BUSINESS PLAN Setting Up A Business Of Theme Proposal+Wedding Consultants In India

http://www.neoncarrot.co.uk/h_aboutindia/india_economy_stats.html

Based

1. Executive Summary
SUPERIOR Wedding Consultants is a full service company that provides complete consulting services for proposals, weddings and holy unions. Our consultants are experienced and dedicated professionals with many years of event planning experience. SUPERIOR is unique in that we give our clients our undivided attention. We take care of a wedding from proposal to execution stage. We listen to their needs and work with them to create the event of their dreams, be it a proposal or a wedding. Our clients' wishes become our commands. Right from the very

initiation to the final moment of detail, we take great care in etching out every single move in the first phase of your big day, from conceptualisation to planning, al in accordance with you, of course. So whether our client wants a beach

proposal, Garden or a mountain and whether the client wants a Cruise ship wedding, Horse-back wedding, Helicopter-Ride wedding, an Underwater diving wedding or a more traditional wedding, we can help. Our services include arranging for proposals, weddings, honeymoons, receptions, anniversary consultations, budget planning, answers to etiquette questions, as well as full-service referrals to florists, hair stylists, entertainers, musicians, etc.

1.1 Mission
To provide couples with unforgettable, blissful and everlasting memories.

1.2 Objectives
Whether this is our client's first wedding, a renewal of their vows or their anniversary or simply a client wanting to propose to his loved one, we want every detail of their event to be both a pleasurable and a memorable experience. Therefore we offer a host of packages and services specifically tailored to the needs of each couple. We are confident that this business venture will be a success and we estimate that our net income will increase modestly by the second year.

1.3 Keys to Success
The keys to our success are as follows: 1. Service our clients' needs promptly and efficiently. 2. Maintain an excellent working relationship with vendors such as florists, hair salons and bridal shops and also with vendors providing the basic set up of the theme required. 3. Maintain a professional image at all times.

00. 2. holy union. Saurabh Mulye. The result? We create events suited to the couple's unique style--a true expression of their relationship and individuality as a couple. whichever will better suit the future business needs. and anniversary consulting services to brides.000 each). By doing this.2. advertising. owned by its founders Mansi Patil.e. Neeta Nainani will bring in her own office to be used as office premises for the firm. The start-up costs are to be financed in equal portions by the owners' personal funds (i. We estimate that our start-up costs will be Rs 15. An additional 5. holy union or anniversary party.2 Start-up Summary The company founders will handle day-to-day operations of the plan and will work collaboratively to ensure that this business venture is a success. logo design.000 (including legal costs. direct mail. Company Summary SUPERIOR Wedding Consultants is a start-up company that provides theme based proposal. the owners will consider re-registering as a limited liability company or continue as a partnership. We are experienced and professional consultants and will use our expertise to help create memorable and stress free events for our customers. our clients can sit back and enjoy their event.00.00. .1 Company Ownership This business will start out as a simple partnership. 2. The uniqueness in our services lies in the fact that we provide consulting services right from proposal to the wedding stage.000 will be required in the bank account as an operating capital for the first two months of operation. Vinay Singh. We are a full-service bridal consulting group and our goal is to put the "fun" back into planning a proposal wedding. and related expenses). wedding. grooms and other family members. all partners except Neeta Nainani would invest Rs 5. Neeta Nainani and Akanksha Raje. As the operation grows.. Too many people become overly stressed and frustrated when planning these wonderful events.

00.000 .000 Start-up Funding Start-up Expenses Start-up Assets Total Funding Required Assets Cash Requirements from Start-up Land brought in as Capital Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Saurabh Mulye 5.000 5.00. Brochures Insurance Research and development Initial contracts with vendors Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements 300000 50000 200000 75000 125000 600000 150000 1500000 5.000 25.000 25.000 0 5.00.00.00.00.000 20.000 0 0 0 0 0 20.000 10.000 1500000 10.00.000 25.00.00.Start-up Requirements Start-up Expenses Legal Stationery etc.00.00.

