Star Event Management

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Business Plan: By Muhammad Farooq

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Executive Summary

Welcome to the future of event planning! Star Event Management, The EventPlanning Specialists, brings to the community of Pakistan a new breath of air inthe event planning market. By combining old fashioned values, going the extramile, and using cutting edge event-planning software, Star Event Managementwill lead the market, providing the same quality results, every time.

Star Event Managementis an equal opportunity business making its expertise andits 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 therefreshments. The event planning software brings interactive event planning asclose as their personal computer. Through these and other affordable products and

services, Star Event Managementaims to be the number one resource for anyevent.

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Table of contents

Introduction ......................................................................................................................................................5Mission ........................................................................................................................................... ...... ...... ..5Company .......................................................................................................................................................6Company Ownership ....................................................................................................................................6

Start-up Summary ..................................................................................................................................... ....6Company Location And Facilities ..............................................................................................................10Product and Services ...................................................................................................................................11

1. Party Pack .................................................................................................................................. ...... ...112. Step-by-Step Guides ..........................................................................................................................113. Event Planning Software ....................................................................................................................124. Resources Manual ...............................................................................................................................12

Competitive Comparison: ...........................................................................................................................12Market Analysis summary ........................................................................................................................13Market segmentation ............................................................................................................................. .....13

3. Age Breakdowns .............................................................................................................................. ...14Target Market segment Strategy .................................................................................................................15Service Business Analysis ..........................................................................................................................16

Hotels and Conference Centers ..............................................................................................................162. Other Event Planners ..........................................................................................................................16Strategy and Implementation Summary .................................................................................................17

Sales Strategy ..............................................................................................................................................17Sales Forecast .............................................................................................................................................18Milestones ...................................................................................................................................................19Management Summary ...............................................................................................................................21Organizational Structure ........................................................................................................................ .....21Personnel Plan ............................................................................................................................................22Financial Plan .............................................................................................................................................22Important Assumptions ...............................................................................................................................22Key Financial Indicators .............................................................................................................................23Break-even Analysis ...................................................................................................................................24

Projected Profit and Loss ............................................................................................................................25Projected Cash Flow .......................................................................................................................... ...... ...28Projected Balance Sheet .............................................................................................................................31Business Ratios ...................................................................................................................................... .....33

IntroductionMission

Star Event Management strives to batter guide and exceed customerexpectation within limited funding. We create our clients trust, loyalty,and reliability by adding significant value with strong commitment tomake every event unforgettable. Our main focus is;

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1. Consistent, accurate fulfillment of the clients wishes.

2. Competitive pricing for the quality of services offered.

Company

Star Event Management Inc. was founded in January 2010 and provides productsand services for Social, Cultural, Political, Corporate, Government and nonGovernment Special events. This company is associated with Event ManagementIndustry and Located at Saleem Complex Jinah Road Quetta.

Founded originally on a part-time basis, Star Event Managementis a smallbusiness designed to meet the needs of the ever changing social world. Pakistan,is the current home with plans to expand to branch offices within four years. StarEvent Management'staff of two, with numerous contract vendors, plans events,writes event-planning products, and trains area students in the art of eventplanning. Star Event Managementis invested in the community it resides in.

Star Event Managementis, in part, the answer to demands of the social world, on

the working family, heavily-burdened office, out-of-town business, or special StarEvent Management in need of special recognition. As a business, we understandthe needs of public and private organizations. As parents and family members, weunderstand the needs of setting special time apart from other events in our lives.Star Event Managementstrives to accomplish these goals, in Pakistan andeventually other countries.

Company Ownership

Star Event Managementis established as a sole proprietorship with the intentionof selling the business when it is established. The sole proprietor will use his or

her name as the guarantor of each service. Therefore, the sole proprietor mustembody the vision and mission ofStar Event Management.

Start-up Summary

Through careful planning on the part of the founders, the start-up costs forStarEvent Managementare minimal. It began as a home-based business with littleoverhead, and it continues to demand least outlay of funds as a service-based

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business. The start-up cost investment funds were assets saved from priorearnings by the owners who did event planning on a part-time basis beforeestablishing 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 aviable option.

