Global Event Planning Business Plan
GlobeSpan Meeting Planners, Inc. (GlobeSpan) will be a company specializing in representing meeting planners from all industries. The founders have over 17 years of experience in the hospitality industry, working with domestic and international meeting planners. GlobeSpan will utilize their expertise while collaborating with hotels and resorts worldwide.
GlobeSpan Meeting Planners will partner with HelmsBriscoe, the industry’s largest and finest meeting and conference resource firm, providing them with a full-service meeting operational division.
GlobeSpan Meeting Planners aims to be the top producing member of the HelmsBriscoe meeting planning alliance. Our mission is to provide the highest quality service to clients through hotel/resort site searches, rate and contract negotiation, and recommendations for complete event planning. We also offer on-site management, airline assistance, and cruise assistance at no cost to the client. By doing so, we become a time-saving "one-stop shop" and an alternative to the hassle of in-house meeting planning. GlobeSpan’s compensation will come from hotels/resorts and from the complete event planning/airline/cruise assistance offered by HelmsBriscoe’s Resource One, at a rate of six percent of gross revenues generated.
Our keys to success are continual and diligent client prospecting, providing timely and reliable money-saving site searches that best reflect clients’ needs, maximizing revenue potential by offering all commission-based services provided by HelmsBriscoe’s Resource One, and utilizing the unique expertise of both owners to offer increased value to the client.
Our objectives are to book gross sales commissions of $30,000 by December 31, Year 1, $120,000 by December 31, Year 2, $284,000 by December 31, Year 3, and to completely repay a small business loan of $50,000 by July 1, Year 4.
GlobeSpan Meeting Planners is a knowledge-based small business start-up in the "new economy" as recognized by The Wall Street Journal. Start-ups are growing at three times the rate of the national economy, and creativity is becoming the principal driver of growth. In this knowledge-based economy, there are no constraints on growth, as stated by Credit Suiss First Boston. These indicators point to a strong economic foundation for the launch of GlobeSpan. Furthermore, the $100 billion meeting industry is robust, making GlobeSpan a profitable player within the industry.
GlobeSpan, in strategic alliance with HelmsBriscoe, provides a time-saving and valuable event planning service to companies. We assist those who lack destination/meeting planning knowledge, are understaffed, or are unable to take on the time-consuming task of site selection/meeting planning. We also offer our expertise in site selection for free. With our worldwide hotel/resort partners and cruise/air/production/program planning partners at Resource One, we ensure the best fit for our clients’ needs while generating maximum revenue.
GlobeSpan Meeting Planners, Inc. is a privately held Arizona S corporation based in Goodyear. The owners, Tracey Latkovic and Kerry Feltenberg, have equal shares in the company. Start-up costs of $4,800 will be financed by the owners, and an additional $50,000 is needed to cover the first six months of client searches. See the chart and table below for a breakdown of expenses, assets, investment, and loan liability.
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
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.
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.
Service Description
GlobeSpan plans to provide two basic services to its clients:
1. Site Searches: GlobeSpan offers expert site selections at no cost to the client. First, the client’s meeting criteria, budget guidelines, and date availability needs are ascertained. Then, a selection of sites is searched for date availability and meeting space needs. Finally, the appropriate hotels/resorts are recommended to the client. 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 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.
Competitive Comparison
There are three categories of competitors, all of which have distinct weaknesses compared to GlobeSpan Meeting Planners:
1. Incentive/meeting houses such as B.I., Maritz, and McGettigans provide a full array of services to the client but lack personalized service. GlobeSpan offers full service to the client through the alliance with HelmsBricoe’s Resource One and provides personalized service like a small company.
2. Resort representation firms, such as Associated Luxury Hotels and Thomas Silliman, only do site searches for the client and are on retainer with only a few resorts/hotels. GlobeSpan offers both site selection and full event planning service to the client through the alliance with HelmsBricoe’s Resource One. GlobeSpan can book any hotel/resort worldwide which best fits the client’s needs.
3. Small “mom and pop” competitors offer site searches to the client. GlobeSpan offers a more professional service to the client and the buying/full-service power of the HelmsBriscoe alliance.
