Looking for a personal event planning business plan? You're in the right place.
A planner of birthdays, anniversaries, showers and reunions has questions to answer before a bank or a landlord will listen. What fee should each kind of party carry? How many parties can one planner handle before quality slips? When does the money arrive, and when does it go out to vendors? A generic template doesn't show what sensible answers look like.
In this article we'll walk through a complete sample business plan for a private-celebration planner in Memphis, Tennessee, section by section. We'll cover the executive summary, the SWOT analysis and, in particular, all of the financials.
Here's what you'll take away:
- The executive summary: see how to put fees, funding and the first three years on one page, so a reader grasps the business in a minute
- Fee tiers and vendor markup: compare a flat fee with a percentage of budget and a markup on purchases, and decide how to show each on a quote
- The hours table: work out how many parties one planner can deliver, and when to hire the next one
- Deposit timing: plan the instalments so vendor bills and payroll are covered before the party takes place
- The first year, month by month: spot the quiet months and the peak before they arrive, and size a reserve against them
- The five-year profit, cash flow and balance sheet: see how each hire and price change shows up in the numbers
- The downside case: have an answer ready for "what if bookings run 20% short?", along with the steps the owner takes
If you're setting up a celebration-planning business, read this before you write your own. The firm is fictional, so keep what fits and change the rest.
In this plan
If you need a personal event planning business plan template for your own plan, start it in the Toolkit.
Plan at a Glance
Crest Vale is a Memphis, Tennessee firm that plans private celebrations: milestone birthdays, anniversaries, baby and bridal showers, family reunions, retirements and graduation parties. It opens on January 1, 2027 in a leased studio and sample room. Renee Whitfield owns 100% of the company, which has elected corporate tax treatment, and plans every party herself in the first year.
The firm raises $140,000: $100,000 of Renee's savings and a $40,000 bank term loan. Of that, $99,500 stays in the account as a reserve, $25,000 buys event kit and the studio fit-out, and $15,500 pays for legal work, licenses and the launch.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $139,560 | $265,225 | $405,604 |
| Net income after start-up costs | ($74,174) | ($18,314) | $27,511 |
| Closing cash | $41,251 | $18,777 | $31,232 |
Clients buy in one of three flat-fee tiers: day-of coordination at $2,200, partial planning at $5,500 and full design and planning at $11,000. Those are Year 1 prices. A client who wants a single invoice can also have Crest Vale buy décor, rentals and florals at cost plus 20%, and only that markup counts as revenue. In Year 1 the firm delivers 24 parties, rising to 62 in Year 3.
Year 1 is a loss because a planner, a part-time coordinator and a bookkeeper are on payroll before spring bookings have all arrived. Only May and June are profitable in the first twelve months. Year 3 is the first profitable year, at an 8.6% EBITDA margin.
Capacity sets the pace. A planner can deliver about 24 parties a year while keeping room for sales calls and overruns, so a hire follows each rise in bookings. If bookings fall 20% short and Renee slows hiring, trims marketing, cuts her own pay and skips distributions, cash stays positive at every year end.
Crest Vale and Its Celebrations
Legal name: Crest Vale, LLC, a Tennessee limited liability company. Owner: Renee Whitfield, 100%. Tax status: a Tennessee LLC that elects to be taxed as a corporation; Renee is a W-2 employee. Premises: a 700-square-foot studio with a sample room in Memphis, on a lease with a personal guarantee that is signed once the bank commits. Opening: January 1, 2027. Five spring parties have their first retainers paid in January, all from Renee's personal network. Stage: pre-launch. The lease is in draft. The client agreement and deposit policy are drafted from a template, and the $5,000 legal budget has a lawyer finalize them in the first two weeks of January, before any retainer is collected. The same lawyer reviews the non-compete and non-solicitation terms of Renee's employment with her hotel employer before she resigns.
Purpose
Plan private celebrations for Memphis families so the host attends their own party. The firm quotes a flat fee, says in writing what is included and discloses any markup before a client signs.
Where the firm draws its line
Crest Vale does not plan weddings. A wedding runs on a longer calendar, a different vendor base and its own specialist planners, and the firm passes those inquiries on. It does plan the occasions around a wedding: showers, anniversaries and vow renewals. Corporate and nonprofit events are also outside the plan.
