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K. Limasha Hansani
Learner Name
C 86770
Learner Registration No.
IMBS Green Campus Gampaha
Study Centre Name
Bachelor of Business Administration in Management
Programmed
BBA41403
Unit Code
Entrepreneurship
Unit
07/07/2025
Submission Date

Declaration of authenticity:
1. I declare that the attached submission is my own original work. No significant part of it
has been submitted for any other assignment and I have acknowledged in my notes and
bibliography all written and electronic sources used.
2. I acknowledge that my assignment will be subject to electronic scrutiny for academic
honesty.
3. I understand that failure to meet these guidelines may instigate the center’s malpractice
procedures and risk failure of the unit and / or qualification.

Learner signature Tutor signature

Date: 07/07/2025 Date:

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"Entrepreneurial Innovation
in Event Decoration:
A Strategic Business Development
Approach"

Submitted By: K. Limasha Hansani

Date: 07/07/2025

Word Count: (4721)

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Contents
1. Introduction ................................................................................................................................... 4
2. Understanding Entrepreneurial Concepts.................................................................................. 5
2.1. Defining entrepreneurship................................................................................................... 5
3. Market Analysis and Opportunity Evaluation ........................................................................... 8
3.1. Market trends in the event decorating area .............................................................................. 8
3.2. Analysis of contestants............................................................................................................. 9
3.3. External Environment Analysis ............................................................................................... 9
3.4. Opportunity identification and evaluation ............................................................................. 10
3.5. Justifying Business Viability ................................................................................................. 11
4. Business Planning and Strategy Development ......................................................................... 12
4.1. Key Components of an Effective Business Plan .................................................................... 12
4.2. Strategic Plan for Elysian Events ........................................................................................... 12
4.3. Value Proposition and Competitive Advantage ..................................................................... 13
4.4. Marketing Strategy................................................................................................................. 13
4.5. Marketing Mix (4PS): ............................................................................................................ 13
4.6. Strategy for operation............................................................................................................. 14
4.7. Growth strategy ...................................................................................................................... 14
4.8. Theoretical Frameworks Informing Planning ........................................................................ 14
5. Leadership and Team Management .......................................................................................... 15
5.1. Importance of Leadership and Team Management in Entrepreneurship ............................... 15
5.2. Leadership Style and Justification ......................................................................................... 16
5.3. Building and Managing a Diverse and Effective Team ......................................................... 17
6. Financial Acumen ....................................................................................................................... 19
6.1. Significance of Financial Planning in Entrepreneurial Ventures ........................................... 19
6.2. Outline Financial Plan for Elysian Events ............................................................................. 19
6.4. Potential Funding Sources ..................................................................................................... 20
6.5. Profitability and Sustainability Considerations ...................................................................... 21
6.5. Financial Theories and Tools ................................................................................................. 21
7. Problem-Solving and Critical Thinking .................................................................................... 22
7.1. Identifying a Potential Challenge ........................................................................................... 22
7.2. Applying Problem-Solving Frameworks ............................................................................... 22
7.3. Reflection on Decision-Making ............................................................................................. 23
8. Conclusion ................................................................................................................................... 24
9. References .................................................................................................................................... 25

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 1. Introduction
Business concept is being considered an event decoration service that specializes in small
middle-mammary events such as birthdays, Wedding ceremony, anniversary and private
corporate ceremonies. The main offering will be the creation of aesthetic, themed decor that
corresponds to the flavor and cultural sensations of the client, which is using fair value,
environmentally friendly materials. Customers will benefit from convenience and flexibility as
business will use a mobile model, allowing services at homes, banquet halls, or external places.

Even for small ceremonies, individual and Instagram-worthy phenomena experiences are
increasing requirement, which is why this concept was chosen. People still want a beautiful,
systematic place, but there has been a change in the post -pandemical tendency towards
celebrating small moments of life at home or in private settings. Many urban and semi-urban
markets still have a lot of space to improve commercialization of these services, especially in
developing countries.

