Entrepreunership Term Paper

8/2/2019 Entrepreunership Term Paper

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TABLE OF CONTENTS

1.0 Executive Summary ................................................................................................................ 1Chart: Highlights...................................................................................................................... 1

1.1 Mission..................................................................................................................................... 1

1.2 Keys to Success.................................................................................................................... 2

1.3 Objectives............................................................................................................................... 22.0 Business Climate...................................................................................................................... 23.0 Company Summary ................................................................................................................ 2

3.1 Company Ownership........................................................................................................... 3

3.2 Start-up Summary............................................................................................................... 3

Table: Start-up ......................................................................................................................... 3

Table: Start-up Funding ........................................................................................................ 4

Chart: Start-up......................................................................................................................... 5

3.3 Company Locations and Facilities ................................................................................... 5

4.0 Services....................................................................................................................................... 54.1 Service Description.............................................................................................................. 5

4.2 Competitive Comparison.................................................................................................... 6

4.3 Sales Literature..................................................................................................................... 6

4.4 Fulfillment............................................................................................................................... 6

4.5 Technology ............................................................................................................................. 7

4.6 Future Services..................................................................................................................... 75.0 Market Analysis Summary .................................................................................................... 7

5.1 Market Segmentation ......................................................................................................... 8Table: Market Analysis ........................................................................................................... 8Chart: Market Analysis (Pie) ................................................................................................ 9

5.2 Service Business Analysis ................................................................................................. 9

5.2.1 Business Participants................................................................................................... 9

5.2.2 Competition and Buying Patterns ......................................................................... 105.2.3 Main Competitors ....................................................................................................... 11

5.3 Target Market Segment Strategy ................................................................................. 115.3.1 Market Growth............................................................................................................. 11

5.3.2 Market Needs............................................................................................................... 12

5.3.3 Market Trends.............................................................................................................. 12

6.0 Strategy and Implementation Summary ....................................................................... 13

6.1 Competitive Edge............................................................................................................... 13

6.2 Marketing Strategy............................................................................................................ 13

6.2.1 Promotion Strategy.................................................................................................... 136.2.2 Pricing Summary ........................................................................................................ 14

6.2.3 Marketing Programs .................................................................................................. 14

6.2.4 Positioning Statement............................................................................................... 14

6.3 Sales Strategy..................................................................................................................... 14

6.3.1 Sales Forecast ............................................................................................................. 15


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Chart: Sales Monthly ........................................................................................................ 15

Table: Sales Forecast ......................................................... Error! Bookmark not defined6.3.2 Sales Programs ........................................................................................................... 15

6.4 Strategic Alliances ............................................................................................................. 167.0 Management Summary........................................................................................................ 16

7.1 Organizational Structure.................................................................................................. 167.2 Management Team ............................................................................................................ 17

7.3 Personnel Plan..................................................................................................................... 17Table: Personnel .................................................................................................................... 17

8.0 Financial Plan .......................................................................................................................... 178.1 Important Assumptions.................................................................................................... 18

Table: General Assumptions .............................................................................................. 18

8.2 Key Financial Indicators................................................................................................... 18

8.2 Key Financial Indicators................................................................................................... 18

Chart: Benchmarks ............................................................................................................... 18

8.3 Projected Profit and Loss ................................................................................................. 19Table: Profit and Loss........................................................................................................... 198.4 Projected Cash Flow .......................................................................................................... 20

Chart: Cash.............................................................................................................................. 20

Table: Cash Flow.................................................................................................................... 21


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1 .0 Executive Sum m ary

Synergy Meeting Planners. will be formed as a company specializing in the representation ofmeeting planners from all industries. The founders have interest in the hospitality industryinterning with both domestic and international meeting planners. Synergy will allow thefounders to utilize their expertise with meeting planners while working with hotels and resorts

across the globe.

Synergy Meeting Planners will partner with 360 degrees, the industry's largest and finestmeeting and conference resource firm thus placing a full service meeting operational division atSynergy's disposal.

Chart: Highlights

1.1 Mission

It is the mission of Synergy Meeting Planners to be the top producing member of the 360Degrees meeting planning alliance by providing the highest quality service to our clients. Byproviding a total meeting resource including hotel/resort site searches, rate and contract

negotiation, as well as recommendations for complete event planning, on-site management andairline assistance at no cost to the client, Synergy becomes a time-saving "one-stop shop."Synergy is a perfect, no-cost alternative to the hassle of in-house meeting planning. Synergywill be compensated by the hotels/resorts, and by the complete event planning/airline/cruiseassistance offered by 360 Degrees's Resource One at the rate of six percent of gross revenuesgenerated, paid in commission. Synergy provides an easy, valuable alternative for its clients,and a flexible work environment with equitable compensation for its founders.


