BUSINESS PLAN

This Business Plan has been submitted on a confidential basis. By accepting delivery of this plan, the recipient agrees to return this copy to the company at the address listed above.

Table of Contents I. II. III. IV. V. VI. Summery The Industry, the Company and the Service The Management Team Market Research and Analysis Marketing Plan Financial Data

I.

SUMMARY

Events Unlimited was formed in July of 19XX in San Diego, California by a highly knowledge and experienced team of three businesswomen in response to what they believe to be an attractive business opportunity created by the following conditions: y The need for a faculty equipped to cover the requirements of parties or receptions for large groups of people. y The present competition (hotels and restaurants) cannot accommodate a large scale event without 18 months lean time. y Hotels and restaurants require customers to use their catering services, which are substantially more costly. y Currently there are no companies that offer a party facility as well as consultation services. Events Unlimited proposes to provide a facility where large corporations, small companies, and individuals told hold events, conventions and seminars. Events Unlimited would coordinate the caterer, florist, and entertainment, invitations, and so on for the client at substantial savings in time, effort, and money. All aspects of the event would be subcontracted at various price ranges by Events Unlimited. Events Unlimited target market will be the companies and corporations of San Di along with couples planning to wed. Our marketing plan will include advertisements in local papers and business journals. We will also utilize the radio and direct mail. The size of the market we are targeting is increasing with the rapid growth of San Diego. Potential individual clients will be from the middle and upper classes, which compose a high percentage of the households in our serving area. Because of the complexity and lack of information on industry trends at this time. it is difficult to estimate sales volume. Each function, depending on the size of the party. complexity of special requests, and season of the year will command

a price directly related to the elements of the party itself. Because we are unique in our service business, we anticipate the market share to range from 6.0 to 6.5 percent in the San Diego area. Pricing of our service will be reviewed on an individual party basis, If the particular request appears to he very time consuming or difficult, our fees would be based on an hourly basis plus costs. If the job appears to be relatively routine, a flat fee (which includes the subcontractor s fees) would be charged. We at Events Unlimited believe we have a competitive advantage in that we are the only company in San Diego to offer both a facility and a full service consultation team. We will offer flexibility in pricing and quality currently not offered by our competition. Our clients will be able to select an event plan that fits into their budget; they can also choose to use only our facility. Because of the varied 4 ypes of services offered by our firm, gross margin may fluctuate between 20 and 30 percent depending upon the time involved in providing a particular service. Profits will experience a seasonal cycle. During the busiest periods, summer (weddings) and fall (office parties), profits should range between 5 and 10 percent. In the slower periods, profits should range between 3 and 5 percent. Based on the information we have gathered, we ire anticipating attaining the breakeven point within 18 months: We project a positive cash flow within 12 months. ii. THE INDUSTRY, THE COMPANY, AND THE SERVICES The Industry The present catering and party consultation firms in the San Diego area do not have a business similar to Events Unlimited. Within San Diego County, there. are 210 catering firms and II party planning firms. However, these firms are not full service consultation firms with a party facility.

The Company The opportunity for a new party facility and consultation firm was perceived bya group of three businesswomen in July I9XX. The businesswomen collectively have more than 19 years of experience in finance, marketing and general management. After analysis of conditions in the industry, they are convinced this is a viable growth opportunity for a business of this type. The customers of a business of this nature will be companies in need of a facility to hold company parties, seminars, and meetings. Another potential customer will be couples intending to be wed and in need of a facility to house their reception. It will be Events Unlimited philosophy to offer an attractive facility of adequate size to., our clients We will also provide them with a full service consulting team that will coordinate their needs without taking them away from the daily operation of their own businesses. The ServIces The following list represents the various services Events Unlimited will provide along with a facility capable of holding a maximum of 500 people.

Catering Servic A group of six caterers will be utilized to fill the varying needs of our clients. Each caterer will be in a different puce range or specialty of food service. All prices will be contracted for 12 months. Florists A group of at least three florists Will be- contracted to cover clients needs at the florist s cost plus 15 percent. If the client chooscs to contract the florists themselves, they would pay as much as 35 percent over cost. Invitations Events Unlimited will ct as distributor for the major invitation printers. This will enable us to sell the invitations (0 our clients at our cost plus 10 percent instead of the usual 25 percent over cost. Decorations Utilizing our wholesale license in purchasing decorations and Patty favors, we can pass on the cost savings to our clients. Along with these for services we will negotiate contract pricing with limousine services photographers, and bakers and pass those savings on to our clients. Entry and Growth Strategy In order to gain a foothold in the market place, we need to devote time to research the needs and growth potential of the Sat. Diego market. Our corn Putative advantage is the full service nature of our firm in the arrangement of a Party including the availability of a fully functional facility. The facility will provide us with the lure we require to entice clients to use -our services. Our research of hotels, convention halls, and country clubs indicates that these could be

