Business Plan for Wedding Vows

Business Plan

28th March 2014

Wedding VowsPrajakta Talathi

Owner, Wedding Vows

181, Victoria Street, Parramatta, Sydney, NSW, Australia - 2150

ABN: Applied

ACN: Applied

2014

Wedding Vows – Business Plan 2014

Page 1

Contents Business Plan Summary ..................................................................................................................... 4

The Business ................................................................................................................................... 4

Registration Details .................................................................................................................... 4

Products/Services ...................................................................................................................... 4

The Market ..................................................................................................................................... 5

Target Market ............................................................................................................................ 5

Marketing Strategy .................................................................................................................... 5

The Future ...................................................................................................................................... 5

Vision Statement ........................................................................................................................ 5

Goals and Objectives .................................................................................................................. 6

The Finances .................................................................................................................................. 6

The Business ....................................................................................................................................... 7

The Concept ................................................................................................................................... 7

Business Details.............................................................................................................................. 7

Products/Services ...................................................................................................................... 7

Registration Details ........................................................................................................................ 8

Business Premises .......................................................................................................................... 9

Business Location ....................................................................................................................... 9

Buy/Lease ................................................................................................................................... 9

Organization ................................................................................................................................... 9

Management & Ownership ...................................................................................................... 10

Key Personnel........................................................................................................................... 10

Products and Services .................................................................................................................. 12

Wedding Planner...................................................................................................................... 12

One-Stop-Shop ......................................................................................................................... 16

Training Institute ...................................................................................................................... 17

Market Position of Products/Services...................................................................................... 18

Anticipated Demand ................................................................................................................ 18

Pricing Strategy ........................................................................................................................ 18

Value to Customer ................................................................................................................... 19

Growth Potential ...................................................................................................................... 19


Page 2

Innovation .................................................................................................................................... 19

Research & Development ........................................................................................................ 19

Creative Activities .................................................................................................................... 19

Insurance ...................................................................................................................................... 20

Workers Compensation ........................................................................................................... 20

Business Assets ........................................................................................................................ 20

Risk management......................................................................................................................... 20

Legal Considerations .................................................................................................................... 21

Operations ................................................................................................................................... 21

Sustainability Plan ........................................................................................................................ 23

Environmental/Resource Impacts............................................................................................ 23

Community Impact & Engagement .......................................................................................... 23

Strategies ................................................................................................................................. 23

The Market ....................................................................................................................................... 23

Market Research .......................................................................................................................... 23

Environmental Analysis ................................................................................................................ 24

Wedding Trends ....................................................................................................................... 24

SWOT Analysis.............................................................................................................................. 25

Target Market / Customers:......................................................................................................... 26

Key Customers ......................................................................................................................... 26

Customer Demographics .......................................................................................................... 26

Customer Management ........................................................................................................... 30

Competitor Analysis ..................................................................................................................... 30

Competitor Details ................................................................................................................... 31

Marketing Targets ........................................................................................................................ 31

Sales & Marketing Objectives .................................................................................................. 31

Sales Forecast ........................................................................................................................... 31

Marketing Strategy ...................................................................................................................... 32

Advertising & Sales .................................................................................................................. 32

Unique Selling Position ............................................................................................................ 32

Advertising & Promotional Strategy ........................................................................................ 33

The Future ........................................................................................................................................ 33

Vision Statement .......................................................................................................................... 33

Mission Statement ....................................................................................................................... 33


Page 3

Core Values .................................................................................................................................. 33

Goals and Objectives .................................................................................................................... 34

Action Plan ................................................................................................................................... 34

The Finances .................................................................................................................................... 34

Key Financial Objectives & Financial Review ............................................................................... 34

Financial Objectives ................................................................................................................. 34

Finance Required ..................................................................................................................... 35

Assumptions ............................................................................................................................. 35

Start-up Costs for 2014 ................................................................................................................ 36

Balance Sheet Forecast ................................................................................................................ 38

Profit and Loss Forecast ............................................................................................................... 40

Expected Cash Flow ..................................................................................................................... 41

Break Even Analysis ..................................................................................................................... 42

Appendix .......................................................................................................................................... 43


Page 4

Business Plan Summary

The Business The Wedding Planner business details are as below:

Registration Details

Business Name: Wedding Vows

Business Structure: Sole Trader

ABN: Applied

ACN: Applied

Business Location: 181, Victoria Street, Parramatta, Sydney, NSW, Australia - 2134

Date Established: Will be starting on 2nd May 2014

Business Owner(s): Sole Owner – Prajakta Talathi

Relevant Owner Experience: Owner has experience in organising small scale events for her

department in, Infosys. Also, owner has some experience in planning and executing family

weddings and other such events.

Products/Services

Wedding Planner

Wedding Vows, Wedding Planner section provides whole range of services such as Location &

Venue, Catering, Guest Hospitality, Design & Décor, Security, Wedding Communication,

Entertainment, Engagement & Other Ceremonies, Styling, Honeymoon and Wedding Photo

shoots.

One-Stop-Shop

One-Stop-Shop is an “All in one wedding shop – under one roof!” It helps cater all the wedding

needs under one platform. Since weddings are usually tailor-made, this business doesn’t call for

inventory management. Basic things need to be kept handy which include but are not limited to

booklets and catalogues, few samples and basic furnishing. The services offered will be Designer

Boutique, Florists, Invitation & Supplies, Decorative Supplies, Wedding Accessories and Gifts.

Training Institute

Wedding Vows has its own Training Institute to provide On-Job-Training and also to create future

Event Management and Wedding Professionals. At the institute the student or trainee will get a

hands-on experience of managing an event from the scratch, developing required business skills

and learning to successfully market an event.

The course provides tutorials combined with case studies and hands-on experience to develop the skills such as:

• Public Relations

• Consumer Behaviour

• Marketing


Page 5

• Event management

• Communication and Interpersonal Skills

The Market

Target Market

Wedding Industry is a multi-billion dollar industry, everyone around is the potential client. In spite

of this, the target market is brides, grooms, and their family members who need the services of a

wedding planner the most. Apart from the primary customer target of brides, grooms and their

family members, the next segment of customers is anniversaries and similar events.

Additionally, the ethnic group or the multicultural group in NSW especially Sydney will be

targeted who get married in their respective home countries but host post marriage events like

reception or cocktail parties in Australia.

Another set of customers are the customers of one-stop-wedding-shop who would purchase

things like wedding return gifts and their packaging, wedding dresses, gowns and suits,

honeymoon packages etc. A niche target segment for Indian culture weddings and ethnic

shopping merchandise, accessories and other materials required to perform Indian weddings will

also be tapped on.

Besides weddings and similar events arrangements, an additional training service will be

provided.

Marketing Strategy

Wedding Vows will leverage the opportunity of providing Ethinic Wedding Planning service and

thereby gain the first mover advantage. Booth at Bridal Fairs and public malls will help in

attracting new customers. Rather than putting all the money in one form of advertising, Wedding

Vows will take advantage of different advertising platforms such as:

Online: Website, Blogs, Social media, Pay-per-click online ads

Offline: Business Cards, Brochures and Pamphlets, Print ads, Direct mails, Networking,

Promotional methods, Bridal booth at fairs and malls

Having multiple revenue options is a unique selling position of Wedding Vows. Everything under

one roof gives a cutting edge to Wedding Vows in this competitive market. Also, coming from

marketing background and from India, it facilitates the process of catering to the niche Indian

customer segment.