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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 360

Degrees Resource One, turning a program which would have been commission on hoterooms only revenue into commission on complete program revenue (airproduction/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.

2 .0 Business Clim ate

Synergy Meeting Planners is a knowledge-based small business start-up. Selling expertise, theygo on to say, is the basis of the present and future economy. Start-ups are growing at threetimes the rate of the national economy. In addition, The Wall Str eet Journalstates "creativity isovertaking capital as the principal elixir of growth." Cognetics, a business information trackingfirm, calls the surging significance of small to mid-sized businesses the economy, stressing thesignificance of this new segment of businesses.

It is sais rightly that "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 ofSynergy.

Specifically, meeting industry is strong and Synergy will be a profitable player within theindustry.

3.0 Company Summ ary

Synergy, in strategic alliance with 360 Degrees, will provide a time-saving and valuable eventplanning 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 partnerscountrywide, as well as cruise/air/production/program planning partners at Resource One, thebest fit for the clients' needs will be found while generating maximum revenue for Synergy.


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3.1 Company Ow nership

Synergy Meeting Planners, will be a privately held corporation based in Delhi. The company iscurrently in the process of filing for incorporation with the Delhi Corporation Commission. Theowners, Krishna Verma and Alka Verma, will have equal shares in the company.

3.2 Start -up Summ ary

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

Table: Start-up

Start-up

Requirements

Start-up ExpensesIncorporation Fees $150Accountant $300Office Equipment $2,500Software $350Communication Lines 3 per office - 6 total $400Meeting Planning Directories $700Other $400Total Start-up Expenses $4,800

Start-up AssetsCash Required $50,000Other Current Assets $0Long-term Assets $0Total Assets $50,000

Total Requirements $54,800


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Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $4,800Start-up Assets to Fund $50,000Total Funding Required $54,800

Assets

Non-cash Assets from Start-up $0Cash Requirements from Start-up $50,000Additional Cash Raised $0Cash Balance on Starting Date $50,000Total Assets $50,000

Liabilities and Capital

LiabilitiesCurrent Borrowing $0Long-term Liabilities $50,000Accounts Payable (Outstanding Bills) $0Other Current Liabilities (interest-free) $0Total Liabilities $50,000

Capital

Planned InvestmentAlka Verma $2,400Krishna verma $2,400Other $0Additional Investment Requirement $0Total 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


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Chart: Start-up

3 .3 Compa ny Locat ions and Facilities

The company will be located in Delhi, with a second office in Mumbai. The owner's home officeswill be linked electronically to ensure real-time communication.

4.0 Services

Synergy Meeting Planners does countrywide hotel/resort searches, and providesrecommendations for those which best match the client specifications free to the client, asSynergy is compensated by the hotel/resort. Additionally, Synergy refers clients to ResourceOne to provide in-depth meeting planning, production, airline, and cruise assistance.

4 .1 Service Description

Synergy plans to provide two basic services to its clients:

1. Site Searches: Synergy, at no cost to the client, offers expert site selections. First, theclient's specific meeting criteria, budget guidelines and date availability needs areascertained. Then, a selection of sites, based on the owners' own expertise, is searched fordate 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 isthen contracted and a commission is paid by the hotel/resort.

2. Other Services: Synergy will take advantage of the strategic alliance with 360 Degree'sResource One and have available all of the resources of a large meeting company. Synergywill recommend airline and cruise bookings, management of hotel room blocks, and full-service meeting production. Synergy will be compensated by 360 Degree by commission ona per program basis.


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4.2 Competitive Comparison

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

1. First, competition comes in the form of incentive/meeting houses such as Cox and King

These companies provide a full array of services to the client but are so large that theclients are just numbers to them. Synergy has the advantage of offering full service to theclient through the alliance with 360 Degrees Resource One as well as the ability to providepersonalized service like a small company.

