Forums: Discussions for entrepreneurs and small business.

I just found this site and have found so much useful information on it, it`s great.  I am still just looking for a little insight from someone that may have some experience in the retail party supply and party planning businesses.  I originally thought of the idea in college in a career development class and by graduation had a business plan that was almost complete.  My main problem has been in the sales projections which being 24 and not having a ton of money sitting around is something that I need to get this thing rolling.  I would greatly appreciate any advice.  I have figured out my monthly cash flow needs and am just looking for something on the recievables side. 

Party supply is one thing. Event planning is quite different. Do you intend to roll them into a single business? If so, which takes precedence---which will be the most important, and which will be the secondary product line?

I am planning on rolling them into one business.  At this point I would think that the supply end would take precedent becuase I am fairly new to the planning side of it all.  I have experience in planning but on a smaller scale than I would like to eventually be doing (at this point I have helped with smaller private parties, the biggest event I did was a benefit dinner and auction).  Down the road I would hope that I could let the party supply end work for itself and I would focus more on the event planning.  I hope that explains it a little better!

:-) Yes, that`s a good explanation. The next big problem, then, is going to be your competitive stategy where it comes to the "big box" chain stores that handle party supplies. What do you have in mind along those line? That, and there are the very inexpensive party supplies people can pick up at the Dollar Tree and other $1 stores.

I live in a fairly small town that has a university.  At this time the only `big box` that we have is Fred Meyer.  They do carry a very limited inventory of party supplies.  For the most part you can only get the solid color plates/napkins/cups/etc.  We do also have a Dollar Tree that carries pretty much the same things.  My strategy is just to carry the items that they don`t have like the more specific themed items.  I am not even interested in keeping the inventory like you might find at a larger retail party supple store like Party Palace where they have every shade of every color in every item. 

If you were to sell yourself as a Party Planner, you wouldn`t have to keep any inventory. You`d be the one-stop solution, and could be the buyer for specific party supplies. That way you could operate out of 1 room, have low overhead, and put all you financing into marketing yourself.

Your industry is a highly competitve one with very little differentiation other than branding built on personal image and relationships.

Before you go further, I would ask myself honestly "what is my special sauce"? Then I would take a look at each of your main competitors and ask "why would a customer buy from them instead of me"?

If you honestly answer these question, you will get a view of how you will compete in the market.

Teresa

 

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