This attempt is corresponding to the opportunity recognition principle, which emphasizes the
identity of an entrepreneurial approach (Baron, 2006)., identifying the needs of the unmatched
or undusted market. The model also aligns with the effect’s theory (Sarasvathy, 2001), which
assumes that entrepreneurs use their network, skills and resources with proper price to shape
their business goals. It is a great place for new business owners, especially women and young
adults to begin due to opportunities for its low capital requirements, flexibility and creative
expression.

The event decoration area is ready to grow as consumer behavior rapidly prioritizes experiences
on goods (Pine & Gilmore, 1998). This professional idea is relevant and responsible for the
current market dynamics and changing the expectations of customers as it emphasizes stability,
strength and privatization.

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 2. Understanding Entrepreneurial Concepts

2.1. Defining entrepreneurship

The process of discovering, creating and feeling a vision - usually as a new company - is a
broad definition of entrepreneurship. Kuratko (2017), claims that entrepreneurship considers
the generation of novel concepts, readiness to assume measured risks, and the capacity to
allocate effective resource allocation. It further enhances social and economic changes as an
economic activity along with a creative process. Entrepreneurs are seen as change agents that
launch novels, services, or business plans that go against grains and address unmatched
demands.

2.2. Key Principles of Entrepreneurship

1. Opportunity Identification

It is necessary to find good opportunities for entrepreneurship. Entrepreneurs identify the

inability’s in current systems or intervals in the market. According to Shane and Venkataraman
(2000), identifying opportunities gives a chance to add value where other people do not. For
example, the event decoration service notes that the visually attractive, appropriate value and
the increasing demand for experiences of customized event, especially in cities where
customers are time.

2. Innovation

Innovation is the development or growth of goods, services or processes. According to

Schumpeter (1934), entrepreneurs are the newcomers that promote "creative destruction",
which replace state -of -the -art methods for outsiders. The use of biodegradable materials,
cultural adaptation, or specific visual concepts that sets the service separate from traditional
decorators are examples of innovation in the proposed business.

3. Business Planning

A well-organized business plan is required to convert concepts into practical plans. Financial
planning, marketing strategies, operational structures and market research are all covered.

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Business planning helps mitigate risks and guide decision-making, especially in competitive
service industries such as event management.

2.3. Evaluation of Entrepreneurial Theories

1. The Innovation Theory of Schumpeter

The importance of innovation in entrepreneurship was exposed in 1934 by the Joseph

Schumpeter. Their principle is that entrepreneurs are new -intellectuals that bring products,
new production techniques, new markets and new organizational structures - only with
managers or investors. These development gives businesses a competitive lead and enhances
the market.

Criticism: Although the principle of Schumpeter emphasizes the transformative ability of

innovation, it often ignores the small scale, high-effects of innovations in favor of more
important people. Additionally, it is the assumption that the entrepreneur is active and
visionary, which cannot be suitable in all entrepreneurial contexts, especially in small or
service-based businesses.

2. Effectuation Theory

According to the impact theory developed by Sarasvathy in 2001, entrepreneurs who already
have them start - what they are, and what they know about - and then build their businesses
through testing and error and conversation. Effective entrepreneurs create future, use
contingencies, and modify objectives, as they go instead of predicting it.

Criticism: Although the principle of effect is very useful for startups with very low funding,
some say it can be very reactive and can focus strategic focus. Additionally, it reduces the
importance of long -term planning and vision.

2.4. Application to the Event Decoration Service

The innovation principle and impact theory of the Schumpeter is both selected business
concept, beneficial for an event decoration service.

Using Schumpeter's lens:

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DIY kits, mobile setup units, or custom, by making the themed decoration with
environmentally friendly materials, this service challenges the traditional event planning
model. Innovation is found in the way services are provided and adapted, not in the
manufacture of new goods. Unlike generic decorators, this company offers visual storytelling
experiences that give small events - which are to ignore large planners - emotional value.