2. The second type of competitor is the resort representation firm, such as Associated LuxuryHotels and Thomas Silliman. These companies only do site searches for the client and areon retainer with only a few resorts/hotels, some of which may not fit the client's needs. Theadvantage of Synergy is to offer both site selection and full event planning service to theclient through the alliance with 360 Degrees Resource One. We will also have the distinctadvantage of being able to book any hotel/resort worldwide which best fits the clientsneeds.

3. Small "mom and pop" competitors, which are solely owned and operated by one individual

offer site searches to the client. Synergy has the advantage over this type of company byoffering a more professional service to the client and the buying/full-service power of the360 Degree alliance.

4.3 Sales Litera ture

As part of the benefits of the alliance with 360 Degrees, a full-color brochure describing thebusiness with client testimonials, as well as a four-1/2 page color insert describing the featuresand benefits of the site selection service will be provided by 360 Degrees to Synergy.Additionally, four inserts, each four-1/2 page color, describing Resource One, HousingSolutions, Cruises, and Air Partner, will be provided by 360 Degrees to Synergy.

Letterhead, with our logo is also provided by 360 Degrees, will be used to send customerspecific sales letters and tailored proposals. Shell sales letters and client proposals will beestablished. Request for proposal letters with an area for hotels/resorts to acknowledgepayment of commission will also be established.

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

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

4.4 Fulfi llment

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 thespecific needs of the client.

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


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4.5 Technology

Technology is essential to today's meeting planner. Synergy Meeting Planners will stay on thecutting 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 7 with airtel Internet access, Microsoft Works for Windows

and Adobe Acrobat Reader to be used to access email and send emaiinformation/newsletters (draft letters/proposals), and receive information from clients,respectively. Act! 4.0 will also be used as a client database/trace system.

3. I nternet Technology. The creation of a website to outline services to clients, access tohotel/resort online database provided by 360 Degrees, hotel/resort "hotrates/hotdates"website to access discounted rates posted by "partner" hotels, 360 Degrees "intranet" whichallows Synergy to communicate with other meeting planners within the 360 Degreesalliance.

4. Other Technology. Utilizing communication advantages such as Caller ID, call forwardingfrom 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 animmediate response. Additionally, the two home offices will be linked to ensure both callsand 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/booksto meeting planners on the "how to's" of event planning and selling those materials, both onlineand by offering "seminars" to promote the information.

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

5 .0 Mark et Analysis Summ ary

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

Additionally, strategically focusing on companies who have not been represented by meetingplanning 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 concentrateon site search details.


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5.1 Market Segmentat ion

Some potential client profiles are as follows:

CorporateIn the corporate segment, internal corporate meeting decision makers range from designated

meeting planners, to administrative assistants, to company presidents. These potentialcustomers are planning corporate group (10 or more rooms) meetings which range from smallboard to national sales meetings and can range from one to several hundred meetings per yearThe corporate window for event planning can be as little as one month to as long as severalyears.

I ncent iveIncentive planners are a subgroup of the corporate segment specializing in reward-based high-end group travel. Again, the decision makers can vary from office to office. They plan groupincentive trips to, generally, resort destinations which can range from the top ten companyexecutives to several hundred sales personnel. Typically, the window for incentive travel isbetween 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.).

AssociationAssociations, according to their by-laws, must typically have a specific number of meetings peryear. Thus, the association planner's calendar is set years in advance. Usually, an associationwill have a few board meetings and one or more large conventions/trade shows per year. Thepotential customer is typically an on-site meeting planner, the executive director or the entireboard.

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

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5Potential Customers Growth CAGRCorporate 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%


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Chart: Market Analysis (Pie)

5 .2 Service Business Analysis

Synergy is a meeting planning resource firm. Third party companies, as they are commonlyreferred to by hotels and resorts, consist of firms who represent a small group of specifichotels/resorts, and mega meeting/incentive "houses," which provide full services includingairfare, housing, and on-site program administration, as well as large and small site searchfirms.

Due to the strategic alliance with 360 Degrees, Synergy Meeting Planners, Inc. will be instantlyrecognizable to meeting professionals as part of the hospitality industry's largest and finestmeeting and conference resource firm. We will have the challenge of establishing ourselves withcustomers as a "client advocate," not a hotel/resort representative, and separate ourselvesfrom 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 asfollows:

Nat ional Representation Firms

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


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Mega Meeting/ I ncentive Houses

Advantage: These companies offer full service, from airfare to post-program follow-up, andoffer the leverage and buying power of a large company because they have "preferred" vendorswith whom they do large volume

Disadvantage: These companies are so large, they offer very little "custom" service for theclient. Timely follow-up is always a concern when utilizing a very large company. The client wilhave many contacts for different services within the company. These companies often advocatethe "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 researchany hotel/resort worldwide.Disadvantage: Many of these firms have become so large that the individual sales contact doesnot even remember which program from which client he/she may be working on at a giventime. A resort may follow-up to propose a better offer for the customer, and the sales contactdoes 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 planningassistance/value to the client.

