Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Free Business Planning Webinar:

AI and Your Plan Register Now

Event Planning icon Global Event Planning Business Plan

Start your plan

GlobeSpan Meeting Planners, Inc.

Executive Summary

GlobeSpan Meeting Planners, Inc. (GlobeSpan) will be formed as a company specializing in the representation of meeting planners from all industries. The founders have over 17 years experience in the hospitality industry working with both domestic and international meeting planners. GlobeSpan will allow the founders to utilize their expertise with meeting planners while working with hotels and resorts across the globe.

GlobeSpan Meeting Planners will partner with HelmsBriscoe, the industry’s largest and finest meeting and conference resource firm thus placing a full service meeting operational division at GlobeSpan’s disposal.

Global event planning business plan, executive summary chart image

1.1 Mission

It is the mission of GlobeSpan Meeting Planners to be the top producing member of the HelmsBriscoe meeting planning alliance by providing the highest quality service to our clients. By providing a total meeting resource including hotel/resort site searches, rate and contract negotiation, as well as recommendations for complete event planning, on-site management, airline assistance, and cruise assistance at no cost to the client, GlobeSpan becomes a time-saving “one-stop shop.” GlobeSpan is a perfect, no-cost alternative to the hassle of in-house meeting planning. GlobeSpan will be compensated by the hotels/resorts, and by the complete event planning/airline/cruise assistance offered by HelmsBriscoe’s Resource One at the rate of six percent of gross revenues generated, paid in commission. GlobeSpan provides an easy, valuable alternative for its clients, and a flexible work environment with equitable compensation for its founders.

1.2 Keys to Success

There are four key elements we will accomplish to succeed:

  1. Continual and diligent client prospecting.
  2. Provide timely, reliable, money-saving site searches representing only the hotels/resorts which best reflect the clients’ needs.
  3. Maximizing revenue potential by offering all commission-based services provided by HelmsBriscoe’s Resource One, turning a program which would have been commission on hotel rooms only revenue into commission on complete program revenue (air, production/audiovisual, program planning).
  4. Utilize the unique expertise of both owners to offer increased value to the client.

1.3 Objectives

  1. To book a gross sales commission of $30,000 by December 31, Year 1.
  2. To book a gross sales commission of $120,000 by December 31, Year 2.
  3. To book a gross sales commission of $284,000 by December 31, Year 3.
  4. To completely repay small business loan of $50,000 by July 1, Year 4.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Business Climate

GlobeSpan Meeting Planners is a knowledge-based small business start-up on the cutting edge of what has been deemed the “new economy” by The Wall Street Journal. Selling expertise, they go on to say, is the basis of the present and future economy. Start-ups are growing at three times the rate of the national economy. In addition, The Wall Street Journal states “creativity is overtaking capital as the principal elixir of growth.” Cognetics, a business information tracking firm, calls the surging significance of small to mid-sized businesses the economy, stressing the significance of this new segment of businesses.

Additionally, in a recent study by Credit Suiss First Boston, knowledge is now acting as a substitute for physical assets for the new businesses. They are also quoted as saying “in a knowledge-based economy, there are no constraints on growth.” These are all excellent indications that the economic foundation is strong for the launch of GlobeSpan.

Specifically, the $100 billion meeting industry is strong and GlobeSpan will be a profitable player within the industry.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company Summary

GlobeSpan, in strategic alliance with HelmsBriscoe, will provide a time-saving and valuable event planning service to companies who have a lack of destination/meeting planning knowledge, are understaffed or unable to take on the time consuming task of site selection/meeting planning, or want to take advantage of our free expert site selection. With hotel/resort partners worldwide, as well as cruise/air/production/program planning partners at Resource One, the best fit for the clients’ needs will be found while generating maximum revenue for GlobeSpan.

3.1 Company Ownership

GlobeSpan Meeting Planners, Inc. will be a privately held Arizona S corporation based in Goodyear. The company is currently in the process of filing for incorporation with the Arizona Corporation Commission. The owners, Tracey Latkovic, former Director of sales of a major Arizona resort, and Kerry Feltenberg, former director of catering/conference services of a major Arizona resort, will have equal shares in the company.

3.2 Start-up Summary

Start-up costs are $4,800 and will be financed by the owners. An additional $50,000 is needed to cover the first six months of client searches. The following chart and table outline the assumed distribution of expenses, assets, investment, and loan liability.

Global event planning business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Incorporation Fees $150
Accountant $300
Office Equipment $2,500
Software $350
Communication Lines 3 per office – 6 total $400
Meeting Planning Directories $700
Other $400
Total Start-up Expenses $4,800
Start-up Assets
Cash Required $50,000
Other Current Assets $0
Long-term Assets $0
Total Assets $50,000
Total Requirements $54,800
Start-up Funding
Start-up Expenses to Fund $4,800
Start-up Assets to Fund $50,000
Total Funding Required $54,800
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $50,000
Additional Cash Raised $0
Cash Balance on Starting Date $50,000
Total Assets $50,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000
Capital
Planned Investment
Kerry Feltenberg $2,400
Tracey Latkovic $2,400
Other $0
Additional Investment Requirement $0
Total Planned Investment $4,800
Loss at Start-up (Start-up Expenses) ($4,800)
Total Capital $0
Total Capital and Liabilities $50,000
Total Funding $54,800

3.3 Company Locations and Facilities

The company will be located in Goodyear, Arizona, with a second office in Avondale, Arizona. The owner’s home offices will be linked electronically to ensure real-time communication.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Services

GlobeSpan Meeting Planners does worldwide hotel/resort searches, and provides recommendations for those which best match the client specifications free to the client, as GlobeSpan is compensated by the hotel/resort. Additionally, GlobeSpan refers clients to Resource One to provide in-depth meeting planning, production, airline, and cruise assistance.