Applying theory:

Since business is a startup, it depends on its resources:

• Design and craftsmanship

• Local network of suppliers
• Social media and word-off-mouthed advertisement
• Reusable props and other low-capital equipment

The entrepreneur modifies the offer in response to customer response, event and seasonal
instead of following a fixed five -year plan. For example, the business model changes if the
baby shower is more common in one area and in the other in birthday parties. Learning from
early customers inspires the use of flexible services and decor packages with appropriate value.

By re -establishing the initial profits, the effective approach enables the entrepreneur to test the
demand, reduce the risk, and to conduct progressive scale.

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 3. Market Analysis and Opportunity Evaluation

3.1. Market trends in the event decorating area

In the last ten years, the global event decoration industry has dramatically expanded due to
individual celebrations, visual ceremonies (especially for social media), and consumer life for
experienced life. The Global Event Management Market is estimated to expand a mixed annual
growth rate (CAGR) of 11% between 2023 and 2030 as per Market Research Future (2022).
The popularity of DIY events and the demand for Instagram-worthy settings, the decoration of
the event-especially for private parties, baby shower and birthday function-has become a
special place within this industry.

Important trends:

• Individualization: Customers want their events to have specific and unforgettable

subjects that correspond to their own priorities or cultural customs.
• Sustainability: Eco-friendly decor made of recycle, biodegradable, or reusable content
is becoming more and more popular.
• Micro-Event: Small events characterized by high-end design components have
increased in popularity since epidemics.
• Effect from social media: Websites like Instagram and Pinterest increased the demand
for aesthetically pleasant decoration system.

Target customers segments

• Young adults (25–40 years): In particular, urban millennia parents are planning a
child's birthday celebrations.
• Working professionals: Limited time people who will appoint professionals to decorate
their homes.
• Owners of small businesses: nearby cafes, shops, or colleagues who host or
promotional programs.
• Event Planners: Demanding a contract with special companies to handle the decorated
part of their events.

These customers have a high value on facilities, professionalism, strength and invention. They
are also influenced by online reviews, social media visuals, and peer recommendations.

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3.2. Analysis of contestants

• There are different levels of competition: High-end events: They offer full-service
schemes and Opent Decor, but they usually work only with big or expensive events.
• DIY kits and online stores provide self-sufficient supply, but they do not offer
individual, in-commercial assistance.
• Local decorators: They work informally, offering a small selection of design and
separate degrees of service quality.
• Hobbyists and Freelancers: Provide competitive prices, but they may not be well
organized or professional.

The company provides professional, appropriate value and personal solutions for small -
scale events, putting it in a middle ground between informal freelancers and high -end
planners.

3.3. External Environment Analysis

➢ SWOT Analysis

Strength Weaknesses
- Custom and environmentally friendly - Limited initial capital
offerings
- High creativity and design skills - Seasonal demand dependence
- Mobile and flexible service model - Lack of brand recognition in launch
Opportunity Threat
- Increasing demand for subtle phenomena - Entry of new contestants
- Increase in urban middle-class income - Economic recession affecting
discretionary expenditure
- Cooperation with impressive or event - Customer dependence on social evidence
planners (review/photo)

➢ PESTLE Analysis
• Political: The decoration industry has no significant obstacles, and stable policies
promote the expansion of SMEs and entrepreneurship.

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 • Economic: Increasing urban disposable income encourages expenditure on lifestyle
services; The cost of material can be affected by inflation.
• Social: Market expansion is aid from the growing social media culture and a tendency
to remember the events of minor life.
• Technical: Service distribution is improved with the availability of digital tools for
design, social media marketing and customer communication.
• Legal: Careful preparation, business licensing, liability insurance, and health and safety
compliance can be handled.
• Environment: The use of durable materials gives a competitive edge as consumers
prefer environment-conscious services.