Three tiers
| Tier | Year 1 fee | What is included | Planner hours | Year 1 parties | Share of Year 1 revenue |
|---|---|---|---|---|---|
| Day-of coordination | $2,200 | Planning meetings, vendor confirmations, a written run sheet and a coordinator on site | 20 | 10 | 16% |
| Partial planning | $5,500 | Everything in day-of, plus venue and vendor selection, a budget tracker and monthly check-ins | 45 | 9 | 35% |
| Full design and planning | $11,000 | Concept and design, every vendor contract reviewed, a guest-experience plan and a three-person event team | 100 | 5 | 39% |
| Managed vendor purchasing | cost plus 20% | Optional: Crest Vale buys décor, rentals, florals and lighting and invoices the client once | n/a | 65% of full and 40% of partial clients | 9% |
The hours are a time budget, not a guess. Day-of: 3 hours of meetings, 5 on vendor confirmations and the timeline, 3 on a site walk-through, 3 on guest logistics and 6 on the day. Partial: 4 on discovery, 8 on venue tours, 10 on vendor selection and quotes, 6 on budget and contract admin, 5 on monthly check-ins, 4 on the run sheet and 8 on the day. Full: 14 on design concept and boards, 10 on venue tours, 20 on sourcing and contract review, 10 on budget and payments, 12 on guest logistics such as RSVPs, seating and travel, 10 on tastings and rental walk-throughs, 8 on the run sheet and rehearsal, and 16 on set-up, the event and strike.
Targets for the first three years
- Deliver 24 parties in 2027, 43 in 2028 and 62 in 2029.
- Add a second planner in month 16 and keep every planner between 79% and 86% of billable hours.
- Reach a profit after tax in 2029 and begin owner distributions that year.
- Source half of all bookings from referrals by 2028.
Licensing and rules
The firm checks Tennessee business-tax and local license requirements with the state revenue department and the city or county clerk before opening, and again each year. It does not sell or serve alcohol; bar service comes from licensed caterers and bartenders. Whether Tennessee sales tax applies to planning fees and to managed vendor purchases is open; the firm's accountant settles it before the first invoice, and the forecast treats revenue as net of any tax collected.
The Memphis Celebration Market
What planners earn and how fast the field is growing
The Bureau of Labor Statistics reports a median pay of $61,160 for meeting, convention and event planners in May 2025, about 172,100 jobs and 6% projected growth from 2025 to 2035. It also reports that 10% of these planners are self-employed. The category is wider than private parties, since it includes corporate meetings and conventions, and the bureau does not separate weddings or family celebrations. It is the nearest published occupation for this plan.
How the firm sizes its own market
No public figure counts private celebrations in Memphis, so the plan builds from the firm's capacity: 62 parties in Year 3. The plan targets Memphis and its eastern suburbs, such as Germantown and Collierville, where the firm expects to find hosts with budgets of $20,000 or more. That location choice is the plan's, and it has no market count behind it.
Where parties cluster in the year
| Quarter | Year 1 parties | What drives it |
|---|---|---|
| January to March | 1 | Launch ramp: retainers arrive in January, and the first party is in March |
| April to June | 10 | Showers, graduations, reunions and spring anniversaries |
| July to September | 5 | A reunion in July, nothing in August, fall milestone parties from September |
| October to December | 8 | Milestone birthdays, anniversaries and retirements |
The quarters show how the launch year falls. Years 2 to 5 are modeled annually, and the plan makes no monthly claim beyond Year 1.
What a host can hire instead
| Alternative | What it offers | Why a host picks it | How Crest Vale is built to differ |
|---|---|---|---|
| Venue event coordinators | Day-of help included with a room booking | Free or cheap, one contact | Independent of the venue and its preferred vendors |
| Wedding planners who take other events | Experienced planners with vendor lists | A strong track record on big events | Private celebrations are the whole business |
| Freelance day-of coordinators | Hourly or flat help on the day | Lowest price | Planning from the first conversation, with a team behind the planner |
| Caterers and rental companies that bundle planning | Food, equipment and some coordination | One vendor to call | A planner with no stake in which caterer is chosen |
| Doing it themselves with online tools | Checklists, apps and templates | No fee | A named planner who handles the vendors and the phone calls |
The table describes categories and does not rank them. Named businesses and their fees are left out because they change often.
SWOT
| Strengths | Weaknesses |
|---|---|
| Flat, published tiers that a host can compare in minutes | One experienced planner at launch; her absence stalls the firm |
| Sample room where hosts see tables and layouts in person | No brand and no portfolio of its own on day one |
| Five spring parties with retainers paid in the opening month | Year 1 loses money and draws on the reserve |
| Opportunities | Threats |
|---|---|
| Repeat bookings: the same family has several milestones | Venues steering hosts to in-house coordinators |
| Referral partners among caterers, venues and wedding planners | A weak spring season or a run of cancellations |
| Managed purchasing as a second income line | Vendors raising prices faster than the quoted fee |
Who Books a Private Celebration
The host
A typical client is a 38 to 65-year-old organizing a party for someone else: a daughter planning a parent's 70th, a spouse marking a 25th anniversary, a sibling running a reunion across several cities. The host has a budget, a guest list and about six months. What is missing is time and a working knowledge of vendors.