4.1 Service Description

GlobeSpan plans to provide two basic services to its clients:

  1. Site Searches: GlobeSpan, at no cost to the client, offers expert site selections. First, the client’s specific meeting criteria, budget guidelines and date availability needs are ascertained. Then, a selection of sites, based on the owners’ own expertise, is searched for date availability and meeting space needs. Finally, the appropriate hotels/resorts, based on the responses given, are recommended to the client for the program. The selected site is then contracted and a commission is paid by the hotel/resort.

  2. Other Services: GlobeSpan will take advantage of the strategic alliance with HelmsBriscoe’s Resource One and have available all of the resources of a large meeting company. GlobeSpan will recommend airline and cruise bookings, management of hotel room blocks, and full-service meeting production. GlobeSpan will be compensated by HelmsBriscoe by commission on a per program basis.

4.2 Competitive Comparison

There are three categories of competitors, all of which have distinct weaknesses compared to GlobeSpan Meeting Planners:

  1. First, competition comes in the form of incentive/meeting houses such as B.I., Maritz, and McGettigans. These companies provide a full array of services to the client but are so large that the clients are just numbers to them. GlobeSpan has the advantage of offering full service to the client through the alliance with HelmsBricoe’s Resource One as well as the ability to provide personalized service like a small company.

  2. The second type of competitor is the resort representation firm, such as Associated Luxury Hotels and Thomas Silliman. These companies only do site searches for the client and are on retainer with only a few resorts/hotels, some of which may not fit the client’s needs. The advantage of GlobeSpan is to offer both site selection and full event planning service to the client through the alliance with HelmsBricoe’s Resource One. We will also have the distinct advantage of being able to book any hotel/resort worldwide which best fits the clients needs.

  3. Small “mom and pop” competitors, which are solely owned and operated by one individual, offer site searches to the client. GlobeSpan has the advantage over this type of company by offering a more professional service to the client and the buying/full-service power of the HelmsBriscoe alliance.

4.3 Sales Literature

As part of the benefits of the alliance with HelmsBriscoe, a full-color brochure describing the business with client testimonials, as well as a four-1/2 page color insert describing the features and benefits of the site selection service will be provided by HelmsBriscoe to GlobeSpan. Additionally, four inserts, each four-1/2 page color, describing Resource One, Housing Solutions, Cruises, and Air Partner, will be provided by HelmsBriscoe to GlobeSpan.

Letterhead, with our logo is also provided by HelmsBriscoe, will be used to send customer-specific sales letters and tailored proposals. Shell sales letters and client proposals will be established. Request for proposal letters with an area for hotels/resorts to acknowledge payment of commission will also be established.

Online “brochures” will be created to email to clients. A regular monthly newsletter will be created to email to clients as a reminder of services offered.

All collateral pieces will convey the features, benefits, value, service, and professionalism of GlobeSpan Meeting Planners.

4.4 Fulfillment

We will fulfill the clients’ needs by dividing tasks based on the area of expertise of each owner.

First, by providing professional salesmanship, customer service and follow-up based on the specific needs of the client.

Second, by providing detailed, knowledgeable interaction with the hotels/resort to match them with client needs, as well as understanding and recommending additional services such as air, cruise, production, room block management, etc.

4.5 Technology

Technology is essential to today’s meeting planner. GlobeSpan Meeting Planners will stay on the cutting edge of technology.

  1. Hardware. To include high speed, updated IBM-compatible hardware with modem access, combination color printer/fax/copier/scanner, and updated telephone with caller ID.

  2. Software. To include Windows 98 with Prodigy and CompuServe Internet access, Microsoft Works for Windows and Adobe Acrobat Reader to be used to access email and send email information/newsletters (draft letters/proposals), and receive information from clients, respectively. Act! 4.0 will also be used as a client database/trace system.

  3. Internet Technology. The creation of a website to outline services to clients, access to hotel/resort online database provided by HelmsBriscoe, hotel/resort “hotrates/hotdates” website to access discounted rates posted by “partner” hotels, HelmsBriscoe “intranet” which allows GlobeSpan to communicate with other meeting planners within the HelmsBriscoe alliance.

  4. Other Technology. Utilizing communication advantages such as Caller ID, call forwarding from office telephones to cellular telephones to ensure every call is answered, and a message system which allows callers who receive a message to page an owner for an immediate response. Additionally, the two home offices will be linked to ensure both calls and the database can be accessed in both places.

4.6 Future Services

Future plans for expansion have been discussed, and include the marketing of materials/books to meeting planners on the “how to’s” of event planning and selling those materials, both online and by offering “seminars” to promote the information.

Also, in the future, GlobeSpan may offer on-site lead conference management either alone or in conjunction with Resource One.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Market Analysis Summary

From the past experience of GlobeSpan Meeting Planners’ founders, small- to mid-sized companies that are not located in major metropolitan areas (i.e suburbs, smaller cities, rural areas) are not primary targets for other event planning companies and hotel/resort chains, and in general, are more receptive to solicitation. Therefore, these areas will be targeted.

Additionally, strategically focusing on companies who have not been represented by meeting planning firms or utilized meeting planning search firms in the past should bring us new clients.

Those who have a need for event planning services are companies with a lack of hotel/resort/destination knowledge, no on-site meeting planner, and/or no time to concentrate on site search details.

5.1 Market Segmentation

Some potential client profiles are as follows:

Corporate
In the corporate segment, internal corporate meeting decision makers range from designated meeting planners, to administrative assistants, to company presidents. These potential customers are planning corporate group (10 or more rooms) meetings which range from small board to national sales meetings and can range from one to several hundred meetings per year. The corporate window for event planning can be as little as one month to as long as several years.

Incentive
Incentive planners are a subgroup of the the corporate segment specializing in reward-based high-end group travel. Again, the decision makers can vary from office to office. They plan group incentive trips to, generally, resort destinations which can range from the top ten company executives to several hundred sales personnel. Typically, the window for incentive travel is between three months and one year due to the “qualification” imposed by the company on the personnel to attend the meetings (i.e. meeting sales quotas, hitting budget, etc.).

Association
Associations, according to their by-laws, must typically have a specific number of meetings per year. Thus, the association planner’s calander is set years in advance. Usually, an association will have a few board meetings and one or more large conventions/trade shows per year. The potential customer is typically an on-site meeting planner, the executive director or the entire board.