Small Site Search Firm s

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

5.2 .2 Competit ion and Buying Patterns

As previously mentioned, the Professional Convention Management Association reports a risingtrend to use third-party services. Planners are choosing that route for various reasons. They arefinding 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 expertadvice/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 timeconstraints given by the customer.

Leverage. Customers rely on organizations with buying power to stretch a small budget, orjust 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 maywant 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.


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5.2 .3 Main Competitors

Synergy's competitors include:

Note: All competitors nam es have been rem oved for confidentiality.

5 .3 Target Market Segmen t Strategy

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

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

5.3 .1 Market Growth

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

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

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


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5.3 .2 Market Needs

Our target potential clients have a need for assistance in meetingplanning/hotel/resort/destination expertise. They are looking for no-cost time saving options toallow them to prioritize other company tasks for which they are responsible. They have a needfor a "silent" partner (Synergy Meeting Planners) which will make them "look" better to their

company. They range from secretarial level to company president and have the sameinformation gathering and time-saving needs for different reasons. Those employeesresponsible for meeting planning want you to communicate with them on their terms. Theyrequire whichever mode of communication is most comfortable for their busy scheduleincluding email, fax, telephone, cellular telephone, messaging, and paging options. They wantbuying power with hotels/resorts, preferential treatment with their dates/patterns, knowledgeof all destinations worldwide, and efficiency in the presentation of site search findings.

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

Companies and SMERF organizations who have "downsized" and/or eliminated their eventplanning department are prime prospects, as the meeting planning duties will typically falto one or two individuals or another company member unfamiliar with meeting planningThese clients are receptive to the time-saving aspect of Synergy's services and expertise.

Companies and SMERF organizations who have administrative staff (i.e. executivesecretary, marketing coordinator, etc.) take on the responsibilities of event planning wilfind that utilizing the services offered by Synergy will enhance their image within their owncompany 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 thatarea will appreciate the expert knowledge of their exact meeting location and needsprovided by Synergy.

Meeting Planners who need to concentrate on internal meeting content and have little or notime to complete the time consuming task of site selection and/or airline coordination, on-

site production, hotel room block management, etc.

5.3 .3 Market Trends

The market for site selection firms is growing as companies are utilizing outside providers forevent planning services instead of paying permanent in-house employees. According to the1999 American Society of Association Executives and Professional Convention ManagementAssociation'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-effectiveways 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 thesuccess of these industries in the current bullish economy. Thus, a need to outsource some ofthe work associated with that increase. Additionally, associations are seeing an increase acrossthe board in membership participation making industry meetings larger and more complex.


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6.0 Strategy and I mplementat ion Summ ary

Synergy, with our strategic alliance with 360 Degrees, will offer the great customer service of asmall company; yet, offer the services of a big company to our clients. With aggressiveprospecting, follow-up, and attention to detail, Synergy will exceed the needs of the four targetmarket 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 toa consistent "review and change" process by which we can anticipate the needs of themarketplace and implement change to stay competitive.

6.1 Competit ive Edge

There are several competitive edges that Synergy Meeting Planners has over its competitorsFirst, over national representation firms, Synergy has the freedom and ability to present anyhotel/resort as a solution to the customer, we are not restricted to a few retainerhotels/resorts. Second, we can offer the services of a big company but are still small enough tooffer great customer service to the fastest growing segment of businesses--small-to mid-sizedThird, while national site search firms are limited to just finding a destination for the customer

through our alliance with 360 Degrees's Resource One, we have the ability to help with allaspects of the meeting, as well as offer assistance with airfare and cruises. Fourth, althoughsmall search firms can only offer limited knowledge and service, our alliance with 360 Degreesallows us access to over 180 associates and databases detailing the experiences at eachdestination.

Overall, Synergy will offer the best of both worlds--small-company service with big companyexpertise.