Occasions in Year 1
| Occasion | Typical guests | Usual tier | Year 1 parties | Share |
|---|---|---|---|---|
| Milestone birthdays (40th to 90th) | 60 to 150 | Full or partial | 8 | 33% |
| Anniversaries and vow renewals | 40 to 100 | Partial | 3 | 13% |
| Baby and bridal showers | 20 to 60 | Day-of or partial | 5 | 21% |
| Family reunions | 50 to 200 | Partial | 3 | 13% |
| Retirements, graduations and others | 30 to 100 | Day-of or partial | 5 | 21% |
Total party budgets run about $10,000 to $25,000 for day-of clients, $22,000 to $40,000 for partial and $45,000 to $80,000 for full planning, with $55,000 the expected average for full planning. These are the ranges Crest Vale quotes against and a choice of the plan, not market data. The full tier suits hosts with a venue, full catering, entertainment and styled décor.
What prompts a call
A date is set and the host has not booked a venue. A venue requires a coordinator. Relatives are traveling in. A previous party went badly. The call usually comes four to six months ahead for a full-service party and about two months ahead for day-of help.
What hosts weigh
Whether the planner has done this kind of party. Whether the price is fixed. Whether the vendors are the planner's friends or the host's choices. Whether the host will still get to sit down and enjoy the evening.
From First Call to Signed Agreement
The consultation
A 40-minute call or studio visit, free of charge. Renee takes every consultation in Year 1 and a proposal follows within two working days. The firm expects to close 45% of consultations, so 24 parties need about 53 conversations in Year 1.
Fee tiers or percentage of budget
Crest Vale charges a flat fee by tier. Some planners charge a share of the client's budget, which rewards a larger spend. A flat fee takes that incentive away, and the client can see the cost on page one of the proposal. Full planning at $11,000 is about one-fifth of the $55,000 average budget the firm expects for those parties.
Vendor markup against a flat fee
| Route | Client pays Crest Vale | Who signs the vendor contracts | Revenue to Crest Vale on a $14,000 order at cost |
|---|---|---|---|
| Flat fee, vendors paid directly | $11,000 fee only | The client | $11,000 |
| Managed purchasing | $11,000 fee plus $16,800 for the order | Crest Vale | $13,800 |
Managed purchasing is optional and the markup is on the quote. Clients who choose it get one invoice and one point of contact. The firm earns its extra $2,800 only on orders it actually places, and the order is paid by bank transfer.
Deposits and instalment timing
| Tier | Instalments | Final payment due |
|---|---|---|
| Day-of | 50% at signing, 50% in the event month | 14 days before the party |
| Partial | 40% at signing, 30% two months out, 30% in the event month | 14 days before the party |
| Full | 35% at signing, 35% three months out, 30% in the event month | 14 days before the party |
Planning fees are non-refundable once paid, because the work is front-loaded. A client who postpones may move the date once within 12 months at no charge, given 60 days' notice. If severe weather, a venue closure or a public-health order stops a party, the instalments paid stay as credit toward a rebooked date within 18 months, and the agreement says so. The cancellation and make-good line in the budget pays for rebooking help. Vendor deposits go from the client to each vendor directly. For managed purchasing, the client's money for vendor orders sits in a separate client account and is not Crest Vale's cash. The firm confirms the account rules, the refund and force majeure terms, and the consumer terms of its client agreement with a lawyer.
Where Year 1's 24 parties come from
| Source | Parties | Share |
|---|---|---|
| Referrals from venues, caterers and past clients | 9 | 38% |
| Local search and the website | 6 | 25% |
| Instagram, Pinterest and paid social | 5 | 21% |
| Community events and the open house | 4 | 17% |
The referral share is planned to reach 50% in Year 2, 58% in Year 3, 62% in Year 4 and 65% in Year 5. That is about 22 referral parties in Year 2 and 36 in Year 3, against 9 in Year 1, or roughly one referral for each Year 1 party. It is the booking figure with the least evidence behind it, which is why the downside case runs bookings 20% short.
