TABLE OF CONTENTS

1.0 Executive Summary ................................................................................................................ 1 Chart: Highlights ...................................................................................................................... 1 1.1 Mission ..................................................................................................................................... 1 1.2 Keys to Success .................................................................................................................... 2 1.3 Objectives ............................................................................................................................... 2 2.0 Business Climate ...................................................................................................................... 2 3.0 Company Summary ................................................................................................................ 2 3.1 Company Ownership ........................................................................................................... 3 3.2 Start-up Summary............................................................................................................... 3 Table: Start-up ......................................................................................................................... 3 Table: Start-up Funding ........................................................................................................ 4 Chart: Start-up ......................................................................................................................... 5 3.3 Company Locations and Facilities ................................................................................... 5 4.0 Services....................................................................................................................................... 5 4.1 Service Description .............................................................................................................. 5 4.2 Competitive Comparison.................................................................................................... 6 4.3 Sales Literature..................................................................................................................... 6 4.4 Fulfillment ............................................................................................................................... 6 4.5 Technology ............................................................................................................................. 7 4.6 Future Services ..................................................................................................................... 7 5.0 Market Analysis Summary .................................................................................................... 7 5.1 Market Segmentation ......................................................................................................... 8 Table: Market Analysis ........................................................................................................... 8 Chart: Market Analysis (Pie) ................................................................................................ 9 5.2 Service Business Analysis ................................................................................................. 9 5.2.1 Business Participants................................................................................................... 9 5.2.2 Competition and Buying Patterns ......................................................................... 10 5.2.3 Main Competitors ....................................................................................................... 11 5.3 Target Market Segment Strategy ................................................................................. 11 5.3.1 Market Growth............................................................................................................. 11 5.3.2 Market Needs ............................................................................................................... 12 5.3.3 Market Trends.............................................................................................................. 12 6.0 Strategy and Implementation Summary ....................................................................... 13 6.1 Competitive Edge ............................................................................................................... 13 6.2 Marketing Strategy ............................................................................................................ 13 6.2.1 Promotion Strategy.................................................................................................... 13 6.2.2 Pricing Summary ........................................................................................................ 14 6.2.3 Marketing Programs .................................................................................................. 14 6.2.4 Positioning Statement ............................................................................................... 14 6.3 Sales Strategy ..................................................................................................................... 14 6.3.1 Sales Forecast ............................................................................................................. 15 Page 1

Chart: Sales Monthly ........................................................................................................ 15 Table: Sales Forecast ......................................................... Error! Bookmark not defined. 6.3.2 Sales Programs ........................................................................................................... 15 6.4 Strategic Alliances ............................................................................................................. 16 7.0 Management Summary ........................................................................................................ 16 7.1 Organizational Structure.................................................................................................. 16 7.2 Management Team ............................................................................................................ 17 7.3 Personnel Plan..................................................................................................................... 17 Table: Personnel .................................................................................................................... 17 8.0 Financial Plan .......................................................................................................................... 17 8.1 Important Assumptions.................................................................................................... 18 Table: General Assumptions .............................................................................................. 18 8.2 Key Financial Indicators ................................................................................................... 18 8.2 Key Financial Indicators ................................................................................................... 18 Chart: Benchmarks ............................................................................................................... 18 8.3 Projected Profit and Loss ................................................................................................. 19 Table: Profit and Loss ........................................................................................................... 19 8.4 Projected Cash Flow .......................................................................................................... 20 Chart: Cash.............................................................................................................................. 20 Table: Cash Flow.................................................................................................................... 21

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1.0 Executive Summary

Synergy Meeting Planners. will be formed as a company specializing in the representation of meeting planners from all industries. The founders have interest in the hospitality industry interning with both domestic and international meeting planners. Synergy will allow the founders to utilize their expertise with meeting planners while working with hotels and resorts across the globe. Synergy Meeting Planners will partner with 360 degrees, the industry's largest and finest meeting and conference resource firm thus placing a full service meeting operational division at Synergy's disposal.

Chart: Highlights

1.1 Mission It is the mission of Synergy Meeting Planners to be the top producing member of the 360 Degrees meeting planning alliance by providing the highest quality service to our clients. By providing a total meeting resource including hotel/resort site searches, rate and contract negotiation, as well as recommendations for complete event planning, on-site management and airline assistance at no cost to the client, Synergy becomes a time-saving "one-stop shop." Synergy is a perfect, no-cost alternative to the hassle of in-house meeting planning. Synergy will be compensated by the hotels/resorts, and by the complete event planning/airline/cruise assistance offered by 360 Degrees's Resource One at the rate of six percent of gross revenues generated, paid in commission. Synergy provides an easy, valuable alternative for its clients, and a flexible work environment with equitable compensation for its founders.

