Introduction:

Innovations in technology, creativeness and man’s search for new ideas led to
the success of an event planning business. The special events industry has
grown enormously in the past years, so why not start a venture in this unique
field?

Event Management Industry

Overview in Pakistan:
During the past couple of years, event management business has grown
intensely in the major cities of Pakistan. The increasing population has also
escalated various businesses which have added to the demand of event
management. In addition to investors, youngsters have also started
participating in this business. The best aspect of this business is that it can be
started with a team of only 2 or 3 individuals with very less or zero investment.
The business mainly depends on personal contacts and every single
project/event if successful lands more business. Blue Ocean Venture is
exploring this business opportunity of event management companies which
are in collaboration with multiple vendors for the provision of the related
equipment.

PROPOSED ACTIVITY:
It will be Event Management Business and a new start-up business.
Our plan is to make partnership with Vendor service(such as florist,
Stage Designers, Photographers, Venue, Home Lights, Wedding
Cards, Wedding Car Rental) and give the customer the online
booking platform in which they can get the complete package deal at
the discounted prices.Each package deal will be available in specific
area. For example in Defence`s Venues, all others vendors services
should be in that area or near to reduce the extra cost of
transportation.Like wise in others area the Venues locations will
decide the vendor services.Our plan is to make a complete package
to provide all these services at the minimal cost at just one click.
A good event manager should have at least 5 to 8 vendors for
backup for all these necessities. All the equipment is provided to the event
company by vendors at minimal rates.
Major Requirements of an Event
Requirements vary from event to event. Corporate events are different from social
event as each has its unique prerequisites. The following equipment and facilities are
needed by any event management company.

Stage/backdrop
Lights
Canopies-Tents—Carpet-Tables & chairs
Flowers
Food
Various decorations suiting the event
Sound system/Disc Jockey (DJ)
Dance Floor
Security
Rent a Car

Occasions will be incorporated in the city of Karachi.

The person responsible for presentations/ proposals must have

excellent presentation and communication skills so that he is able to
convince clients. Once the team has a few projects in hand then they
can show their portfolio to potential clients but till that time it should
try to keep the service charges low.

Executive summary
In the event management business, the location does not matter. Pubic
relations and business contacts are significant. In the initial stages, the work
load can be distributed among 2-3 people. One person can deal with the
vendors while the other person can look after the business and the third one
can be responsible for handling the creative side. During the start of the
business, it is not advised to have an office; this only increases an
unnecessary expenditure. After the initial events, the company can start its
marketing and PR strategies.
The back bone of this business is the relationship with vendors. There should
be more than 5 or 6 vendors for each specific task. The company should
develop good relationships with all the vendors so that they can give you the
lest possible rates on the related equipment, food stuff and other provisions.
Costs
As the work and the equipment have been outsourced to vendors, each
vendor also provides workers for their relevant work. In the start of the
business, there is no need to hire workers or even buy a car to transport the
equipment; everything should be outsourced. The rest of the equipment can
be purchased with the passage of time and also depending on the number of
projects/ events the company gets.

Profit Margins
The profit margins vary from event to event. Sometimes a special discount is
given to special clients while at other times a sufficient amount can also be
charged. Some event planners charge a fixed amount as their “service
charges” excluding the equipment cost which is minimal as the event
company is renting the equipment at a low rate from vendors. Some event
planners charge a certain amount with all services included in it. A normal
wedding event can bring a profit of Rs. 20,000 to Rs. 30,000. Some times this
amount can be increased up to Rs. 100,000, but it solely depends on the
client and the work of the event manager. If an event company can get 5
clients in a month or 3 months; it can easily make more than Rs 1.5 lac. Don’t
forget that we are talking about the small event managers. Event planners
who are well established and are in the field for more than 3 years, can earn
much more than this amount. If you invest in this business by purchasing
your own equipment, the profit margins can be greatly augmented.

Charges are typically determined by three factors:

Market segment served. Social events have a different fee structure than corporate
events. In the social events industry, planners typically receive a fee for their services,
plus a percentage of some or all vendor fees. The two income streams produce
enough revenue for a profit.
In the corporate events industry, however, planners typically charge a fee for
their services, plus a handling charge for each item they contract. For
example, a planner buys flowers from a florist, marks them up and charges
that amount to the client.

Geographic location. Fees are higher in the posh areas like Defence and Clifton
where event managers charge more as compared to other areas. This difference
reflects the variation in the cost of living.
Experience and reputation of the event planner. If we’re just starting out in the
industry, it’s reasonable to charge less for your planning services while you gain
expertise.