The Future

Vision Statement

The vision of Wedding Vows is

… to be the best in class by delivering services that will add value to couples and will also

help create a marketplace for wedding professionals


Page 6

Goals and Objectives

The main goal of Wedding Vows is to make the most special day of the couples’ life both memorable and pleasurable. The objectives are:

1. To be the most courteous and famous wedding planner in Sydney

2. To be deliver the best in class service

3. To make Indian weddings popular in Australia

4. To add value to the couple’s most dreamt of day

5. To make profit by making the special day of couple more memorable and delightful

The Finances Wedding planner is a low capital investment business hence breaking even in the year of start will

not be an issue. Along with making arrangements of wedding, the other source of revenue is

having a one-stop-shop and training services which require some initial capital. The main short

term objective is to break even and start earning profits within 6 months of starting the business.

The estimated start-up cost in the year 2014 is $ 14,000. Additionally, cash-in-hand required for

emergency or other unplanned activities will be $2,500. Hence, the total funding required to

start the business in 2014 will be $ 16,500. The whole cost of the business will be self-funded. The

net estimated profit in year 2014 is $29,923


Page 7

The Business

The Concept Every wedding has a story to tell and every couple wants it to be a fairy-tale!! But in today’s busy

life, couples do not have time to perform different errands required for making their dream

wedding a reality. A Wedding Planner (WP) aids such couples in planning and executing the D-Day

as always imagined by the couples at the altar. It is job of a WP to fulfil the desires and wishes of

the couples to have a perfect marriage within their budget and defined timelines.

The job of a WP is to not just manage the wedding ceremony but also to facilitate the events pre

and post wedding. A WP should turn the couples’ day of love into an unforgettable event that

they would cherish for the rest of their lives!

The first step that a WP takes towards bringing to life the envisioned wedding is getting to know

the couples, their likes and dislikes and preferences. After considering these factors, the WPs

further try to bring in a fresh perspective and innovatively design, plan and manage the event.

Business Details At “Wedding Vows” we work as team to give you the perfect wedding day that you always

envisaged. While sticking to the theme as chosen by you we focus on the minute details and

provide you support and guidance on each event.

Wedding Vows will have three revenue generating legs namely: Wedding Planner Service,

Training Institute and One-Stop-Shop.

Products/Services

Wedding Planner

Wedding Vows, Wedding Planner section provides whole range of services such as Location &

Venue, Catering, Guest Hospitality, Design & Décor, Security, Wedding Communication,

Entertainment, Engagement & Other Ceremonies, Styling, Honeymoon and Wedding Photo

shoots.


Page 8

One-Stop-Shop




booklets and catalogues, few samples and basic furnishing. The services offered will be Designer

Boutique, Florists, Invitation & Supplies, Decorative Supplies, Wedding Accessories and Gifts.

Training Institute


Event Management and Wedding Professionals. At the institute the student or trainee will get a

hands-on experience of managing an event from the scratch, developing required business skills

and learning to successfully market an event.

The course provides tutorials combined with case studies and hands-on experience to develop the skills such as:



• Marketing



Registration Details Business Name: Wedding Vows

Business Logo:

Trading Name: Not Applicable

Date Established: Will be starting on 2nd May 2014


Page 9

Location(s): Sydney, NSW, Australia

Business Structure: Sole Trader

ABN: Applied

ACN: Applied

GST: Not Applicable

Domain Names: Not Applicable

License and Permits: Applied

Business Premises

Business Location

Wedding Vows would have a cosy set up in the courtyard of our residence. My spare room would

serve the purpose of meeting room. A One-stop-shop, which will serve the purpose of a boutique

and shop/storage room, will be put up. This One-stop-shop will be a shade constructed adjacent

to the garage. Additionally, garage will be used as the classroom.

Buy/Lease

The owner’s living home will be used to conduct the business, hence buying or leasing property

will not be required.

Organization Wedding Planner is an event management business handled presently by the owner alone.

Within a year permanent employees will be hired. The staff required for Wedding Planner will be,

full time Event co-ordinators and a team of helpers (depending upon the size of the event). One-

Stop-Shop will have a sales person and store manager. Owner will be providing the training,

hence no need of teaching staff for the Training Institute.


Page 10

Management & Ownership

Names of Owners

Wedding Planners will be owned by and started by Prajakta Talathi.

Details of Management & Ownership

The owner will be running the business and will be completely involved in the whole and sole

affairs of the business. As the business grows, assistants and event co-ordinators will be hired.

Experience

Post Bachelor of Engineering in Information Technology, Prajakta worked for 4 years in IT Industry

in Infosys Limited, India. Later, she pursued her Global MBA in Marketing from SP Jain School of

Global Management.

Prajakta was a part of Students Union Council for 4 years in her college and was responsible for

conducting technical and social events. She has also organised corporate events for her

department in Infosys for 3 years. Additionally she has assisted in organising family events.

Key Personnel

Current Staff

Job Title Name Expected Staff Turnover

Skills or Strength

Owner & Founder

Prajakta Talathi Not Applicable Holds a Global MBA degree in Marketing; Possesses comprehensive problem solving abilities, excellent communication skills, ability to deal with people, willingness to learn, time and budget management; Is a team facilitator, hard worker, ambitious, goal-oriented, resilient, adaptable and resourceful

Required Staff

Job Title No. of Personnel

Expected Staff Turnover

Skills Necessary Date Required

Event Co-ordinator

2 2-3 years Relevant qualification, excellent communication and negotiation skills,

June 2014

Prajakta Talathi

Owner

Mr. ABC

Event Co-ordinator

Event Assistants

Mr. PQR

Store Manager

Sales Person


Page 11

smart and quick thinker, good team manager and ability to deal with people

Event Assistants

Depending on the scale of

the event

1-2 months Hard worker, resilient, team worker, adaptable, resourceful and reliable

May 2014 and

ongoing

Store Manager

1 1-2 years Leadership skills, time management, budgeting and analytical skills, decision making and communication skills

June 2014

Sales Person

1-2 1-2 years Good communication skills, public relations, courteous to help, knowledge about wedding industry related materials, customer service skills, confident and convincing

June 2014

Recruitment Options

Wedding Vows aims to recruit best-in-class employees through open and fair process. Job

vacancy will be advertised using:

1. Advertising Agencies Wedding vows will outsource the recruitment activity to physical agencies or online job agencies. Turnover of assistants can be 1-2 months and also these are basically part-time helpers or contractual labours. Hence, a contract can be signed with the agencies to assist the hiring process.

2. Standard Advertising Job vacancies will be posted on online job sites or databases, career fairs, campus interviews (Part-time assistants), local newspaper.

3. Expression of Interest Wedding Vows will encourage their existing staff to choose their field of interest for e.g.

someone who was responsible for lights and decoration wants to learn and practice his

skills in catering and hospitality can voice his interest and accordingly if possible, he can

be accommodated.