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1.2 Keys to Success There are four key elements we will accomplish to succeed: 1. Continual and diligent client prospecting. 2. Provide timely, reliable, money-saving site searches representing only the hotels/resorts which best reflect the clients' needs. 3. Maximizing revenue potential by offering all commission-based services provided by 360 Degrees Resource One, turning a program which would have been commission on hotel rooms only revenue into commission on complete program revenue (air, production/audiovisual, program planning). 4. Utilize the unique expertise of both owners to offer increased value to the client. 1.3 Objectives 1. 2. 3. 4. To To To To book a gross sales commission of $30,000 by December 31, Year 1. book a gross sales commission of $120,000 by December 31, Year 2. book a gross sales commission of $284,000 by December 31, Year 3. completely repay small business loan of $50,000 by July 1, Year 4.

2.0 Business Climate

Synergy Meeting Planners is a knowledge-based small business start-up. Selling expertise, they go on to say, is the basis of the present and future economy. Start-ups are growing at three times the rate of the national economy. In addition, The Wall Street Journal states "creativity is overtaking capital as the principal elixir of growth." Cognetics, a business information tracking firm, calls the surging significance of small to mid-sized businesses the economy, stressing the significance of this new segment of businesses. It is sais rightly that "In a knowledge-based economy, there are no constraints on growth." These are all excellent indications that the economic foundation is strong for the launch of Synergy. Specifically, meeting industry is strong and Synergy will be a profitable player within the industry.

3.0 Company Summary

Synergy, in strategic alliance with 360 Degrees, will provide a time-saving and valuable event planning service to companies who have a lack of destination/meeting planning knowledge, are understaffed or unable to take on the time consuming task of site selection/meeting planning, or want to take advantage of our free expert site selection. With hotel/resort partners countrywide, as well as cruise/air/production/program planning partners at Resource One, the best fit for the clients' needs will be found while generating maximum revenue for Synergy.

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3.1 Company Ownership Synergy Meeting Planners, will be a privately held corporation based in Delhi. The company is currently in the process of filing for incorporation with the Delhi Corporation Commission. The owners, Krishna Verma and Alka Verma, will have equal shares in the company. 3.2 Start-up Summary Start-up costs are $4,800 and will be financed by the owners. An additional $50,000 is needed to cover the first six months of client searches. The following chart and table outline the assumed distribution of expenses, assets, investment, and loan liability. Table: Start-up

Start-up Requirements Start-up Expenses Incorporation Fees Accountant Office Equipment Software Communication Lines 3 per office - 6 total Meeting Planning Directories Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements $50,000 $0 $0 $50,000 $54,800 $150 $300 $2,500 $350 $400 $700 $400 $4,800

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Table: Start-up Funding

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $0 $50,000 $0 $50,000 $50,000 $4,800 $50,000 $54,800

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Alka Verma Krishna verma Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $2,400 $2,400 $0 $0 $4,800 ($4,800) $0 $0 $50,000 $0 $0 $50,000

Total Capital and Liabilities Total Funding

$50,000 $54,800

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Chart: Start-up

3.3 Company Locations and Facilities The company will be located in Delhi, with a second office in Mumbai. The owner's home offices will be linked electronically to ensure real-time communication.

4.0 Services
Synergy Meeting Planners does countrywide hotel/resort searches, and provides recommendations for those which best match the client specifications free to the client, as Synergy is compensated by the hotel/resort. Additionally, Synergy refers clients to Resource One to provide in-depth meeting planning, production, airline, and cruise assistance. 4.1 Service Description Synergy plans to provide two basic services to its clients: 1. Site Searches: Synergy, at no cost to the client, offers expert site selections. First, the client's specific meeting criteria, budget guidelines and date availability needs are ascertained. Then, a selection of sites, based on the owners' own expertise, is searched for date availability and meeting space needs. Finally, the appropriate hotels/resorts, based on the responses given, are recommended to the client for the program. The selected site is then contracted and a commission is paid by the hotel/resort. 2. Other Services: Synergy will take advantage of the strategic alliance with 360 Degree's Resource One and have available all of the resources of a large meeting company. Synergy will recommend airline and cruise bookings, management of hotel room blocks, and fullservice meeting production. Synergy will be compensated by 360 Degree by commission on a per program basis.

