The business plan of every wedding planner must be distinct and unique and should provide the investors and lenders with information showing your unique selling idea. However there is a considerable amount of consensus as to what some of the elements of the business plan of every wedding planner should be.
Business planning is a very important element for a successful business. Business planning is considered by many researchers as away to create valuable actions in an organization that can lead them towards success. However, some researchers also believe that business planning actually leads to interference with the efforts that sponsors can make towards taking actions that can help failing organizations. Frdric Delmar and Scott Shane in their research, portray how business analysis and planning can help develop concrete steps for action that can help reduce disbanding of a new venture and can lead to faster product development and organizational activity. (Delmar F, Shane S. 2003)
Carter, Gartner and Reynolds in their research, have analyzed nascent entrepreneurs who are in the process of setting up a new business. The research was primarily to identify what activities these budding entrepreneurs do in order to be successful. Moreover, how many activities do they initiate at the time of their establishing the new business. Another question asked to these entrepreneurs was that when were particular activities started or completed. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
The researchers concluded that there are various elements of the entrepreneurs that can help them succeed. For example, when a nascent entrepreneur starts her or his business, they have to be aggressive in order to win the market, primarily since their product or service is a new one and has not yet been tried by many people. Financial support, a good team along with facilities and equipment that are required for the business all can have a major impact on how the business evolves and how it goes forward. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
The researchers have also noted that people who start their own business actually have to put in more intensity in their work in order to bring about positive changes. Planning in this case has been strongly emphasized, as this is the only element that will help bring focus towards the aggression and intensity in the work that needs to be done. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
The second element identified by the researchers is that there are many entrepreneurs in the market who actually give up. They decide that their idea will not be successful and therefore they decide to wind up their operations. In such a case, entrepreneurs who actually start small and test their ideologies, their services and products through models and prototypes have actually succeeded and therefore, businesses should focus on market research and evaluate whether their product or service has the elements to be successful or not. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
Lack of flexibility and not being able to identify whether the product or service will work or not, can actually lead to failures and thus a business plan should cater to such events and test out the portfolio effectively before the launch of the products. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
Further, the researchers evaluated that there are some people who are still in the limbo where they cannot decide between becoming an entrepreneur or not. In such a case, these budding entrepreneurs actually are not thinking on the lines of developing an action plan and deciding on the activities that need to be done. Rather their focus remains on the goals of the business and they keep preparing various plans for their business. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
Given below are some of the elements that need to be taken into account with respect to developing the business plan for a wedding planner. Moreover, these elements do not specify the action steps and activities involved which the entrepreneur will have to define on his or her own with respect to how they want their business to run. However, without the implementation of this strategy and action plan, there will be little use of the business plan, and thus the entrepreneur has to focus on developing an actionable strategy as well. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
An Executive Summary for the business plan
Similar to the business plan of every other business, the executive summary must be the first part of a wedding planners business plan. An executive summary contains a summary of all of the crucial parts of the entire business plan. A brief discussion of managements qualifications, competitive strategies, and marketing strategies, followed by the companys financial details is often a part of the executive summary. The services that the wedding planners intend to offer should also be a part of the executive summary e.g. services provided at weddings and other social events such as anniversaries, engagement parties, and graduation parties, budget planning etc. More details of the services provided can be described later in the body of the business plan. (Wedding Consultant Business Plan)
Mission Statement
The companys mission statement summarizes the companys objectives as a company. A mission statement provides a sense of direction for the company. A mission statement may also contain the services provided by the company and how it differentiates from all others. Mission statement should clearly define where the company aims to be after two or even five years. Some companies may choose to keep their mission statements simple, direct and concise in contrast some may choose to have long and complex statements. (Wedding Consultant Business Plan)
Company summary
This segment contains the particulars of the start-up companys owners and also the fund requirement to actually start the business often known as start-up expenses. The company summary should include the company locations, whether it is home-based or office based, and also the facilities, packages and services that the wedding planner intends to offer.