Start-up

Requirements

Start-up Expenses

Legal $200

Stationery etc. $300

Brochures $185

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Consultants $200

Insurance $145

Rent $150

Expensed Equipment $1,985

Other $200

Total Start-up Expenses $3,365

Start-up Assets

Cash Required $2,300

Start-up Inventory $0

Other Current Assets $0

Long-term Assets $0

Total Assets $2,300

Total Requirements $5,665

Start-up Funding

Start-up Expenses to Fund $3,365

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Start-up Assets to Fund $2,300

Total Funding Required $5,665

Assets

Non-cash Assets from Start-up $0

Cash Requirements from Start-up $2,300

Additional Cash Raised $0

Cash Balance on Starting Date $2,300

Total Assets $2,300

Liabilities and Capital

Liabilities

Current Borrowing $2,000

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $2,000

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Capital

Planned Investment

Alicia Nollan $3,400

Other $265

Additional Investment Requirement $0

Total Planned Investment $3,665

Loss at Start-up (Start-up Expenses) ($3,365)

Total Capital $300

Total Capital and Liabilities $2,300

Total Funding $5,665

Company Location And Facilities

Star Event Managementis located inside the city limits of, Quetta,Pakistan, . It is a home-based business. Most meetings with clients areconducted in social settings, such as restaurants, coffee houses, the client's

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home, facilities wishing to be used for the event, or over the phone.Although the demand has not yet reached its peak, Star EventManagementwill eventually move from its home base into a small officecomplex, also within the city limits of Quetta, Pakistan, . When thecompany has reached its finished point, Star Event Managementwill have

branch offices in Quetta, Major cities of Pakistan and abroad.

The company will maintain a high degree of professionalism. All officesare equipped with the latest in business technology, such as telephonesystems, computers, fax machines, email, duplicators, printers, andsoftware. Each location will have a secure storage area for supplies andequipment used in events, such as walkie-talkies, cellular phones, portablefax machines, laptops and other equipments.

Product and Services

Although Star Event Managementis primarily a service business, we alsooffer products to aid ourcustomers in planning the event. The followingproducts 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, thememusic (where applicable), invitations, thank-you cards, and a step-by-stepguide to planning, putting together, and hosting the event.

2. Step-by-Step Guides

These booklets include a calendar to map out the event, a step-by-stepguide on what is needed for and how to put together a successful, worry-free event, resource information, popular refreshments with recipes, gamesand tips to put their event in the record books. The events availableinclude birthdays for all ages, meetings, retreats, parties, vacations, andspecial Star Event Management celebrations such as graduations, holidays,showers, weddings, and receptions.

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3. Event Planning Software

This cutting-edge tool will allow the client all the resources and visual aidsfor their event planning. They will be able to visualize the decorationthemes, listen to theme music, design invitations, thank-you cards, and

RSVP cards, use the interactive planning calendar, and much more. Thissoftware will bring the event into the millennium with cutting edgetechnology that is designed to save time and money.

4. Resources Manual

This valuable guide acts as a review for all the resources located in thesurrounding area. A ranking is given to the various services, such as

caterers, decorators, disc jockeys, bands, and facilities. This manual givesthe client the freedom of making a choice based on experience

Free Event Planners Training for High School and College Students.

As a member of the Pakistan community, it is our mission to support ourcommunity. Ten hours each month will be devoted to training areastudents in event planning. This will aid them in planning proms,graduation parties, river clean-ups, homecoming, and other importantevents. This is a priority ofStar Event Management. It will not be cut backas the business grows.

Star Event Managementprovides event planning in a wide range ofapplications. We guarantee satisfaction in the areas of appearance,performance, and taste. The following is a sampling of the types of eventswe plan every year.