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4.2 Competitive Comparison There are three categories of competitors, all of which have distinct weaknesses compared to Synergy Meeting Planners: 1. First, competition comes in the form of incentive/meeting houses such as Cox and King. These companies provide a full array of services to the client but are so large that the clients are just numbers to them. Synergy has the advantage of offering full service to the client through the alliance with 360 Degrees Resource One as well as the ability to provide personalized service like a small company. 2. The second type of competitor is the resort representation firm, such as Associated Luxury Hotels and Thomas Silliman. These companies only do site searches for the client and are on retainer with only a few resorts/hotels, some of which may not fit the client's needs. The advantage of Synergy is to offer both site selection and full event planning service to the client through the alliance with 360 Degrees Resource One. We will also have the distinct advantage of being able to book any hotel/resort worldwide which best fits the clients needs. 3. Small "mom and pop" competitors, which are solely owned and operated by one individual, offer site searches to the client. Synergy has the advantage over this type of company by offering a more professional service to the client and the buying/full-service power of the 360 Degree alliance. 4.3 Sales Literature As part of the benefits of the alliance with 360 Degrees, a full-color brochure describing the business with client testimonials, as well as a four-1/2 page color insert describing the features and benefits of the site selection service will be provided by 360 Degrees to Synergy. Additionally, four inserts, each four-1/2 page color, describing Resource One, Housing Solutions, Cruises, and Air Partner, will be provided by 360 Degrees to Synergy. Letterhead, with our logo is also provided by 360 Degrees, will be used to send customerspecific sales letters and tailored proposals. Shell sales letters and client proposals will be established. Request for proposal letters with an area for hotels/resorts to acknowledge payment of commission will also be established. Online "brochures" will be created to email to clients. A regular monthly newsletter will be created to email to clients as a reminder of services offered. All collateral pieces will convey the features, benefits, value, service, and professionalism of Synergy Meeting Planners. 4.4 Fulfillment We will fulfill the clients' needs by dividing tasks based on the area of expertise of each owner. First, by providing professional salesmanship, customer service and follow-up based on the specific needs of the client. Second, by providing detailed, knowledgeable interaction with the hotels/resort to match them with client needs, as well as understanding and recommending additional services such as air, cruise, production, room block management, etc.

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4.5 Technology Technology is essential to today's meeting planner. Synergy Meeting Planners will stay on the cutting edge of technology. 1. Hardware. To include high speed, updated IBM-compatible hardware with modem access, combination color printer/fax/copier/scanner, and updated telephone with caller ID. 2. Software. To include Windows 7 with airtel Internet access, Microsoft Works for Windows and Adobe Acrobat Reader to be used to access email and send email information/newsletters (draft letters/proposals), and receive information from clients, respectively. Act! 4.0 will also be used as a client database/trace system. 3. Internet Technology. The creation of a website to outline services to clients, access to hotel/resort online database provided by 360 Degrees, hotel/resort "hotrates/hotdates" website to access discounted rates posted by "partner" hotels, 360 Degrees "intranet" which allows Synergy to communicate with other meeting planners within the 360 Degrees alliance. 4. Other Technology. Utilizing communication advantages such as Caller ID, call forwarding from office telephones to cellular telephones to ensure every call is answered, and a message system which allows callers who receive a message to page an owner for an immediate response. Additionally, the two home offices will be linked to ensure both calls and the database can be accessed in both places. 4.6 Future Services Future plans for expansion have been discussed, and include the marketing of materials/books to meeting planners on the "how to's" of event planning and selling those materials, both online and by offering "seminars" to promote the information. Also, in the future, Synergy may offer on-site lead conference management either alone or in conjunction with Resource One.

5.0 Market Analysis Summary

From the past experience of Synergy Meeting Planners' founders, small- to mid-sized companies that are not located in major metropolitan areas (i.e suburbs, smaller cities, rural areas) are not primary targets for other event planning companies and hotel/resort chains, and in general, are more receptive to solicitation. Therefore, these areas will be targeted. Additionally, strategically focusing on companies who have not been represented by meeting planning firms or utilized meeting planning search firms in the past should bring us new clients. Those who have a need for event planning services are companies with a lack of hotel/resort/destination knowledge, no on-site meeting planner, and/or no time to concentrate on site search details.