employed but that restrictions were often so severe that theplanned Party would exceed reasonable costs. Advertising and promotional efforts will be concentrated in those areas that management experience has demonstrated to be the most effective. The use of local magazines and newspapers will tap the market we desire. As is true o(most new businesses, we expect growth during the first year to be slow. However, as more people become aware of our services through word of mouth and advertisement, we expect the sales volume to triple within five years. III. THE MANAGEMENT TEAM The following table lists the members of the management team of Events Un limited and the responsibility of each member as well as employment prior to organization. Tem Members V.L. Ross, Operations J.A. Dehesh, Marketing C.F. Lily, Finance Experience Purchasing supervisor M/A COM Executive secretary M/A COM Accounting Gabele & Oman, CPAs

Qualifications Victoria L. Ross-operations Ms. Ross is currently enrolled at Chapman College in the undergraduate program seeking her degree in business administration. Her experience includes eight years of increasing responsibilities in purchasing management for a company generating $50 million, in orders in the latest fiscal year. During her eight years as WA COM, Ms. Ross has coordinated the day-to-day operations of a purchasing staff of IS persons and currently has a staff of five buyers and two clerks. Along with her personnel management experience, she

has gained experience in large dollar negotiations, Prior to working for M/A COM, Ms. Ross had two years experience workingfor a caterieg service and two years experience with a greeting card company handling orders for invitations and announcements. Jancle A. Deshes-Marketing Ms. Dehesh is presently attending Chapman College completing her degree in business administration. She has a vocational degree in sales, marketing, and management. Her experience includes eight years of management and administrative responsibilities. in 1979 she manages. a boutique in which she supervised sales personnel and took care of all marketing and advertising, including newspaper layout, radio jingles. And so on. In recent years, Ms. Dehesh has broadened her experience to include bookkeeping, budget control, payroll, contract negotiations, and customer contact. She has also prepared major presentation materials for potential customers. Colleen F. Lily-Finance Ms. Lily is currently enrolled at Chapman College seeking her degree in accounting. Her initial experience was with Professional Copying, Inc. as an accountant and office administrator, where she implemented a new system in their accounting department. She was in charge of the entire financial operations as well as initiating administrative policies and procedures. in 19.S3, shejoined the accounting firm of Gabele & Oman as an accountant. Her expertise with this firm includes preparation of financial statements and tax returns as well as financial planning for a variety of clientele. While with Gabele & Oman, Ms. Lily has been placed in charge of their information systems department and has supervised the personnel in this department.

IV. MARKET RESEARCH AND ANALYSIS Customers Events Unlimited s potential customer base is large and diverse. The following list represents the major groups we are targeting for our marketing plan. Corporations San Diego has experienced significant growth in the area of business, especially in the electronics field. The Sorrento Valley and the Golden Triangle areas are predicted to be the next Silicon Valley. Mission Valley continues to attract the professional service industry. The North Park area has several professional and production businesses. Our corporate clients he our most important clients. Their interest in our services should be piqued by the availability of our facility for seminars, meetings, banquets, and parties. They will also appreciate our full range of consultation services. We arc equipped to cater to any type of corporate event. It has been related to us that facilities currently equipped to handle the needs of corporate clients ire limited. Events must be booked months in advance to accommodate all the special needs of an event. The availability of our facility within the first two years of operation will be very attractive to these clients. Our full service consulting team will be a must for most of our corporate clients. Most companies do not have a person designated solely for party consultation and therefore must take employees away from their designated tasks to coordinate their events. We would take care of all aspects of the event and significantly reduce the time requirements of corporate employees. All preliminary footwork would be handled by our staff and would require only final decisions from the corporate liaison. Future brides and grooms the needs of couples planning to be married vary with their family traditions, ethnic backgrounds, religious beliefs, and most

importantly, their budgets. Events Unlimited will help them coordinate all the aspects of their wedding reception. We will present them with a comprehensive plan and price forecast for all the services they will require. They will then he able to select the plan that best serves their needs and budgets. We will also lease the facility to them at a flat rate and allow them to do their own preparation. The number of attractive facilities available for this type of function is limited and there lire difficult to book. Our availability and flexibility in pricing will be extremely attractive to these potential clients. As each couple comes in to book a reception with us, we will give them a presentation Qf our services and show the them how we can save them time and money in coordinating their reception. Charitable and political fund raisers There are several political and charitable fundraisers in San Diego each year. A few of these are Las PETRONAS Jewel Ball, La Jolla Museum Contemporary Art Night in Monte Carlo, and the Combo Gala. The main requirement for events of this type is a well- organized staff to attend to all the various aspects of the event. Events Unlimited is a professional and wellorganized-consulting firm that can handle any type of event. We maintain a selection of party themes complete with ideas for decorations, costumes, fireworks, and ice sculptures. Quince eras Because of the large number of Hispanics in the San Diego are , there are hundreds of quince eras each year. The quince is an elaborate party given to celebrate the 1 birthday of a Mexican or Spanish girl. These parties require the same planning as a wedding reception. They are almost always formal. As with our other prospective clients, these parties would require expert coordination of all aspects of the event. We at Events Unlimited are capable of organizing an event of this scope.