Marketing Plan
Spend and cost per booking
Year 1 marketing is $24,000: $9,000 of launch costs paid from start-up funds and $15,000 of running spend. That is 17% of Year 1 revenue, about $1,000 for each of the 24 parties. By Year 3 the budget is $23,000, spread over 62 parties at about $371 each and 5.7% of revenue, as referrals do more of the work.
| Channel | Year 1 spend | What it is meant to do |
|---|---|---|
| Website and staged-table photography (launch) | $5,500 | A portfolio built from styled sample tables in the studio, with the three tiers priced on the page |
| Open house (launch) | $3,500 | An afternoon for caterers, venue managers and florists to see the sample room |
| Local search and content | $4,000 | Google Business Profile, plus pages for milestone birthdays, anniversaries and reunions |
| Social content and paid social | $4,000 | Styled-table photos on Instagram and Pinterest, and targeted ads during the months hosts book |
| Referral partner program | $3,000 | Lunches with venue managers and caterers, and thank-you gifts to past clients who refer a friend |
| Community events and expos | $2,000 | A booth at local celebration fairs and sponsorships of reunion weekends |
| Past-client email | $2,000 | An annual message to every former client ahead of the next milestone date |
Marketing milestones
- January 2027: studio open, five spring parties with retainers paid.
- June 2027: busiest month, five parties delivered, and the first referrals from caterers and venues.
- October 2027: 19 parties delivered and the referral share above a third.
- December 2027: 24 parties delivered and the past-client email list in use.
How an Event Gets Planned
The studio
A 700-square-foot studio with a sample room in Memphis at about $25.70 a square foot a year all in, or $18,000 in Year 1. Hosts meet Renee here, and the sample room holds table settings, linens and a lighting setup. Storage for event stock is a rented unit. From Year 4 the firm moves to about 1,000 square feet.
A party from signing to follow-up
A client signs and the retainer is paid. The planner confirms the date, headcount and budget. Venue and vendor shortlists follow, then contracts, a design board and a draft run sheet. Two weeks before, the final payment and final guest count are due and every vendor confirms in writing. On the day a lead coordinator and an assistant run the schedule. A week after, the client receives a short summary and a request for a review.
Hours and planner capacity
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Parties delivered | 24 | 43 | 62 | 73 | 84 |
| Planner hours needed | 1,105 | 2,030 | 3,010 | 3,595 | 4,180 |
| Planners at year end | 1 | 2 | 3 | 3 | 4 |
| Planner hours available | 1,400 | 2,450 | 3,733 | 4,200 | 5,133 |
| Hours used | 79% | 83% | 81% | 86% | 81% |
A planner has 1,400 billable hours a year; the rest goes to sales, site visits and admin. A day-of party takes 20 hours, a partial party 45 and a full party 100. Hours available count each planner for the months on payroll. Hours used stay between 79% and 86%, which leaves room for overruns in the busiest weeks. A planner delivers about 24 parties a year at this mix.
Vendors and suppliers
Venues, caterers, florists, rental companies, bakers, photographers, DJs and bands. Crest Vale keeps a short list for each category and checks each vendor's insurance and references. It signs a vendor agreement for managed purchasing. Vendors who cancel are replaced from the list, and the make-good reserve covers the cost to the client. That reserve is $1,500 in Year 1 and $5,500 in Year 5.
Software
A client management and proposal system, a budgeting and run-sheet tool, e-signature, accounting and a photo library. Software costs $4,800 in Year 1 and $10,000 by Year 5.
Insurance
General liability, professional liability and hired and non-owned auto coverage, with workers' compensation as staff are hired. Liability and related insurance is budgeted at $3,600 in Year 1 and $8,200 in Year 5. Key-person life and disability insurance on Renee is a separate $2,400 a year. Crest Vale asks every vendor for a certificate of insurance and tells hosts when a venue requires special-event liability coverage.
Renee Whitfield and the Team
Renee Whitfield, founder and lead planner
Renee spent nine years running private events for a Memphis hotel group, with a final three years as events manager responsible for about 120 parties a year. She invests $100,000 of savings. She is leaving to run a smaller business in which she plans the parties herself. None of the five January retainers comes from the hotel's guests or client files; they come from friends, family and her community network.
Gaps in the founder's experience
Renee has not run payroll, hired planners or sold directly to hosts. The plan covers these with a contract bookkeeper from month 3, an accountant on a retainer, a written hiring checklist reviewed by an employment lawyer and a weekly sales-call schedule with a target of one consultation a week in Year 1.
Planning for Renee's absence
Renee is the only planner for the first 15 months. The part-time coordinator holds the vendor contacts, run sheets and client files for every party, and the firm carries key-person life and disability insurance on Renee. The senior planner joins in month 16 and takes over any party that cannot wait.
The team as it grows
A part-time event coordinator from month 1. A bookkeeper from month 3. A senior planner in month 16, a planner in month 29, a part-time client services coordinator in month 40 and a second senior planner in month 53. Event-day assistants are hired per party and sit in direct costs.