Social/Military/Educational/Religious/Fraternal (SMERF)
This market segment, sometimes referred to by its acronym SMERF, represents events which are planned by designated individuals who may be somewhat unfamiliar with meeting planning, such as social committee members, military personnel, teachers, pastors, or fraternal organization officers. This market segment’s meetings are typically mid-range to low budgeted events (usually due to the diverse economic status of the members and the need to avoid excluding any attendees due to costs).

Global event planning business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Corporate 3% 53,250 54,848 56,493 58,188 59,934 3.00%
Incentive 2% 15,000 15,300 15,606 15,918 16,236 2.00%
Association 3% 3,750 3,863 3,979 4,098 4,221 3.00%
SMERF 0% 3,000 3,000 3,000 3,000 3,000 0.00%
Total 2.69% 75,000 77,011 79,078 81,204 83,391 2.69%

5.2 Service Business Analysis

GlobeSpan is a meeting planning resource firm. Third party companies, as they are commonly referred to by hotels and resorts, consist of firms who represent a small group of specific hotels/resorts, and mega meeting/incentive “houses,” which provide full services including airfare, housing, and on-site program administration, as well as large and small site search firms.

Due to the strategic alliance with HelmsBriscoe, GlobeSpan Meeting Planners, Inc. will be instantly recognizable to meeting professionals as part of the hospitality industry’s largest and finest meeting and conference resource firm. We will have the challenge of establishing ourselves with customers as a “client advocate,” not a hotel/resort representative, and separate ourselves from the mega-firms by the quality of personal service we offer.

5.2.1 Business Participants

The business presence in the third party portion of the meeting industry breaks down largely as follows:

National Representation Firms
Advantage: These companies associate themselves with a small number of properties and are able to sell them in detail to the client. They are often very attentive about their properties and can offer solutions nearly instantly with this understanding of the limited number of properties.
Disadvantage: These companies have retainer agreements with specific hotels nationwide and represent only those firms to the potential client. The client does not have the advantage of objectivity with these companies because they are paid by the hotel. Additionally, many times a client may be offered specific properties on their list that “come close” to the client’s needs and that property is not a correct fit for the program. These firms do not act as a client advocate, but a hotel/resort advocate.

Mega Meeting/Incentive Houses
Advantage: These companies offer full service, from airfare to post-program follow-up, and offer the leverage and buying power of a large company because they have “preferred” vendors with whom they do large volume.
Disadvantage: These companies are so large, they offer very little “custom” service for the client. Timely follow-up is always a concern when utilizing a very large company. The client will have many contacts for different services within the company. These companies often advocate the “preferred” vendors with whom they do more business than the actual client.

National Site Search Firms
Advantage: These companies offer a time saving service to the client and are able to research any hotel/resort worldwide.
Disadvantage: Many of these firms have become so large that the individual sales contact does not even remember which program from which client he/she may be working on at a given time. A resort may follow-up to propose a better offer for the customer, and the sales contact does not have the time or care to do any more than provide the initial information to the client. These companies are limited to site searches and can offer no other event planning assistance/value to the client.

Small Site Search Firms
Advantage: These companies can offer good customer service and timely follow-up to the client.
Disadvantage: These companies are so small and independent, most do not have the knowledge to offer the correct assistance to the client. Additionally, they do not have any leverage/buying power with hotels/resorts and lack a network of associates to offer any other information than what is presented by the hotel/resort salesperson to the clients.

5.2.2 Competition and Buying Patterns

As previously mentioned, the Professional Convention Management Association reports a rising trend to use third-party services. Planners are choosing that route for various reasons. They are finding that mergers within the hotel/resort industry are creating a more profit and less service-oriented business climate. Third-party planning companies are chosen to provide expert advice/recommendations. Overall, in the competitive atmosphere of third-party companies, there are several reasons why certain companies are chosen over others:

  • Timely follow-up. Providing the exact customer-specific information needed in the time constraints given by the customer.

  • Leverage. Customers rely on organizations with buying power to stretch a small budget, or just get more “bang for their buck.”

  • Objectivity. Planners need an independent third party to cut through the hotel/resort’s sales pitch and present clean, factual information.

  • Technical Knowledge. Planners want to rely on expert advice regarding “new” and upcoming technical opportunities that they may not be aware of, or understand extensively, but may want to incorporate into a meeting.

  • Advocacy. Planners need a tenacious, conscientious advocate on all fronts.

  • Integrity. Honest, ethical behavior is paramount. Planners need personal trusting relationships.

  • Intellegence. Planners are buying knowledge, reasoning and decision-making ability.

  • Custom Solutions. Planners want the correct solution for their unique situation, not cookie-cutter responses that may not fit their immediate needs.

  • Personal Service. Potential customers do not want to feel like they are one of many other clients. They want personalized service.

5.2.3 Main Competitors

GlobeSpan’s competitors include:

Note: All competitors names have been removed for confidentiality.

5.3 Target Market Segment Strategy

Prospecting is the key to success. We must consistently bring in new customers to use our site selection service and who we can potentially upsell our other alliance services. To increase the success of prospecting, we must create targeted lists which fit the criteria of a future client. These lists will be compiled utilizing resources available to GlobeSpan Meeting Planners including, but not limited to, the Official Meeting Planners Guide, Meeting Planners International Directory, Executive Women International Resources, etc.

After ascertaining a potential customer by prospecting, we must follow though with efficient site recommendations based on the exact client needs, and always remember to upsell the additional client services to add value to our services for the client and increase possible revenues.

5.3.1 Market Growth

The growth potential in the meetings industry is strong. Currently, over $100 billion is spent annually on meetings, according to MeetingNews. In a study by Deloitte & Touche, conventions, expositions, meetings and incentive travel is listed as the twenty-second largest contributor to the gross national product. This spending is expected to grow between 2.9-4.2% per year, according to the Convention Liaison Council.