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5.1 Market Segmentation Some potential client profiles are as follows: Corporate In the corporate segment, internal corporate meeting decision makers range from designated meeting planners, to administrative assistants, to company presidents. These potential customers are planning corporate group (10 or more rooms) meetings which range from small board to national sales meetings and can range from one to several hundred meetings per year. The corporate window for event planning can be as little as one month to as long as several years. Incentive Incentive planners are a subgroup of the corporate segment specializing in reward-based highend group travel. Again, the decision makers can vary from office to office. They plan group incentive trips to, generally, resort destinations which can range from the top ten company executives to several hundred sales personnel. Typically, the window for incentive travel is between three months and one year due to the "qualification" imposed by the company on the personnel to attend the meetings (i.e. meeting sales quotas, hitting budget, etc.). Association Associations, according to their by-laws, must typically have a specific number of meetings per year. Thus, the association planner's calendar is set years in advance. Usually, an association will have a few board meetings and one or more large conventions/trade shows per year. The potential customer is typically an on-site meeting planner, the executive director or the entire board. Social/Military/Educational/Religious/Fraternal (SMERF) This market segment, sometimes referred to by its acronym SMERF, represents events which are planned by designated individuals who may be somewhat unfamiliar with meeting planning, such as social committee members, military personnel, teachers, pastors, or fraternal organization officers. This market segment's meetings are typically mid-range to low budgeted events (usually due to the diverse economic status of the members and the need to avoid excluding any attendees due to costs). Table: Market Analysis

Market Analysis Year 1 Potential Customers Corporate Incentive Association SMERF Total Growth 3% 2% 3% 0% 2.69% 53,250 15,000 3,750 3,000 75,000 54,848 15,300 3,863 3,000 77,011 56,493 15,606 3,979 3,000 79,078 58,188 15,918 4,098 3,000 81,204 59,934 16,236 4,221 3,000 83,391 Year 2 Year 3 Year 4 Year 5 CAGR 3.00% 2.00% 3.00% 0.00% 2.69%

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Chart: Market Analysis (Pie)

5.2 Service Business Analysis Synergy is a meeting planning resource firm. Third party companies, as they are commonly referred to by hotels and resorts, consist of firms who represent a small group of specific hotels/resorts, and mega meeting/incentive "houses," which provide full services including airfare, housing, and on-site program administration, as well as large and small site search firms. Due to the strategic alliance with 360 Degrees, Synergy Meeting Planners, Inc. will be instantly recognizable to meeting professionals as part of the hospitality industry's largest and finest meeting and conference resource firm. We will have the challenge of establishing ourselves with customers as a "client advocate," not a hotel/resort representative, and separate ourselves from the mega-firms by the quality of personal service we offer. 5.2.1 Business Participants The business presence in the third party portion of the meeting industry breaks down largely as follows: National Representation Firms Advantage: These companies associate themselves with a small number of properties and are able to sell them in detail to the client. They are often very attentive about their properties and can offer solutions nearly instantly with this understanding of the limited number of properties. Disadvantage: These companies have retainer agreements with specific hotels nationwide and represent only those firms to the potential client. The client does not have the advantage of objectivity with these companies because they are paid by the hotel. Additionally, many times a client may be offered specific properties on their list that "come close" to the client's needs and that property is not a correct fit for the program. These firms do not act as a client advocate, but a hotel/resort advocate.

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Mega Meeting/Incentive Houses