00. event scheduling. We also provide theme based proposal and anniversary set ups. Although the flash and excitement of impending nuptials can be intoxicating. is singles in the age group of 21-30. therefore. .00.000 25.00. As previously stated. marriage is a billion dollar industry. OR area where SUPERIOR Wedding Consultants plans to operate their business. SUPERIOR Wedding Consultants are full-service wedding consultants that offer a variety of services to our clients. vendor coordination. not a liability.00. income Geographic segmentation on the basis of urban residence or rural Lifestyle based segmentation: lavish lifestyle v/s simple living. 4. just about everyone we meet is a potential client.1 Market Segmentation The market segmentation will be on the basis Demographic segmentation on the basis of age. we primarily market our services to the people who need them most--brides and grooms. 4.Vinay Singh Mansi Patil Akanksha Raje Neeta Nainani (Land provided) Total Capital Total Capital and Liabilities 5.500 marriages are registered each year. event rehearsal and budget planning. Our target segment.00. This marriage rate is expected to remain at the same level in the near future. creative and courteous at all times and we have packages to suit everyone's needs.4 million marriages took place in the United States.000 5. According to the Encarta Encyclopedia.00. professional wedding consultants are an asset. Services We are a full-service wedding consultant group and provide the following services: organising of theme based marriage ceremony and reception setup inclusive of catering services.000 25. Therefore.3 Company Locations and Facilities The land brought in by Neeta Nainani as capital will be used as office premises in the initial stages.000 2. which creates a sizable market potential for this line of business. We pride ourselves on being professional. 2.000 5. over 1. it can also be overwhelming. however. Market Analysis Summary Nearly 10 million marriages happen every year in India and $20 billion are spent every year on weddings and receptions. 3.000 people is still the highest rate among the industrialized countries. the current US marriage rate of nine marriages per 1. Therefore.000 5. In 1997. discounted invitations. In the Eugene.

etc. other events the company will provide services to include corporate retreats.Another customer segment is represented by the numerous family members and guests attending weddings. This customer segment is estimated to have the annual volume of 1. Besides the wedding arrangements. etiquette tips. . etc. which SUPERIOR Wedding Consultants believe to be their major client assignments. This segment requires event preparation services like gift ideas. OR area.000 orders in the Eugene. and similar events. anniversaries. etiquette training.

brides and grooms and family members.575 5. Moreover. Although both major customer segments.2 Target Market Segment Strategy SUPERIOR Wedding Consultants will offer its services mostly to the brides and grooms. by utilizing numerous supplier contacts that the company owners have established and economies of scale. they often realize that they cannot make all the necessary preparations by themselves in a cost effective manner. as well as to the family members.250 1.2. such customers seek professional advice to ensure that all the important aspects of the wedding ceremony meet or exceed perceived expectations. Unlike most of its competitors.01% 5.00% 5.875 Year 3 1.737 5.01% 5. 4.824 6.118 CAGR 5. The company will position itself as an experienced provider of wedding planning services.00% 4.000 1.216 9. Strongly affected by the established social values. plan and budget for the wedding ceremony as far as a year or more in advance. SUPERIOR will be offering a full range of services and thus provide the convenience of one-stop shopping for its clients. .00% 1.050 7. This will significantly reduce the customers' time and efforts preparing for such an important event as a wedding.500 Year 2 1.513 1.Market Analysis Year 1 Potential Customers Brides & Grooms Family Members Other Total Growth 5% 5% 5% 5.078 1.654 5.103 8.270 Year 4 1.684 Year 5 1.1 Market Needs The market needs for wedding planning services are strongly shaped by the customers' desire to have a perfectly planned and executed wedding ceremony. SUPERIOR Wedding Consultants will be able to pass on to its customers sizable cost savings.789 1.000 7.158 8.500 5.