For an existing company the company summary will be replaced by the companys history which includes a brief discussion of the financial position of the company. The wedding planner can also include a portfolio of existing clients. The company summary is usually followed by an industry and market analysis. (Wedding Consultant Business Plan)
Market Analysis
Segmentation
With 35 billion spent on weddings and receptions every year, wedding planners have a huge market. No matter what the economic conditions of the country, weddings are hardly ever affected. Since it is a billion dollar market almost everyone becomes a potential customer. However the market is usually segmented in the following the brides, the grooms and the family members. Another segment that is considered is the numerous family members and guests that arrive at weddings, anniversaries and other social events. The analysis of the growth or decline in the different target segments in the last few years is also included. (Wedding Consultant Business Plan)
Companys Target Market Segment Strategy
After the industry and market analysis, the next part of the business plan is the companys own strategy towards the target market segment. After the company has identified those segments in the market that they want to target, it is important to figure out how that segment can be targeted and what are the various elements or areas that will of interest to such potential customers. In this case, the company will have to plan out to become the best and the most experienced provider of services for wedding planning and consultancy. (Wedding Consultant Business Plan)
To target the segment, it is important that the services are decided at this stage as to what range of services will be provided to the customers and how the company will go about providing these services to its customers. It is also important that the entrepreneur identify that with customers, the business will also have to develop allies in the supply chain including suppliers and raw material providers. Suppliers would for example be organizations or companies which provide catering services and raw materials may be decoration items. (Wedding Consultant Business Plan)
Evaluating What The Target Segment Wants
Understanding the target segment is very important. Demographics and psychographics of the target segment can identify what the customers would want for their products and services from the business. As a wedding planner, it must be understood that people generally think about saving money and having a cost effective wedding. In such a case, they also think about preparing well in advance so that all last minute glitches can be avoided. Therefore, all packages and services ranges should cater to such thought processes of the target segment. (Wedding Consultant Business Plan)
Services Analysis
It is very important to understand what the customer wants. In this case, it is important to evaluate what the brides, grooms and their families will require and then formulate service package plans that suit the needs of the various people who will be buying these services. Additionally, it is important to also evaluate the current services and products available in the market which will help in finalizing the service portfolio that can be offered to the customers through the business. At the moment, not all wedding planners are full range service providers associated with wedding planning and execution therefore, providing a complete range of services related to weddings will be extremely beneficial. (Wedding Consultant Business Plan)
Evaluation of Competition and Buyers
Competition analysis can be helpful in that it helps evaluate what the competitors are offering and how their product and service offering can be countered through the entrepreneurs own product and service range. Most wedding planning service providers only provide a small range of services and thus competition in this case is very scattered. Market research can help identify and anticipate which businesses can be a threat and when. Moreover, with analyzing competition, it helps in identifying which competitors are likely to go against the company directly and may eat up the market share. There are various wedding planners who are actually very successful in their positions, however, they provide only limited services and thus the company can become a full range service provider with the advantage of having an economies of scale. (Wedding Consultant Business Plan)
Management and Personnel Decisions
At this stage, it is also important to identify the personnel and management that would be required to run the wedding planning business. Identification of the qualifications that are already present and those which will be required needs to be done so that all necessary steps and actions can be taken. For example, if further qualifications are required, the entrepreneur can work towards achieving those qualifications. On the other hand, if more people need to be hired, their job description, their salaries etc will have to be planned. If personnel have to be hired, the financial plans of the organization also need to reflect this element because of overhead expenses like salaries and wages. (Wedding Consultant Business Plan)
Financial Planning for the Wedding Planning Business
There are various elements that are involved in the financial planning of any business. There are various books in the market which actually focus only on the financial planning element of a business plan, as it is the sole area which the business lays. If the company has planned its financial health properly, the company will run successfully by managing its revenues and cash flows. On the other hand, if the planning is poor, there is a high likelihood that the business, even with a strong service or product line and effective marketing, may not be able to cover its expenses. (Wedding Consultant Business Plan)
For financial planning, break even analysis and development of the various financial statements is extremely imperative. Financials statements include balance sheet, income statement and cash flow statement. In order to evaluate whether the business will be viable in terms of costs and revenues, these statements and the projections will be able to provide a clear idea and give the indication if the business will be successful in the future or not. Ratio analysis is also another important feature that the business plan will require as ratio analysis can help compare the industry with the companys actual or projected figures along with giving a historical trend if the business is going well or will go well or not. (Wedding Consultant Business Plan)