1. Meetings, Trainings, and Retreats

2. Conferences and Workshops

3. Birthdays, Anniversaries, Graduations and Holidays

4. Weddings, Receptions, and Showers

5. Company picnics, banquets, and award ceremonies.

Competitive Comparison:

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Star Event Management, although young, draws from the age-old tradition of goingabove and beyond what is expected, every time. Our systems for event planning havebeen drawn up, evaluated, practiced, worked, and reworked to ensure the maximumefficiency while minimizing the possibility of error. We employ local vendors who havethe same desire to be the best at what they do, while providing un-match able services.

Thus, we give back to the community by providing jobs outside of our organization. Weencourage new and upcoming small businesses who provide a service within our needbase to step up to the challenge of being the best through their contract with Star EventManagement.

Our products will serve the function of aiding those that cannot afford the cost of anevent planner. We wish to make our event planning tips available to those who need ahelping hand. Star Event Managementis a member of the community. Through eventplanning, Star Event Managementgets the opportunity to laugh when the communitylaughs and cry when the community cries, to rejoice when the community rejoices and tohelp 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 industryanalysis

Market segmentationThe 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 providethe greatest depth of information, the market segments have been broken down intoprivate and public organizations, and age groups

1. Private Organizations and BusinessesPrivate organizations make up the single largest portion of Star Event Management' clientbase. Private organizations such as businesses, corporations, and political parties host the

most events on the largest scales, therefore, these events generate larger revenues perevent. The majority of larger scale holiday functions will fall under this segment.

2. Public OrganizationsGovernment agencies host many events every year. Star Event Management hopes toalleviate the pressure of event planning for public employees. The second single largestsegment, the public sector, can save money and give back to its community at the sametime. These events are moderate in scale with middle to low revenues generated.

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Emphasis is placed on the visibility of the event for public viewing. The majority oforganizational family functions will fall under this segment

3. Age Breakdowns

Under 24: Persons under the age of twenty-four (24) using an event planner are rare atbest. We hope to tap the early college graduates who have begun their professionalcareers but have not yet started their families. These events will focus mainly on themeswith moderate to high energy appeal. The revenues generated will range from moderateto high, depending on the event. The majority of weddings will fall into this segment.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 itthemselves. Therefore, Star Event Management will be on hand for questions, contactwill 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 lowrevenues. The majority of special Star Event Management planning will occur in thismarket segment.

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 othersare seeing that their children's special events are taken care of. These events will generatemoderate to high revenues depending upon the income level of the family (directcorrelation to social status). Most holiday parties, and other special Star EventManagement, such as wedding receptions and reunions, will occur in this market segment

4. OtherThis segment has no direct information to compile for a description. It consists of anyevent planned that does not fit into one of the above categories.

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Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Under 24 0% 18 18 20 21 22 5.14%

Age 25 to 55 0% 33 33 44 51 59 15.63%

Age 56 and over 0% 31 31 37 40 44 9.15%

Private Organizations 0% 40 40 102 163 261 59.83%

Public Organizations 0% 62 62 105 137 178 30.17%

Other 0% 5 5 7 8 9 15.83%

Total 31.95% 189 189 315 420 573 31.95%

Target Market segment Strategy

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Our target markets are middle to upper-middle class families, couples, individuals, orprivate and public organizations. We chose these groups because they are most able toafford event planners, and have the least amount of time to spare for event planning ingeneral. Families demand attention, employees are overburdened, and overwhelmingdetail 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 todo, like plan events, parties, and social get-togethers. Star Event Managementfills theneed by being available to take on the burden of planning so that people can spend timeon more important things, like family and friends. The demand for this service can onlyincrease considering the rise in incomes, population, and need for interpersonal relationsin the workplace.

Service Business Analysis

Star Event Management is in a unique position of competition. We compete againsthotels with conference facilities, conference centers, other event planners both on thelarge and small scale, persons within an organization who are assigned the task oforganizing an event, and people who wish to organize their own events without thebenefit of assistance. The benefits and drawbacks of each of our competitors as comparedwith 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 housepersons 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 thesame time

2. 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 produceconsistent results; focus on smaller events, specialized events are main focused rather

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than all events; do not have the supporting products to market with, or instead of, eventplanning services

3. Employees or Persons wishing to do it themselves

Strengths: Internalized cost of planning the event; able to add tiny personalized touchesthat have meaning within the group or family.Weakness: Consumes time that could be spent on other things; don't have access to thebest 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 classindividuals, couples or families, public and private organizations. We must then look atthe needs of these markets and cater to them. We promise the same great results, everytime.