Advice on call
An accountant, an employment and contract lawyer, and an adviser from the Tennessee Small Business Development Center network. The firm uses them for questions on pricing, hiring and contracts.
Shareholder and lender terms
Renee owns 100% of Crest Vale, LLC and gives the bank a personal guarantee. The bank also takes a lien on the firm's equipment, which at cost covers about 63% of the $40,000 loan. The loan has one covenant: quarterly financial statements delivered within 45 days of each quarter end. It has no financial-ratio test.
The Numbers Behind Crest Vale
A single five-year model sits behind every table in this section. The first year is monthly because bookings arrive in instalments and the calendar is uneven; later years are annual, so the model says nothing about seasonality or the cash low point inside Years 2 to 5. The funding and the pricing figures come first, then the forecast built on them.
Funding the studio and the first season
| Use of funds | Amount |
|---|---|
| Laptops, tablets, event-day kit, rental-grade décor stock and sample table settings | $18,000 |
| Studio and sample-room fit-out | $7,000 |
| Business licenses and registrations | $1,500 |
| Legal: entity, client agreement, vendor terms, deposit policy | $5,000 |
| Launch: website, staged-event portfolio photography, open house | $9,000 |
| Operating reserve for slow months, make-goods and refunds | $99,500 |
| Total uses | $140,000 |
| Source of funds | Amount |
|---|---|
| Renee Whitfield's savings | $100,000 |
| Bank term loan | $40,000 |
| Total sources | $140,000 |
Renee Whitfield puts in $100,000 of savings, 71% of the $140,000 raised. A bank term loan covers the other $40,000 over six years at 9.25%, interest-only for the first nine months; the rate is a planning figure for this example, not a quote. The loan carries a personal guarantee, and the $25,000 of event kit and fit-out would cover only about 63% of it if sold. The reserve is $99,500 and is not idle: operating cash falls by $72,251 in Year 1, launch costs included, and by a further $16,124 in Year 2, and the year-end balance still drops to $18,777. The loan lets Renee cap her own savings at $100,000. Debt service cover is negative in Years 1 and 2, and the interest-only period and the reserve are what carry the payments.
Figures the forecast runs on
- Fees are flat, by tier, and rise 3% a year from Year 2. Day-of coordination is $2,200, partial planning $5,500 and full design and planning $11,000 in Year 1, which is about $110, $122 and $110 per planner hour. Crest Vale does not charge a percentage of the client's budget. The full tier is about one-fifth of the $55,000 average budget the firm expects for those parties.
- Year 1 holds 24 parties: 10 day-of, 9 partial and 5 full. Years 2 to 5 hold 43, 62, 73 and 84 parties. Fee income per party is $5,271 in Year 1, and revenue per party including vendor markup is $6,542 in Year 3.
- A planner has 1,400 billable hours a year. A day-of party takes about 20 planner hours, a partial one 45 and a full one 100; the operating plan shows the time budget behind each. Hours needed are 1,105 in Year 1, 2,030 in Year 2, 3,010 in Year 3, 3,595 in Year 4 and 4,180 in Year 5, which is 79% to 86% of the hours the planners on payroll can supply. That leaves room for sales calls, site visits and overruns.
- Revenue per planner-year is about $152,000 in Year 3 including markup, or $137,000 from fees alone. This is the figure in the plan with the least outside support, since it rests on the hours and the hourly rate above.
- Clients choose between paying vendors directly and letting Crest Vale buy décor, rentals, florals and lighting for them. In Year 1, 65% of full-planning clients and 40% of partial-planning clients choose the second route, with average orders of $14,000 and $5,500 at Crest Vale's cost. Crest Vale buys at its trade rates and sells at cost plus 20%, shown on the client's quote. Only the markup is revenue: $13,060 in Year 1. Managed orders are paid by bank transfer, so card fees apply to planning fees and not to the orders.
- Planning fees are billed in instalments, non-refundable once paid: day-of 50% at signing and 50% in the event month; partial 40% at signing, 30% two months out and 30% in the event month; full 35% at signing, 35% three months out and 30% in the event month. Revenue is counted when an instalment falls due, and a fee is counted in the year of the party. The model has no deferred-revenue or client-deposit line. Instalments paid in Year 1 for parties held in early Year 2 are left out of Year 1, which keeps Year 1 cautious and makes November and December look thin, and the year-end amount owed in services not yet delivered is not shown.
- Markup is booked in the month the party is held. Client money for vendor orders passes through a separate client account and is neither revenue nor cash in this model.
- Direct costs are event-day assistants plus card and bank fees: 17% of day-of fees, 10% of partial fees, 9% of full fees and 1% of markup. That is 9.9% of Year 1 revenue.
