Viability Assessment Of A New Year Party Event For A London-based Event Management Company In An Essay.

Identification of Different Sources of Finance for the Event

The overall assessment mainly focuses in identifying the overall viability of an event, which could help in increasing profitability of the event management company. Relevant identification of adequate location and overall expenses needs to be conducted for the successful completion of the event. In addition, the overall major event that needs to be conducted for the assessment is the New Year Party. This party could eventually allow the event management company to generate the relevant profitability from the overall event. The event of New Year Party will mainly be conducted for the company at Aqua Nueva, which might increase the relevant profitability from the event. The event would eventually allow the organisation to generate higher revenue from the operations. The relevant financial viability of the event is also depicted in the report for determining the overall profitability, which will be provided from the investment.

Evaluation of the Market Research of similar Events, which Could help in Drawing Relevant Conclusion from the Financial Exposure

The New Year Party event is mainly conducted by the organisation, which might help in generating the required level of profitability from the project. The event management company Evolve Events has been conducting many events in New Year, which has been successful in past years. These overall operations have mainly allowed the organisation to generate the required level of profitability from the operations. The company has been providing relevant events such as office parties, corporate events, venue finding and Christmas events. These overall operations of the organisation have mainly allowing the company to generate the required level of profitability. Relevant corporate events have mainly allowed the organisation to generate higher revenue, which could generate higher revenue. The revenue generated from the evaluation has mainly allowed the event managed company to increase relevant profits. There has been many events in the London comparing the same activities, which depicts viability of the New Year Party that will be conducted in Aqua Nueva. Abdou, Alam and Mulkeen (2014) mentioned that with the help of previous evaluation of the event Management Company could eventually allow company to detect viability and success of the new event.

The event management company ‘Evolve Events’ has been conducting many operations in London, where relevant sources of finance is been used by the organisation. These sources of finance have mainly allowed the company with its short term financial obligations, which is needed for completing the event program. The company has been conducting events like New Year Party, where relevant financial exposure is needed for effectively completing the event. Furthermore, with the help of adequate sources of finance, event companies are mainly able to reduce the problems, which could reduce completion of the event.

Identifying the Relevant Income Streams

The company could need both long and short term finance for completing the relevant events of the organisation. The short term source of finance such as bank loan, overdraft and cash credit can be used the company for supporting its short term finance needs. These overall fulfilments of the finance needs could eventually allow the organisation to adequately complete the event and generate higher returns from investment. However, long term finance needs could be fulfilled by taking long term loans for investing in fixed assets. Moreover, the current event could be supported from short term bank loan, overdraft and cash credit for adequately increasing higher returns from investment (Cheung and Miu 2015).

There are different types of income streams, which could be enjoyed by the organisation from the relevant event. The income streams mainly allow the company to generate higher return to support ort financing and other needs. From the overall evaluation the major income stream will mainly be generated from the company whose event is been conducted by ‘Evolve Events’. The payment conducted by the company for the New Year Party will mainly be helpful in generating higher revenue for the event management company. The second revenue that will be generated by the company is from the exposure of gift centre in the venue. This relevant increment of the overall revenue could eventually help in generating higher revenue from the operations from investment.

The overall revenue of the event is mainly restricted to the overall payments that will be provided by the company for whom the New Year Party is been arranged. Arrangement of the income stream is relatively restricted, as the organization can only accommodate guest that are invited by Host Company. However, relevant income can be generated from gift centers that will be placed within the event. Hence, the income that will be generated by the event organizing company is from the payments provided by the host company and from the gift centers. Deboeck and Kohonen (2013) mentioned that identification of revenue streams mainly allows event organizing companies to detect viability of the event and the relevant financial income that could be generated from the activity.

Particulars	Amount	Amount
Food and Beverage
Foods	£       14,000.00
Beverage	£         6,000.00
Equipments	£         1,200.00
Delivery charges	£             600.00
Misc Charges	£             500.00	£       22,300.00
Location
Rental Fee	£         2,450.00
Other	£             350.00	£         2,800.00
Rentals
Lightening	£         1,800.00
Other	£             210.00	£         2,010.00
Staff
Event coordinator	£             200.00
Designer	£             450.00
Volunteers	£             120.00
Labour	£             360.00
Other		£         1,130.00
Entertainment
Music	£             150.00
DJ	£             800.00	£             950.00

Particulars	Amount
Sales	£       35,000.00
Revenue from gift shop	£         3,600.00
Total Revenue	£       35,000.00

Particulars	Amount
Revenue	£       35,000.00
Variable cost	£       24,380.00
Contribution	£       10,620.00
Fixed cost	£         4,810.00
Net profit	£         5,810.00
Breakeven sales needed	£       15,852.17
Return on capital employed	20%

With the help of above table’s relevant expenses that needs to be conducted by the event management company, for completing the overall event successfully, is adequately identified.  This relevant identification could eventually help in identifying the total cost and net profit that will be generated from the event. Main expenses that could be identified are on food, lighting, rental, and DJ, which will be provided for the event. With the help of total cost, both variable and fixed will directly allow the event management company to identify the break even sales or revenue that needs to be provided by the host company. From the overall evaluation of the tables the relevant revenue that will be generated by the event management company is £35,000, which could help in supporting expenses of the event. Part of the total revenue is mainly contributed from gift shops that will be situated within the event for the customers. Furthermore, the main revenue stream will be generated by the host company, who is throwing the New Year Party

Discussing about the Proposed Event Cost, Revenue, Return on Capital Employed, and Breakeven

Furthermore, from the evaluation relevant break even sales that need to be conducted by event Management Company can be identified. The overall break even value of the event mainly comes to £15,852.17. The break even value amount needs to be earned by the event management company for reducing the chances of incurring any kind of loss. Duanmu (2014) stated that identification of the break even sales value allows organisation to compete in the market and create large customer base. Lastly from the overall event return on capital employed comes to around 20%, as revenue of the organization is restricted towards the payments provided by the host company.

Particulars	Amount
Revenue	£       35,000.00
Revenue from gift shop	£         3,600.00
Total Revenue	£       35,000.00

The above table many represents the relevant pricing strategy that is used by the event management company for conducting the particular event. The pricing strategy has mainly provided relevant returns for the organization, where the overall profits from the event is identified to be at £5,810. The prices of relevant £35,000 are adequate to provide the relevant revenue from the event. However this pricing strategy is mainly used by the event management company for controlling the Market competition and adequately increasing customer base. Elazouni and Abido (2013) mentioned that the use of adequate pricing strategy allows your organization to generate relevant income while maintaining competitive edge in the market.

The relevant recommendation mainly helps in identifying the source of finance, income, and pricing strategy, which could be used by the event management company. Hence from the evaluation of the oral calculations and condition of the event relevant short term overdraft and cash credit facility could be used by the event management company as an adequate source of finance. This could eventually help in reducing the negative impact of any financial obligations that might come up during the commencement of the event. The relevant income streams can be identified from the payments in that will be provided by the host company. Moreover, the pricing strategy is relatively competitive in nature, which allows the event management company to reduce competition and increase the customer base. Hence, from the evaluation viability of the event can be identified, which might allow the event management company to generate revenue and increase its profitability.

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