When marketing to individuals, the idea of releasing them from the task, freeing theirtime for family and friends, and the promise of a worry-free event are the buzz words andconcepts. Our marketing is predominantly by word of mouth or visual connection to largeevents these individuals have participated in or worked at.

When marketing to public or private organizations, the idea of greater efficiency for themoney 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 ontheir part. If the guarantee of worry-free, error-free events is available at a cost benefit tothem, there really appears to be no better choice.

Sales Strategy

Star Event Management deals with a diverse market of clients. Within each marketsegment, closing of sales will differ. Each approach is described as follows.

1. Private and Public OrganizationsSales will be concluded one to two days after the end of the event. A follow-upphone call will be placed informing the client of the total cost, number ofattendees, 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

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served as they deem appropriate. Form letter thank-yous will be sent followingeach event.

2. Individuals

Sales will be concluded with a follow-up phone call one to two days after theevent. 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 areplaced on a billing cycle. Invoices will be sent out the 25th of the month and willbe due the 10th of the following month. Feedback forms will be included in thesepackets to ensure the client is being served as they deem appropriate. Thank-youcards will follow each individual event.

Sales Forecast

By beginning on a smaller scale, Star Event Managementhas the foresight to grow at arapid 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 boostsales, then allow that growth to level off at a steady rate

Sales Forecast

Year 1 Year 2 Year 3

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Sales

Private $206,170 $276,099 $299,002

Public $113,185 $178,490 $193,000

Other $33,794 $40,081 $62,777

Total Sales $353,149 $494,670 $554,779

Direct Cost of Sales Year 1 Year 2 Year 3

Private $28,864 $38,654 $41,860

Public $11,319 $17,849 $19,300

Other $1,690 $2,004 $3,139

Subtotal Direct Cost of Sales $41,872 $58,507 $64,299

Milestones

The milestones table and chart show the specific detail about actual program activitiesthat should be taking place during the year. Each one has its manager, starting date,ending date, and budget. During the year we will be keeping track of implementationagainst plan, with reports on the timely completion of these activities as planned.

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Milestones

Milestone Start Date End Date Budget Manager Department

Sample Milestones 1/4/2008 1/4/2008 $0 ABC Department

Finish Business Plan 5/7/2009 6/6/2009 $100 Dude LeGrande Fromage

Acquire Financing 5/17/2009 7/6/2009 $200 Dudette Legumers

Ah HA! Event 5/27/2009 6/1/2009 $60 Marianne Bosses

Oooooh Noooooo! Event 6/26/2009 7/1/2009 $250 Marionette Chvre deBlme

Grande Opening 7/6/2009 7/11/2009 $500 Gloworm Nobs

Marketing Program Starts 6/6/2009 7/1/2009 $1,000 Glower Marketeers

Plan vs. Actual Review 11/1/2009 11/8/2009 $0 Galore Alles

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First Break-even Month 3/5/2010 4/4/2010 $0 Bouys Salers

Hire Employees 2/1/2010 3/3/2010 $150 Gulls HRM

Upgrade Business Plan Pro 4/22/2010 4/24/2010 $100 Brass Bossies

Totals $2,360

Management Summary

Information and expense details are presented in subtopics Organizational Structure andPersonnel Plan.

Organizational Structure

The management team within Star Event Managementwill 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 managerwill 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 Star Event Managementreaches its expansion goals, each office will have one totwo event planners, an office assistant, two to three site managers for the events, and aproduct and marketing specialist. This team will function as one with constantcommunication through weekly staff meetings, email, and message boards. All jobs areinterrelated. The performance of one affects 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. ShouldStar Event Managementgrow beyond its estimated size, more positions in specializedareas will need to be added as well as additional site support and office assistance. To fillthese positions, Star Event Managementis looking for energetic, teachable, detail-oriented persons who want the potential to grow and improve their skills within theorganization. Star Event Managementwants to be the best; therefore, they will hire thosewho want to succeed.