- Clients pay by card or bank transfer on the instalment dates, so receivables average seven days. A make-good allowance, $1,500 in Year 1 and $5,500 by Year 5, covers rebooking help, replacing a vendor who cancels and goodwill credits. It sits in its own line, separate from bad debt.
- Payroll adds 27% to wages for payroll taxes, health insurance and workers' compensation (15% for the part-time staff; the bookkeeper is a contractor with no on-cost). Wage rates in the personnel table are launch rates, and 3% annual pay raises are charged as a separate line from Year 2. Key-person life and disability insurance on Renee costs $2,400 a year and has its own line.
- Rent is a 700-square-foot studio with a sample room, at about $25.70 a square foot a year all in, then about 1,000 square feet at roughly $27 from Year 4. Event kit, props and sample settings are replaced out of the operating budget each year.
- Crest Vale, LLC elects to be taxed as a corporation, so Renee is a W-2 employee and takes distributions as dividends. Tax is charged at the 21% federal corporate rate and the 6.5% Tennessee excise rate, and the model offsets earlier losses against later profit in full. Federal rules may limit how much of a year's income earlier losses can offset, which would add a small amount of tax in Years 3 and 4. The Tennessee franchise tax is not modeled. The rates may change, so confirm them with an accountant.
- Owner distributions of $10,000, $15,000 and $20,000 start in Year 3 and are paid only from cash the model shows the firm can spare. The loan is still outstanding at the end of Year 5 with $9,181 to repay.
Revenue by service tier
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Day-of coordination | $22,000 | $36,256 | $51,348 | $60,100 | $69,331 |
| Partial planning | $49,500 | $101,970 | $151,709 | $186,310 | $222,851 |
| Full design and planning | $55,000 | $101,970 | $163,379 | $204,340 | $247,612 |
| Managed vendor purchasing (markup only) | $13,060 | $25,029 | $39,168 | $48,714 | $58,797 |
| Total revenue | $139,560 | $265,225 | $405,604 | $499,464 | $598,591 |
| Growth on prior year | – | 90% | 53% | 23% | 20% |
Full planning is the largest line, 39% of Year 1 revenue and 41% of Year 5, because it takes the most hours and carries the highest fee. Partial planning is the volume tier at 35% and then 37%. Day-of coordination brings in new clients but earns the least per hour, falling from 16% of revenue to 12%. Vendor markup is 9% of Year 1 revenue and 10% of Year 5, and depends on how many clients choose to have Crest Vale buy for them. Year 2 growth of 90% is a launch effect: Year 1 has no party before March.
The first twelve months
| Month | Day-of coordination | Partial planning | Full design and planning | Managed vendor purchasing (markup only) | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $1,100 | $4,400 | $7,700 | $0 | $13,200 | ($2,784) |
| Feb 2027 | $1,100 | $6,050 | $3,850 | $0 | $11,000 | ($4,767) |
| Mar 2027 | $2,200 | $1,650 | $7,700 | $0 | $11,550 | ($4,271) |
| Apr 2027 | $3,300 | $4,950 | $3,850 | $440 | $12,540 | ($3,379) |
| May 2027 | $2,200 | $6,050 | $7,150 | $2,260 | $17,660 | $1,236 |
| Jun 2027 | $2,200 | $5,500 | $7,150 | $2,700 | $17,550 | $1,137 |
| Jul 2027 | $2,200 | $5,500 | $3,850 | $0 | $11,550 | ($4,271) |
| Aug 2027 | $1,100 | $3,850 | $3,850 | $0 | $8,800 | ($6,750) |
| Sep 2027 | $2,200 | $4,950 | $3,300 | $2,700 | $13,150 | ($2,829) |
| Oct 2027 | $2,200 | $3,300 | $3,300 | $2,260 | $11,060 | ($4,713) |
| Nov 2027 | $1,100 | $1,650 | $3,300 | $2,260 | $8,310 | ($7,191) |
| Dec 2027 | $1,100 | $1,650 | $0 | $440 | $3,190 | ($11,806) |
January looks busy because the first retainers for five spring parties land that month. After that the calendar follows the parties. May and June are the only months with positive EBITDA. August is the quietest month with a party on the books. November and December look thinnest partly because the model leaves out instalments already paid for early Year 2 parties. Cash is lowest in December, which carries a full month of payroll and rent against $3,190 of revenue. Year 1 is the only year shown by month, and the plan makes no monthly claim beyond it.
