Type: Research Essays
Sample donated: Barry Dixon
Last updated: October 23, 2019
THE IDEA Name: Course: Date: The Idea The event marketing industry has lately been growing at a fascinating speed. Social interaction has taken a largely different direction with people preferring to organize private or public events that suit their particular needs.
Within my neighborhood, the number of social events being organized has been on the increase. From baby showers to large corporate events the event industry has shown a significant potential to grow. Event managers and organizers prefer to work for large events rather than the small-scale ones.
There is a need to create an events organizing company that offers services for small and unappealing events usually ignored by established events managers and marketers. Initio Events will provide low budget events organizing and co-ordination services to low-key events. The concern is to bridge the gap created by events managers who prefer high paying events.
Most birthday owners do not procure the services of an events management company in the planning of their events. This is because they either do not have the time to do so or perceive event management and marketing as expensive. These largely unnoticed events provide a wide market for the events marketing industry. Events such as botox parties, lingerie parties, and microdermabrasion are new entrants into the events industry that are ignored for their seemingly low revenues or complexity.
These seemingly new small-scale events provide a challenge that event managers are afraid to tackle. Initio Events is an event management company that will focus on these largely unaddressed low-income events. Initio events will initially be based within the Sydney metro area as a home-based business. It will provide marketing, organizing and co-ordination services to small-scale events such as birthdays and unique social meetings such as botox and lingerie parties. Initio aims at providing cheap, affordable but quality services to owners of small-scale events who would rather do without event managers.
It also aims at developing a new trend in the events management industry. The company will have teams that deal with particular event lines and thus will offer event specific services. With Initio, event owners will not need to worry about the amount of money they will spend since the charges will be well within their reach. Critical Factors Event management like any other business requires to be registered as a company for ease of operation. Initio will seek a government operation permit for events marketing and management as a home based business. According to the Australian Government’s principal business resource website, to register a business one has to choose the kind of business they want to start (Australian taxation Office, n.d.).
Businesses are registered according to their classifications whether sole proprietorships, trust companies, companies or partnerships. The first step will be to register for an Australian Company Number. The registration for a business number costs $ 70 for seven years or $ 30 per year. After receiving the business number, Initio events must also register with the Australian business Register (Australian taxation Office, n.
d.). A business that registers a turnover of $75000 must also register for Goods and services Tax (GST). Initio is projecting slightly more than $75000, so this registration is a mandatory undertaking. Since Initio Events is planning to employ a considerable number of workers, another requirement that must be fulfilled according to the Australian Taxation Office is the Pay as You Go (PAYG) tax. This is a tax obligation paid to the government by businesses with several employees. According to the Australian Taxation Office website, there are several steps to be followed by a business to fulfill tax obligations.
First, businesses must file activity statements that will be used to calculate their tax obligations to the government (Australian Taxation Office, n.d.).
The activity statement enables one to calculate the company’s tax obligations. These registration procedures will ensure that I receive my certificate of operation. Risks The events management business faces many challenges.
There are potential risks during the conception and idea implementation part of the business. Businesses require to be financed. Since I will be using my own source for the financing, the losses I might suffer in case of failure are enormous. The money I invest in the business faces a certain level of risk considering this is a new business venture and the territory is untested. Penetrating the Sydney Metro area market for example might be difficult. This means that during the initial stages of business Initio might incur losses.
During the operational stage, the company also faces many operational hazards. According to Robinson, Wale and Dickson (2010), “there is always a risk of something going wrong at events”. Usually people in social gatherings have to contend with security issues. Venues used for social events may usually not have enough security provided for the guests. This is a major risk events manager and marketers should take into mind. The security of the guests should always be taken into consideration during any event presided by competent event managers (Event Management Handbook, 2008).
However even in situations where tight security has been organized, there might be specific breaches that might endanger guests. Another potential risk other than security is the risk of fire and other hazards that guests might face in the course of their partying. Events mangers stand to lose their investments in case of fire or personal guest injury. If they do not pay for damages, they stand to lose a lot in terms of equipment and other accessories. The events management industry is averse with operational risks and managers must be careful to ensure minimum loses. Market Analysis Initio events will be based within the Sidney Metro area. The Sydney metro area has a population of approximately half a million people.