6.2 Market ing Strategy

The owners' 2 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 360 Degrees as afoundation, and build upon the quality letters, proposals, newsletters and reminder cards. Wewill be able to market like a small company with big company clout. We will benefit from thenational marketing efforts of 360 Degrees, such as national advertising, national partnershipmarketing with hotels/resorts, Web marketing such as HotDateHotRates.com, 360Degrees.com, HBMeet-Market.com, FirstOptionHB.com, the 360 Degrees quarterly newsletterand several national industry events per year, such as the Industry Summit.

6.2 .1 Promotion Strate gy

Synergy will consistently ask clients for referrals and will keep in contact with customers bydirect 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 wilultimately cultivate repeat business and increase referrals.


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6.2 .2 Pricing Summ ary

Synergy Meeting Planners will offer its services free of charge to the client. From the propertyin which the client books the meeting, Synergy will receive a 10% of total rooms revenuecommission. Between three and four percent of this commission will go to 360 Degrees inreturn for the services described herein. The total commission for the company will break down

as follows:

Booking Reven ue Synergy's Comm ission

$1 million 6%

$1 million-$2 million 6.1%









Over $10 million 7%

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

6.2 .3 M arket ing 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 effortswill be handled by 360 Degrees. At the end of the five months, we will re-evaluate our positionbased on meeting/exceeding our sales forecast and will make adjustments for the next sixmonths accordingly.

6.2 .4 Positioning Statem ent

For those companies, associations, and organizations who need time-saving, reliable, honest,and intelligent assistance with site searches and meeting planning, Synergy can provide thetimely follow-up, integrity, advocacy, and custom solutions of a small company while offeringthe leverage, technical and meeting destination knowledge of a big company. Unlike thenational representation firms, Synergy 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 Synergy, combined with it's no-cost service to the client, will assist in closingsales. We must stress to the client that our commission will not increase the price paid bythe client to the hotel/resort and ensure the hotels/resorts utilized are consistent with thispromise. To ensure future sales, we must have incredible follow-up and personalized customerservice. We must create so much value in our service that planning a meeting without us wouldbe viewed by the client as a mistake.


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6.3.1 Sales Forecast

Our sales forecast in the appendix of this plan details our anticipated commissions. This is avery conservative estimate based on the actual history of sales of one of the owners. Pleasenote the plan outlines the quarterly nature of corporate sales (our major segment) and tends tobe 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 inrooms revenue or approximately one contract at, for example, 75 rooms for four nights at arate 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.

Chart: Sales Monthly

Month1

Month2

Month3

Month4

Month5

Month6

Month7

Month8

Month9

Month10

Month11

Month12

6.3 .2 Sales Program s

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 MeetingPlanners Guide and other relevant resources, create planner specific letters and proposalsbased on each segment's different needs, follow-up with telephone solicitation and personaletters and perform future follow-up in the form of friendly direct mail and telephone calls. Atthe end of the five months, we will re-evaluate our position based on meeting/exceeding oursales forecast and will make adjustments for the next six months accordingly.


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6.4 Strategic Alliances

We will form a strategic alliance with 360 Degres Performance Group. This alliance will allowSynergy access to many helpful items:

1. Expensive, full-color collateral material, letterhead and business cards in any quantityneeded.

2. Access to over 210 partners in 50 offices who can assist with any questions/need fordestination information, recommendations, etc.

3. Access to the 360 Degrees intranet which provides detailed hotel/resort information and siteinformation which can be provided to the clients in minutes.

4. Resource One will provide additional revenue to Synergy by offering "large company"services such as airline reservations, full production company capabilities, housing/hoteblock assistance to the customer and prospection/lead generation assistance to Synergy ineeded.

5. By utilizing the "permission marketing" of 360 Degrees, Synergy is immediately recognized

as the country's largest meeting and conference resource firm. No introduction or start-upadvertising is necessary.

7.0 Management Summ ary

The owners of Synergy Meeting Planners have over 2 years of experience in the hospitalityindustry. With the knowledge of all aspects of event planning, from initial hotel contact to finalhotel billing, we offer a solid base of information from which the customer can draw. Thefounders of Synergy have worked with many potential planner customers already on the resortside and have demonstrated competence in meeting site selection and planning.

We will rely on Resource One to outsource any upsold services such as air/meetingdevelopment/program administration/destination management/production/on-site negotiationsUniquely, Synergy will earn commission on this outsourcing and it will provided at no charge toSynergy.