Planners and support staff
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder and lead planner | $60,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Event coordinator (part time, 20 hours a week) | $24,500 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bookkeeper | $9,600 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Senior planner | $54,000 | Month 16 | – | 1 | 1 | 1 | 1 |
| Planner | $48,000 | Month 29 | – | – | 1 | 1 | 1 |
| Client services coordinator (part time, 20 hours a week) | $25,000 | Month 40 | – | – | – | 0.5 | 0.5 |
| Second senior planner | $56,000 | Month 53 | – | – | – | – | 1 |
| Total payroll incl. on-costs | $112,375 | $165,410 | $223,195 | $265,078 | $319,678 |
Renee plans every party in Year 1 with a part-time event coordinator, who handles vendor confirmations, timelines and paperwork for 20 hours a week. A contract bookkeeper starts in month 3. The senior planner joins in month 16, when the spring of Year 2 would push one planner past her 1,400 hours; a planner follows in month 29. A part-time client services coordinator starts in month 40 and a second senior planner in month 53. Each hire is timed against the hours table in the operating plan, so planners stay at 79% to 86% of their 1,400 hours. Renee's $60,000 is already in payroll, so the profit lines are what is left after she is paid.
Profit and loss by year
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $139,560 | $265,225 | $405,604 | $499,464 | $598,591 |
| Event-day assistants and payment fees | ($13,771) | ($26,170) | ($40,022) | ($49,283) | ($59,064) |
| Gross profit | $125,789 | $239,055 | $365,582 | $450,181 | $539,527 |
| Payroll incl. on-costs | ($112,375) | ($165,410) | ($223,195) | ($265,077) | ($319,678) |
| Rent | ($18,000) | ($18,500) | ($19,100) | ($27,000) | ($27,800) |
| Utilities | ($3,000) | ($3,100) | ($3,200) | ($4,200) | ($4,300) |
| Marketing | ($15,000) | ($19,000) | ($23,000) | ($26,000) | ($29,000) |
| Insurance | ($3,600) | ($4,400) | ($6,400) | ($7,400) | ($8,200) |
| Professional fees | ($3,500) | ($4,000) | ($4,500) | ($5,000) | ($5,500) |
| Software subscriptions | ($4,800) | ($6,000) | ($7,500) | ($9,000) | ($10,000) |
| Association dues, license renewals and training | ($1,800) | ($2,200) | ($2,600) | ($3,000) | ($3,200) |
| Phones, supplies and mileage | ($3,500) | ($5,000) | ($7,000) | ($8,500) | ($9,500) |
| Props, signage and sample-kit replacement | ($2,500) | ($3,500) | ($4,500) | ($5,500) | ($6,000) |
| Storage unit and van rental on event days | ($3,600) | ($4,000) | ($4,800) | ($5,500) | ($6,000) |
| Key-person life and disability insurance | ($2,400) | ($2,400) | ($2,600) | ($2,800) | ($3,000) |
| Cancellation and make-good reserve | ($1,500) | ($2,800) | ($4,000) | ($4,800) | ($5,500) |
| Bad debt allowance | ($600) | ($1,200) | ($1,800) | ($2,200) | ($2,500) |
| Equipment replacement and new-hire kit | $0 | ($3,000) | ($3,000) | ($4,000) | ($3,000) |
| Annual pay raises (3% a year) | $0 | ($4,962) | ($13,593) | ($24,580) | ($40,122) |
| EBITDA | ($50,386) | ($10,417) | $34,794 | $45,624 | $56,227 |
| Depreciation | ($4,600) | ($4,600) | ($4,600) | ($4,600) | ($4,600) |
| Interest | ($3,689) | ($3,297) | ($2,684) | ($2,012) | ($1,275) |
| Income tax | $0 | $0 | $0 | $0 | ($10,424) |
| Net income before start-up costs | ($58,674) | ($18,314) | $27,511 | $39,012 | $39,928 |
| Start-up costs expensed at opening (legal, licensing, launch marketing) | ($15,500) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($74,174) | ($18,314) | $27,511 | $39,012 | $39,928 |
Year 1 loses $50,386 at EBITDA and $74,174 after depreciation, interest and $15,500 of launch costs. Year 2 loses $18,314, since the senior planner is on payroll for nine months while bookings are still ramping. Year 3 is the first profitable year, at $27,511 and an 8.6% EBITDA margin. The margin is 9.1% in Year 4 and 9.4% in Year 5, because added bookings outrun the larger studio, the extra hires and the pay raises. Income tax is zero until Year 5 because the first two years' losses are carried forward.