Parties in general Our remaining client base will require various types of parties, such as Bat and Bar Mitzvahs, birthdays, retirement, and over-the-hill, and 25th and 0th wedding anniversaries. We are expertly equipped to handle any theme-or setting required for these types of parties. With our expert guidance, our clients parties will not only be an event, they will be a memorable experience. Market Size The market size for the city of San Diego is estimated to be 10,000 parties per year. This figure represents a combination of both consultation engagements and facility rentals. This market is estimated to increase by 10 percent per year. Of this market, one-third is estimated to be party consultation while two-thirds is estimated to be f since a consultation is estimated to be IS hours at $30 per hour, the total consultation market appears to be approximately $1,500,000 per year. The facility market is estimated at the rate of $1,300 per rental or approximately $3,000,000 per year. The sources of this data were newspapers, caterers, party consultants, and business consultants. The numbers above represent a consensus of all data received. Competition Our competition is limited. No one gives the complete service we provide. Hotels, restaurants, and caterers only provide part of the service we offer. We are the only company that will provide every party detail at our location Following is a list of our competitors. Garden Creations of San Diego Conventions in San Diego, Inc. ES? (Executive Services Provided) Exclusive Coordinators of La Jolla, CA

y JRW Executive Service of Poway, CA y Carole L. Mullen, On-Site coordinator of Solana Beach,.CA y San Diego in Style y Host San Diego. Inc. y Professional Meetings Unlimited of La Jolla, CA Thi & data was compiled from Catering to You, a guide to entertaining in San Diego. Compilation of our competitors strengths is a difficult task since our business does not directly compete with any of these organizations. Party consult-ants provide the closest comparison to our firm. Their competitive advantage lies in the fac,t that they are established in San Diego. In the case of hotels andrestaurants, we perceive their strength to be their visibility. The weaknesses that are consistent to all of our competitors are their lack of flexibility, their pricing and failure to provide all the services required to put on a party. Pricing at hotdls and restaurants for food, which is generally handled by an outside caterer, is at lAst $2 a head higher than we would charge. Facilities provided by these sources are limited in their configuration flexibility. We at Events Unlimited will overcome these strengths and take advantage of these weak nesses as follows: We plan to do a widespread advertising campaign including ads in San Diego magazine and through the radio media: in the area of flexibility, our primary philosophy is, and will continue to be, that the client s net. are our first priority. Further, our facility will be designed to provide maximum flexibility to conform with client requirements. We at Events Unlimited believe that these strategies will ensure a strong client base in a matter of months. Events Unlimited is capable of handling in a professional manner every aspect of any type of social gathering. We have numerous creative ideas that will make our parties event. M/A-COM Government Systems and Telecom medication Divisions

have committed to a 20-plus party contract with Events Unlimited during the first year. This contract was committed based on the excellent performances of past employees, Janice Dehesh and Victoria Ross. In addition to this contract, contracts from General Instrument. Comstrearn, and Qualcom are out for final signature. These contracts will amount to another eight parties minimum. See attachments A and B for market data on the con- suiting and facilities phases of the business. Ongoing Market Evaluation To continue the process of ongoing evaluation of our target markets, Events Unlimited will mail questionnaires to previous customers asking pertinent questions regarding future customer needs. This questionnaire will serve both as a marketing tool and a quality control tool. In addition, we will send questions and flyers to all corporations in the San Diego area inquiring as to services they might be interested in using. A sample questionnaire follows. Questionnaire Number 1 The Business Survey

1. How many parties does your company sponsor per year? 2. What services do you require to put on party? 3. Do you have a company party consultant? 4. 11 not, who coordinates your parties, meetings, etc.? 5. If you were to engage a professional party consultant, what would your expectations be? 6. Have you engaged a professional party consultant in the past? (If the answer is no, please skip to question 12.) 7. If you answered yes to question 6, was the service helpful? 8. If the service was inadequate, what were the major drawbacks? 9. Was the service charged at an hourly rate or a flat rate? 10. Do you feel the service was priced fairly? 11. Please circle the hourly rate:

$ 0 20 23 40 41 60 61 80 81 or higher 12. What service or services would encourage you to engage an event consultant? Questionnaire Number 2-Client Survey 1. Were you satisfied with services provided by Events Unlimited? 2. If you were satisfied with our service, what were the best features? 3. What services could be improved? 4. If you were dissatisfied with any of our services, what improvements would you make? 5. Was our price reasonable? 6. Please add any additional comments you may have, or features you would like to see added. V. MARKETING PLAN Overall Market Strategy The general marketing philosophy and strategy of Events Unlimited are to create excitingly original and unique events on or off site. Events Unlimited target market is companies and corporations in San Diego County as well couples preparing to wed. In the months after we open, we will extend market to include charitable and political fund raisers, quince eras . Bar and Bat Mitzvahs, birthdays, retirement and over-the-hill parties, and anniversary parties. To reach our potential corporate clients, we will contact and solicit secretaries and human resource personnel who are normally responsible for planning and organizing corporate functions. Future brides will be contacted there newspaper

advertisements and through bridal salons. Other potential client will be reached through appropriate ethic and community newspaper. The Objective of this advertising would be to make various ethic group such as Hispanics and Chinese Americans aware of our expertise in preparing for their special holidays. Our total service concept will be emphasized in the generation of sales. Our flexible pricing, unique event themes and captive facility will be extremely attractive to our potential clients. [Attachments would typically be indicated to show estimated total market and estimated market share of Events Unlimited.] Events Unlimited will start as a regional business with our first facility located in the Mission Valley area, which we believe to be centrally located to our market area. Future growth includes sites in the Golden Triangle area and La Jolla. Pricing The Pricing policy for services provided by Events Unlimited will of necessity be very flexible. We will establish standard rates for each service based on the fess and rates charged by competitors. Our consulting fees will be based on $30 per hour, which is slightly under market for comparable services. Events Unlimited predicts a gross margin of 20 to 30 percent which may fluctuate based on comparative factors. Gross margins on subcontracted caterer services will be closer to 20 percent, while margins on services such as invitations, flowers and decorations will be closer to 30 percent. We protect that our service will be accepted by consumers because we are very price competitive and provide a mix of unique services that no single competitions offer. Our sales ability will allow us to expand the extras we can sell to clients who wish to throw the truly unique party.

Sales Tactics For the first year, the owners of Events Unlimited will be the sales force. With our knowledge and experience, we are also capable of managing the business aspects of Events Unlimited. After the initial one-year start-up period, we forces hilling additional staff, which will include sales help, receptionist, and secretary. Advertising and Promotion Our Advising cost will be a significant part of our company s expenses and therefore must be monitored carefully. We feel that employment of an advertising agency will lead to the most efficient use of these funds. The agency will be for establishing an advertising program, layout of business cards brochures, and flyers, and design of the company logo. Its expertise will enable Events Unlimited to present a more professional and original image. Newspaper will be the main advertising media. The use of community and ethic newspapers will allow us to target our advertising dollars. We also anticipate the use of direct mailings from appropriate address lists targeting San Diego corporations of appropriate size. Initial phase advertising costs are estimated to be approximately $ 5,000. VI. FINANCIAL DATA Profit and Loss Forecasts [Attachments would typically be included.] Assumptions Events Unlimited will require a deposit equal to 50 percent of the estimated job at contract signing with the balance due and payable on the day of the event. We do not foresee any bad debt loss since no terms will be extended beyond event date. This will guarantee cash flow for the payment of our vendors within a 10-day period.

Ricks and Sensibility We have taken into consideration seasonal trends and forecasted accordingly. By promoting unique non holiday events, we have tried to reduce seasonal loss of revenue and smooth cash flows during non seasonal periods. Pro Forma Cash Flow Analysis [Attachment would typically be included.] Assumptions As discussed previously all events and rental of facilities will be paid in full by the day of the event. Terms of payments to our vendors will be from day of event (caterers) to 30 days (stationers and florists). Wage in creases will occur annually at approximately 10 percent per annum on employee s anniversary date. Rent, insurance, and miscellaneous expense increase s have been projected and accounted for in the three years of pro form as. Advertising will increase as a function of sales due to the importance of expanding our customer base. Because of the expansion of projected sales, three party consultants and one full-time secretary will be hired by the end of the first year. Capital expend tires include a computer and appropriate software to provide bookkeeping capability. In the third year, we have planned a $15,000 enhancement to our. Facility to keep current clients and lure new clients. Cash flow sensitivity As projected, after the partners initial investment for the business stay we should not need to borrow. Any other equipment or furniture for events requested or heeded will be rented and in turn included in our contract to the client. Any repairs to facilities are included in our lease agreement and annual cost-of-living increases have been included in our pro form as. Pro Forma Balance Sheets With the initial capitalization contributed by each partner, Events Unlimited is able to start business without financing from a lending institution. In order to

start business, Events Unlimited needs cash for advertising and promotional material, security deposit for rental of facility, and purchase of kitchen equipment and furnishings. Until year four, when expansion to a larger and more elegant facility is planned, we see no need for applying for a loan, [ Attachment typically would be included.]