4. we can help. By aggregating a complete range of wedding services under one roof. lower prices are very often associated with poor service quality. or simply consulting on a particular service. 4.3. whether they require a complete package. In fact. 5. Therefore.3 Service Business Analysis The wedding services market is fragmented with the overwhelming majority of the incumbents offering only a limited line of services.1 Competition and Buying Patterns Competitive analysis conducted by the company owners has shown that there are 20 companies currently offering some sort of wedding planning services in the Eugene area. there are almost no companies that will provide the full range of services associated with the wedding planning and execution. However. However. . 5. The market research has also shown that customers anticipate the complete wedding consulting services to be expensive and they budget accordingly. hair stylists. SUPERIOR Wedding Consultants will offer its customers the ease of one-stop shopping. of these 25 competitors only three offered a range of services comparable with what SUPERIOR Wedding Consultants plan to offer to its customers. the majority of the incumbent competitors offer only a limited line of services like catering. Lafayette Wedding offers its clients entertaining. There are numerous florists. Both owners have very strong communication skills that will help develop the 'buzz' about the high quality of the services offered by SUPERIOR Wedding Consultants. In fact. flower arrangements or gifts. The company will leverage its owners' expertise in planning such events to competitively position itself as a premier provider of wedding services. catering. floral design and hair styling services. SUPERIOR Wedding Consultants will offer its customers the ease of one-stop shopping. The following is the list of the major competitors with a brief description of their services: Rent-An-Action offers ceremony preparation. Strategy and Implementation Summary Our strategy is simple: we intend to provide our customers with a wide range of services custom tailored to their individual needs. rehearsing and execution services. and caterers to choose from. Cross & Reeves provide flower and catering arrangements and wedding consulting services.1 Competitive Edge By aggregating a complete range of wedding services under one roof.

hair stylists. Developing affiliate relationships with other service providers (florists. Eugene Weekly.generating sales leads in the local community through customer referrals. . including The Register Guard.2 Sales Strategy The company's sales strategy will be based on the following elements: Advertising in the Yellow Pages . The Oregon Daily Emerald. Word of mouth referrals .two inch by three inch ads describing the services will be placed in the local Yellow Pages.5. Placing advertisements in the local press. caterers) that would receive a percentage of sales to the referred customers.

As the personnel plan shows.200 $25.200 $85.300 $95. decorating. like Darla. both of whom will be working full time.100 0 0 Year 2 $76.800 . Management Summary Our wedding consultants are Darla and Micah Johnson. we expect to hire an additional wedding consultant in the next year This person will work full time.800 $15. she became interested in becoming a consultant when she successfully planned her first three weddings. She has been a wedding consultant for five years and became interested in providing consultant services when she successfully planned her first five weddings for family and friends. They are knowledgeable about all areas of planning. Darla has received extensive training in wedding planning and her certification from the National Association of Wedding Consultants and Professional Wedding Planners.300 Year 1 0 0 0 of 0 Year 2 $65.360 Year 2 0 0 0 0 Year 3 $71.796 Year 3 0 0 0 0 6.100 $76. Darla has a BS in Communications and a minor in Interior Decorating. Collaboratively they have planned and serviced over 150 weddings and receptions.800 0 0 $53. Personnel Plan Owner Other Total People Total Payroll Year 1 $53.056 $20.Sales Forecast Year 1 Sales Brides & Grooms Family Members Other Total Sales Direct Cost of Sales Row 1 Row 1 Other Subtotal Direct Cost Sales $54.1 Personnel Plan Initially.544 $34.200 0 0 Year 3 $85. but will not be included in the management decisions.040 $30. as well as budgeting.196 $125. Since then.360 $114. Micah received her certification from the National Association of Wedding Consultants and has been a wedding planner for three years. Micah enjoys all aspects of planning traditional and nontraditional weddings.960 $18. Micah has an Associates Degree in Fashion Design. 6. and. SUPERIOR Wedding Consultants' personnel will include only the two owners.

.

7.2 Projected Profit and Loss Our projected profit and loss is shown in the following table.804 Assumptio ns: Average Pe rcent Variable Cost 0% Estimated Monthly Fixed Cost $4. Break-even Analysis Monthly Re venue Break-even $4.804 $ 7. 7.1 Break-even Analysis The following table and chart summarize our break-even analysis. . Financial Plan The following subtopics represent the financial plan of SUPERIOR Wedding Consultants.

e .