All indicators seem to predict growth within the meeting planning industry. In the Convene Magazine 8th Annual Market Survey, 89% of meeting professionals reported flat or increased meeting attendance expected for 1999 versus 1998. Likewise, PriceWaterhouseCoopers reported that upscale and full-convention hotels recorded over 70% occupancy in 1999, versus the average of 64.5% occupancy reported in 1997.

Growth within the corporate, association, incentive and SMERF market segments are conservatively estimated to grow at a rate of three percent, two percent, and three percent, and remain flat, respectively over the next few years.

5.3.2 Market Needs

Our target potential clients have a need for assistance in meeting planning/hotel/resort/destination expertise. They are looking for no-cost time saving options to allow them to prioritize other company tasks for which they are responsible. They have a need for a “silent” partner (GlobeSpan Meeting Planners) which will make them “look” better to their company. They range from secretarial level to company president and have the same information gathering and time-saving needs for different reasons. Those employees responsible for meeting planning want you to communicate with them on their terms. They require whichever mode of communication is most comfortable for their busy schedule, including email, fax, telephone, cellular telephone, messaging, and paging options. They want buying power with hotels/resorts, preferential treatment with their dates/patterns, knowledge of all destinations worldwide, and efficiency in the presentation of site search findings.

Within the target marketing segments, corporate, association, incentive, and social/military/educational/religious/fraternal (SMERF), the following situations may exist, creating a need for the services offered by GlobeSpan:

  • Companies and SMERF organizations who have “downsized” and/or eliminated their event planning department are prime prospects, as the meeting planning duties will typically fall to one or two individuals or another company member unfamiliar with meeting planning. These clients are receptive to the time-saving aspect of GlobeSpan’s services and expertise.

  • Companies and SMERF organizations who have administrative staff (i.e. executive secretary, marketing coordinator, etc.) take on the responsibilities of event planning will find that utilizing the services offered by GlobeSpan will enhance their image within their own company by presenting expert meeting information to their boss/event committee.

  • Meeting Planners who are searching a new area and have little or no knowledge about that area will appreciate the expert knowledge of their exact meeting location and needs provided by GlobeSpan.

  • Meeting Planners who need to concentrate on internal meeting content and have little or no time to complete the time consuming task of site selection and/or airline coordination, on-site production, hotel room block management, etc.

The market for site selection firms is growing as companies are utilizing outside providers for event planning services instead of paying permanent in-house employees. According to the 1999 American Society of Association Executives and Professional Convention Management Association’s Housing Trends Study, there is a rising trend toward utilizing third party services–from 47% in 1997, to an estimated 61% by 2001. They are looking for external cost-effective ways to plan company meetings, and incentives and customer events.

More meetings are being planned by key corporate industries, such as the pharmaceutical, medical, automotive, financial, high technology and e-commerce industries, largely due to the success of these industries in the current bullish economy. Thus, a need to outsource some of the work associated with that increase. Additionally, associations are seeing an increase across the board in membership participation making industry meetings larger and more complex.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Strategy and Implementation Summary

GlobeSpan, with our strategic alliance with HelmsBriscoe, will offer the great customer service of a small company; yet, offer the services of a big company to our clients. With aggressive prospecting, follow-up, and attention to detail, GlobeSpan will exceed the needs of the four target market segments. We will develop our niche market–those clients needing a “silent partner” to save them time and offer intelligent solutions–by targeted sales and service. We will commit to a consistent “review and change” process by which we can anticipate the needs of the marketplace and implement change to stay competitive.

6.1 Competitive Edge

There are several competitive edges that GlobeSpan Meeting Planners has over its competitors. First, over national representation firms, GlobeSpan has the freedom and ability to present any hotel/resort as a solution to the customer, we are not restricted to a few retainer hotels/resorts. Second, we can offer the services of a big company but are still small enough to offer great customer service to the fastest growing segment of businesses–small-to mid-sized. Third, while national site search firms are limited to just finding a destination for the customer, through our alliance with HelmsBriscoe’s Resource One, we have the ability to help with all aspects of the meeting, as well as offer assistance with airfare and cruises. Fourth, although small search firms can only offer limited knowledge and service, our alliance with HelmsBriscoe allows us access to over 180 associates and databases detailing the experiences at each destination.

Overall, GlobeSpan will offer the best of both worlds–small-company service with big company expertise.

6.2 Marketing Strategy

The owners’ 17 years experience in the industry will bring a wealth of contacts with whom to build a network of referrals. We will utilize the marketing materials offered by HelmsBriscoe as a foundation, and build upon the quality letters, proposals, newsletters and reminder cards. We will be able to market like a small company with big company clout. We will benefit from the national marketing efforts of HelmsBriscoe, such as national advertising, national partnership marketing with hotels/resorts, Web marketing such as HotDateHotRates.com, HelmsBriscoe.com, HBMeet-Market.com, FirstOptionHB.com, the HelmsBricoe quarterly newsletter, and several international industry events per year, such as the Industry Summit.

6.2.1 Promotion Strategy

GlobeSpan will consistently ask clients for referrals and will keep in contact with customers by direct mail to update clients with new information and reasons to utilize our services. We will concentrate on complete client trust and strive to exceed client expectations, which will ultimately cultivate repeat business and increase referrals.

6.2.2 Pricing Summary

GlobeSpan Meeting Planners will offer its services free of charge to the client. From the property in which the client books the meeting, GlobeSpan will receive a 10% of total rooms revenue commission. Between three and four percent of this commission will go to HelmsBriscoe in return for the services described herein. The total commission for the company will break down as follows:

Booking Revenue GlobeSpan’s Commission
$1 million 6%
$1 million-$2 million 6.1%
$2 million-$3 million 6.2%
$3 million-$4 million 6.3%
$4 million-$5 million 6.4%
$5 million-$6 million 6.5%
$6 million-$7 million 6.6%
$7 million-$8 million 6.7%
$8 million-$9 million 6.8%
$9 million-$10 million 6.9%
Over $10 million 7%

Although it does not seem like a large jump, for example, one percent commission on $10 million would translate to $100,000 for GlobeSpan. So it does add up significantly as our revenue numbers grow.