Since Initio Events will focus on low income and small-scale events such as birthdays and formals. The target market will primarily be teenagers and young adults. The number of young unmarried women who hold botox parties in the neighborhood is significant enough to enable the company to manage at least one cosmetic surgery every week.
There are seven high schools within the town. These high schools have to source for event marketers and managers from neighboring towns because of the high charges. The seven schools are viable customers for Initio Events special high school segment. Organizing and co-ordination of birthday parties within the neighborhood also offers a viable chunk of the customer base. Most birthday-party organizers are unable to hire event marketers from outside the town since they are relatively more expensive. They therefore opt to organize their own parties, which usually end up unsatisfactorily.
The number of birthday parties organized in my neighborhood every month is approximately fifteen. This provides a fair value for Initio Events that will ensure reasonable returns. Initio Events will therefore venture into small-scale events that are normally despised by established events companies. Botox parties are gaining popularity in the US and the trend is possibly going to catch up in Australia in the coming few years. According to an article in The New York Times, botox parties attract an entrance fee of as much as $ 50 per person (Fischler, 2008). A publicist earns at least $5000 a month according to the article. Botox parties therefore pose a very lucrative venture for Initio Events.
Fischler says that botox parties are replacing meetings in the surgeon’s office since they are exciting social events that are filled with fun (Fischler, 2008). SWOT Analysis A SWOT analysis for Initio will enable the company to gauge its performance in relation to its competitors. Our major strength lies in the proximity to our customers compared to our competitors. Being based within the Sydney metro area enables us to attend to orders faster. The weaknesses that we might face include the availability of materials. Initio will be hiring equipment and transportation for events during the initial stages.
This might inconvenience the company since the equipment might not be available when needed. Initio’s opportunities include the lack of competitors who specialize in low-income parties within the neighborhood. Initio will exploit this opportunity in the short run. It can do so by carving a niche in the market and gaining customer loyalty. The threats Initio might face in the initial stages include the entry of other companies into the market.
If new competitors enter the market, the revenue earned will be significantly reduced. Resource Requirements Events management requires many resources. Firstly, there should be enough staff members for the operations. The company will require an administrative assistant. This shall be a student or individual with some general administration background. He/she will be responsible for taking calls and seeking business and controlling social media management as well.
Initio Events will need an electrician who shall be tasked with the responsibility of taking care of all electrical duties and connections during the events. We shall also need a disc jockey that will cater for entertainment during parties. Apart from the disc jockey, there shall be a separate event manager to take care of logistics and operational duties. There shall be support staff that will be charged with the responsibility of performing support duties to the main events teams. The support staff will be working on a temporary basis providing support only when needed.
The total number of staff including myself will be nine. We shall require a public address system, a lighting system, an electricity generator and a music system for the events. In addition to the above equipment, we shall also require a stage, which we shall outsource for the time being. Financing is the most important requirement of an events company.
According to Damster and Dimitri (2006), inadequate or poor financing of an event can sometimes lead to failure. According to the research concluded the above resources would require a total amount of $ 150000. We shall require this amount in addition to an operational amount of $100000 to begin our operations. The overall capital amount therefore stands at $250,000. Transport to various parties will be at the discretion of the staff.
Viability Coordinating and managing one birthday party per week will cost us approximately $500 in total costs. The average charge per birthday party is usually $1500 per party. The returns per week according to these projections are therefore reliable and can sustain the company and enable it to cater for all its expenses. We project that we shall be able to cover three events every week, a birthday party, a botox party or a corporate event as well as a few formals within the year. All these will enable us to pay our staff and cater for all maintenance expenses.
Suppose we had one botox party, one birthday party and a prom party. The total expenses for these events will amount to approximately $2000. The earnings from these three events are approximately $5000. After all the expenses incurred have been serviced, we have a gross profit of $3000. The projection of returns shows that the investment is viable. References Beloviene, A.
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