Advantage: These companies offer full service, from airfare to post-program follow-up, and offer the leverage and buying power of a large company because they have "preferred" vendors with whom they do large volume. Disadvantage: These companies are so large, they offer very little "custom" service for the client. Timely follow-up is always a concern when utilizing a very large company. The client will have many contacts for different services within the company. These companies often advocate the "preferred" vendors with whom they do more business than the actual client. National Site Search Firms Advantage: These companies offer a time saving service to the client and are able to research any hotel/resort worldwide. Disadvantage: Many of these firms have become so large that the individual sales contact does not even remember which program from which client he/she may be working on at a given time. A resort may follow-up to propose a better offer for the customer, and the sales contact does not have the time or care to do any more than provide the initial information to the client. These companies are limited to site searches and can offer no other event planning assistance/value to the client. Small Site Search Firms Advantage: These companies can offer good customer service and timely follow-up to the client. Disadvantage: These companies are so small and independent, most do not have the knowledge to offer the correct assistance to the client. Additionally, they do not have any leverage/buying power with hotels/resorts and lack a network of associates to offer any other information than what is presented by the hotel/resort salesperson to the clients. 5.2.2 Competition and Buying Patterns As previously mentioned, the Professional Convention Management Association reports a rising trend to use third-party services. Planners are choosing that route for various reasons. They are finding that mergers within the hotel/resort industry are creating a more profit and less serviceoriented business climate. Third-party planning companies are chosen to provide expert advice/recommendations. Overall, in the competitive atmosphere of third-party companies, there are several reasons why certain companies are chosen over others: Timely follow-up. Providing the exact customer-specific information needed in the time constraints given by the customer. Leverage. Customers rely on organizations with buying power to stretch a small budget, or just get more "bang for their buck." Objectivity. Planners need an independent third party to cut through the hotel/resort's sales pitch and present clean, factual information. Technical Knowledge. Planners want to rely on expert advice regarding "new" and upcoming technical opportunities that they may not be aware of, or understand extensively, but may want to incorporate into a meeting. Advocacy. Planners need a tenacious, conscientious advocate on all fronts. Integrity. Honest, ethical behavior is paramount. Planners need personal trusting relationships. Intellegence. Planners are buying knowledge, reasoning and decision-making ability. Custom Solutions. Planners want the correct solution for their unique situation, not cookiecutter responses that may not fit their immediate needs. Personal Service. Potential customers do not want to feel like they are one of many other clients. They want personalized service.

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5.2.3 Main Competitors Synergy's competitors include: Note: All competitors names have been removed for confidentiality.

5.3 Target Market Segment Strategy

Prospecting is the key to success. We must consistently bring in new customers to use our site selection service and who we can potentially upsell our other alliance services. To increase the success of prospecting, we must create targeted lists which fit the criteria of a future client. These lists will be compiled utilizing resources available to Synergy Meeting Planners including, but not limited to, the Official Meeting Planners Guide, Meeting Planners International Directory, Executive Women International Resources, etc. After ascertaining a potential customer by prospecting, we must follow though with efficient site recommendations based on the exact client needs, and always remember to upsell the additional client services to add value to our services for the client and increase possible revenues. 5.3.1 Market Growth The growth potential in the meetings industry is strong. Currently, over $100 billion is spent annually on meetings, according to MeetingNews. In a study by Deloitte & Touche, conventions, expositions, meetings and incentive travel is listed as the twenty-second largest contributor to the gross national product. This spending is expected to grow between 2.9-4.2% per year, according to the Convention Liaison Council. All indicators seem to predict growth within the meeting planning industry. In the Convene Magazine 8th Annual Market Survey, 89% of meeting professionals reported flat or increased meeting attendance expected for 1999 versus 1998. Likewise, PriceWaterhouseCoopers reported that upscale and full-convention hotels recorded over 70% occupancy in 1999, versus the average of 64.5% occupancy reported in 1997. Growth within the corporate, association, incentive and SMERF market segments are conservatively estimated to grow at a rate of three percent, two percent, and three percent, and remain flat, respectively over the next few years.

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5.3.2 Market Needs Our target potential clients have a need for assistance in meeting planning/hotel/resort/destination expertise. They are looking for no-cost time saving options to allow them to prioritize other company tasks for which they are responsible. They have a need for a "silent" partner (Synergy Meeting Planners) which will make them "look" better to their company. They range from secretarial level to company president and have the same information gathering and time-saving needs for different reasons. Those employees responsible for meeting planning want you to communicate with them on their terms. They require whichever mode of communication is most comfortable for their busy schedule, including email, fax, telephone, cellular telephone, messaging, and paging options. They want buying power with hotels/resorts, preferential treatment with their dates/patterns, knowledge of all destinations worldwide, and efficiency in the presentation of site search findings. Within the target marketing segments, corporate, association, incentive, and social/military/educational/religious/fraternal (SMERF), the following situations may exist, creating a need for the services offered by Synergy: Companies and SMERF organizations who have "downsized" and/or eliminated their event planning department are prime prospects, as the meeting planning duties will typically fall to one or two individuals or another company member unfamiliar with meeting planning. These clients are receptive to the time-saving aspect of Synergy's services and expertise. Companies and SMERF organizations who have administrative staff (i.e. executive secretary, marketing coordinator, etc.) take on the responsibilities of event planning will find that utilizing the services offered by Synergy will enhance their image within their own company by presenting expert meeting information to their boss/event committee. Meeting Planners who are searching a new area and have little or no knowledge about that area will appreciate the expert knowledge of their exact meeting location and needs provided by Synergy. Meeting Planners who need to concentrate on internal meeting content and have little or no time to complete the time consuming task of site selection and/or airline coordination, onsite production, hotel room block management, etc.

5.3.3 Market Trends The market for site selection firms is growing as companies are utilizing outside providers for event planning services instead of paying permanent in-house employees. According to the 1999 American Society of Association Executives and Professional Convention Management Association's Housing Trends Study, there is a rising trend toward utilizing third party services-from 47% in 1997, to an estimated 61% by 2001. They are looking for external cost-effective ways to plan company meetings, and incentives and customer events. More meetings are being planned by key corporate industries, such as the pharmaceutical, medical, automotive, financial, high technology and e-commerce industries, largely due to the success of these industries in the current bullish economy. Thus, a need to outsource some of the work associated with that increase. Additionally, associations are seeing an increase across the board in membership participation making industry meetings larger and more complex.

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6.0 Strategy and Implementation Summary

Synergy, with our strategic alliance with 360 Degrees, will offer the great customer service of a small company; yet, offer the services of a big company to our clients. With aggressive prospecting, follow-up, and attention to detail, Synergy will exceed the needs of the four target market segments. We will develop our niche market--those clients needing a "silent partner" to save them time and offer intelligent solutions--by targeted sales and service. We will commit to a consistent "review and change" process by which we can anticipate the needs of the marketplace and implement change to stay competitive. 6.1 Competitive Edge There are several competitive edges that Synergy Meeting Planners has over its competitors. First, over national representation firms, Synergy has the freedom and ability to present any hotel/resort as a solution to the customer, we are not restricted to a few retainer hotels/resorts. Second, we can offer the services of a big company but are still small enough to offer great customer service to the fastest growing segment of businesses--small-to mid-sized. Third, while national site search firms are limited to just finding a destination for the customer, through our alliance with 360 Degrees's Resource One, we have the ability to help with all aspects of the meeting, as well as offer assistance with airfare and cruises. Fourth, although small search firms can only offer limited knowledge and service, our alliance with 360 Degrees allows us access to over 180 associates and databases detailing the experiences at each destination. Overall, Synergy will offer the best of both worlds--small-company service with big company expertise. 6.2 Marketing Strategy The owners' 2 years experience in the industry will bring a wealth of contacts with whom to build a network of referrals. We will utilize the marketing materials offered by 360 Degrees as a foundation, and build upon the quality letters, proposals, newsletters and reminder cards. We will be able to market like a small company with big company clout. We will benefit from the national marketing efforts of 360 Degrees, such as national advertising, national partnership marketing with hotels/resorts, Web marketing such as HotDateHotRates.com, 360 Degrees.com, HBMeet-Market.com, FirstOptionHB.com, the 360 Degrees quarterly newsletter, and several national industry events per year, such as the Industry Summit. 6.2.1 Promotion Strategy Synergy will consistently ask clients for referrals and will keep in contact with customers by direct mail to update clients with new information and reasons to utilize our services. We will concentrate on complete client trust and strive to exceed client expectations, which will ultimately cultivate repeat business and increase referrals.

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6.2.2 Pricing Summary Synergy Meeting Planners will offer its services free of charge to the client. From the property in which the client books the meeting, Synergy will receive a 10% of total rooms revenue commission. Between three and four percent of this commission will go to 360 Degrees in return for the services described herein. The total commission for the company will break down as follows: Booking Revenue $1 million $1 million-$2 million $2 million-$3 million $3 million-$4 million $4 million-$5 million $5 million-$6 million $6 million-$7 million $7 million-$8 million $8 million-$9 million $9 million-$10 million Synergy's Commission 6% 6.1% 6.2% 6.3% 6.4% 6.5% 6.6% 6.7% 6.8% 6.9%

Over $10 million 7% Although it does not seem like a large jump, for example, one percent commission on $10 million would translate to $100,000 for Synergy. So it does add up significantly as our revenue numbers grow. 6.2.3 Marketing Programs Our marketing programs for the first five months of operation are listed in our milestones chart. Specifically, we intend to get the word out with direct mail. All other national marketing efforts will be handled by 360 Degrees. At the end of the five months, we will re-evaluate our position based on meeting/exceeding our sales forecast and will make adjustments for the next six months accordingly. 6.2.4 Positioning Statement For those companies, associations, and organizations who need time-saving, reliable, honest, and intelligent assistance with site searches and meeting planning, Synergy can provide the timely follow-up, integrity, advocacy, and custom solutions of a small company while offering the leverage, technical and meeting destination knowledge of a big company. Unlike the national representation firms, Synergy is not on retainer with specific hotels/resorts and, therefore, can offer objective solutions to the client's custom meeting needs. 6.3 Sales Strategy The features of Synergy, combined with it's no-cost service to the client, will assist in closing sales. We must stress to the client that our commission will not increase the price paid by the client to the hotel/resort and ensure the hotels/resorts utilized are consistent with this promise. To ensure future sales, we must have incredible follow-up and personalized customer service. We must create so much value in our service that planning a meeting without us would be viewed by the client as a mistake.

