Event Venue Business Plan
If you want to start a successful event venue business or expand your existing business, you need a business plan.
The following event venue business plan template gives you the key elements to include in a winning event space business plan.
Sample Event Venue Business Plan
I. Executive Summary
Business Overview
[Company name] is an event venue company that offers a wide range of ballrooms and meetings spaces available for rent for all kinds of occasions. Located at the center of the city, it serves private businesses, government departments, schools, wealthy individuals, and even religious organizations. [Company name] aims to give its clients an accessible, but beautiful venue that offers different spaces at reasonable rates with the best services. Also specializing in event management, [Company name] is connected with major suppliers and vendors that can help clients pull off a stress-free, and memorable event.
Products Served
[Company Name] offers the following event spaces: Small Party venues, Ballrooms, Social Events and Banquet Hall, Conference Rooms, and Seminar Rooms. We provide spaces that can hold from 30 up to 300 people. Each room can be designed according to the clients’ theme or preference. We also have event management consultants that clients can consult with to help them with the overall preparation of their events.
Customer Focus
[Company Name] will primarily serve businesses, organizations and wealthy individuals within the [location] area that are looking for venues for their events. We will primarily target the corporate market, private market and the non-profit market.
Management Team
[Company Name] is led by [Founder’s Name] who graduated from the University of ABC where he majored in Hotel and Restaurant Management. He pursued a career in the event management industry for 20 years.
While [Founder] has never started an event venue business before, he has worked in the event management industry most recently as a general manager, and has organized various events. As such [Founder] has in-depth knowledge of the operations and the management (e.g., scheduling, organizing, marketing, etc.) of events.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no high-quality event venue in the community we are entering. In addition, we have surveyed the major corporations with local offices and determined that they have off-site events from time to time.
- Our location is central to the downtown, airport, and corporate district of the city.
- The management team has a track record of success in the event management industry.
Financial Highlights
[Company Name] is seeking a total funding of $3,000,000 to launch the event venue. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Event venue design/build: approximately $2,500,000
- Working capital: approximately $500,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,980,125 | $2,832,031 | $3,409,160 | $3,783,447 | $4,100,713 |
| Total Expenses | $1,375,530 | $1,561,763 | $1,866,977 | $2,027,436 | $2,107,349 |
| EBITDA | $604,595 | $1,270,268 | $152,183 | $1,756,011 | $1,993,364 |
| Depreciation | $372,760 | $372,760 | $372,760 | $372,760 | $372,760 |
| EBIT | $231,835 | $897,508 | $1,169,423 | $1,383,251 | $1,620,604 |
| Interest | $164,782 | $144,184 | $123,586 | $102,988 | $82,391 |
| Pre-Tax Income | $67,054 | $753,324 | $1,045,837 | $1,280,263 | $1,538,213 |
| Income Tax Expense | $23,469 | $263,663 | $366,043 | $448,092 | $538,375 |
| Net Income | $43,585 | $489,661 | $679,794 | $832,171 | $999,839 |
II. Company Overview
Who is [Company Name]?
[Company name] is an event venue company that offers a wide range of ballrooms and meetings spaces available for rent for all kinds of occasions. Strategically located at the center of the city, it serves private businesses, government departments, schools, wealthy individuals, and religious organizations. Each venue is well-maintained and equipped with computer technology, lights, sound system, break-out rooms, banquet and reception halls to provide unique accommodations for dinners, weddings, receptions, anniversary celebrations, corporate meetings, holiday parties, civic group functions and numerous other occasions.
[Company name] aims to give its clients an accessible but beautiful venue that offers different spaces at reasonable rates with the best services. Also specializing in event management, [Company name] is connected with major suppliers and vendors that help clients have a stress-free and memorable event.
[Company Name]’s History
[Company name] was founded in [yyyy] in [Location] by [Founder’s Name]. With over [x] years of experience in the event management industry, he ventured into event venue rentals. After leasing a spacious building for several years, he decided to acquire a property in the middle of the city, where he opened up more event spaces for rent. Today, [Company name]’s facility is [x] square feet and was able to hold over [x] of events since its incorporation. We are now more flexible, efficient, and prepared for large volume events.
Since incorporation, the company has achieved the following milestones:
- Found site location and signed the land deed purchasing rights to the land.
- Developed the company’s name, logo and website
- Hired an architecture firm to create a blueprint of the venue
- Taking bids from construction crews and electrical engineering firms
- Determined equipment leasing and financing requirements
- Began recruiting key employees with experience in the event venue industry
[Company Name]’s Products/Services
Below is [Company Name]’s initial service offerings and amenities provided:
- Small Party venue – Closed space that can hold 30–50 people.
- Ballrooms – Rooms that have a maximum capacity of 300 people.
- Social Events and Banquet Hall – Event venue that is smaller than the ballrooms and can hold 200 people.
- Conference Rooms – Rooms that are smaller than the ballrooms but larger than the seminar/training rooms that can accommodate up to 250 people.
- Seminar Rooms – Smaller conference rooms that are located near an outdoor space for outdoor activities. These can hold 50–100 people.
III. Industry Analysis
The Event industry depends on the willingness of households and businesses to spend money on social gatherings. In general, businesses seek event space for holiday dinners, fundraisers and client appreciation events. Since companies with strong earnings over the course of the previous year have more money to allocate toward special events, demand for industry services from this market is primarily driven by corporate profit levels and overall business sentiment.
Likewise, households at venues for weddings, anniversaries, birthdays and other milestone celebrations. Consequently, per capita disposable income and consumer confidence levels are the key drivers of demand from the household market.