➢ Five forces of the porter

1. Danger of new entry: Medium - low startup cost makes entry easier, but the creation of
a strong brand and creative reputation is challenging.
2. Power of bargaining of suppliers: Low - many sellers reduce dependence for materials.
3. Buyers' bargain power: High - customers have many options and demand quality and
values.
4. Option danger: Medium - DIY and digital template are options, but lack of professional
touch.
5. Industry rivalry: High - Market is fragmented with many small players, requires
discrimination through service quality and creativity

3.4. Opportunity identification and evaluation

According to the structure of Shane and Venkataraman (2000), the opportunities of

entrepreneurship arise from the confluence of pre -knowledge and vigilance for patterns in the
environment. Emerged from the identity of this commercial idea:

• Personal observation of poor decoration quality in small events.

• Increasing demand for personal event experiences among young professionals.
• The market intervals between premium events and informal decorators.

Additionally, entrepreneurial alertness (1973) of Kirzner's principle supports the idea that
entrepreneurs seek opportunities by notice of market supply and consumer demand. In this
case, while many event planners focus on large -scale events, small functions with custom

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decorations underscribe. By focusing on this niche and offering aesthetic solution yet, this
business seizes a real and scalable market opportunity.

3.5. Justifying Business Viability

The event decoration service displays strong viability for the following reasons, according to
the analysis above:

- Apparently defined market demand: In a market which is expanding due to facility,

privatization and aesthetics, service fills a difference.
- Minimum capital requirements: Operations can start small with flexible scalability, and
the startup cost is comparatively low.
- Discrimination: The company separates itself with a mobile model, durable material
and customized theme.
- Scalability: The company can expand through regional teams, franchise models, or Do-
It-Ercell Decor Kit as the brand recognition increases.
- Strong customers: Wanted markets, including urban, middle classes, growing and
appreciating services that focus on experiences.

By combining theoretical understanding with practical applications, the opportunity is not only
possible, but also important for long -term development.

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 4. Business Planning and Strategy Development

4.1. Key Components of an Effective Business Plan

A well -written business plan serves as a guide to start and run a profitable enterprise. This
helps the owners of the business to define their goals, obtain capital, organize their operations
and monitor their progress. Barringer and Ireland (2020) say that the following are essential
elements of a successful business plan:

• An executive summary is a brief summary of goals and business concept.

• Information about the company's nature, goods and services and target market is
included in business details.
• Market analysis is an evaluation of consumer demands, market trends and rivalry.
• The operation scheme underlines production, staffing, logistics and daily operations.
Marketing strategy includes distribution, pricing, status and promotion schemes.
• Financial Plan: Break-Even analysis, money requirements, revenue forecasting and
budget.

This framework guarantees that the vision of the eleven events and the practicalities of
providing event decor are coherent.

4.2. Strategic Plan for Elysian Events

• Vision, Mission, and Objectives

1. Vision: To become a major provider of individual, durable and technical-capable event

decoration services in the regional market.
2. Mission: Turn the special opportunities of customers into memorable experiences by
providing creative, environment-conscious and culturally echoing decoration to
personal needs.
3. Smart Objective:

□ Get 90%+ customer satisfaction rating within the first year.

□ Complete 100+ events in the first 18 months of the operation.
□ Develop partnerships with 10 places and 5 corporate customers by the end of
the year two.

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4.3. Value Proposition and Competitive Advantage

The core value proposition of Elysian Events lies in its fusion of personalization, sustainability,
and innovation. Unlike generic service providers, Elysian offers:

• AR-powered décor previews for enhanced client engagement.

• Environmentally responsible designs using recyclable and biodegradable materials.
• Customization rooted in cultural traditions and thematic storytelling.

This integrated offering forms a unique competitive advantage. According to Porter (1985),
businesses can achieve advantage through cost leadership, differentiation, or focus. Elysian
follows a differentiation-focus strategy, targeting mid- to high-end clients seeking bespoke,
conscious experiences.

