Starting anything from scratch isn’t easy. Especially if you’re trying to build your own business, you need to put in a lot of effort. However, suppose you’re a party lover considering setting up your own business. In that case, event planning will be perfect for you. You can put your party experience to good use by designing, planning, and throwing corporate and private events.
If you’re wondering how to start it, fret not, we are here to help. If you want to create an event planning business, there are many things you should consider. To help you start your event planning business, we’d like to share a few key factors you need to consider.
So, let’s get started, shall we?
Develop A Sound Business Strategy
It’s a no-brainer that for the success of a business, a business plan is essential. Unfortunately, it would be impossible to quantify the number of small event planning companies that fail when the owner does not craft a proper business plan.
You can start by studying ideas and businesses similar to what you are considering, then reach out to others in the events industry who may be able to guide you!
You can find many resources and templates online, even if you’ve never seen a business plan. However, to secure any investment, you will need a current business plan when looking to grow your business. Because of the critical significance that planning and management play in the successful operation of a business.
Online MBA degrees are becoming more widely available; most business owners are considering getting an MBA. Therefore, if you’re also thinking about honing your management skills, we recommend you check out different tips for MBA courses before selecting yours.
Apply for permits and licenses for your event management company
To become an event planner, you are not required to obtain a license or certification. However, you may find registering your business name and event management company beneficial. Also, set up a separate accounting system for your business for tax purposes, and keep track of all expenses and income.
You must research the registration details based on your location and business size beforehand. Then, to build your brand, ensure you acquire the appropriate permits and licenses.
If you plan to serve alcohol as part of your event planning business, you will have different legal requirements than if you don’t plan to do so.
Establish a budget and Hire a PR agency
Depending on your business model, you might spend 30% or more of your business expenses on marketing. Sounds like a lot, no? Here are a few things you’ll need:
- Your business website
- Printed business cards
- Print materials such as brochures and flyers
- Digital marketing and online advertising
- The cost of traveling to networking events
Make sure you don’t miss anything! Ultimately, you have to spend money to make money. So, as soon as possible, you should try to secure a clientele base. If you create memorable events for your clients, they will stay with you and recommend you. Your marketing expenses will decrease because of this. Remember that satisfied clients are happy clients who bring more clients to your business. So, ensure that you make your clients happy.
Market Research Is Important
We always advise people to research their market and competitors before joining the bandwagon. How do you differentiate yourself? How are your fees compared with, better, or higher than others in your industry? You will have an advantage in this market if you know your competitors and clients. So be sure to know both!
Your event business must clearly define its purpose, goals, and objectives
Even when starting, it is essential to outline your objectives and limitations clearly. You can even use this on your website to attract the right clients.
As a business owner, saying “no” to clients is one of the most challenging things. However, it might save you from dealing with customers who take up too much time and don’t provide enough value.
Organize your finances
It is possible to start an event management business without money! However, small businesses in the events industry should consider these budget line items when starting, whether funding comes from their bank accounts or someone else’s:
The essentials of an office
If you already have (or can borrow) a computer, printer, and supplies, you may be able to use those. If you wish to deduct your in-home office space from your federal taxes, your office must be secluded and have a door.
You should have at least a few business cards and a portfolio website. Consider paying for social ads or printing marketing materials like mailers if you have some cash to spare.
Some tremendous free event management software options are available, so you probably won’t need to spend much on this!
That’s it! When starting your own event management business, you must allocate a budget for these essential items. However, depending on your niche and expertise, you might want to add other items to this expenditure list.
Build a team
Vendors, marketing agencies, chefs, event staff, software providers, and administrative staff contribute to a successful event management business. After all, no one can do all the tasks alone. So, to get things done, you need to build a team of reliable professionals to help you take your business to greater heights.
Most people start independently (according to statistics), but you can also hire employees by finding, interviewing, and training them.
Depending on the business you plan to take on, you may never need to hire a part-time employee. However, you should at the very least create a list of people who are part of this network. So that you can get referrals, collaborate, and possibly even hire them in the future.
Learn about local tax laws and business filing
There are many legal pieces to understand regardless of the kind of business you want to start. Therefore, before establishing one, investigate what type of business would be best for you.
Before getting started, it’s also important to know the tax ramifications. If, for instance, you relocate your business from California to Virginia, you will have to dissolve it. It would have been wise to look into other options first! Therefore, to avoid such complications, it’s always best to study your state’s business laws beforehand.
Overall, event planning can be quite a lucrative career choice. However, for their creativity, vision, execution, and results, the best event planners will be able to charge high prices. Therefore, ensure that you lay your foundations right to reach the epitome of success.