Where the cash goes
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($72,251) | ($16,124) | $29,419 | $41,812 | $42,627 |
| Studio fit-out and event kit | ($25,000) | $0 | $0 | $0 | $0 |
| Funding received | $140,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | ($1,498) | ($6,350) | ($6,963) | ($7,635) | ($8,372) |
| Owner distributions | $0 | $0 | ($10,000) | ($15,000) | ($20,000) |
| Net change in cash | $41,251 | ($22,474) | $12,455 | $19,177 | $14,254 |
| Closing cash | $41,251 | $18,777 | $31,232 | $50,409 | $64,663 |
Closing cash is $41,251, $18,777, $31,232, $50,409 and $64,663. Year 2 is the lowest year-end balance, which is when the senior planner, a full year of loan repayments and an unprofitable year meet. The model is annual from Year 2, so the low point inside Year 2 could be lower than $18,777. Distributions wait until Year 3.
Balance sheet at year end
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $41,251 | $18,777 | $31,232 | $50,409 | $64,663 |
| Accounts receivable | $2,676 | $5,087 | $7,779 | $9,579 | $11,480 |
| Studio fit-out and event kit (net) | $20,400 | $15,800 | $11,200 | $6,600 | $2,000 |
| Total assets | $64,328 | $39,664 | $50,211 | $66,588 | $78,143 |
| Bank loan | $38,502 | $32,151 | $25,188 | $17,553 | $9,181 |
| Paid-in capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Retained earnings | ($74,174) | ($92,488) | ($74,977) | ($50,965) | ($31,037) |
| Total liabilities and equity | $64,328 | $39,664 | $50,211 | $66,588 | $78,143 |
Break-even and what each planner earns
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -36.1% | -3.9% | 8.6% | 9.1% | 9.4% |
| Net margin (before start-up costs) | -42.0% | -6.9% | 6.8% | 7.8% | 6.7% |
| Payroll incl. pay raises as share of revenue | 81% | 64% | 58% | 58% | 60% |
| Revenue per full-time equivalent at year end | $93,040 | $106,090 | $115,887 | $124,866 | $119,718 |
| Average monthly revenue | $11,630 | $22,102 | $33,800 | $41,622 | $49,883 |
| Monthly revenue needed to cover operating costs | $16,288 | $23,065 | $30,583 | $37,404 | $44,684 |
| Debt service cover (EBITDA / interest + principal) | -9.7x | -1.1x | 3.6x | 4.7x | 5.8x |
Compare average monthly revenue with the amount needed to cover operating costs. Year 1 averages $11,630 against $16,288 needed, and Year 2 $22,102 against $23,065, close enough that a good spring closes the gap. Year 3 averages $33,800 against $30,583. Revenue per full-time equivalent is $93,040 in Year 1 and $115,887 in Year 3. Debt service cover is negative while the firm loses money and reaches 3.6x in Year 3. Margins stay under 10%, which is what a labor-heavy service business with a studio and a payroll can expect.
Bookings 20% below forecast
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $111,648 | $212,180 | $324,483 | $399,571 | $478,873 |
| Net income before start-up costs | ($63,992) | ($11,309) | $7,499 | ($6,136) | $26,300 |
| Net income after start-up costs | ($79,492) | ($11,309) | $7,499 | ($6,136) | $26,300 |
| Closing cash | $36,469 | $21,482 | $24,464 | $13,852 | $34,859 |
This case cuts bookings and markup by 20% in every year. The response, in order: the bookkeeper starts two months later, the senior planner and every later hire start six months later, the second senior planner is not hired, marketing is cut by 20%, Renee takes a 20% pay cut, the firm stays in its first studio and pays no distributions. On those terms cash stays positive at every year end, never below $13,852. Years 3 and 5 are profitable and Year 4 shows a small loss. Year 2 loses less than the base case because the pay cut, the later hires and the lower marketing budget save more than the lost margin; that is the response working, not a forecast. With the senior planner starting in month 22, Renee would run well above a normal load through the spring and summer of Year 2, which puts quality and referrals at risk. Equity closes Year 1 at $20,508, thin enough that Renee would brief the bank before the first quarterly accounts are due. Later cash balances are higher than in the base case partly because no distributions are paid. Without the response, the same shortfall would leave the firm without cash during Year 2.
Sources
- Bureau of Labor Statistics, Meeting, convention, and event planners, Occupational Outlook Handbook: May 2025 median pay, 2025 employment and 2025 to 2035 projection.
- Tennessee Department of Revenue, Franchise and excise tax: due dates and tax rates: the page lists the excise tax at 6.5% of Tennessee taxable income, the rate used in the model. Confirm the rate before filing.
- Internal Revenue Service, Publication 542, Corporations: the flat 21% federal corporate rate used in the model. Confirm the treatment of loss carryforwards with an accountant.
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