4.4. Marketing Strategy

Marketing strategy is directed by division, targeting, status (STP) framework:

• Partition: Based on behavior (frequency of events), psychological (lifestyle, value), and

demographic (age, income) factor.
• Largening: In urban and suburban areas, small-to-moderate sized businesses, as well as
middle-class persons (aged 25 to 45), middle class.
• Positioning: "Stylish, durable and smart" is described as a provider of decoration
services.

4.5. Marketing Mix (4PS):

• Products: Corporate Setups, Birthday parties and adapted events decoration services
for weddings.
• Cost: To accommodate a series of budgets, a pricing structure offering basic, premium
and luxury packages is used.
• Location: Site services are provided at event locations along with a platform for
online reservation and consultation.
• Promotion: Impressive cooperation, portfolio display, social media campaign and
strategic partnership with places and event coordinator.

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4.6. Strategy for operation

• Service Distribution: Counseling with customers> AR-based preview> Decor Source>

On-Site setup and breakdown.
• Seller network: partnership with regional craftsmen and environmentally conscious
vendors to guarantee excellence and stability.
• Technology: CRM software for scheduling, feedback and client relationship
management.
• Staffing: In the days of the event, part -time employees work with the core team, with
a creative director, logistics coordinator and decorator.

Agile project management and lean operations guarantee timely service distribution and cost
effectiveness, which are essential in event-based industries.

4.7. Growth strategy

ANSOFF Matrix (ANSOFF, 1957) is used to determine the following development paths:

• Entry in the market: Promote brand awareness in current markets through customers
recommendations and digital marketing.
• Market development: After the domestic market is stable, geographically expands to
new urban centers.
• Product Development: Introduce new services such as DIY decoration kits and online
AR-based event planning tools.
• Long-term diversification: See branded eco-décor items and training sessions as passive
revenue sources.

This strategic roadmap guarantees scalability, maintaining a balance between risk and
innovation.

4.8. Theoretical Frameworks Informing Planning

➢ Business Model Canvas (BMC)

Osterwalder and Pigneur (2010) created a business model canvas, which provides an organized
visual framework to underline important aspects of a company:

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 • The client segment includes individuals, corporate customers and events.
• Price proposal: customized, environmentally friendly and technically advanced
decoration.
• Channel: Cooperation with website, social media, word-off-recommendations, and
event venue.
• Customer Relationship: Customized consultation, loyalty schemes and follow -up
questionnaires.
• Important Resources: AR Technology, Decor List, Knowledgeable Decor and Seller
Connection.
• Important tasks include logistics management, setup/opening, decor design and event
planning.
• Important cooperation: local artists, environmentally friendly sellers and site owners.
• Cost Structure: Labor, supply, shipping, advertising and membership for technology.

BMC supports strategic consistency by guaranteeing business distribution and a

comprehensive alignment among customer needs.

➢ Ansoff Matrix

By highlighting four important strategies - market penetration, market development, product

development, and diversification - in Ansoff Matrix (1957) Development Scheme. By allowing
for a phased approach - the company grows with entry into the market and progress towards
product diversification - this matrix has affected the roadmap of Elysian.

Even though the Ansoff matrix makes complex strategic decisions easy to understand, it should
be used with risk evaluation and real -time market reaction, especially in the beginning, to
prevent overreaching.

5. Leadership and Team Management

5.1. Importance of Leadership and Team Management in Entrepreneurship

Effective team management and leadership are essential for successful entrepreneurship. In
particularly unpredictable and changing environment that usually encounter effective
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leadership vision, motivates stakeholders, and induces strategic implementation. As Burns
(2010) highlights, motivating others to fulfill a shared objective is as important as exercise
control.

In an entrepreneurial setting, the team management ensures that resources, duties and abilities
are all directed towards meeting the goal of the company. Productivity increases, creativity is
encouraged, and scalable development is established by a harmonious, well -managed team
(Baron and Shane, 2008). Strong leadership and a competent employee are important to provide
Alician events with high quality event decoration services, as the company focuses on
creativity, teamwork and expansion.