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Personnel Plan

The following table shows the estimated personnel needs forStar Event Management.

Personnel Plan


Event Specialist $36,000 $40,000 $42,000

Site Manager $11,097 $13,750 $14,560

Other $8,947 $9,560 $10,000

Total People 0 0 0

Total Payroll $56,044 $63,310 $66,560

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 upfront allows Star Event Managementto function debt-free with little overhead. This givesStar Event Managementa quicker break-even point and increased profit margins from the

start. As Star Event Managementgrows, the debt-free philosophy will be maintained untilit is impossible to function during growth periods without financial assistance.

Important Assumptions

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Tax rates are noted for information. We carry no loan burden that would be effected bythese rates. What hits Star Event Managementthe hardest (but not nearly are bad as otherservice businesses), is the tax rate of 24%, which is nearly one quarter of the total sales.As Star Event Managementcontinues to grow, these numbers will be reference ratherthan influence.

General Assumptions


Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

Tax Rate 24.00% 24.00% 24.00%

Other 0 0 0

Key Financial Indicators

The break-even point forStar Event Managementis based on the assumption that we willproduce 22 events per month and average approximately $521 per event. In the currentsituation, we average more than this assumption forour public and private organizationevents. These currently make up 18 of the 22 average events hosted per month.

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Break-even Analysis

The break-even point is based on the assumption that we will produce 22 events permonth and average approximately $521 per event. In the current situation, we averagemore than this assumption for our public and private organization events. These currentlymake up 18 of the 22 average events hosted per month.

The break-even point will appear more rapidly forStar Event Managementthan for othertypes of home-based businesses. Start-up costs are limited to minimal equipment, there islittle or no staff to pay in the beginning, and contracted companies will handle anyadditional equipment required for the planned events.

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Break-even Analysis

Monthly Revenue Break-even $19,313

Assumptions:

Average Percent Variable Cost 12%

Estimated Monthly Fixed Cost $17,023

Projected Profit and Loss

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Leading the industry in event planning requires the use of the resources available at thelowest cost. As noted in the table, we spend less money on overhead than another eventplanners with an outside office or office space in their own facility. This savings allowsus to market in creative ways and spend funds on expansion into other areas when thetime is right.

Pro Forma Profit and Loss

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Sales $353,149 $494,670 $554,779

Direct Cost of Sales $41,872 $58,507 $64,299

Other Costs of Sales $196 $203 $221

Total Cost of Sales $42,068 $58,710 $64,520

Gross Margin $311,081 $435,960 $490,259

Gross Margin % 88.09% 88.13% 88.37%

Expenses

Payroll $56,044 $63,310 $66,560

Sales & Marketing & Other Expenses $146,013 $68,400 $73,400

Depreciation $0 $0 $0

Leased Equipment $0 $0 $0

Utilities $516 $750 $800

Insurance $264 $750 $1,000

Rent $1,440 $1,800 $1,800

Payroll Taxes $0 $0 $0

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Other $0 $0 $0

Total Operating Expenses $204,277 $135,010 $143,560

Profit Before Interest and Taxes $106,804 $300,950 $346,699

EBITDA $106,804 $300,950 $346,699

Interest Expense $406 $279 $362

Taxes Incurred $25,535 $72,161 $83,121

Net Profit $80,862 $228,510 $263,216

Net Profit/Sales 22.90% 46.19% 47.45%

Projected Cash Flow

Our cash situation is great. Although we begin with little extra cash, our increased growthallows us to make up for lost time. Our cash balance is always above the mark with thecash flow not too far behind. We have no negatives in our cash analysis

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Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $141,260 $197,868 $221,912

Cash from Receivables $178,271 $283,330 $327,145

Subtotal Cash from Operations $319,531 $481,198 $549,057

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0

New Current Borrowing $4,000 $1,080 $1,080

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New Other Liabilities (interest-free) $0 $0 $0