7.1 Organizational Structure

The two owners will divide the responsibilities of the business. While both will decide on majorcompany 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-timeadministrative staff position becoming available as soon as deemed appropriate by both ownersto free the owners for direct client/hotel/resort contact.


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7.2 Ma nagement Team

Synergy is committed to sales and service. Krishna Verma, has taken on the sales role withinthe company. Alka Verma, has taken on the service role within the company. This leaves noexpertise out and provides a solid foundation for Synergy.

Alka Verma, as director of catering/conference services. Her education includes the designationof CMP, certified meeting professional, which requires ongoing education, publication of articlesin industry journals and public speaking engagements.

Krishna Vermas education includes a bachelor of science in aeronautical engineering with aminor in mathematics.

7.3 Personnel Plan

The table below outlines our payroll for the owners over the next three years. In year one, weare planning on a modest salary of $4,000 per owner per month to cover existing livingexpenses. This salary will increase a modest 4.8% in fiscal year 2012 and again a modest 4.8%

in fiscal year 2013. We feel our dividends from growth will supplement our income in year twoand three. The detailed monthly personnel plan for the first year is included in the appendix.

Table: Personnel

Personnel Plan

Year 1 Year 2 Year 3Krishna Verma $48,000 $50,400 $52,920Alka Verma $48,000 $50,400 $52,920Total People 0 0 0

Total Payroll $96,000 $100,800 $105,840

8 .0 Financial Plan

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


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8.1 I mportant Assumptions

The following table of General Assumptions outline our conservative general assumptions on anannual basis. A monthly outline of the important assumptions is included in the appendixOverall, we are assuming the forecasted business climate as outlined in the Business ClimateSection will remain steady. Additionally, we assume our strategic partner, 360 Degrees's

positioning within the industry will continue to grow.

Table: General Assumptions

General Assumptions

Year 1 Year 2 Year 3Plan Month 1 2 3Current 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 I ndicators

Synergy 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 threeyears while our gross margin remains unchanged and our operating expenses only rise slightlyover the next three years.

Chart: Benchmarks


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8.3 Projected Profit and Loss

Synergy's projected income statement is shown in the following table. We show a conservativefirst year with approximately $120,000 in commissions; however, this grows to over $170,000

in 2012, and over $280,000 in 2013. With relatively low operating expenses, our net profitsnearly quadruple in the second year, and almost double in the third. We have offered a detailedmonthly outline of income in the appendix.

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3Sales $120,416 $171,250 $284,750Direct Cost of Sales $0 $0 $0Other $0 $0 $0

Total Cost of Sales $0 $0 $0

Gross Margin $120,416 $171,250 $284,750Gross Margin % 100.00% 100.00% 100.00%

ExpensesPayroll $96,000 $100,800 $105,840Sales and Marketing and Other Expenses $4,600 $0 $0Depreciation $0 $0 $0Sales Telephone Cost $5,808 $6,098 $6,403Service Telephone Cost $1,800 $1,890 $1,985Sales On-line Service $264 $264 $264Service On-line Service $264 $264 $264

Payroll Taxes $0 $0 $0Other $0 $0 $0

Total Operating Expenses $108,736 $109,316 $114,756

Profit Before Interest and Taxes $11,680 $61,934 $169,994EBITDA $11,680 $61,934 $169,994

Interest Expense $4,305 $3,077 $1,794Taxes Incurred $1,844 $14,714 $42,751

Net Profit $5,531 $44,143 $125,449Net Profit/Sales 4.59% 25.78% 44.06%


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8 .4 Proj ected Cash Flow

As demonstrated by the Projected Cash Flow Chart below, Synergy's cash balance is healthy,with our projected cash flow being negative for our first few months and then a slow recoveryduring the remainder of the year. Our net cash flow for fiscal year 2011 is -($21,600) with ourcash 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.

Chart: Cash


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SHA HEED SUKHDEV COLLEGE OF BUSINESS STUDIES

UNIVERSITY OF DELHI

ENTREPRENUERSHIP TERM PA PER

BUSINESS PLA N- SYNERGY MEETING PLA NNERS

Submitted byBarkha V erma

(8119)BBS-3 Finance B


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ACKNOWLEDGEMENT

I t gives us immense pleasure to thank and extend our gratitude to M s. N eha

my Entrepreneurship teacher for extending her valuable time and continuous

support in completing this project.T he classroom teachings provided by her were extremely beneficial and

guided us in making the project.

Entrepreunership Term Paper

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