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6.3.1 Sales Forecast Our sales forecast in the appendix of this plan details our anticipated commissions. This is a very conservative estimate based on the actual history of sales of one of the owners. Please note the plan outlines the quarterly nature of corporate sales (our major segment) and tends to be lower during the beginning of a quarter (January through March would be one quarter) and heavier toward the close of the quarters. We anticipate no referral commission at first, however, we do anticipate that that commission will slowly and steadily increase over time. Example: To achieve a $3,000 commission in month one, we are anticipating closing $50,000 in rooms revenue or approximately one contract at, for example, 75 rooms for four nights at a rate of $175 actualized in August. This would yield a $3,000 commission which is 6% of $50,000. The rest of the forecast is figured with the same reasoning.

Chart: Sales Monthly

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

6.3.2 Sales Programs Our sales programs for the first five months of operation are listed in our Milestones chart. Specifically, we intend to qualify our customers utilizing industry directories such as the Meeting Planners Guide and other relevant resources, create planner specific letters and proposals based on each segment's different needs, follow-up with telephone solicitation and personal letters and perform future follow-up in the form of friendly direct mail and telephone calls. At the end of the five months, we will re-evaluate our position based on meeting/exceeding our sales forecast and will make adjustments for the next six months accordingly.

Month 12

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6.4 Strategic Alliances We will form a strategic alliance with 360 Degres Performance Group. This alliance will allow Synergy access to many helpful items: 1. Expensive, full-color collateral material, letterhead and business cards in any quantity needed. 2. Access to over 210 partners in 50 offices who can assist with any questions/need for destination information, recommendations, etc. 3. Access to the 360 Degrees intranet which provides detailed hotel/resort information and site information which can be provided to the clients in minutes. 4. Resource One will provide additional revenue to Synergy by offering "large company" services such as airline reservations, full production company capabilities, housing/hotel block assistance to the customer and prospection/lead generation assistance to Synergy if needed. 5. By utilizing the "permission marketing" of 360 Degrees, Synergy is immediately recognized as the country's largest meeting and conference resource firm. No introduction or start-up advertising is necessary.

7.0 Management Summary

The owners of Synergy Meeting Planners have over 2 years of experience in the hospitality industry. With the knowledge of all aspects of event planning, from initial hotel contact to final hotel billing, we offer a solid base of information from which the customer can draw. The founders of Synergy have worked with many potential planner customers already on the resort side and have demonstrated competence in meeting site selection and planning. We will rely on Resource One to outsource any upsold services such as air/meeting development/program administration/destination management/production/on-site negotiations. Uniquely, Synergy will earn commission on this outsourcing and it will provided at no charge to Synergy. 7.1 Organizational Structure The two owners will divide the responsibilities of the business. While both will decide on major company matters, the day to day operation will be divided into two major sections: 1. Client contact, prospecting, sales and contract negotiations. 2. Hotel/resort contact, site selection and upsell of additional services. Administrative work will be divided equally as necessary among the owners with a part-time administrative staff position becoming available as soon as deemed appropriate by both owners to free the owners for direct client/hotel/resort contact.

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7.2 Management Team Synergy is committed to sales and service. Krishna Verma, has taken on the sales role within the company. Alka Verma, has taken on the service role within the company. This leaves no expertise out and provides a solid foundation for Synergy. Alka Verma, as director of catering/conference services. Her education includes the designation of CMP, certified meeting professional, which requires ongoing education, publication of articles in industry journals and public speaking engagements. Krishna Vermas education includes a bachelor of science in aeronautical engineering with a minor in mathematics. 7.3 Personnel Plan The table below outlines our payroll for the owners over the next three years. In year one, we are planning on a modest salary of $4,000 per owner per month to cover existing living expenses. This salary will increase a modest 4.8% in fiscal year 2012 and again a modest 4.8% in fiscal year 2013. We feel our dividends from growth will supplement our income in year two and three. The detailed monthly personnel plan for the first year is included in the appendix. Table: Personnel

Personnel Plan Year 1 Krishna Verma Alka Verma Total People Total Payroll $48,000 $48,000 0 $96,000 Year 2 $50,400 $50,400 0 $100,800 Year 3 $52,920 $52,920 0 $105,840

8.0 Financial Plan

As a service or knowledge-based corporation, Synergy Meeting Planners, Inc. will begin with very little start-up costs, and one long-term loan to allow the owners the ability to establish the company. As indicated on the following charts and tables, Synergy will grow to need fewer funds over time to maintain growth. By year five, Synergy will be completely debt-free and working with nearly the same overhead as it did on day one.