Assumptions about the business and about the various elements of the business like personnel, cost structures, services range and other long term elements like interest rates etc are important and they have to be documented within the business plan. These assumptions are on the bases of certain evaluations and these bases can change in the future, thus identifying which assumptions can be changed in the calculations in order to figure out the impact of the changes in the bases. (Wedding Consultant Business Plan)
Further, the entrepreneur will have to create Performa or projected figures for revenues, costs, cash flows and the balance sheet in order to evaluate how the wedding planning business will run. These projected figures will in the future, also help in the comparison of how well the business actually is running compared to the budged or projected figures. (Wedding Consultant Business Plan)
Business planning is a very important element for a successful business. Business planning is considered by many researchers as away to create valuable actions in an organization that can lead them towards success. However, some researchers also believe that business planning actually leads to interference with the efforts that sponsors can make towards taking actions that can help failing organizations. Frdric Delmar and Scott Shane in their research, portray how business analysis and planning can help develop concrete steps for action that can help reduce disbanding of a new venture and can lead to faster product development and organizational activity. (Delmar F, Shane S. 2003)
Carter, Gartner and Reynolds in their research, have analyzed nascent entrepreneurs who are in the process of setting up a new business. The research was primarily to identify what activities these budding entrepreneurs do in order to be successful. Moreover, how many activities do they initiate at the time of their establishing the new business. Another question asked to these entrepreneurs was that when were particular activities started or completed. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
The researchers concluded that there are various elements of the entrepreneurs that can help them succeed. For example, when a nascent entrepreneur starts her or his business, they have to be aggressive in order to win the market, primarily since their product or service is a new one and has not yet been tried by many people. Financial support, a good team along with facilities and equipment that are required for the business all can have a major impact on how the business evolves and how it goes forward. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
The researchers have also noted that people who start their own business actually have to put in more intensity in their work in order to bring about positive changes. Planning in this case has been strongly emphasized, as this is the only element that will help bring focus towards the aggression and intensity in the work that needs to be done. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
The second element identified by the researchers is that there are many entrepreneurs in the market who actually give up. They decide that their idea will not be successful and therefore they decide to wind up their operations. In such a case, entrepreneurs who actually start small and test their ideologies, their services and products through models and prototypes have actually succeeded and therefore, businesses should focus on market research and evaluate whether their product or service has the elements to be successful or not. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
Lack of flexibility and not being able to identify whether the product or service will work or not, can actually lead to failures and thus a business plan should cater to such events and test out the portfolio effectively before the launch of the products. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
Further, the researchers evaluated that there are some people who are still in the limbo where they cannot decide between becoming an entrepreneur or not. In such a case, these budding entrepreneurs actually are not thinking on the lines of developing an action plan and deciding on the activities that need to be done. Rather their focus remains on the goals of the business and they keep preparing various plans for their business. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
Given below are some of the elements that need to be taken into account with respect to developing the business plan for a wedding planner. Moreover, these elements do not specify the action steps and activities involved which the entrepreneur will have to define on his or her own with respect to how they want their business to run. However, without the implementation of this strategy and action plan, there will be little use of the business plan, and thus the entrepreneur has to focus on developing an actionable strategy as well. (Carter N.M.Gartner W.B.Reynolds P.D, 1996)
An Executive Summary for the business plan
Similar to the business plan of every other business, the executive summary must be the first part of a wedding planners business plan. An executive summary contains a summary of all of the crucial parts of the entire business plan. A brief discussion of managements qualifications, competitive strategies, and marketing strategies, followed by the companys financial details is often a part of the executive summary. The services that the wedding planners intend to offer should also be a part of the executive summary e.g. services provided at weddings and other social events such as anniversaries, engagement parties, and graduation parties, budget planning etc. More details of the services provided can be described later in the body of the business plan. (Wedding Consultant Business Plan)
Mission Statement
The companys mission statement summarizes the companys objectives as a company. A mission statement provides a sense of direction for the company. A mission statement may also contain the services provided by the company and how it differentiates from all others. Mission statement should clearly define where the company aims to be after two or even five years. Some companies may choose to keep their mission statements simple, direct and concise in contrast some may choose to have long and complex statements. (Wedding Consultant Business Plan)
Company summary
This segment contains the particulars of the start-up companys owners and also the fund requirement to actually start the business often known as start-up expenses. The company summary should include the company locations, whether it is home-based or office based, and also the facilities, packages and services that the wedding planner intends to offer.