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 four-1/2 page color inserts 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 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.
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.
Technology
Technology is essential to today’s meeting planner. GlobeSpan Meeting Planners will stay on the cutting edge of technology.
1. Hardware: High-speed, updated IBM-compatible hardware with modem access, combination color printer/fax/copier/scanner, and updated telephone with caller ID.
2. Software: Windows 98 with Prodigy and CompuServe Internet access, Microsoft Works for Windows, and Adobe Acrobat Reader will be used for email communication. Act! 4.0 will be used as a client database/trace system.
3. Internet Technology: 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, and HelmsBriscoe “intranet” for communication with other meeting planners.
4. Other Technology: Caller ID, call forwarding, and a message system will be utilized for effective communication. The two home offices will be linked to ensure accessibility to calls and the database.
Future Services
Future plans for expansion include marketing of materials/books to meeting planners on event planning and offering seminars to promote the information. GlobeSpan may also offer on-site lead conference management either alone or in conjunction with Resource One.
Market Analysis Summary
From the founders’ experience, small- to mid-sized companies not located in major metropolitan areas are more receptive to event planning services. Therefore, these areas will be targeted.
Additionally, strategically focusing on companies who have not utilized meeting planning firms in the past should bring us new clients.
Potential clients 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.
Market Segmentation
Potential client profiles include corporate, incentive, association, and social/military/educational/religious/fraternal (SMERF) segments.
Corporate – Internal corporate meeting decision makers range from designated meeting planners to administrative assistants to company presidents. They plan corporate group meetings ranging from small board to national sales meetings.
Incentive – Planners specialize in reward-based high-end group travel. They plan group incentive trips for top company executives and sales personnel.
Association – Associations typically 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.
SMERF – Meetings are planned by designated individuals unfamiliar with meeting planning, such as social committee members, military personnel, teachers, pastors, or fraternal organization officers. These meetings are typically mid-range to low budgeted events.
Market Analysis:
The potential customers are categorized into four groups: corporate, incentive, association, and SMERF. The corporate segment is projected to grow at a rate of 3% over the next five years, with an estimated customer count of 53,250 in Year 1 and 59,934 in Year 5. The incentive segment is expected to grow at a rate of 2%, with customer counts ranging from 15,000 in Year 1 to 16,236 in Year 5. The association segment is also expected to grow at a rate of 3%, with customer counts ranging from 3,750 in Year 1 to 4,221 in Year 5. Finally, the SMERF segment is projected to remain flat at 3,000 customers over the five-year period.
Service Business Analysis:
GlobeSpan is a meeting planning resource firm that works with third-party companies. These companies consist of national representation firms, mega meeting/incentive houses, national site search firms, and small site search firms. GlobeSpan, in partnership with HelmsBriscoe, aims to differentiate itself by providing personalized service and acting as a client advocate.
Business Participants:
In the third-party portion of the meeting industry, there are national representation firms and mega meeting/incentive houses. National representation firms have advantages such as detailed knowledge of a small number of properties, but disadvantages such as limited objectivity due to retainer agreements with specific hotels. Mega meeting/incentive houses offer full-service options and leverage, but often lack customization and timely follow-up. There are also national site search firms and small site search firms. National site search firms offer time-saving services but may lack personalized follow-up, while small site search firms offer good customer service but may lack expertise and leverage.
Competition and Buying Patterns:
Companies are increasingly turning to third-party services for event planning. Planners choose third-party companies for timely follow-up, leverage, objectivity, technical knowledge, advocacy, integrity, intelligence, custom solutions, and personal service. Planners also value the expertise and knowledge provided by third-party companies to cut through hotels’ sales pitches and present clean, factual information.
Main Competitors:
GlobeSpan’s competitors include other meeting planning firms, though their specific names have been withheld for confidentiality.
Target Market Segment Strategy:
Prospecting and creating targeted lists are crucial to GlobeSpan’s success. By utilizing resources such as the Official Meeting Planners Guide, Meeting Planners International Directory, and Executive Women International Resources, GlobeSpan can identify potential clients who fit the criteria of a future client. Efficient site recommendations and upselling additional client services are important steps after ascertaining a potential customer.