6.2.3 Marketing Programs

Our marketing programs for the first five months of operation are listed in our milestones chart. Specifically, we intend to get the word out with direct mail. All other national marketing efforts will be handled by HelmsBriscoe. At the end of the five months, we will re-evaluate our position based on meeting/exceeding our sales forecast and will make adjustments for the next six months accordingly.

6.2.4 Positioning Statement

For those companies, associations, and organizations who need time-saving, reliable, honest, and intelligent assistance with site searches and meeting planning, GlobeSpan can provide the timely follow-up, integrity, advocacy, and custom solutions of a small company while offering the leverage, technical and meeting destination knowledge of a big company. Unlike the national representation firms, GlobeSpan is not on retainer with specific hotels/resorts and, therefore, can offer objective solutions to the client’s custom meeting needs.

6.3 Sales Strategy

The features of GlobeSpan, combined with it’s no-cost service to the client, will assist in closing sales. We must stress to the client that our commission will not increase the price paid by the client to the hotel/resort and ensure the hotels/resorts utilized are consistent with this promise. To ensure future sales, we must have incredible follow-up and personalized customer service. We must create so much value in our service that planning a meeting without us would be viewed by the client as a mistake.

6.3.1 Sales Forecast

Our sales forecast in the appendix of this plan details our anticipated commissions. This is a very conservative estimate based on the actual history of sales of one of the owners. Please note the plan outlines the quarterly nature of corporate sales (our major segment) and tends to be lower during the beginning of a quarter (January through March would be one quarter) and heavier toward the close of the quarters. We anticipate no referral commission at first, however, we do anticipate that that commission will slowly and steadily increase over time.

Example: To achieve a $3,000 commission in month one, we are anticipating closing $50,000 in rooms revenue or approximately one contract at, for example, 75 rooms for four nights at a rate of $175 actualized in August. This would yield a $3,000 commission which is 6% of $50,000. The rest of the forecast is figured with the same reasoning.

Global event planning business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Meeting Planning $116,216 $164,050 $273,950
Resource One Referrals $4,200 $7,200 $10,800
Total Sales $120,416 $171,250 $284,750
Direct Cost of Sales Year 1 Year 2 Year 3
Meeting Planning $0 $0 $0
Resource One Referrals $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

6.3.2 Sales Programs

Our sales programs for the first five months of operation are listed in our Milestones chart. Specifically, we intend to qualify our customers utilizing industry directories such as the Meeting Planners Guide and other relevant resources, create planner specific letters and proposals based on each segment’s different needs, follow-up with telephone solicitation and personal letters and perform future follow-up in the form of friendly direct mail and telephone calls. At the end of the five months, we will re-evaluate our position based on meeting/exceeding our sales forecast and will make adjustments for the next six months accordingly.

6.4 Strategic Alliances

We will form a strategic alliance with HelmsBricoe Performance Group. This alliance will allow GlobeSpan access to many helpful items:

  1. Expensive, full-color collateral material, letterhead and business cards in any quantity needed.
  2. Access to over 210 partners in 50 offices who can assist with any questions/need for destination information, recommendations, etc.
  3. Access to the HelmsBriscoe intranet which provides detailed hotel/resort information and site information which can be provided to the clients in minutes.
  4. Resource One will provide additional revenue to GlobeSpan by offering “large company” services such as airline reservations, full production company capabilities, housing/hotel block assistance to the customer and prospection/lead generation assistance to GlobeSpan if needed.
  5. By utilizing the “permission marketing” of HelmsBriscoe, GlobeSpan is immediately recognized as the country’s largest meeting and conference resource firm. No introduction or start-up advertising is necessary.

6.5 Milestones

The following table offers our benchmarks for success. GlobeSpan has assigned each task to an owner and have very specific completion dates for each task.

As demonstrated, we are focused on marketing and sales. By ending the milestones in January, we are demonstrating a business philosophy–constant evaluation and change for the better. It is our intention to spend a week every six months thinking and evaluating the current status of our business and designing a new milestone charge for the future, which integrates our successes and creates new ideas for the future.