Over the past five years, increasing per capita disposable income and consumer confidence have boosted demand for event venues from both the household markets. In particular, rising per capita disposable income and an increase in the number of households earning above $100,000 have bolstered demand from individual customers.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the businesses and residents of [Insert location] and its immediate surrounding area. The market we serve is value-conscious and has a desire for high comfort, accessibility, and complete facilities for events.
The precise demographics of the town in which our location resides is as follows:
| Glendale | Highland | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following three customer segments:
- Corporate market: Businesses hold at least one off-site event each year. These are events that the company has budgeted for and are looking forward to every year. This also includes profit organizations.
- Private market: Includes households with a high combined income that are most likely to throw a huge event in a rented venue.
- Non-profit market: These are price conscious organizations that look for a good venue for their fundraising events at low or reasonable (and discounted) rates.
V. Competitive Analysis
Direct & Indirect Competitors
City Events
City Events rises 54 stories on a two-acre site located on the west side of the city. The national and international award-winning venue boasts 1-1/2 acres of outdoor open space including a public park, amphitheater, and River walk. The site also contains conference facilities including a 260-seat ballroom and two boardrooms.
Its dramatic lobby, (nearly 100 feet tall at its peak and surrounded by a completely transparent structural glass fin wall system), welcomes visitors and visually blurs the distinction between interior and exterior space. The lobby also features the largest digital art installation in the city.
City Banquets
City Banquets specializes in providing you with a warm, comfortable, and cozy atmosphere for your special social event. Their company offers over 50 years of “all about you” service. The venue is a spacious, yet intimate banquet facility with seating for up to 300 people. Their carpeted ballroom with hardwood dance floor offers an ambience that assures you and your guests of an unforgettable evening. They offer a variety of amenities and personalization options to make each event customized.
City Club
From their unrivaled setting to their renowned amenities and impeccable service, City Club offers an unequaled locale for extraordinary weddings and superlative special events. Their friendly, experienced wedding specialists create one-of-a-kind events that complement your personal style, fits within your budget, and leaves you and your guests with memories to last a lifetime.
Their variety of elegant banquet and meeting rooms can accommodate up to 180 guests, while the golf course and grounds offer ample opportunities for picturesque wedding party functions, wedding ceremonies, and unforgettable outdoor receptions under the stars.
Competitive Pricing
| Average Dinner Price/person | Average Rental Fee | Average bar package/person | |
|---|---|---|---|
| City Events | $85 | $2000 | $45 |
| City Banquets | $95 | $4000 | $55 |
| City Club | $110 | $5000 | $75 |
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location in the downtown area, gives the best access to the airport, corporate centers, schools, offices, and high-end residences. The Company also offers adequate parking making it a very accessible venue for event attendees.
- Business Amenities: The rooms we offer are complete with equipment needed for hosting events from sounds and lightings to activity spaces, Wi-Fi connectivity, and lounge areas.
- Management: Our management team has years of business and marketing experience that allows us to market and serve customers in the same manner as our most sophisticated competitors.
- Relationships: Having visited the community for a number of years, [Founder’s Name] knows all the local leaders, newspapers and other influences. As such, it will be relatively easy for us to build the brand and awareness of the venue.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Offering business-class spaces and services
- Offering a central location in the downtown area
- Providing excellent customer service
Promotions Strategy
The Company’s promotions strategy to reach its target market are the following:
Phone Prospecting
[Company Name] will assign salespeople to contact area corporations to arrange for corporate rates for their upcoming company events.
Public Relations
We will contact all local and regional area newspapers and television stations to tell them about the event venue opening and unique value proposition of [Company Name].
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell local corporations and past customers about promotions and events.
Pre-Opening Events
Before opening the venue, [Company Name] will organize pre-opening events designed for prospective national customers, local customers and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will fluctuate based on the season and booking percentages using a computerized yield management system, but pricing will always place the event venue in the mid-range, below luxury offerings and above other event venues in the area that cannot be billed as business class. Customers will feel they receive great value when patronizing us.
VII. Operations Plan
In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:
- General & Administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing and storing supplies and equipment
- Hiring and training staff
- Corporate sales to individuals and groups
- Janitor/maintenance personnel to keep the venue clean and in working order
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
Management Team Members
[Company Name] is led by [Founder’s Name] who has been in the event management industry for 20 years.
While [Founder] has never started an event venue business before, he has worked in the event management industry most recently as a general manager, and has organized various events. As such [Founder] has in-depth knowledge of the operations and the management (e.g., scheduling, organizing, marketing, etc.) of events.
[Founder] graduated from the University of ABC where he majored in Hotel and Restaurant Management.
Hiring Plan
[Founder] will serve as the event venue president. In order to launch the business, we need to hire the following personnel:
- Maintenance staff (5 to start)
- Events Manager (will manage day to day operations of the event venue)
- Assistant Manager (will manage event venue operations at nights and weekends)
- Service Staff (4 full-time to work on accommodating guests – allowing for at least 1 staff person to be on duty at all times)
- Sales Staff (2 full-time) will target and book corporate clients in rooms that best fit their event’s needs
- Legal, Bookkeeping, and other Administrative functions (3 staff)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s will come from event venue rentals.
The major costs for the company will be salaries of the staff and cost to maintain the standard of the venue. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Nameis seeking a total funding of $3,000,000 to launch the event venue. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Event venue design/build: approximately $2,500,000
- Working capital: approximately $500,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.
| Annual Rental Clients | |
|---|---|
| Year 1 | 48 |
| Year 2 | 60 |
| Year 3 | 72 |
| Year 4 | 84 |
| Year 5 | 100 |
| Average Daily Rate | $255 |
| Average annual growth rate | 5% |
| Monthly mortgage/lease | $3000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