Market Growth:
The meetings industry currently spends over $100 billion annually, and this spending is expected to grow between 2.9% and 4.2% per year. The industry has seen flat or increased meeting attendance in recent years, and upscale and full-convention hotels have seen high occupancy rates. The corporate, association, incentive, and SMERF market segments are conservatively estimated to grow at different rates over the next few years.
Market Needs:
Potential clients have a need for assistance in meeting planning, hotel/resort/destination expertise, and time-saving options. They want to present expert meeting information to their companies and prioritize other tasks. They require personalized communication and preferential treatment with hotels/resorts, as well as efficiency in site search findings.
Market Trends:
The market for site selection firms is growing as companies outsource event planning services. Companies are looking for cost-effective ways to plan meetings and incentives. Key corporate industries are planning more meetings, and associations are seeing increased membership participation, leading to larger and more complex meetings.
Strategy and Implementation Summary:
GlobeSpan, in alliance with HelmsBriscoe, aims to offer the customer service of a small company and the services of a big company. The focus will be on aggressive prospecting, follow-up, attention to detail, and targeted sales and service. GlobeSpan will commit to a consistent review and change process to anticipate market needs and stay competitive.
Competitive Edge:
GlobeSpan has the advantage of being able to present any hotel/resort as a solution to clients, without restrictions. The company offers personalized customer service combined with the leverage, technical knowledge, and access to a vast network of associates through the alliance with HelmsBriscoe.
GlobeSpan will utilize the owners’ industry contacts and marketing materials provided by HelmsBriscoe for direct mail and national marketing efforts. The company will focus on building customer trust, exceeding expectations, and cultivating repeat business and referrals.
Promotion Strategy:
GlobeSpan will ask clients for referrals and keep in contact through direct mail to provide updates and reasons to utilize their services. The company will prioritize complete client trust and personalized customer service to differentiate itself.
Pricing Summary:
GlobeSpan’s services are offered free of charge to clients, with a commission of 10% of total rooms revenue received from the booked hotels/resorts. Between 3% and 4% of this commission will go to HelmsBriscoe. The commission rates vary based on the total booking revenue, ranging from 6% for $1 million to 7% for over $10 million in revenue.
Marketing Programs:
GlobeSpan’s marketing programs for the first five months include direct mail and utilizing national marketing efforts by HelmsBriscoe. The company will re-evaluate its position after the initial period and make adjustments accordingly.
GlobeSpan offers time-saving, reliable, honest, and intelligent assistance with site searches and meeting planning. The company combines the advantages of a small company with personalized service and the expertise and leverage of a big company. Unlike national representation firms, GlobeSpan can provide objective solutions to client’s custom meeting needs.
Sales Strategy:
GlobeSpan emphasizes its features, no-cost service, and the fact that its commission does not increase the price paid by the client to the hotel/resort. The company aims to create value in its service and be viewed as an essential partner in meeting planning.
The sales forecast is based on a conservative estimate of commissions, taking into account the quarterly nature of corporate sales. The forecast projects steady growth in referral commissions over time.
Overall, GlobeSpan Meeting Planners aims to provide excellent customer service, personalized solutions, and leverage the expertise and resources of its strategic alliance with HelmsBriscoe to meet the needs of its target market segments and stay competitive in the industry.
Sales Forecast:
| 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 |
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 using industry directories such as the Meeting Planners Guide and other relevant resources, create planner specific letters and proposals based on each segment’s 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 make adjustments for the next six months accordingly.
Strategic Alliances:
We will form a strategic alliance with HelmsBricoe Performance Group. This alliance will allow GlobeSpan access to helpful items including expensive, full-color collateral material, letterhead, and business cards, access to over 210 partners in 50 offices, access to the HelmsBriscoe intranet which provides detailed hotel/resort information and site information, additional revenue-generating services, and immediate recognition as the country’s largest meeting and conference resource firm.
Milestones:
The following table offers our benchmarks for success. GlobeSpan has assigned each task to an owner and 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 of 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.
Milestones:
| 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 clients 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 association 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/ |
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