Milestones
Milestone Start Date End Date Budget Manager Department
Qualify list of clients currently not using 3rd party services 7/31/2000 8/3/2000 $0 T.L Sales
Create new introduction/features/benefits letter 7/31/2000 8/3/2000 $0 T.L Sales
Create request for proposal forms 7/31/2000 8/3/2000 $0 K.F Service
Create client proposal response forms 7/31/2000 8/3/2000 $0 K.F Service
Send direct mail to qualified clients not using 3rd party services 8/3/2000 8/4/2000 $0 K.F Service
Followup calls to clients not using 3rd party services 8/7/2000 8/18/2000 $0 T.L Sales
Perform searches for any clients captured during prospecting 8/7/2000 7/31/2001 $0 K.F Service
Record any successful prospects into Act Database 8/7/2000 8/18/2000 $0 K.F Service
Trace for future sales followup 8/7/2000 8/18/2000 $0 T.L Sales
Trace for short-term service followup 8/7/2000 7/31/2001 $0 K.F Service
Create list of corporate meeting planner prospects 8/21/2000 8/24/2000 $0 T.L Sales
Create corporate introduction/features/benefits Letter 8/21/2000 8/24/2000 $0 T.L Sales
Send direct mail to corporate meeting planner prospects 8/24/2000 8/25/2000 $0 K.F Service
Followup calls to corporate meeting planner prospects 8/28/2000 9/15/2000 $0 T.L Sales
Perform searches for any cients captured during corporate prospecting 8/28/2000 7/31/2001 $0 K.F Service
Record any successful prospects into Act Database 8/28/2000 9/15/2000 $0 K.F Service
Trace for future sales followup 8/28/2000 9/15/2000 $0 T.L Sales
Trace for short-term service followup 8/28/2000 7/31/2001 $0 K.F Service
Create message for first reminder postcard to go to current database 9/18/2000 9/19/2000 $0 T.L Sales
Create postcard and have printed 9/19/2000 9/22/2000 $0 K.F Service
Send postcard to current database 9/25/2000 9/27/2000 $0 K.F Service
Create list of association meeting planner prospects 9/25/2000 9/28/2000 $0 T.L Sales
Create asociation introduction/features/benefits letter 9/25/2000 9/28/2000 $0 T.L Sales
Send direct mail to association meeting planner prospects 9/28/2000 9/29/2000 $0 K.F Service
Followup calls to association meeting planner prospects 10/2/2000 10/13/2000 $0 T.L Sales
Perform searches for any clients captured during association prospecting 10/2/2000 7/31/2001 $0 K.F Service
Record any successful prospects into Act Database 10/2/2000 10/13/2000 $0 K.F Service
Trace for future sales followup 10/2/2000 10/13/2000 $0 T.L Sales
Trace for short-term service followup 10/2/2000 7/31/2001 $0 K.F Service
Order custom message cards to thank customers for the new business 10/16/2000 10/20/2000 $0 T.L Sales
Send Thanksgiving cards to Database 11/13/2000 11/17/2000 $0 K.F Service
Order general holiday cards 10/16/2000 10/20/2000 $0 T.L Sales
Send holiday cards 12/11/2000 12/15/2000 $0 Both Sales/Service
Create list of Incentive/Smerf meeting planner prospects 10/23/2000 10/26/2000 $0 T.L Sales
Create separate Incentive/SMERF introduction/features/benefits letter 10/23/2000 10/26/2000 $0 T.L Sales
Send direct mail pieces to Incentive and SMERF meeting planner prospects 10/26/2000 10/27/2000 $0 K.F Service
Followup calls to Incentive/SMERF meeting planner prospects 10/30/2000 11/7/2000 $0 T.L Sales
Perform searches for any clients captured during Incentive/SMERF prospecting 10/30/2000 7/31/2001 $0 K.F Service
Record any successful prospects into Act Database 10/30/2000 11/7/2000 $0 K.F Service
Trace for future sales followup 10/30/2000 11/7/2000 $0 T.L Sales
Trace for short-term service followup 10/30/2000 7/31/2001 $0 K.F Service
Make calls to any prospect previously unavailable 11/8/2000 12/1/2000 $0 T.L Sales
Re-call potential prospects with wishing happy holidays premise 12/4/2000 12/29/2000 $0 T.L Sales
Perform searches for any clients captured during review and holiday calls 11/8/2000 7/31/2001 $0 K.F Service
Trace review/holiday calls for future sales followup 11/8/2000 12/29/2000 $0 T.L Sales
Trace for short-term service followup 11/8/2000 7/31/2001 $0 K.F Service
PROGRESS REVIEW WEEK 1/2/2000 1/5/2000 $0 Both Sales/Service
Review sales efforts to date, create new Milestone chart for next 6 months 1/2/2000 1/5/2000 $0 T.L Sales
Review service efforts to date, create new Milestone chart for next 6 months 1/2/2000 1/5/2000 $0 K.F Service
Totals $0

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Management Summary

The owners of GlobeSpan Meeting Planners have over 17 years of experience in the hospitality industry. With the knowledge of all aspects of event planning, from initial hotel contact to final hotel billing, we offer a solid base of information from which the customer can draw. The founders of GlobeSpan have worked with many potential planner customers already on the resort side and have demonstrated competence in meeting site selection and planning.

We will rely on Resource One to outsource any upsold services such as air/meeting development/program administration/destination management/production/on-site negotiations. Uniquely, GlobeSpan will earn commission on this outsourcing and it will provided at no charge to GlobeSpan.

7.1 Organizational Structure

The two owners will divide the responsibilities of the business. While both will decide on major company matters, the day to day operation will be divided into two major sections:

  1. Client contact, prospecting, sales and contract negotiations.
  2. Hotel/resort contact, site selection and upsell of additional services.

Administrative work will be divided equally as necessary among the owners with a part-time administrative staff position becoming available as soon as deemed appropriate by both owners to free the owners for direct client/hotel/resort contact.

7.2 Management Team

GlobeSpan is committed to sales and service. Tracey Latkovic, former director of sales of a major resort, has taken on the sales role within the company. Kerry Feltenberg, former director of catering/conference services of a major resort, has taken on the service role within the company. This leaves no expertise out and provides a solid foundation for GlobeSpan.

Kerry Feltenberg reached executive level at [confidential], one of the most prestigious resorts in the nation, as director of catering/conference services. Her education includes the designation of CMP, certified meeting professional, which requires ongoing education, publication of articles in industry journals and public speaking engagements. A very successful professional, Kerry adds former President of Executive Women International to her list of achievements.

Tracey Latkovic is the former director of sales for [confidential], responsible for a five year personal achievement of over $21 million dollars in room sales. Her education includes a bachelor of science in aeronautical engineering with a minor in mathematics. She has been honored by Today’s Arizona Woman Success Magazine as one of the Top Ten Women in Business and Industry.

7.3 Personnel Plan

The table below outlines our payroll for the owners over the next three years. In year one, we are planning on a modest salary of $4,000 per owner per month to cover existing living expenses. This salary will increase a modest 4.8% in fiscal year 2002 and again a modest 4.8% in fiscal year 2003. We feel our dividends from growth will supplement our income in year two and three. The detailed monthly personnel plan for the first year is included in the appendix.

Personnel Plan
Year 1 Year 2 Year 3
T. Latkovic $48,000 $50,400 $52,920
K. Feltenberg $48,000 $50,400 $52,920
Total People 0 0 0
Total Payroll $96,000 $100,800 $105,840

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

As a service or knowledge-based corporation, GlobeSpan Meeting Planners, Inc. will begin with very little start-up costs, and one long-term loan to allow the owners the ability to establish the company. As indicated on the following charts and tables, GlobeSpan will grow to need fewer funds over time to maintain growth. By year five, GlobeSpan will be completely debt-free and working with nearly the same overhead as it did on day one.

