There are several things to consider when creating a business plan for a new ticketing business, regardless if you are selling individual tickets at the time of the event or focusing on Internet based ticket sales. Pro Business Plans has worked with many ticketing companies to create professional plans for investment and strategy. The following article outlines what is included in the ticketing business plan and how it should be structured.
Ticketing Business Plan
It is likely that others will also be promoting tickets, so it is important to convey how you will promote the company and acquire positioning. Other important factors include the technology infrastructure for the platform, and the scope of tickets offered. For instance, some ticketing services may focus on live events, whereas others may target a specific niche like Broadway shows. These custom factors and several others are communicated in three primary areas of the business plan – including the business model, marketing plan, and financial projections.
The business model for a ticketing business plan is designed to outline what tickets will be provided and how they will be sold. For instance, some companies may only focus on online sales, whereas others may sell directly on-site or through other sales channels. If there are existing competitors in the market, the business model is a very important way to communicate your company’s positioning.
A marketing plan is the most important part of a ticketing company as the company must determine a very low cost way of acquiring customers. The margins of ticketing companies can often be competitively low, particularly if other ticket companies are selling similar tickets to the same event. Therefore, tickets must be sold via marketing channels that are measurable and optimizable. For instance, performing A/B testing and Adwords remarketing to avoid shopping cart abandonment rates.
The financial projections for a ticketing business plan are based upon the gross margin of the sales and revenue growth. If your ticketing company has no prior operating history, it may be compared to other ticketing companies by looking at their financial ratios. Investors typically like to include three to five-year revenue projections and expense forecasts. Custom financial modeling may also be requested in order to determine the customer acquisition cost and customer retention rate.