Training Programs

Wedding Vows has its own Training Institute. Also, it facilitates on-job-training to enhance skills of its staff. The staff including the owner will be continuously trained for:

Sales and Marketing

Customer Relationship Management

New Trends in Wedding Industry

Soft skills and interpersonal skills

Event Management

Time and Budget Management

Skill Retention Strategies

At Wedding Vows, major skills retention strategy is volunteering or expressing your activity of

interest because we believe that if someone is passionate about something, he will give in his

best. Apart from volunteering, Wedding Vows will also continuously provide trainings and

feedback to ensure that skills are retained and developed.


Page 12

Staff will generally be communicated their roles and responsibilities verbally, but for management

purpose, it will also be documented in the data of the particular event. For managing events, a

team will be formed and there will be a team in charge who will be responsible for his team and

team task.

Products and Services Wedding Vows will have three revenue generating legs namely: Wedding Planner Service,

Training Institute and One-Stop-Shop.

Wedding Planner

Wedding Vows, Wedding Planner section provides whole range of services as detailed below:

Location & Venue

Location and venue selection is the most crucial and stepping stone for a creating a memorable. It

sets the mood of the event. Whether it is a wedding at the couple’s dream location, exquisite

plaza or banquet hotels, beach front wedding or community halls, Wedding Vows will set the

perfect back-drop for that special day with its negotiation, management, suggestions and

coordination.

Care needs to be taken to choose the desired location suitable for the client’s status, preference,

budget and dates especially for Indian weddings which depend upon the auspicious date and

time.

Catering

To make your wedding the most unforgettable event for people, food served should be insatiable,

palatable and delightful. Right from traditional food items to international delicacies, Wedding

Vows will ensure that a wide variety is offered to feast upon.

While providing catering services to Indian Weddings, food menus especially vegetarian and non-

vegetarian should be taken care of.


Page 13

Guest Hospitality

People are sensitive towards how warm and welcome they feel at family events and weddings.

Guest Management is a daunting affair and Wedding Vows will ensure that guests are well

assisted to and taken care of. Wedding Vows will take care of people sentiments and make them

feel at home in an elegant and classy manner.

From arranging accommodations to managing tours and entertainment, Wedding Vows will help

in providing guests with a pleasurable experience to be remembered to years to come.

Design & Décor

Pleasant sight is a road to happy mind! Wedding Vows ensures that the picturesque and

aesthetics compliment the venue and the couple. Our team will help the couple to transcend and

transform their dream wedding into reality.

Whether it is a traditional marquee or an elaborate, big-fat set design or a simple yet elegant

décor, Wedding Vows will provide what the couple has dreamt of.

Security

Hope for the best, prepare for the worst! Wedding Vows will ensure that the wedding day goes

smooth and hazard free and hence will manage the unforeseen circumstances.

Also, it will take care of all technicalities and legal formalities and make sure that all the necessary

permissions and licenses are procured.


Page 14

Wedding Communication

Wedding Vows will help reaching out your loved ones and ensuring that the D-day becomes more

special with their presence. We understand that in today’s busy life, couples do not have time to

visit guests personally and call them for their wedding. Hence, we will help in sending out

personalized, stylish and innovative communication by which invited guests will feel that it is a

personal invitation.

Some of the ways to reach out people are the good old traditional invitation cards, thank you

cards, etc. Contemporary means are to create wedding websites and make use of different

wedding stationeries.

Entertainment

What you see, you might forget; what you hear, you might forget; but what you do, you will never

forget! Wedding Vows will ensure that the couples and their guest experience the most

memorable and enjoyable day by offering them various entertainment packages.

Be it celerity performance or celebrity presence, a blazing flair bartender of best in town DJ,

Wedding Vows will add that glamour quotient to all their weddings.

Engagement & Other Ceremonies

May it be a formal engagement or a rather creative way of letting people know about your love

and commitment, Wedding Vows will help keep this day intimate and personal and take care of

all the arrangements.

Mehendi, Shagun, Sangeet are the most looked forward events in any Indian Weddings and we

see to it that we make these events the most looked up to events.


Page 15

Styling

Every bride dreams that she looks the best on her day! Our stylists make sure that the bride not

just looks the best but also feels the best that it will be difficult for the groom to take his eyes of

her. Wedding Vows will help choose jewellery, accessories, dresses, etc that will complement the

bride.

Wedding Vows will assist in selecting wedding trousseau, appointing hair and make-up assistant,

managing designer appointment for grooming both the bride and the groom. Additionally, we

also know that though wedding day is the bride’s day but closed relatives feel that they are on

display! Thus, we ensure that they too look good on the wedding day.

Honeymoon

We know that after the huge celebration of their love, couples need to rejoice their love in the

cosy comfort of each other’s arms. Wedding Vows will leave you in awe and help create

memories lasting forever by providing with a customized package designed around the couple’s

likes and preferences.

Whether couples want a conventional honeymoon destination like France, Mauritius, Rome or

Italy or a more exotic location like Bora Bora Islands, Bali, Barbados or Hawaii we make it happen

for you.


Page 16

Wedding Photo shoots

There is no feeling as best as reliving the best moments of your life! How else can one do it if not

by means of photographs and videos!

Wedding Vows with the help of professionals will help you capture and freeze your precious

moments. Wedding album will be ready for couples once they are back from their honeymoon.

One-Stop-Shop




booklets and catalogues, few samples and basic furnishing.

The services offered will be:

Designer Boutique

This section will have outfits for brides, grooms and family members. It will have western clothes

as well as traditional or Indian ethnic drapes like lehengas, sherwanis, sarees, salwar-kameez etc.

Also, we arrange jewellery and other accessories to get along with the outfit.

Florists

Wedding Vows will showcase its expertise through stunning ceremony floral arrangements,

fabulous centre pieces and magnificent wedding bouquets and garlands.


Page 17

Invitation & Supplies

Wedding Vows offers a wide variety of wedding stationery. By using beautiful embellishments

suck as flowers, ribbons, artwork etc. over speciality papers, we help design tailor-made wedding

invites.

Decorative Supplies

Need a romantic set-up or a stunning backdrop? Wedding Vows hires out an enormous range of

decorative supplies. Supplies can be centrepieces, linen, arbours, bollards, carpets, bamboo,

sashes, chairs, etc. Using these supplies, we help give life to the couple’s ideas.

Wedding Accessories

We provide a range of gorgeous accessories to add class and fun to the special day. Accessories

like baskets, pillows, flower petals, etc.

Gifts

Wedding Vows help you say Thank You to guests in a creative way. Appreciation can be shown

using the modern gifts like engraved or customized gift articles or traditional gifts like glassware,

Indian return gifts etc.

Training Institute


Event Management and Wedding Professionals.


Page 18

At the institute the student or trainee will get a hands-on experience of managing an event from

the scratch, developing required business skills and learning to successfully market an event.

The course provides tutorials combined with case studies and hands-on experience to develop the below skills:



• Marketing



The course taught within 3 months of time frame will be: • Marketing Management

• Sales Techniques

• Event Concepts and Designs

• Global Business Environment

• Visitor Economy

• Event Management and Operations

• Creative Thinking and Innovation

Market Position of Products/Services

Services offered by Wedding Vows are high in quality but at the same time it fits in the customer’s

wallet. Weddings are highly personalized and customised and hence the service is high-end for an

elaborate, big-fat set wedding. For a simple yet elegant décor services are offered at budget

prices.

Anticipated Demand

Chances of repeat customer for a wedding planner are very minor. But through word of mouth,

new customers are attracted or else customers approach to get services for their friends, family

members and relatives. The best part of Wedding Planner Business is there is always a wedding to

plan! Promotions or recessions, people do get married.

Pricing Strategy

Wedding Planner is a freelance consultancy for couples who are soon-to-be married. The various pricing options available are:

• Flat Fees

• Expenses percentage

• Hourly Consultancy Fees

• Combination of Expenses percentage and hourly consultancy fees

• Commissions


Page 19

At Wedding Vows, packages will be offered and pricing will be based on the factors like: • Wedding Theme and package chosen

• Size of guests

• Services offered

• Percentage of Expenses

Value to Customer

Moreover the Core Values – CUPID helps in creating a lasting relation with the customers and the

suppliers and hence creating a healthy and reliable value chain.

Growth Potential

The industry is expected to grow by 6.5% every year to $ 4.7 billion over the next 5 years with

around 119,000 weddings, approximately 1.08% growth taking place per year. Couples save over

a period for their special day to become more special and statistics also say that more than 60%

of the couples go over their budget for their weddings.

Innovation

Research & Development

Trends in wedding industry keep on changing. As a Wedding Planner, one needs to be constantly

updated with the new trends and fashion currently followed.

Also, since there are so many different ethnic groups in Sydney and each ethnicity follows their

tradition, a Wedding Planner needs to research the culture and tradition of those ethnic groups.

Creative Activities

As a Wedding Planner, there is tremendous scope for creativity and innovation. Every couple

would want their wedding day to be unique and different. It is the responsibility of the planner to

suggest some creative ideas to the couple.

6.70% 7.55%

7.90%

8.25%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

2013-2014 2014-2015 2015-2016 2016-2017

Growth % in Wedding Industry, Australia



Page 20

Insurance Permanent Employees of Wedding Vows will be insured as per the industry policy. On the other

hand, contractual employees will not be life insured, but the events will be insured which will

cover the risk of these employees.

Workers Compensation

Life Insurance of permanent employees will be covered by Wedding Vows. This will be included as

a part of their compensation. Currently the Annual Insurance Premium is $200 per person.

Business Assets

Business assets such as property, inventory and classroom furniture is insured for natural

calamities as well as for fire, burglary or any other damage.

Risk management Explicit and careful planning will maximise the probability of success of the event. The below

table highlights the potential risks which can occur in the Wedding Planning Industry.

Risk Likelihood Impact Strategy

Suppliers or Vendors do not show up

At every event there are chances of some or the other supplier not showing up or if does, messing around

Depending on the nature of the supplier, its impact can be negligible to critical

Make follow-up calls with the vendors and suppliers. Create a plan – B for such incidents. Have a list of second best and ready-to-serve suppliers

Accidents at the venue

With good security planning, likelihood of occurrence is minimal

Depending on the nature of the accident can be minor to fatal

Prepare a good, full proof security plan. Familiarize with the location and nearby police station, hospital and fire brigade. Keep an emergency kit handy

Unexpectedly large number of guests

May occur rarely Major on the arrangements made

Check with catering and accommodation team and ask the vendor or suppliers to make arrangements accordingly

Unfavourable Weather

Possible during outdoor weddings

Severe Look out for nearby shady place where the rest of the ceremony can be continued. If there is no such place, construct a temporary shade at the venue in advance

Technical or logistical issues

Seldom Depends on the type of issue

Keep your technical experts and their tool kit ready. Be prepared with alternative means

Budget overshoot

Seldom Major Keep the couple and the family informed. Show them the expense track and for critical and expensive expenses, consult the customer

Open Bar Seldom Minor to Major Make sure the person under the


Page 21

Consequences influence of alcohol is attended. Get help from friends and family members

Thefts Rare Depends on the value of the item stolen

Keep your security personnel on toes. Safeguard all the gift items and expensive jewelleries. Ensure that the bride’s and the groom’s rooms are always locked

Bride or Family members Emotional outburst

Common Customers generally tend to freak out during such emotionally overwhelmed events

Get help from family and friends. Talk to people at personal level. Improve your communication and interpersonal skills

Risk mitigation can be planned using experience and knowledge of oneself and of others. Make

use of insights to solve problems. Use the conventional problem solving techniques or develop

innovative one, but by all means make use of presence of mind and without panicking solve these

challenges.

Additionally, feasibility study and analysis of past data can be performed for contingency

planning.

Legal Considerations Australian rules and regulations demand that any business done with customers should have a

signed contract. Hence, contract mentioning the terms and conditions clearly should be prepared

before the planning process is begun or advance fees are taken.

Operations Vendors and suppliers will provide with the necessary arrangement for the wedding. For the One-

Stop-Shop, just-in-time inventory, tailor-made order and made-to-order deliveries are followed.

Once the availability is confirmed and the order is confirmed (advance fees is received), will

Wedding Vows place the order request to the respective supplier/vendor.

Since there is a heavy reliability on the third party, Wedding Vows need to ensure that the lead

time is zero and the desired order is received on time and with good quality.

Vendors & Suppliers

Apart from customers, vendors form a very important part of value chain. Get help from fellow

wedding professionals, attend networking events and check reliable recommendations before

any vendor is finalised. Reputation is at stake if the people with whom business is conducted are

not at par with the standard of Wedding Vows.

It may not be always possible, but it is good to give vendor some time to ensure quality delivery.

Also since Wedding Vows service is a high-end service, suppliers too need to follow this

competency and deliver good quality timely service. It will also help to make decent negotiations


Page 22

but at the same time to see that both vendors and Wedding Vow is at profit and at the same time

customer is still able to manage the dream wedding within budget.

Main suppliers/vendors for wedding industry will be: • Caterers

• Stylist

• Boutique or Designer

• Jewellery or accessory provider

• Henna designer

• Music / Band

• Decorator

• Security

Inventory

Since weddings are usually tailor-made, this business doesn’t call for inventory management.

Basic things need to be kept handy which include but are not limited to booklets and catalogues,

few samples and basic furnishing. Also, just-in-time inventory, tailor-made order and made-to-

order deliveries are followed.

Technology (Software)

At present, the customer profile and database will be maintained in physical format and excel

sheet. Similarly, vendor and employee database will be maintained. Once the business kicks off,

software such as CRM, ERP and Payroll Management System will be bought and used.

For design simulations of the set at venue, 3D CAD software such as Sketchup, Autodesk and

other such freeware software can be used.

Trading Hours

Wedding Vows office hours will be 9 am to 5 pm. But since this is more onsite job, there will not

be any strict timelines which will be followed.

Communication Channels

Vendors and customers will generally be contacted over telephone (landline and mobile phone),

internet text or calls or video calls, emails and faxes etc.

Advertising and sales promotion communication channel will be direct emails, tele-sales, internet

blogs and social media sites and other means of online advertisement.

Payment Types

Payment will be accepted and made in the form of cash, cheque and online transfers. Card will

also be accepted.

Credit Policy

Credit can be maintained with Suppliers or Vendors with whom the business is done on daily

basis. The terms and conditions will be as per the contract signed between the two parties.

No credit policy will be followed while dealing with payments from customers.


Page 23

Sustainability Plan

Environmental/Resource Impacts

Weddings are a once in a lifetime event and hence people including couples, family members and

friends are little careless towards environment and resources. Wastage of food, water and other

resources such as electricity is observed.

Community Impact & Engagement

Music and chattering can create noise pollution and disrupt the peace and harmony in the

neighbourhood. Fireworks and other ceremonies can cause air pollution and anger the local

community.

Strategies

Following can be done to minimise the impact on environment and community: • Any leftover food can be donated to orphanages and old-age homes in the locality

• Take permission or inform the neighbourhood before any ceremony

• Ensure proper resource utilization

The Market

Market Research Wedding industry is a $ 3 billion industry in Australia where a couple spends more than $ 30,000

on their wedding and around 116,000 weddings take place per year. The industry is expected to

grow by 6.5% every year to $ 4.7 billion over the next 5 years with around 119,000 weddings,

approximately 1.08% growth taking place per year. Couples save over a period for their special

day to become more special and statistics also say that more than 60% of the couples go over

their budget for their weddings.

The effective wedding industry revenue spilt-up can be seen as:

$4.0

$4.3 $4.5

$4.7

116000

117253

118519

119799

115000

116000

117000

118000

119000

120000

$3.6

$3.8

$4.0

$4.2

$4.4

$4.6

$4.8

2013-2014 2014-2015 2015-2016 2016-2017

# o

f W

ed

din

gs

Re

ven

ue

in b

illio

n $

Revenue in billion $ # of Weddings


Page 24

Environmental Analysis

Wedding Trends

Figures from Australian Bureau of Statistics state that the relative wedding rate is declining from

7.1 weddings per 1,000 of the population in 1988 to 5.5 weddings per 1,000 of the population in

2011, yet the actual number of weddings is increasing per year. This pattern can be attributed to

the recent trends in the wedding industry. Recent wedding trends in Australia are:

Trend 1 – Couples marrying at a later age

The average age of couples getting married has increased from 26.1 for grooms and 24 for brides

in 1989 to 29.6 for grooms and 27.6 for brides in 2011. This trend implies that couples are in a

position to finance their own wedding rather than merely relying on their parent’s money.

Trend 2 – Couples living-in together before marriage

Recently the number of Australians over the age of 15 cohabiting with a partner before marriage

has attributed to a growth of 4.3% since 1991. The Wedding Industry needs to adapt and appeal

to such couples, maybe with their children, and also with couples who will set up their homes

together after the wedding.

Trend 3 – Shift in wedding season

March in Sydney is the best month for weddings because of the summer season. But recently to

avoid the busy wedding season, couples choose to get married in October or November and make

the optimum use of daylight hours. Thus, there is no longer any seasonality in the wedding

industry.


Page 25

Trend 4 – Increasing civil ceremonies

There has been a significant rise in civil ceremonies. 63% couples in 2011 got married in the civil

ceremony; whereas out of the remaining 37%, one third had Catholic services and two thirds had

other ethnic marriages. Wedding planner has to cater to such variety of marriages.

Trend 5 – Increasing inter-racial marriages

Around 21% of weddings take place between non-Australian and Australian born partners. Here,

wedding planner will need to blend both the cultures and give rise to a new style of wedding

adopting both the cultures and ethnicities.

Trend 6 – Marrying for the second or third time

In 2011, only 50% weddings were first-time weddings. 56% grooms and 46% brides who were

divorced between 2000 and 2002 are getting remarried. Currently the divorce rate is reduced to

2.3 divorces per 1000 of the population. Couples tend to spend less when they are remarrying.

This means that a wedding planner will have to adjust things in a stringent budget.

Trend 7 – Economic fluctuations

Though by far there has not been much of an impact on the wedding industry but soon there is a

probability of reduction in the size and scale of the weddings. Weddings are financed using

various means of loans and credits, in its absence compromises on the romantic venues and

expensive dresses will have to be made.

Trend 8 – Destination weddings

Apart from romantic venues, couples are choosing more intimate weddings held at their homes,

in garden marquee or holiday homes etc. Some choose to go to exclusive places and get married

and spend all that they can for this one special day. Wedding planner has much at task in such

weddings.

SWOT Analysis Strengths

• First to provide Indian Wedding Planning Services

• Professional services • Domain Knowledge • Excellent relationships with

contemporary vendor and supplier • Skilled, trained and courteous staff • Value Added Services

Weakness • Lack of experience • Novice in industry • No visibility of the company • Inability to meet the unexpected

increase in demand

Opportunities • Create contact with hotels • Expansion of business to State Victoria • Grow the business with the help of some

trustworthy partner • Tap new market potential • Emerging Industry

Threats • Large well-established competitors • Will have to cut down prices if

competitors do • Economic fluctuations • Trained students of Wedding Vows

institute can cannibalise the business • High turnover of event assistants


Page 26

Target Market / Customers:

Key Customers

Since marriage is a multi-billion dollar industry, everyone around is the potential client. In spite of

this, the target market is brides, grooms, and their family members who need the services of a

wedding planner the most. Over 40,000 marriages were registered in 2012 in New South Wales

State which creates a sizable market potential for wedding industry.

Apart from the primary customer target of brides, grooms and their family members, the next

segment of customers is anniversaries and similar events. Additionally, the ethnic group or the

multicultural group in NSW especially Sydney will be targeted who get married in their respective

home countries but host post marriage events like reception or cocktail parties in Australia.

Another set of customers are the customers of one-stop-wedding-shop who would purchase

things like wedding return gifts and their packaging, wedding dresses, gowns and suits,

honeymoon packages etc. A niche target segment for Indian culture weddings and ethnic

shopping merchandise, accessories and other materials required to perform Indian weddings will

also be tapped on.

Besides weddings and similar events arrangements, an additional training service will be

provided. This service is available for those who wish to be future wedding planners or event

organisers. Training will be given in corporate retreats, event management, etiquette training,

personality development and other related skills development training.

Customer Demographics

The primary customers for wedding planner are the brides and grooms. In 2013, the median age

for marriage is 31.4 for grooms and 29.4 for brides. The median age of couples is increasing day-

by-day which means that couples have disposable income and hence need not rely on their

parents to finance their weddings. This has increased their budget for weddings and

honeymoons.

25.6 26.5

27.3

28.3 28.8

27.6

29.4 28

29.2 29.9 30.1

30.8 29.6

31.4

22

24

26

28

30

32

1992 1996 2000 2004 2008 2011 2013

Median Age

Brides Grooms


Page 27

The below graph shows segmentation of primary customers of wedding industry:

An approximate 5% CAGR (Compound Annual Growth Rate) is observed. This shows that the

industry is growing and will continue to grow. Using the above data and assuming 5% growth as

per the trend, the following can be projected for the year 2014.

Potential Customers 2014

Brides & Grooms 1,915

Family Members 6,382

Other 1,277

1,500 1,575 1,654 1,737 1,824

5,000 5,250 5,513 5,789 6,078

1,000 1,050

1,103 1,158

1,216

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2009 2010 2011 2012 2013

Market Segment Analysis

Brides & Grooms Family Members Other

Brides & Grooms 20%

Family Members 67%

Other 13%

Forecasting Potential Customers, 2014


Page 28

Indian Ethnic Group Demography

The below data obtained from Australian Government, Department of Immigration explains the

immigration trend of Indians:

Thus from the Indian Population growth rate, it can be observed that majority of the population

grew during 1970-2000. Hence, now the 2nd or 3rd generation of these migrants will be residing in

Australia out of which few maybe of marriage-able age, say 25% of the Indian population.

Moreover, India has been one leading migrants in Australia. Below graph shows the top leading

migrant countries:

-

75,000

1,50,000

2,25,000

3,00,000

3,75,000

17

1

2,1

99

3,8

96

14

,21

5

25

,81

1

43

,47

1

80

,23

6

1,2

9,1

86

1,5

1,8

59

1,8

3,3

96

2,2

4,0

00

2,5

8,3

33

2,7

5,4

75

2,9

7,2

43

3,2

6,2

61

3,6

6,3

12

Indian Population

Indian Population

0%

20%

40%

60%

80%

100% 82% 68%

85%

61%

18% 21% 22% 15%

7% 8% 10% 12%

Growth Rate of Indian Population

Growth Rate


Page 29

Below data from Australian Bureau of Statistics shows that Indians residing in Australia belong to

one of the highest earning groups in Australia. An average Indian earns more than the median

individual weekly income. Hence, Indians have more Marginal Propensity to Consume or more

disposable income to spend. The data can be seen as below:

Chinese Indian Overall

Population 4,03,193 2,08,488 234,12,282

% of total population 1.72% 0.90% 100%

Median Age 35 31 37

Median Individual Weekly Income $328 $663 $577

From the last census in 2011, total Indians in Australia are 297,243 out of which maximum are in

the state Victoria (111,787) followed by the state of New South Wales (95,387), Queensland

(30,259) and Western Australia (29,915). State-wise distribution of Indians in Australia can be

seen as:

-

10,000

20,000

30,000

40,000

50,000

2010 2011 2012 2013

23,164 21,768

29,018

40,051 24,768

29,547 25,509 27,334

25,738 23,931 25,274

21,711

Top Countries of Immigration in Australia

India China UK


Page 30

From the demography and income details of Indians in Australia, it looks a feasible market for a

wedding planner to tap on the Indian Ethnic group in Sydney, Australia.

Customer Management

Customers are the most crucial part of any business. There are many essential things which need

to be taken care of while managing the customers, especially anxious brides.

New customers can be contacted by using the data obtained from the booth at Bridal Fairs,

boutique suppliers, booth in malls, etc. Wedding planner and event management industry thrives

on maintaining good public and customer relations.

Few steps which can be followed in order to maintain healthy and sustaining relation with the

customer are:

Customers will be reached out within 48 hours of first meeting. Customers are very busy

and many people contact them hence it will be beneficial to contact while them the

meeting is still fresh in their mind.

Customers will be given a prompt service / reply. There is nothing more pleasing than an

immediate query response.

Service packages will be offered instead of hourly rates for consultancy.

Service to every customer will be customized and personalized and all possible

expectations and demands will be met.

Customers will be helped to create budgets, schedules, guest lists and to undertake other

wedding planning activities.

Quality service will be provided and sales promises will be kept (Under-promised and

over-delivered).

The client will be kept informed and value will be added in every meeting.

Each customer will have a separate data file in which all the details of the customer will

be stored. Details such as budget, dates, venues, themes, dresses, gifts, etc. For the time

being physical files and excel sheets can be maintained, once the business is in full swing,

these can be replaced by good CRM software.

Customers will be contacted using their cell phones and at the time decided. Only if not

available, customers will be contacted via emails.

Any mail, personal or promotional, will be personalised, that is will have the addressee’s

name and details such as where and how we had met and the interest which the

customer had shown in the service offered, etc.

Customers will be encouraged to visit and like Facebook pages, to follow on Twitter and

Pinterest and to visit company website and blogs wherein wedding tips will be shared.

Even after the ceremony is successfully completed, customer relationship will be

maintained to keep the trust and also to ensure that other potential customers can be

made through existing customer’s contacts.

Competitor Analysis There exists huge competition in wedding industry. There are well established and well

networked wedding planners presently in Sydney and its neighbourhood.


Page 31

One of the differentiating factors about Wedding Vows is that it has a segment catering to the

niche Indian ethnic community present in Sydney. The target market here is the Indian

Community residing here since 1980 and their second generation will be in Sydney and have their

wedding ceremonies performed in Sydney. Providing traditional Indian Style wedding planning

service to such customers will give Wedding Vows competitive advantage.

Competitor Details

Below is a list of competitors in Sydney

Competitor Established

Date Value to Customers Strengths Weaknesses

Nightingales 1994 Offers wedding packages to suit any budget without compromising on the style and quality

15 years in the industry; long term relationship with clients Both Elite and Budget weddings

Caters only to local Australian or English weddings

Couture Wedding Planning

2006 Creates realistic wedding budget

Maintains good contacts in the industry


Bells N Whistles

2005 Creates events specific to budget, needs and desires

Organizes weddings and other events and Customizes events as per the customer’s wants

Takes 50% advance before providing any service

Elite Events 2004 Offers all services and performs them in style

Organizes weddings and other events one at a time and Gives a family oriented feel and approach

Not good contacts with suppliers

Girl Friday Weddings

2012 Provides full service as well as part planning

Market capture across Sydney and Melbourne


Marketing Targets The target is to plan 5 weddings per month which will require around $ 2,500 shopping from one-

stop-shop. Also, training institute will have 5-6 students in 1 batch enrolled for short term 3

months course.

Sales & Marketing Objectives

The short-term sales and marketing objective is to break even and to start earning profits within 6

months of starting the business.

The long term objective is to plan the most elegant and elite, high profile weddings in Sydney and

Melbourne.

Sales Forecast

The Sales forecast for the year 2014 is:


Page 32

Marketing Strategy Wedding Vows will leverage the opportunity of providing Ethinic Wedding Planning service and

thereby gain the first mover advantage. Booth at Bridal Fairs and public malls will help in

attracting new customers.

Advertising & Sales

Rather than putting all the money in one form of advertising, Wedding Vows will take advantage

of different advertising platforms such as:

Online:

Website

Blogs

Social media

Pay-per-click online ads

Offline

Business Cards

Brochures and Pamphlets

Print ads

Direct mails

Networking

Promotional methods

Bridal booth at fairs and malls

Unique Selling Position

Having multiple revenue options is a unique selling position of Wedding Vows. Everything under

one roof gives a cutting edge to Wedding Vows in this competitive market.

$0

$50,000

$1,00,000

$1,50,000

$2,00,000

$2,50,000

Year 1 Year 2 Year 3

$35,697 $63,386 $61,115

$40,000

$55,000 $74,250 $45,000

$60,000

$81,000

Sales Forecast

Goods sold Fees Received Commission Received


Page 33

Also, coming from marketing background and from India, it facilitates the process of catering to

the niche Indian customer segment. Understanding and fulfilling the desires of Indian couple

becomes easier. Sydney does not have a complete wedding planning package offered by any

wedding planner and hence Wedding Vows will get the First-Mover advantage.

Advertising & Promotional Strategy

Wedding Vows will implement the following strategy:

Advertisement

In local newspaper, Yellow Pages, etc.

Peer Relationships

Maintain good contacts with other wedding planners, vendors and suppliers

Social Media

Make use of Facebook, Twitter, YouTube, Pinterest etc. to publicise Wedding Vows

Word of Mouth Referrals

There is no better advertising than a positive customer feedback. Happy customers will refer the

service to other customers and hence help in creating new customer base.

The Future

Vision Statement The vision of Wedding Vows is

… to be the best in class by delivering services that will add value to couples and will also

help create a marketplace for wedding professionals

Mission Statement “Making Memories Memorable” is what we strive for. We intend and put all our efforts and

energy to turn your day of love into an unforgettable event and the memories that you will

cherish for the rest of your life.

Core Values Wedding vows works by abiding to its core values, which is “CUPID”.

C – Collaborative U – Unique

P – Passionate I – Integrity

D – Diversity


Page 34

Goals and Objectives The main goal of Wedding Vows is to make the most special day of the couples’ life both memorable and pleasurable. The objectives are:

1. To be the most courteous and famous wedding planner in Sydney

2. To be deliver the best in class service

3. To make Indian weddings popular in Australia

4. To add value to the couple’s most dreamt of day

5. To make profit by making the special day of couple more memorable and delightful

Action Plan Working as a Wedding Planner requires continuous improvement, deeper understanding of client

needs and acquiring new skills. The following action plan will be followed:

The Finances

Key Financial Objectives & Financial Review

Financial Objectives

Wedding planner is a low capital investment business hence breaking even in the year of start will

not be an issue. Along with making arrangements of wedding, the other source of revenue is

Know your services to be

rendered

Explore the options which

will be provided to the

customers

Develop relationships

with the vendors and

suppliers

Get the required

permissions and licenses and register

Wedding Vows

Create a user friendly

website. Link it to social

networking sites

Create a brand Provide good quality service

Increase revenue

Become the best in class Wedding

Planner


Page 35

having a one-stop-shop and training services which require some initial capital. The main short

term objective is to break even and start earning profits within 6 months of starting the business.

Finance Required

Wedding planner services do not need major up-front investment except for the marketing,

advertising and promoting services expenses. The investment is required for one-stop-shop and

training institute.

The goods in the shop will be taken either on credit in exchange of some deposit or pre-ordered

by customer whereas training institute will require a classroom and some basic furnishing for

savings or own money can be used. Since both these services will be provided from home, no

rental or property investment is required.

In order to minimize the start-up costs, furnishing will be second hand but in good condition

furniture. Since Wedding Vows is a multiple revenue source business some expenses are common

whereas some are independent. Let us consider these start-up capital requirements:

Common Requirements

1. Legal and registration fees

2. Marketing and advertising – Bridal fairs, brochures, etc.

3. Research

4. Telephone instrument and telephone line

5. Internet connection

6. Bulk email service

7. Interior and refurbishing rooms and spare garage to give a professional look

8. Equipment expenses – Laptop, printer and fax; kettle and refrigerator for serving

beverages to guest

9. Stationery

10. Insurance

Wedding Planner Requirements

1. Theme catalogues

2. Sample material for different themes

One-Stop-Shop Requirements

1. Booklets and catalogues

2. Sample goods

3. Deposit for goods purchased

Training Institute Requirements

1. Study desks / Benches

2. Boards

3. Course Material

Assumptions

As per the trend analysis, there exists no seasonal variations in weddings these days

4-5 weddings of approximate budget $30,000 per month and 5 students enrolled for

training


Page 36

20% growth between Year 1 & 2; 30% growth between Year 2 & Year 3 and 5%

depreciation

Salary paid by hourly-daily basis / contract basis depending on the situation

Second hand benches, vehicles will be bought – vehicle will be bought using Year 1 profit

Utilities Expenses and Transportation expenses will be $150 per month each

Income Tax for working professionals is 25%

Start-up Costs for 2014 The estimated start-up costs in the year 2014 are:

Description Amount in AUD

Common Expenses

Legal and registration fees $400

Marketing and Advertising $2,000

Research $200

Telephone instrument and telephone line $200

Internet connection $100

Bulk email service $50

Interior and Refurbishing $2,500

Equipment expenses $1,500

Stationery $250

Insurance $300

TOTAL COMMON EXPENSES $7,050

Wedding Planner

Theme catalogues $600

Sample material $1,400

TOTAL WEDDING PLANNER EXPENSES $2,100

One-Stop-Shop Requirements

Booklets and catalogues $450

Sample goods $2,500

Deposit for goods purchased $1,200

TOTAL ONE-STOP-SHOP EXPENSES $4,150

Training Institute

Study desks / Benches $200

Boards $50

Course Material $450

TOTAL TRAINING EXPENSES $700

TOTAL START-UP EXPENSES $14,000


Page 37

Additionally, cash-in-hand required for emergency or other unplanned activities will be $2,500.

Hence, the total funding required to start the business in 2014 will be:


Expected Start-up Expenses $14,000

Cash-in-hand $2,500

TOTAL FUNDING REQUIRED $16,500

Since not a huge capital investment is required, borrowing money from the bank is not required.

Own money will be used to start the business.


Assets

Non-cash Assets from Start-up $0

Cash at Start-up $2,500

Other Assets $0

Total Assets $2,500

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable $0

Other Current Liabilities $0

Total Liabilities $0

Capital

Planned Investment $16,500

Additional Investment Requirement $0

Total Capital $16,500

Start-up Funding

Expected Start-up Expenses ($14,000)

Balance after Expenses $2,500

Total Funding Required $16,500

Total Common Expenses

50% Total Wedding Planner

15%

Total One-Stop-Shop

Requirements 30%

Total Training Institute

5%

Estimated Start-up Expenses


Page 38

Below graph gives the overview of start-up funding required in 2014:

Balance Sheet Forecast The forecasted balance sheet for the next 3 years is:


Current Assets

Cash $22,766 $28,458 $38,418

Petty cash $2,500 $3,125 $4,219

Inventory $5,006 $6,258 $8,448

Accounts Receivable $11,686 $14,608 $19,720

Fixed assets

Leasehold $0 $0 $0

Property & land $0 $0 $0

Renovations/refurbishing $2,375 $2,256 $2,143

Furniture $238 $226 $214

Vehicles $0 $10,200 $9,690

Equipment $1,425 $1,354 $1,286

Course Material $428 $406 $386

Total Assets $46,423 $66,889 $84,524

Current Liabilities

Accounts payable $1,245 $846 $958

Interest payable $0 $0 $0

Accrued wages $0 $0 $0

Long-term liabilities

Loans $0 $0 $0

Total Liabilities $1,245 $846 $958

Capital $16,500 $16,500 $16,500

Retained Earnings $29,923 $50,389 $68,024

Total Capital $45,178 $66,043 $83,566

Total Liabilities and Capital $46,423 $66,889 $84,524

Net Worth $45,178 $66,043 $83,566

$0

$5,000

$10,000

$15,000

$20,000

Assets (Cash) Expenses Investment Loan

$2,500

$14,000 $16,500

$0

Start-up Funding

Amount in AUD


Page 39

$0

$20,000

$40,000

$60,000

$80,000

$1,00,000


$46,423

$66,889

$84,524

$1,245 $846 $958

$45,178

$66,043

$83,566

Balance Sheet Forecast

Assets Liabilities Capital

$0

$20,000

$40,000

$60,000

$80,000

$1,00,000


$45,178

$66,043

$83,566

Net Worth Forecast

Net Worth


Page 40

Profit and Loss Forecast The forecasted profit and loss statement for the next 3 years is:


Sales

Goods sold $35,697 $63,386 $61,115

Fees Received $40,000 $55,000 $74,250

Commission Received $45,000 $60,000 $81,000

Gross Profit/Net Sales $1,20,697 $1,78,386 $2,16,365

Expenses

Accountant Fees $50 $50 $50

Advertising & Marketing $2,000 $1,500 $2,500

Bank Fees & Charges $0 $0 $0

Bank Interest $0 $0 $0

Credit Card Fees $0 $0 $0

Utilities (electricity, gas, water, telephone) $1,800 $1,800 $1,800

Lease/Loan Payments $0 $0 $0

Rent $0 $0 $0

Vehicle Expenses $1,800 $1,800 $1,800

Repairs & Maintenance $250 $250 $250

Stationery & Printing $250 $300 $350

Insurance $300 $300 $300

Catalogues or Booklets $1,050 $1,200 $1,400

Salary and Compensation $53,100 $76,200 $85,800

Total Expenses $60,600 $83,400 $94,250

Profit Before Interest and Taxes $60,097 $94,986 $1,22,115

Interest Expense $0 $0 $0

Taxes $30,174 $44,597 $54,091

Total Taxes and Interest $30,174 $44,597 $54,091

Total expenses $90,774 $1,27,997 $1,48,341

NET PROFIT $29,923 $50,390 $68,024

$0

$20,000

$40,000

$60,000

$80,000


$29,923

$50,390

$68,024

Net Profit Forecast

Net Profit Forecast


Page 41

Expected Cash Flow The forecasted cash flow for the year 2014 is:

EXPECTED CASHFLOW 2014 Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

OPENING BALANCE $16,500 $17,022 $17,544 $18,066 $18,589 $19,111 $19,633 $20,155 $20,677 $21,199 $21,721 $22,244

Cash Incoming

Sales $10,056 $10,056 $10,056 $10,056 $10,056 $10,056 $10,056 $10,056 $10,056 $10,056 $10,056 $10,056

Other income $728 $728 $728 $728 $728 $728 $728 $728 $728 $728 $728 $728

Total Incoming $10,784 $10,784 $10,784 $10,784 $10,784 $10,784 $10,784 $10,784 $10,784 $10,784 $10,784 $10,784

Cash Outgoing

Purchases $2,514 $2,514 $2,514 $2,514 $2,514 $2,514 $2,514 $2,514 $2,514 $2,514 $2,514 $2,514

Accountant fees $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4 $4

Advertising & Marketing $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Utilities (electricity, gas, water) $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Telephone $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Motor vehicle expenses $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Repairs & maintenance $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21

Stationery & printing $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21 $21

Membership & affiliation fees $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10

Licensing $23 $23 $23 $23 $23 $23 $23 $23 $23 $23 $23 $23

Insurance $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25

Catalogues $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88

Income tax $2,515 $2,515 $2,515 $2,515 $2,515 $2,515 $2,515 $2,515 $2,515 $2,515 $2,515 $2,515

Salary and Compensations $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425

Total Outgoing $10,262 $10,262 $10,262 $10,262 $10,262 $10,262 $10,262 $10,262 $10,262 $10,262 $10,262 $10,262

CLOSING BALANCE $17,022 $17,544 $18,066 $18,589 $19,111 $19,633 $20,155 $20,677 $21,199 $21,721 $22,244 $22,766


Page 42

Break Even Analysis To break even with the initial capital investment of $14,000 in 6 months, approximately $2,334 per

month needs to be earned. This is assuming that there is no additional fixed cost per month.

Product / Service provided are:

1. Wedding Planner

2. One-Stop-Shop

3. Training Institute

Average price of each product sold comprises the total average of all the above services i.e. $10,056.

The commission for wedding planner is 2.5% and average wedding cost is $30,000. Also, assuming 5

weddings will be planned per month, hence price of service will be 30000*2.5%*5 = $3,750

Course fee is $2,000 and 5 students will be undertaking the course in each class of duration 3

months. Hence, monthly price of the training service will be 2000*5/3 = $3,334

Assuming goods worth $35,657 are sold in the Year 1. Hence, price of the product sold per month is

35657/12 = $2,972

Cost of product / service is assumed to be 25%, hence the total cost is 25% of $10,056.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$1

7,0

22

$1

7,5

44

$1

8,0

66

$1

8,5

89

$1

9,1

11

$1

9,6

33

$2

0,1

55

$2

0,6

77

$2

1,1

99

$2

1,7

21

$2

2,2

44

$2

2,7

66

Cash Flow Forecast, 2014

Cash Flow Forecast, 2014


Page 43

Appendix

Wedding Industry Revenue Generation Division

Wedding Industry Revenue

Venue Hire - $ 1.4 bn 33.40%

Clothing - $ 942.3 m 21.90%

Food - $ 668.3 m 15.50%

Photography - $ 498.3 m 11.60%

Flowers, Stationery, Misc - $ 758.3 m 17.60%

Source: Sydney Morning Herald & Wedding Industry Australia

Expected Growth in the Wedding Industry


2013-2014 6.70%

2014-2015 7.55%

2015-2016 7.90%

2016-2017 8.25%

Source: Sydney Morning Herald & Wedding Industry Australia

Market Segment Analysis

2009 2010 2011 2012 2013

Brides & Grooms 1,500 1,575 1,654 1,737 1,824

Family Members 5,000 5,250 5,513 5,789 6,078

Other 1,000 1,050 1,103 1,158 1,216

Source: Wedding Industry Australia

Forecasting Potential Customers in 2014

Brides & Grooms 1,915

Family Members 6,382

Other 1,277

Median Marriageable Age

1992 1996 2000 2004 2008 2011 2013

Brides 25.6 26.5 27.3 28.3 28.8 27.6 29.4

Grooms 28 29.2 29.9 30.1 30.8 29.6 31.4

Source: Australian Bureau of Statistics

Indian immigration Trend

1971-1980

1981-1990

1991-2000

2001-2005

2006 2007 2008 2009 2010 2011 2012 2013

Growth Rate

82% 68% 85% 61% 18% 21% 22% 15% 7% 8% 10% 12%

Source: Immigration Department, Australia


Page 44

Top Countries of Immigration in Australia

India China UK

2010 23,164 24,768 25,738

2011 21,768 29,547 23,931

2012 29,018 25,509 25,274

2013 40,051 27,334 21,711

Source: Immigration Department, Australia

Ethnic vs Non-Ethnic Marriages

Number of Marriages in NSW

Australian's Marriages 29,739

Australian - Non-Australian's Marriages 6,687

Non-Australian's Marriages 4,555

Source: Wedding Industry Australia

Sales Forecast


Sales

Goods sold $35,697 $63,386 $61,115

Fees Received $40,000 $55,000 $74,250

Commission Received $45,000 $60,000 $81,000

Gross Profit/Net Sales $1,20,697 $1,78,386 $2,16,365

Packages

Destination Wedding


Page 45

Honeymoon Packages

Theme Weddings

Business Plan for Wedding Vows

Small Business & Entrepreneurship

Transcript of Business Plan for Wedding Vows