8.1 Important Assumptions

The following table of General Assumptions outline our conservative general assumptions on an annual basis. A monthly outline of the important assumptions is included in the appendix. Overall, we are assuming the forecasted business climate as outlined in the Business Climate Section will remain steady. Additionally, we assume our strategic partner, HelmsBriscoe’s positioning within the industry will continue to grow.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0

8.2 Key Financial Indicators

GlobeSpan shows, in the Key Financial Indicators chart which follows, three Benchmarks: Sales, Gross Margin, and Operating Expenses. We expect sales to grow steadily over the next three years while our gross margin remains unchanged and our operating expenses only rise slightly over the next three years.

Global event planning business plan, financial plan chart image

8.3 Break-even Analysis

The following chart and table summarizes our monthly break-even analysis, with fixed costs at approximately $10,200 and commission needed at the same to break even.

Global event planning business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $9,061
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $9,061

8.4 Projected Profit and Loss

GlobeSpan’s projected income statement is shown in the following table. We show a conservative first year with approximately $120,000 in commissions; however, this grows to over $170,000 in 2002, and over $280,000 in 2003. With relatively low operating expenses, our net profits nearly quadruple in the second year, and almost double in the third. We have offered a detailed monthly outline of income in the appendix.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $120,416 $171,250 $284,750
Direct Cost of Sales $0 $0 $0
Other $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $120,416 $171,250 $284,750
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $96,000 $100,800 $105,840
Sales and Marketing and Other Expenses $4,600 $0 $0
Depreciation $0 $0 $0
Sales Telephone Cost $5,808 $6,098 $6,403
Service Telephone Cost $1,800 $1,890 $1,985
Sales On-line Service $264 $264 $264
Service On-line Service $264 $264 $264
Payroll Taxes $0 $0 $0
Other $0 $0 $0
Total Operating Expenses $108,736 $109,316 $114,756
Profit Before Interest and Taxes $11,680 $61,934 $169,994
EBITDA $11,680 $61,934 $169,994
Interest Expense $4,305 $3,077 $1,794
Taxes Incurred $1,844 $14,714 $42,751
Net Profit $5,531 $44,143 $125,449
Net Profit/Sales 4.59% 25.78% 44.06%

8.5 Projected Cash Flow

As demonstrated by the Projected Cash Flow Chart below, GlobeSpan’s cash balance is healthy, with our projected cash flow being negative for our first few months and then a slow recovery during the remainder of the year. Our net cash flow for fiscal year 2001 is -($21,600) with our cash balance at $28,000. Significant to note, in year one our long-term borrowing repayment will amount to over $12,800. A detailed monthly cash flow analysis is provided in the appendix.

Global event planning business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $120,416 $171,250 $284,750
Subtotal Cash from Operations $120,416 $171,250 $284,750
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $120,416 $171,250 $284,750
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $96,000 $100,800 $105,840
Bill Payments $16,524 $26,506 $51,229
Subtotal Spent on Operations $112,524 $127,306 $157,069
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $12,822 $12,822 $12,822
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $125,346 $140,128 $169,891
Net Cash Flow ($4,930) $31,122 $114,859
Cash Balance $45,070 $76,192 $191,050

8.6 Projected Balance Sheet

GlobeSpan has planned for success as outlined, this is evident in the projected balance sheet below. Our net worth will be a -($11,800) in year one to almost $127,000 in year three. We have outlined monthly estimates in the appendix.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $45,070 $76,192 $191,050
Other Current Assets $0 $0 $0
Total Current Assets $45,070 $76,192 $191,050
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $45,070 $76,192 $191,050
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $2,361 $2,162 $4,394
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $2,361 $2,162 $4,394
Long-term Liabilities $37,178 $24,356 $11,534
Total Liabilities $39,539 $26,518 $15,928
Paid-in Capital $4,800 $4,800 $4,800
Retained Earnings ($4,800) $731 $44,874
Earnings $5,531 $44,143 $125,449
Total Capital $5,531 $49,674 $175,123
Total Liabilities and Capital $45,070 $76,192 $191,050
Net Worth $5,531 $49,674 $175,123

8.7 Business Ratios

GlobeSpan’s projected business ratios are illustrated in the following chart. It is noteworthy that our net working capital will quadruple by year three and our debt to net worth ratio shrinks to an impressive 0.57 by year three. We look forward to healthy ratios for profitability, risk and return. The final column, Industry Profile, contains ratios based on the personal services industry, as defined by the Standard Industry Classification (SIC) Index code 7299.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 42.22% 66.28% 17.90%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 37.10%
Total Current Assets 100.00% 100.00% 100.00% 52.80%
Long-term Assets 0.00% 0.00% 0.00% 47.20%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 5.24% 2.84% 2.30% 33.90%
Long-term Liabilities 82.49% 31.97% 6.04% 28.00%
Total Liabilities 87.73% 34.80% 8.34% 61.90%
Net Worth 12.27% 65.20% 91.66% 38.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 96.27% 75.91% 57.39% 72.70%
Advertising Expenses 1.74% 0.00% 0.00% 2.20%
Profit Before Interest and Taxes 9.70% 36.17% 59.70% 4.00%
Main Ratios
Current 19.09 35.24 43.48 1.81
Quick 19.09 35.24 43.48 1.33
Total Debt to Total Assets 87.73% 34.80% 8.34% 61.90%
Pre-tax Return on Net Worth 133.33% 118.49% 96.05% 6.30%
Pre-tax Return on Assets 16.36% 77.25% 88.04% 16.60%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 4.59% 25.78% 44.06% n.a
Return on Equity 100.00% 88.87% 71.63% n.a
Activity Ratios
Accounts Payable Turnover 8.00 12.17 12.17 n.a
Payment Days 31 31 22 n.a
Total Asset Turnover 2.67 2.25 1.49 n.a
Debt Ratios
Debt to Net Worth 7.15 0.53 0.09 n.a
Current Liab. to Liab. 0.06 0.08 0.28 n.a
Liquidity Ratios
Net Working Capital $42,709 $74,030 $186,656 n.a
Interest Coverage 2.71 20.13 94.73 n.a
Additional Ratios
Assets to Sales 0.37 0.44 0.67 n.a
Current Debt/Total Assets 5% 3% 2% n.a
Acid Test 19.09 35.24 43.48 n.a
Sales/Net Worth 21.77 3.45 1.63 n.a
Dividend Payout 0.00 0.00 0.00 n.a