800 $37.996 0 $9.200 $37.360 0 0 0 $114.00% Year 2 $114.00% Year 3 $125.290 $27.60% $76. .339 22.443 $28.Proforma Profit and Loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Year 1 $95.800 $2.870 24.796 100.300 100.160 0 $9.160 $37.650 0 $9.37% $85.000 0 0 0 0 0 0 0 $77.200 $1.3 Projected Cash Flow The following chart and table show our cash flow projections.000 0 0 0 0 0 0 0 $87.100 Other $4.550 0 0 0 0 0 0 0 $57.00% and $53.300 0 0 0 $95.53% 7.996 $37.657 $28.650 $37.208 29.650 $37.360 100.796 0 0 0 $125.

318 $74.42% 0 Year 2 2 10.120 $45.049 $74.42% 0 .545 $97.075 $124.345 $27.848 0 0 0 0 0 0 0 $65.766 $45.889 0 0 0 0 0 0 0 $86. 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 Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $38.949 Year 2 Year 3 General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 1 10.00% 10.744 $66.134 $47.00% 10.494 $83.279 $112.100 $12.800 $11.614 Year 1 $53.00% 25.848 $17.766 $22.345 0 0 0 0 0 0 0 $97.394 0 0 0 0 0 0 0 $124. VAT.023 0 0 0 0 0 0 0 $112.Proforma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax.394 Year 3 $85.200 $10.900 $50.00% 10. 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 Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.748 $65.689 $86.614 0 0 0 0 0 0 0 $83.889 $25.00% 25.00% 0 Year 3 3 10.023 Year 2 $76.00% 25.

.

078 $28.452 Year 1 $1.374 $89.078 $61.374 Year 3 $958 0 0 $958 0 $958 $8.078 $74.870 $61.686 0 $34.452 0 0 0 $34.949 $15.374 0 0 0 $90.000 $25.452 $33. Proforma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $22.900 $14.245 $8.208 $33.000 $53.416 $90.766 $11.207 $47.208 $34.923 $61.000 ($3.4 Projected Balance Sheet Three years of annual totals are presented in the Projected Balance Sheet below.923 0 0 0 $61.245 0 0 $1.416 Year 2 Year 3 .339 $89.245 0 $1.208 $27.023 0 $61.923 Year 2 $846 0 0 $846 0 $846 $8.7. First year monthly figures are included in the appendix.000) $28.426 0 $90.

80% 47.00% 0.00% 17.00% 75.61% 0.00% 61.37% 3.07% 0.94% 4.00% 70.30% 16.00% 1.33 61.a .00% 33. 7299.89 68 12.00% 100.22 73.53% 31.51% 27.84% 60.28% Year 1 29.5 Business Ratios The following table outlines some of the more important ratios from the Personal Services industry.61% 96.00% 72.00% 100.60% 84.06% 0.70% 2.69% 4.00% 100.10% 52.17 Industry Profile 17.00% 100.89 57 11.92% 0.00% 100.00% 77.90% 28.94% 100.89 71 12.39% 100.00% 0. details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code.63% 4.24 Year 2 20.60% n.00% 1.68 3.20% 100.04% Year 3 22.52% 39.10% 37.90% 11. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Accounts Payable Turnover 0.37% 98.37% 45.90% 6.37% 0.32 1.20% 4.a n.68 27.20% 94.06% 98.87% 32.00% 100.00% 100. Industry Profile.01% Year 2 24.63% 0.00% 1.00% 3.17 Year 3 10.00% 33.32 94.37% 60.65% 0.a n. The final column.81 1.00% 100.49% 42.10% 100.61% 113.00% 1. Ratio Analysis Year 1 Sales Growth Percent of Total Assets Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling.a n.7.59% 30.22 1.00% 0.06% 42.a n.00% 3.00% 0.00% 100.49% 73.00% 22.38% 109.35% 1.90% 38.00% 1.63% 100.

a n.01 1.207 0.39 0.00 $61. to Liab.00 37 1.00 0.a n.a n.87 0.01 1.a n.85 0.00 0.29 2.87 0.a .Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.416 0.00 n.a n.a n.00 $33.22 1.41 0.00 $89.00 28 1.078 0.77 0.a n.64 1.a n.00 0.04 1.a n.36 4% 18.a n.54 1% 56.72 1% 78. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 27 2.

Sign up to vote on this title
UsefulNot useful