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8.1 Important Assumptions The following table of General Assumptions outline our conservative general assumptions on an annual basis. A monthly outline of the important assumptions is included in the appendix. Overall, we are assuming the forecasted business climate as outlined in the Business Climate Section will remain steady. Additionally, we assume our strategic partner, 360 Degrees's positioning within the industry will continue to grow. Table: General Assumptions

General Assumptions Year 1 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 25.42% 0 Year 2 2 10.00% 10.00% 25.00% 0 Year 3 3 10.00% 10.00% 25.42% 0

8.2 Key Financial Indicators Synergy shows, in the Key Financial Indicators chart which follows, three Benchmarks: Sales, Gross Margin, and Operating Expenses. We expect sales to grow steadily over the next three years while our gross margin remains unchanged and our operating expenses only rise slightly over the next three years.

Chart: Benchmarks

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8.3 Projected Profit and Loss Synergy's projected income statement is shown in the following table. We show a conservative first year with approximately $120,000 in commissions; however, this grows to over $170,000 in 2012, and over $280,000 in 2013. With relatively low operating expenses, our net profits nearly quadruple in the second year, and almost double in the third. We have offered a detailed monthly outline of income in the appendix. Table: Profit and Loss

Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % $120,416 $0 $0 $0 $120,416 100.00% Year 2 $171,250 $0 $0 $0 $171,250 100.00% Year 3 $284,750 $0 $0 $0 $284,750 100.00%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Sales Telephone Cost Service Telephone Cost Sales On-line Service Service On-line Service Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $96,000 $4,600 $0 $5,808 $1,800 $264 $264 $0 $0 $108,736 $11,680 $11,680 $4,305 $1,844 $5,531 4.59% $100,800 $0 $0 $6,098 $1,890 $264 $264 $0 $0 $109,316 $61,934 $61,934 $3,077 $14,714 $44,143 25.78% $105,840 $0 $0 $6,403 $1,985 $264 $264 $0 $0 $114,756 $169,994 $169,994 $1,794 $42,751 $125,449 44.06%

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8.4 Projected Cash Flow As demonstrated by the Projected Cash Flow Chart below, Synergy's cash balance is healthy, with our projected cash flow being negative for our first few months and then a slow recovery during the remainder of the year. Our net cash flow for fiscal year 2011 is -($21,600) with our cash balance at $28,000. Significant to note, in year one our long-term borrowing repayment will amount to over $12,800. A detailed monthly cash flow analysis is provided in the appendix.

Chart: Cash

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Table: Cash Flow

Pro Forma Cash Flow Year 1 Cash Received Year 2 Year 3

Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $96,000 $16,524 $112,524 $100,800 $26,506 $127,306 $105,840 $51,229 $157,069 $0 $0 $0 $0 $0 $0 $0 $120,416 Year 1 $0 $0 $0 $0 $0 $0 $0 $171,250 Year 2 $0 $0 $0 $0 $0 $0 $0 $284,750 Year 3 $120,416 $120,416 $171,250 $171,250 $284,750 $284,750

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $12,822 $0 $0 $0 $125,346 ($4,930) $45,070 $0 $0 $0 $12,822 $0 $0 $0 $140,128 $31,122 $76,192 $0 $0 $0 $12,822 $0 $0 $0 $169,891 $114,859 $191,050

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SHAHEED SUKHDEV COLLEGE OF BUSINESS STUDIES UNIVERSITY OF DELHI

ENTREPRENUERSHIP TERM PAPER BUSINESS PLAN- SYNERGY MEETING PLANNERS

Submitted by: Barkha Verma (8119) BBS-3 Finance B

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ACKNOWLEDGEMENT

It gives us immense pleasure to thank and extend our gratitude to Ms. Neha my Entrepreneurship teacher for extending her valuable time and continuous support in completing this project. The classroom teachings provided by her were extremely beneficial and guided us in making the project.

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