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Appendix

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Meeting Planning 0% $3,000 $7,000 $8,000 $7,000 $7,000 $11,888 $11,888 $12,888 $11,888 $11,888 $11,888 $11,888
Resource One Referrals 0% $0 $0 $0 $0 $0 $600 $600 $600 $600 $600 $600 $600
Total Sales $3,000 $7,000 $8,000 $7,000 $7,000 $12,488 $12,488 $13,488 $12,488 $12,488 $12,488 $12,488
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Meeting Planning $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Resource One Referrals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
T. Latkovic 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
K. Feltenberg 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $3,000 $7,000 $8,000 $7,000 $7,000 $12,488 $12,488 $13,488 $12,488 $12,488 $12,488 $12,488
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $3,000 $7,000 $8,000 $7,000 $7,000 $12,488 $12,488 $13,488 $12,488 $12,488 $12,488 $12,488
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Sales and Marketing and Other Expenses $275 $315 $315 $315 $315 $365 $365 $467 $467 $467 $467 $467
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Telephone Cost $484 $484 $484 $484 $484 $484 $484 $484 $484 $484 $484 $484
Service Telephone Cost $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Sales On-line Service $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22
Service On-line Service $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22 $22
Payroll Taxes 20% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $8,953 $8,993 $8,993 $8,993 $8,993 $9,043 $9,043 $9,145 $9,145 $9,145 $9,145 $9,145
Profit Before Interest and Taxes ($5,953) ($1,993) ($993) ($1,993) ($1,993) $3,445 $3,445 $4,343 $3,343 $3,343 $3,343 $3,343
EBITDA ($5,953) ($1,993) ($993) ($1,993) ($1,993) $3,445 $3,445 $4,343 $3,343 $3,343 $3,343 $3,343
Interest Expense $408 $399 $390 $381 $372 $363 $354 $345 $337 $328 $319 $310
Taxes Incurred ($1,590) ($598) ($346) ($594) ($591) $770 $773 $999 $752 $754 $756 $758
Net Profit ($4,771) ($1,794) ($1,037) ($1,781) ($1,774) $2,311 $2,318 $2,998 $2,255 $2,262 $2,268 $2,275
Net Profit/Sales -159.02% -25.63% -12.97% -25.44% -25.34% 18.51% 18.56% 22.23% 18.06% 18.11% 18.16% 18.22%

Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $3,000 $7,000 $8,000 $7,000 $7,000 $12,488 $12,488 $13,488 $12,488 $12,488 $12,488 $12,488
Subtotal Cash from Operations $3,000 $7,000 $8,000 $7,000 $7,000 $12,488 $12,488 $13,488 $12,488 $12,488 $12,488 $12,488
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $3,000 $7,000 $8,000 $7,000 $7,000 $12,488 $12,488 $13,488 $12,488 $12,488 $12,488 $12,488
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Bill Payments ($229) ($195) $802 $1,029 $780 $821 $2,176 $2,181 $2,481 $2,233 $2,226 $2,220
Subtotal Spent on Operations $7,771 $7,805 $8,802 $9,029 $8,780 $8,821 $10,176 $10,181 $10,481 $10,233 $10,226 $10,220
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $8,839 $8,873 $9,871 $10,097 $9,849 $9,889 $11,245 $11,249 $11,550 $11,301 $11,295 $11,288
Net Cash Flow ($5,839) ($1,873) ($1,871) ($3,097) ($2,849) $2,599 $1,243 $2,239 $938 $1,187 $1,193 $1,200
Cash Balance $44,161 $42,288 $40,417 $37,320 $34,471 $37,070 $38,313 $40,552 $41,490 $42,677 $43,870 $45,070
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $50,000 $44,161 $42,288 $40,417 $37,320 $34,471 $37,070 $38,313 $40,552 $41,490 $42,677 $43,870 $45,070
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $50,000 $44,161 $42,288 $40,417 $37,320 $34,471 $37,070 $38,313 $40,552 $41,490 $42,677 $43,870 $45,070
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $50,000 $44,161 $42,288 $40,417 $37,320 $34,471 $37,070 $38,313 $40,552 $41,490 $42,677 $43,870 $45,070
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $0 $989 $1,224 $976 $970 $2,326 $2,319 $2,629 $2,380 $2,374 $2,368 $2,361
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $0 $989 $1,224 $976 $970 $2,326 $2,319 $2,629 $2,380 $2,374 $2,368 $2,361
Long-term Liabilities $50,000 $48,931 $47,863 $46,794 $45,726 $44,657 $43,589 $42,520 $41,452 $40,383 $39,315 $38,246 $37,178
Total Liabilities $50,000 $48,931 $48,852 $48,019 $46,702 $45,627 $45,915 $44,840 $44,081 $42,764 $41,689 $40,614 $39,539
Paid-in Capital $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800 $4,800
Retained Earnings ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800) ($4,800)
Earnings $0 ($4,771) ($6,564) ($7,602) ($9,382) ($11,156) ($8,845) ($6,527) ($3,529) ($1,274) $988 $3,256 $5,531
Total Capital $0 ($4,771) ($6,564) ($7,602) ($9,382) ($11,156) ($8,845) ($6,527) ($3,529) ($1,274) $988 $3,256 $5,531
Total Liabilities and Capital $50,000 $44,161 $42,288 $40,417 $37,320 $34,471 $37,070 $38,313 $40,552 $41,490 $42,677 $43,870 $45,070
Net Worth $0 ($4,771) ($6,564) ($7,602) ($9,382) ($11,156) ($8,845) ($6,527) ($3,529) ($1,274) $988 $3,256 $5,531

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan