the performance of the others; therefore, each team member expects nothing but the best from each other.
As it functions currently, we see no gaps in the management of this organization. Should TEMS grow beyond its estimated size, more positions in specialized areas will need to be added as well as additional site support and office assistance. To fill these positions, TEMS is looking for energetic, teachable, detail-oriented persons who want the potential to grow and improve their skills within the organization. TEMS wants to be the best; therefore, they will hire those who want to succeed.
6.2 Personnel Plan: The following table shows the estimated personnel needs for TEMS.
|FY 2004||FY 2005||FY 2006|
7.0 Financial Plan
Service-based businesses require little funds to start up, and as they grow and expand, less funds to maintain. The charts and graphs that follow will show that investment up front allows TEMS to function debt-free with little overhead. This gives TEMS a quicker break-even point and increased profit margins from the start. As TEMS grows, the debt-free philosophy will be maintained until it is impossible to function during growth periods without financial assistance.
7.1 Important Assumptions
Tax rates are noted for information. We carry no loan burden that would be effected by these rates. What hits TEMS the hardest (but not nearly are bad as other service businesses), is the tax rate of 23.5%, which is nearly one quarter of the total sales. As TEMS continues to grow, these numbers will be reference rather than influence.
|Current Interest Rate|
|Long-term Interest Rate|
|Sales on Credit %|
7.2 Key Financial Indicators: The break-even point for TEMS is based on the assumption that we will produce 12 events per month and average approximately $521 per event. In the current situation, we average more than this assumption for our public and private organization events. These currently make up 18 of the 22 average events hosted per month.
7.3 Break-even Analysis
The break-even point will appear more rapidly for Occasions than for other types of home-based businesses. Start-up costs are limited to minimal equipment, there is little or no staff to pay in the beginning, and contracted companies will handle any additional equipment required for the planned events.
|Monthly Units Break-even|
|Monthly Revenue Break-even|
|Average Per-Unit Revenue|
|Average Per-Unit Variable Cost|
|Estimated Monthly Fixed Cost|
7.4 Projected Profit and Loss: Leading the industry in event planning requires the use of the resources available at the lowest cost. As noted in the table, we spend less money on overhead than another event planners with an outside office or office space in their own facility. This savings allows us to market in creative ways and spend funds on expansion into other areas when the time is right.
Profit and Loss
|Pro Forma Profit and Loss|
|Direct Costs of Goods|
|Cost of Goods Sold|
|Gross Margin %|
|Sales and Marketing and Other Expenses|
|Total Operating Expenses|
|Profit Before Interest and Taxes|
7.5 Projected Cash Flow: Our cash situation is great. Although we begin with little extra cash, our increased growth allows us to make up for lost time. Our cash balance is always above the mark with the cash flow not too far behind. We have no negatives in our cash analysis.
|Pro Forma Cash Flow|
|Cash from Operations:|
|Cash from Receivables|
|Subtotal Cash from Operations|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received|
|New Current Borrowing|
|New Other Liabilities (interest-free)|
|New Long-term Liabilities|
|Sales of Other Current Assets|
|Sales of Long-term Assets|
|New Investment Received|
|Subtotal Cash Received|
|Expenditures from Operations:|
|Payment of Accounts Payable|
|Subtotal Spent on Operations|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out|
|Principal Repayment of Current Borrowing|
|Other Liabilities Principal Repayment|
|Long-term Liabilities Principal Repayment|
|Purchase Other Current Assets|
|Purchase Long-term Assets|
|Subtotal Cash Spent|
|Net Cash Flow|
7.6 Projected Balance Sheet
TEMS is set up for success. According to the numbers, we start out fair and end up amazing. By FY2000, we will be worth over $125,000 with a profit margin of over 30%. We are operating with little to zero debt, boosting the net worth even higher. Our only weakness is the products to be released in FY2000 have not been accounted for as an investment of funds. This will effect the cash flow in a moderate way, and is undetermined how it will effect the profit ratio of the business.
|Pro Forma Balance Sheet|
|Other Current Assets|
|Total Current Assets|
|Total Long-term Assets|
|Liabilities and Capital|
|Other Current Liabilities|
|Subtotal Current Liabilities|
|Total Liabilities and Capital|
7.7 Business Ratios: Data on our business ratios is shown in the table below. Industry Profile ratios are based on Standard Industry Classification (SIC) Index code 7299.
|Percent of Total Assets|
|Other Current Assets|
|Total Current Assets|
|Percent of Sales|
|Selling, General & Administrative Expenses|
|Profit Before Interest and Taxes|
|Total Debt to Total Assets|
|Pre-tax Return on Net Worth|
|Pre-tax Return on Assets|
|Net Profit Margin|
|Return on Equity|
|Accounts Receivable Turnover|
|Accounts Payable Turnover|
|Total Asset Turnover|
|Debt to Net Worth|
|Current Liab. to Liab.|
|Net Working Capital|
|Assets to Sales|
|Current Debt/Total Assets|