5.2. Leadership Style and Justification

As the founder of Elysian Events, I would adopt a transformational leadership style,

characterized by vision-setting, inspiration, and intellectual stimulation. Transformational
leaders focus on engaging their team’s intrinsic motivations and creating an environment where
creativity and innovation thrive (Bass & Riggio, 2006).

This style is particularly suited to a creative service-based business-like event decoration,

where employees must frequently collaborate on custom designs and adapt to client-specific
demands. Transformational leadership fosters a culture of ownership and continuous
improvement, encouraging employees to contribute ideas and take initiative.

According to Goleman (2000), emotional intelligence is also central to effective leadership in

entrepreneurial settings. Leaders must be empathetic, adaptable, and socially aware to manage
diverse teams and meet client expectations. By incorporating elements of democratic
leadership—such as open communication and participative decision-making—I aim to build
a culture of trust and shared purpose.

Critically, transformational leadership supports the dynamic and visionary nature of

entrepreneurship, while democratic leadership promotes team autonomy, which is essential for
innovation and morale in a fast-moving startup environment.

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5.3. Building and Managing a Diverse and Effective Team

➢ Team Composition and Diversity

To build a strong team at Elysian Events, I would prioritize diversity in skills, backgrounds,
and perspectives. A diverse team enriches creative output and reflects the multicultural
clientele the business aims to serve. As Cox and Blake (1991) suggest, diversity in teams
improves problem-solving, adaptability, and customer insight, all of which are crucial in the
events industry.

The core team would include:

• Creative Designers – For concept development and thematic styling.

• Operations Coordinators – To handle logistics and vendor management.
• Client Relations Executives – To ensure excellent customer service and feedback loops.
• Freelancers and Part-Time Staff – For flexible support during peak seasons.

Each member would be recruited based on both technical skills and cultural fit to maintain a
collaborative work environment.

➢ Strategies for Collaboration and Innovation

To promote collaboration, I would implement the following strategies:

1. Shared Vision and Goals: Establish clear team objectives aligned with the business’s
mission. Regular team meetings and strategy workshops would help maintain
alignment.
2. Open Communication: Use tools like Slack, Trello, or Notion to ensure transparent,
real-time communication across projects. A flat organizational structure would
encourage open dialogue and feedback.
3. Inclusive Culture: Celebrate cultural events, support work-life balance, and conduct
regular check-ins to foster psychological safety and inclusivity.
4. Creative Autonomy: Encourage team members to experiment and propose innovative
ideas. “Design Sprints” and brainstorming sessions would be used to test and refine
décor concepts.

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 5. Recognition and Development: Recognize contributions through rewards and provide
learning opportunities such as workshops in design trends or project management. This
promotes retention and continuous growth.

These approaches are supported by Tuckman’s (1965) team development model, which
highlights the importance of guidance during the forming and storming stages and autonomy
during the norming and performing stages. Effective leadership must evolve with team
maturity, enabling both direction and empowerment.

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 6. Financial Acumen

6.1. Significance of Financial Planning in Entrepreneurial Ventures

Financial planning is fundamental to the success and sustainability of any entrepreneurial

venture. It involves estimating startup costs, forecasting revenue, managing cash flow, and
ensuring that resources are allocated efficiently. A sound financial plan helps entrepreneurs
make informed decisions, attract investors, and mitigate financial risks (Barringer & Ireland,
2020).

According to Gitman et al. (2018), poor financial planning is one of the leading causes of
startup failure. Effective financial management supports strategic planning, operational
control, and growth scalability. For a service-based business-like Elysian Events, which deals
with fluctuating client demands and project-based revenue, financial planning ensures
liquidity, cost control, and long-term viability.