New Long-term Liabilities $0 $0 $0

Sales of Other Current Assets $0 $0 $0

Sales of Long-term Assets $0 $0 $0

New Investment Received $0 $0 $0

Subtotal Cash Received $323,531 $482,278 $550,137

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $56,044 $63,310 $66,560

Bill Payments $199,964 $209,268 $223,979

Subtotal Spent on Operations $256,008 $272,578 $290,539

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0

Principal Repayment of Current Borrowing $3,500 $500 $0

Other Liabilities Principal Repayment $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0

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Purchase Other Current Assets $0 $0 $0

Purchase Long-term Assets $0 $0 $0

Dividends $0 $0 $0

Subtotal Cash Spent $259,508 $273,078 $290,539

Net Cash Flow $64,023 $209,200 $259,598

Cash Balance $66,323 $275,523 $535,121

Projected Balance SheetStar Event Managementis set up for success. According to the numbers, we start out fair and end up amazing. ByFY2000, 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 beenaccounted for as an investment of funds. This will effect the cash flow in a moderate way, and is undetermined how itwill effect the profit ratio of the business.

Pro Forma Balance Sheet


Assets

Current Assets

Cash $66,323 $275,523 $535,121

Accounts Receivable $33,618 $47,090 $52,812

Inventory $4,991 $6,975 $7,665

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Other Current Assets $0 $0 $0

Total Current Assets $104,933 $329,588 $595,598

Long-term Assets

Long-term Assets $0 $0 $0

Accumulated Depreciation $0 $0 $0

Total Long-term Assets $0 $0 $0

Total Assets $104,933 $329,588 $595,598

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $21,270 $16,836 $18,550

Current Borrowing $2,500 $3,080 $4,160

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $23,770 $19,916 $22,710

Long-term Liabilities $0 $0 $0

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Total Liabilities $23,770 $19,916 $22,710

Paid-in Capital $3,665 $3,665 $3,665

Retained Earnings ($3,365) $77,497 $306,007

Earnings $80,862 $228,510 $263,216

Total Capital $81,162 $309,672 $572,888

Total Liabilities and Capital $104,933 $329,588 $595,598

Net Worth $81,162 $309,672 $572,888

Business Ratios

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth 0.00% 40.07% 12.15% 11.37%

Percent of Total Assets

Accounts Receivable 32.04% 14.29% 8.87% 10.40%

Inventory 4.76% 2.12% 1.29% 3.83%

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Quick 4.20 16.20 25.89 1.31

Total Debt to Total Assets 22.65% 6.04% 3.81% 58.52%

Pre-tax Return on Net Worth 131.09% 97.09% 60.45% 7.33%

Pre-tax Return on Assets 101.40% 91.23% 58.15% 17.66%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 22.90% 46.19% 47.45% n.a

Return on Equity 99.63% 73.79% 45.95% n.a

Activity Ratios

Accounts Receivable Turnover 6.30 6.30 6.30 n.a

Collection Days 43 50 55 n.a

Inventory Turnover 10.91 9.78 8.78 n.a

Accounts Payable Turnover 10.40 12.17 12.17 n.a

Payment Days 27 34 29 n.a

Total Asset Turnover 3.37 1.50 0.93 n.a

Debt Ratios

Debt to Net Worth 0.29 0.06 0.04 n.a

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Total Sales $17,512 $19,805 $19,535 $23,044 $24,017 $25,510 $27,803 $40,861 $42,802 $36,630 $36,750 $ 38,880

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Private $1,800 $1,535 $1,601 $1,804 $1,820 $2,209 $2,240 $3,494 $3,713 $2,801 $2,751 $3,094

Public $385 $788 $720 $897 $857 $760 $971 $1,125 $1,178 $1,200 $1,230 $1,209

Other $40 $48 $45 $60 $123 $107 $105 $233 $225 $231 $240 $234

Subtotal Direct Cost of Sales $2,226 $2,371 $2,366 $2,760 $2,799 $3,075 $3,315 $4,852 $5,116 $4,232 $4,221 $4,538