For an existing company the company summary will be replaced by the companys history which includes a brief discussion of the financial position of the company. The wedding planner can also include a portfolio of existing clients. The company summary is usually followed by an industry and market analysis. (Wedding Consultant Business Plan)
Market Analysis
Segmentation
With 35 billion spent on weddings and receptions every year, wedding planners have a huge market. No matter what the economic conditions of the country, weddings are hardly ever affected. Since it is a billion dollar market almost everyone becomes a potential customer. However the market is usually segmented in the following the brides, the grooms and the family members. Another segment that is considered is the numerous family members and guests that arrive at weddings, anniversaries and other social events. The analysis of the growth or decline in the different target segments in the last few years is also included. (Wedding Consultant Business Plan)
Companys Target Market Segment Strategy
After the industry and market analysis, the next part of the business plan is the companys own strategy towards the target market segment. After the company has identified those segments in the market that they want to target, it is important to figure out how that segment can be targeted and what are the various elements or areas that will of interest to such potential customers. In this case, the company will have to plan out to become the best and the most experienced provider of services for wedding planning and consultancy. (Wedding Consultant Business Plan)
To target the segment, it is important that the services are decided at this stage as to what range of services will be provided to the customers and how the company will go about providing these services to its customers. It is also important that the entrepreneur identify that with customers, the business will also have to develop allies in the supply chain including suppliers and raw material providers. Suppliers would for example be organizations or companies which provide catering services and raw materials may be decoration items. (Wedding Consultant Business Plan)
Evaluating What The Target Segment Wants
Understanding the target segment is very important. Demographics and psychographics of the target segment can identify what the customers would want for their products and services from the business. As a wedding planner, it must be understood that people generally think about saving money and having a cost effective wedding. In such a case, they also think about preparing well in advance so that all last minute glitches can be avoided. Therefore, all packages and services ranges should cater to such thought processes of the target segment. (Wedding Consultant Business Plan)
Services Analysis
It is very important to understand what the customer wants. In this case, it is important to evaluate what the brides, grooms and their families will require and then formulate service package plans that suit the needs of the various people who will be buying these services. Additionally, it is important to also evaluate the current services and products available in the market which will help in finalizing the service portfolio that can be offered to the customers through the business. At the moment, not all wedding planners are full range service providers associated with wedding planning and execution therefore, providing a complete range of services related to weddings will be extremely beneficial. (Wedding Consultant Business Plan)
Evaluation of Competition and Buyers
Competition analysis can be helpful in that it helps evaluate what the competitors are offering and how their product and service offering can be countered through the entrepreneurs own product and service range. Most wedding planning service providers only provide a small range of services and thus competition in this case is very scattered. Market research can help identify and anticipate which businesses can be a threat and when. Moreover, with analyzing competition, it helps in identifying which competitors are likely to go against the company directly and may eat up the market share. There are various wedding planners who are actually very successful in their positions, however, they provide only limited services and thus the company can become a full range service provider with the advantage of having an economies of scale. (Wedding Consultant Business Plan)
Management and Personnel Decisions
At this stage, it is also important to identify the personnel and management that would be required to run the wedding planning business. Identification of the qualifications that are already present and those which will be required needs to be done so that all necessary steps and actions can be taken. For example, if further qualifications are required, the entrepreneur can work towards achieving those qualifications. On the other hand, if more people need to be hired, their job description, their salaries etc will have to be planned. If personnel have to be hired, the financial plans of the organization also need to reflect this element because of overhead expenses like salaries and wages. (Wedding Consultant Business Plan)
Financial Planning for the Wedding Planning Business
There are various elements that are involved in the financial planning of any business. There are various books in the market which actually focus only on the financial planning element of a business plan, as it is the sole area which the business lays. If the company has planned its financial health properly, the company will run successfully by managing its revenues and cash flows. On the other hand, if the planning is poor, there is a high likelihood that the business, even with a strong service or product line and effective marketing, may not be able to cover its expenses. (Wedding Consultant Business Plan)
For financial planning, break even analysis and development of the various financial statements is extremely imperative. Financials statements include balance sheet, income statement and cash flow statement. In order to evaluate whether the business will be viable in terms of costs and revenues, these statements and the projections will be able to provide a clear idea and give the indication if the business will be successful in the future or not. Ratio analysis is also another important feature that the business plan will require as ratio analysis can help compare the industry with the companys actual or projected figures along with giving a historical trend if the business is going well or will go well or not. (Wedding Consultant Business Plan)
Assumptions about the business and about the various elements of the business like personnel, cost structures, services range and other long term elements like interest rates etc are important and they have to be documented within the business plan. These assumptions are on the bases of certain evaluations and these bases can change in the future, thus identifying which assumptions can be changed in the calculations in order to figure out the impact of the changes in the bases. (Wedding Consultant Business Plan)
Further, the entrepreneur will have to create Performa or projected figures for revenues, costs, cash flows and the balance sheet in order to evaluate how the wedding planning business will run. These projected figures will in the future, also help in the comparison of how well the business actually is running compared to the budged or projected figures. (Wedding Consultant Business Plan)
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