Of the many business models that have of late emerged. Catering, Event Planning and Management is one where creativity and imagination play a key role. It also provides for flexibility in executing innovative ideas to leave a lasting impression on the clients as well as the consumers.
There is a ready market for Event Managers for the simple reason that is organizing an event, be it a celebration, a conference, or a commemorative assembly, requires multiple skills and logistics, not to mention the time involved.
This business model seeks to fill this void for customers to hand over the organization and execution of events to professional hands.
Scope of Event Management Business:
The range that can come into the ambit of event management is wide. They can be engaged for specific parts of an event or a comprehensive contract to cover the entire show, inclusive of planning, decorations, arrangements, and catering, to name a few. In India, event management enterprises are increasingly getting to organize the following.
- Celebration: Being festive in nature, the themes are regarded as exciting. Normally fairs, parades, weddings, reunion, birthday, anniversaries, social gatherings, and parties fall in this category.
- Educational: These are more formal occasions with emphasis on information, which include conferences, seminars, meetings, and convocations, to name a few.
- Promotional: In nature, this is a blend of the first two showcasing both festivity and information. The scope can range from product launches, rallies, fashion shows, etc.
- Commemorative: These are again formal and, more often than not, solemn occasions. It can cover remembrances, memorial services, civic events, etc.
Skills required for Event Planning Business:
The very nature of the business demands specific skills of the promoter to make a success of the venture. There are no patent rules governing the scope of an event other than the types discussed. Within the ambit is your play of imagination and creativity that distinguishes the quality of planning and execution. Innovation and the ability to think out of the box, work on tight schedules, cater to the many preferences of customers is key to a vibrant business. You must be an outgoing, sociable personality excelling in teamwork with organizational acumen to make you acceptable to different types of clients.
Features of running Event Planning Business:
The best part is that your event planning can exist on the shoulders of individual enterprises with you acting as an aggregator. Thus the redeeming feature of the business is:
- Low overheads.
Steps to set up a Catering and Event Planning Business:
- Draw a suitable business plan which should be comprehensive. Your business plan must essentially comprise of:
- Executive Summary
- Company Overview
- Management Team
- Brand Creation
- Operation Plan
- Marketing Plan
- Financial Plan
- Supporting Documents
- Select the target market and define your area of operations, including the components you are willing to handle.
- Complete all the legal formalities, which include licenses, registration, and permissions, if any.
- Build a suitable resource network that will comprise of office, storage space, caterers, decorators, entertainers, technology experts, marketing experts, and similar such vendors.
- Arrange for start-up funds – options are many: Self, Friends and relatives, Angel investors, Venture capitalists, Crowd-funding, and finally lenders, which include Banks, NBFC, and Fintech like
- Launch a marketing campaign using all the means at your disposal, including social media.
Fund allocation in Event Planning Business:
While you arrange for funds from lenders, both conventional and the new age, the defined areas for funding could be:
- Purchase and Leasing of equipment.
- Building of inventory and supplies.
- Rent or remodel space suitable for the business.
- Hire and Train adequate staff.
- Execute a marketing campaign
- Working capital
The criteria in banks are more stringent as compared to Fintechs like Lendingkart. Since the latters are more liberal in their approach, let us discuss them:
- The business must be in operation during the previous six months.
- The quarterly turnover must be more than Rs.90k minimum.
- The location of the business should not be in the negative list.
- Ownership can be a Proprietorship, Partnership, Private Limited Company, and Limited Liability Company.
Fintechs score over conventional banks in documentation as they demand bare essential documents for processing their loans. The summary of the indicative list of documents is given below:
- KYC compliance documents of the Promoter and the Business.
- PAN card of the Promoter and the Business.
- Aadhaar card of the Promoter.
- Business registration certificate and other permits and licenses.
- Copy of partnership deed and supporting documents in the case of a company.
- Financial documents, including bank statements for periods specified by the lender.
Application procedure for Event Planning Business:
The best feature with Fintechs like Lendingkart is that the process is accomplished on a digital platform. The steps can be defined sequentially as:
- Apply online providing personal, business, and loan related information.
- Get a quote, accept, and upload the required
- Await sanction after evaluation of your proposal with the documents.
- Disbursal of the loan.
Fee and Charges applicable on loan:
It is important to study and check the applicable rates of interest and fees to determine the cost of capital.
15% to 27%, depending on underlying factors.
Up to 36 months
1% to 2% as the case may be upfront on disbursal
EMI or fortnightly