Personnel Plan

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Mon th 7 Month 8 Month 9 Mon th 10 Month 11 Month 12

Event Specialist 0% $3,000 $3,000 $3,000 $3,000 $3 ,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Site Manager 0% $735 $907 $735 $735 $735 $735 $1,245 $1,400 $1,245 $875 $875 $875

Other 0% $586 $800 $586 $586 $586 $586 $844 $895 $844 $844 $895 $895

Total People 0 0 0 0 0 0 0 0 0 0 0 0

Total Payroll $4,321 $4,707 $4,321 $4,321 $4,321 $4,321 $5,089 $5,295 $5,089 $4,719 $4,770 $ 4,770

Pro Forma Profit and Loss

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Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11Month

12

Sales $17,512 $19,805 $19,535 $23,044 $24,017 $25,510 $27,803 $40,861 $42,802 $36,630 $36,750 $38,880

Direct Cost o f S ales $2,226 $2,371 $2,366 $2,760 $2,799 $3,075 $3,315 $4,852 $5,116 $4,232 $4,221 $4,538

Other Costs of Sales $15 $13 $15 $16 $16 $16 $19 $22 $22 $13 $15 $14

T otal Cos t o f Sa le s $2,241 $2,384 $2,381 $2,776 $2,815 $3,091 $3,334 $4,874 $5,138 $4,245 $4,236 $4,552

G ro ss Marg in $1 5,27 1 $ 17,42 1 $ 17,15 4 $ 20,26 8 $ 21,202 $2 2, 419 $2 4, 469 $35, 987 $37, 66 4 $ 32 ,3 85 $3 2,51 4 $34 ,3 28

G ro ss Marg in % 87 .2 1% 87 .9 6% 87.8 1% 87.9 5% 88.28% 87.88% 88.01% 88 .07% 88 .00% 8 8.41 % 88 .4 7% 8 8.29 %

Expenses

Payroll $4,321 $4,707 $4,321 $4,321 $4,321 $4,321 $5,089 $5,295 $5,089 $4,719 $4,770 $4,770

Sales & Marketing & OtherExpenses

$9,015 $10,74 8 $9,982 $10,26 0 $10,315 $10,415 $12,418 $18,015 $16,615 $13,290 $11,97 5 $12,965

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ 0 $0

Utilities $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43

Insurance $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22

Rent $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120

Payroll Taxes 12% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Total Operating Expenses $13,521 $15,640 $14,488 $14,766 $14,821 $14,921 $17,692 $23,495 $21,889 $18,194 $16,930 $17,920

Profit Before Interest andTaxes

$1,750 $1,781 $2,666 $5,502 $6,381 $7,498 $6,777 $12,492 $15,775 $14,191 $15,584 $16,408

EBITDA $1,750 $1,781 $2,666 $5,502 $6,381 $7,498 $6,777 $12,492 $15,775 $14,191 $15,584 $16,408

Interest Expense $17 $50 $47 $44 $41 $38 $35 $33 $30 $27 $24 $21

Taxes Incurred $416 $415 $629 $1,310 $1,521 $1,790 $1,618 $2,990 $3,779 $3,399 $3,734 $3,933

Net Profit $1,318 $1,315 $1,990 $4,148 $4,818 $5,669 $5,123 $9,469 $11,966 $10,765 $11,826 $12,454

N et Pro fit/Sales 7 .5 2% 6 .6 4% 1 0.1 9% 1 8.0 0% 2 0.06% 2 2.22% 1 8.43% 2 3.17% 2 7.96% 2 9.39 % 32 .1 8% 3 2.03 %

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash Received

Cash from Operations

Cash Sales $7,005 $7,922 $7,814 $9,218 $9,607 $10,204 $11,121 $16,344 $17,121 $14,652 $14,700 $15,552

C ash fro m Receiv ables $ 0 $5 ,604 $ 11, 241 $ 11,797 $ 12, 844 $ 14, 138 $ 14, 88 8 $16, 04 0 $20,86 0 $2 5,13 8 $2 3,70 6 $ 22 ,0 16

Subtotal Cash f rom Operations $7,005 $13,526 $19,055 $21,014 $22,451 $24,342 $26,009 $32,384 $37,981 $39,790 $38,406 $37,568

Additional Cash Received

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Long-term Liabilities PrincipalRepayment

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sub to tal Cash Spen t $4, 79 8 $ 19 ,016 $18, 590 $ 17,948 $1 9, 677 $19, 622 $21, 33 0 $ 23, 83 0 $ 33,16 7 $ 30,91 1 $ 25,29 3 $25 ,3 24

Net Cash Flow $2,206 ($1,490) $465 $3,066 $2,773 $4,720 $4,679 $8,554 $4,814 $8,879 $13,113 $12,245

Cash Balance $4,506 $3,016 $3,481 $6,547 $9,321 $14,041 $18,719 $27,273 $32,087 $40,966 $54,079 $66,323

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

AssetsStartingBalances

Current Assets

Cash $2,300 $ 4,506 $ 3,016 $ 3,481 $ 6,547 $ 9,321 $14,041 $18,719 $27,273 $32,087 $40,966 $54,079 $66,323

Accounts Receivable $0 $10,507 $16,786 $17,266 $19,296 $20,863 $22,031 $23,825 $32,301 $37,122 $33,963 $32,306 $33,618

Inventory $0 $2,448 $2,609 $2,602 $3,037 $3,079 $3,383 $3,647 $5,337 $5,628 $4,655 $4,643 $4,991

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $2,300 $17,462 $22,411 $23,350 $28,880 $33,262 $39,454 $46,191 $64,911 $74,837 $79,584 $91,028 $104,933

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Long-term Assets

Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation $0 $ 0 $ 0 $ 0 $ 0 $0 $ 0 $ 0 $ 0 $ 0 $0 $ 0 $0

Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T otal Ass et s $2,300 $17,462 $22,411 $23,350 $28,880 $33,262 $39,454 $46,191 $64,911 $74,837 $79,584 $91,028 $104,933

Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Current Liabilities

Accounts P ayab le $0 $13,844 $13,478 $12,777 $14,509 $14,423 $15,296 $17,259 $26,860 $25,169 $19,502 $19,470 $21 ,270

Current Borrowing $2,000 $2,000 $6,000 $5,650 $5,300 $4,950 $4,600 $4,250 $3,900 $3,550 $3,200 $2,850 $2,500

Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities $2,000 $15,844 $19,478 $18,427 $19,809 $19,373 $19,896 $21,509 $30,760 $28,719 $22,702 $22,320 $23,770

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabili ties $2,000 $15,844 $19,478 $18,427 $19,809 $19,373 $19,896 $21,509 $30,760 $28,719 $22,702 $22,320 $23,770

P aid-in Cap ital $3,665 $3 ,665 $3,665 $3,665 $3 ,665 $3 ,665 $3,665 $3 ,665 $3,665 $3 ,665 $3,665 $3 ,665 $3,665

Retained Earnings ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365) ($3,365)

Earnings $0 $1,318 $2,633 $4,623 $8,771 $13,589 $19,258 $24,381 $33,851 $45,817 $56,582 $68,408 $80,862

To tal C ap ital $ 300 $1,61 8 $ 2,93 3 $ 4, 923 $9, 07 1 $1 3,88 9 $1 9,558 $24, 681 $3 4,15 1 $4 6,11 7 $5 6, 882 $68,70 8 $81 ,1 62

Total Liabilities and Capital $2,300 $17,462 $22,411 $23,350 $28,880 $33,262 $39,454 $46,191 $64,911 $74,837 $79,584 $91,028 $104,933

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N et Wo rth $ 300 $1,61 8 $ 2,93 3 $ 4, 923 $9, 07 1 $1 3,88 9 $1 9,558 $24, 681 $3 4,15 1 $4 6,11 7 $5 6, 882 $68,70 8 $81 ,1 62

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Documents

Star Event Management