6.2. Outline Financial Plan for Elysian Events

➢ Start-Up Costs

Start-up capital will be required to cover initial expenses such as:

Item Estimated Cost (LKR)

Business registration and licenses 25,000

Website and branding 75,000

AR visualization tools and software 150,000

Initial décor inventory 250,000

Marketing and advertising (first 3 months) 100,000

Equipment (lighting, stands, storage) 200,000

Working capital (salaries, transport, supplies) 300,000

Total Estimated Start-Up Cost 1,100,000 LKR

The business model will follow a lean approach, minimizing fixed costs by outsourcing and
using flexible staffing during high-demand seasons.

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6.3. Budgeting and Cash Flow Management

A monthly budgeting system will be used to track:

• Fixed costs (e.g., office rent, subscriptions)

• Variable costs (e.g., décor materials, event logistics)
• Marketing and promotional expenses
• Labor and contractor payments

To maintain positive cash flow, the business will:

• Implement a 50% advance payment policy at booking.

• Offer online payment options to reduce payment delays.
• Schedule expenses based on confirmed event bookings.

Tools like cash flow statements and break-even analysis will help manage liquidity and
operational decision-making. Break-even analysis will identify the minimum number of events
required per month to cover costs and reach profitability.

6.4. Potential Funding Sources

1. Bootstrapping
Initially, personal savings and support from family will be used. This preserves equity and
maintains full ownership—a key advantage in the early stages (Byrnes, 2014).

2. Crowdfunding
Platforms such as Kickstarter or local equivalents may be used to pre-sell services or gather
support from environmentally conscious customers. Crowdfunding helps validate the
business idea while raising capital without debt.

3. Bank Loans and Microfinance

Traditional bank loans or SME support programs in Sri Lanka may provide access to funds
with manageable interest rates, especially for female-led or green businesses.

4. Angel Investors
As the business scales, individual investors with interest in sustainable ventures may be
approached for equity-based funding.

The selection of funding sources will be based on cost of capital, repayment terms, and the
degree of control the founder wishes to retain.

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6.5. Profitability and Sustainability Considerations

Profitability will be achieved by offering tiered pricing packages that align with customer
segments and ensure favorable contribution margins. For instance, luxury packages with
customized themes and AR designs will be priced at a premium.

Key profitability metrics include:

• Gross Margin Ratio – to track the profitability of each event.

• Net Profit Margin – to assess the overall financial health.
• Customer Acquisition Cost (CAC) vs. Customer Lifetime Value (CLV) – to measure
marketing efficiency.

Sustainability will be ensured by:

• Maintaining a lean cost structure.

• Encouraging repeat business through loyalty programs.
• Building strategic partnerships to reduce material costs and increase referrals.

In the long run, introducing additional revenue streams—like DIY kits or décor rentals—will
diversify income and enhance resilience against seasonal demand fluctuations.

6.5. Financial Theories and Tools

Several financial theories and tools inform this plan:

• Pecking Order Theory (Myers & Majluf, 1984) suggests that startups prefer internal
funding (e.g., bootstrapping) before seeking external equity or debt, due to concerns
over control and information asymmetry.
• Time Value of Money (TVM) is crucial in evaluating long-term investments, especially
in tools like AR visualization, where benefits accrue over time.
• Break-even Analysis is used to determine when the venture covers its costs and starts
generating profit. This tool supports pricing and volume decisions.

These theories, coupled with practical tools like budgeting, cash flow forecasting, and ratio
analysis, form the financial foundation of Elysian Events’ operational and strategic planning.

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 7. Problem-Solving and Critical Thinking

7.1. Identifying a Potential Challenge

One significant challenge Elysian Events may face is seasonal demand fluctuation. The event
decoration industry is typically influenced by wedding seasons, holidays, and corporate fiscal
calendars. During off-peak periods, the business may experience a sharp decline in client
bookings, leading to underutilized resources, reduced cash flow, and staff retention difficulties.

This cyclical nature of demand poses a risk to the business’s sustainability, particularly in the
early stages when financial buffers and brand loyalty are still developing.

7.2. Applying Problem-Solving Frameworks

Root Cause Analysis (RCA)

Root Cause Analysis is a systematic process used to identify the underlying causes of a problem
rather than addressing surface-level symptoms (Andersen & Fagerhaug, 2006). Using the “5
Whys” technique:

1. Why is revenue low during certain months?

Because there are fewer bookings in off-peak seasons.
2. Why are there fewer bookings?
Because most clients schedule events around specific cultural or seasonal dates.
3. Why do clients avoid off-peak dates?
Due to weather, traditional calendars, and social preferences.
4. Why does this affect our business model?
Because our current services are heavily tied to traditional event cycles.
5. Why is the model not adaptable?
Due to a narrow product/service offering focused solely on full-service event
decoration.

The root cause is the over-reliance on seasonal event-based revenue streams, highlighting a
need to diversify offerings and stabilize income.

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 ➢ Design Thinking

Design Thinking is a human-centered problem-solving approach that promotes innovation

through empathy, ideation, prototyping, and testing (Brown, 2009). Applying this to our
challenge:

1. Empathize: Understand the needs of potential clients during off-peak months—e.g.,

small businesses needing décor for internal functions, or families planning indoor
events.
2. Define: Clearly state the problem: “How might we generate consistent revenue during
off-peak periods while maintaining our brand’s creative and sustainable identity?”
3. Ideate:
o Offer DIY décor kits for smaller home-based events.
o Introduce subscription packages for corporate clients to decorate
monthly/quarterly events.
o Host seasonal décor workshops or online tutorials for passive income.
o Rent out décor inventory for low-cost events or photo shoots.
4. Prototype: Test a pilot version of the DIY kit and run a limited-time décor workshop
during an off-peak month.
5. Test: Gather feedback from participants and analyze sales data to validate the success
and scalability of these alternatives.

These solutions align with the business’s creative, sustainable, and customer-centered brand
while diversifying income streams.

7.3. Reflection on Decision-Making

This problem-solving process illustrates the importance of critical thinking—moving beyond

symptoms to examine structural weaknesses. By combining Root Cause Analysis with Design
Thinking, I ensured a balance between analytical rigor and creative ideation.

The RCA framework helped narrow the scope and isolate the real issue, while Design Thinking
allowed the generation of empathetic, innovative, and market-aligned solutions. These
frameworks collectively facilitated evidence-based, user-informed decision-making, which is
essential for entrepreneurial resilience.

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In choosing this approach, I aimed to promote agility and long-term adaptability—core traits
of successful startups. It also reflects an effectual mindset (Sarasvathy, 2001), where
entrepreneurs leverage existing means to co-create solutions under uncertainty.

8. Conclusion

This report has explored the development of Elysian Events, a creative and sustainable event
decoration venture, through the lens of entrepreneurial theory and practical application. The
business idea was informed by market trends highlighting demand for personalized, eco-
friendly event services. Strategic analysis using tools such as SWOT, PESTLE, and Porter’s
Five Forces confirmed the opportunity’s viability, while entrepreneurial frameworks like
Schumpeter’s Innovation Theory and Effectuation Theory guided the approach to innovation
and resource utilization.

The business plan was grounded in strategic principles, with clear vision, mission, and
objectives, supported by financial planning, risk management, and adaptive problem-solving
strategies. The integration of transformational leadership and team diversity emerged as crucial
for fostering creativity and operational excellence in a dynamic industry.

From this process, I have gained a deep appreciation for the multifaceted nature of
entrepreneurship—balancing vision with execution, and creativity with discipline. This
experience has highlighted the importance of adaptability, critical thinking, and customer-
centric design in developing resilient ventures. For aspiring entrepreneurs, the journey from
idea to implementation requires not only theoretical knowledge but also the ability to learn,
pivot, and lead with purpose. Elysian Events embodies these principles, offering a scalable and
impactful business model for the modern market.

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