Some people like preparing events like wedding receptions, parties, and banquets, while others find it difficult. This is where event planners may help. In the United States, the event planning industry is worth more than $3 billion. If you like creating events, starting an event planning firm might be a lucrative option for you. You may earn 15% to 20% of the whole event cost, so imagine how much you’ll earn if you arrange a $50,000 wedding celebration!
However, planning and establishing your company is a difficult process in and of itself. It will necessitate planning, as with any event, as well as information. You’ve come to the right place, since this step-by-step guide has all of the knowledge you need to start your own business as an event planner.
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
|Never Get Bored Again! – Each event and day will be unique.|
Low startup costs – there is no inventory or equipment to purchase.
Profitability – High revenue with minimal continuing expenditures.
|Evenings and weekends will be quite busy.|
High Stress – Time restrictions, money limits, and problematic individuals are all sources of stress.
- Sector size and historical growth – In 2022, the US party and event planning sector is expected to be worth more than $3 billion.
- Growth prediction – As the economy recovers, corporate profits are likely to rise. Businesses will have more money to spend on events as their profits rise, increasing demand for professional event planning services.
- The number of firms – In the United States, there are over 61,000 party and event planners.
- The party and event planners sector employs over 67,000 people.
Cost of Starting an Event Planning Business
An event planning firm may be started for $2,000 to $7,000. A greater marketing budget and virtual event planning software are among the most expensive charges.
Is Event Planning Business Profitable?
You can charge 15% to 20% of the entire event cost, or an hourly fee of $100 to $150. These estimates will be based on the assumption that average events cost $20,000 and that you will charge 20% of that amount. If you hire event assistants, your profit margin should be around 70%.
You may work from home for the first year or two and conduct 25 events per year, bringing in $100,000 each year. Assuming a 70% margin, this equates to a $70,000 profit. As your company grows in popularity, sales may increase to 100 events every year. At this point, you’d rent a commercial location and recruit more employees, lowering your profit margin to roughly 40%. You would earn around $160,000 with an annual revenue of $400,000 projected.
- You must be an expert in event planning.
- You will encounter competition from huge corporations, such as hotels.
Step 2: Create a Strategy
Identify a Gap
Examine local event planning companies’ offerings, pricing, and client feedback. You’re aiming to fill a market void. For example, perhaps a virtual corporate event planning service is lacking in the local market. This might kickstart your word-of-mouth marketing and immediately attract clients.
Most of the time, event planners bill 15% to 20% of the event’s overall cost. Charge by the hour for smaller events if possible. From $100 to $150 per hour is possible to charge. Your expenses will be confined to labor, fuel, and marketing charges if you work from home. A 70% profit margin is what you should aim for.
The Step By Step Profit Margin Calculator can be used to calculate your markup and final price point once you have an understanding of your costs. Keep in mind that the launch price may need to be adjusted if market conditions justify it.
Your intended audience will depend on the type of events you plan. Your target audience if you host corporate events will be management of the company, most likely human resources managers. LinkedIn or calling businesses directly are two ways to get in touch with them. Your target market will be broader if you host events like parties and wedding receptions, but it will often be more established individuals that you may discover on LinkedIn as well as Facebook.
You might want to run your business from home in the beginning to reduce costs, and you might want to do business from home moving forward. But if your company expands, you could need to rent an office and you will probably need to hire people for a variety of jobs. Utilize websites like Instant Offices, Crexi, and Craigslist to find rental opportunities for commercial space in your neighborhood.
These general guidelines may be helpful to remember while selecting a commercial space:
- Accessible by public transportation in a central location
- With plenty of natural light and ventilation
- As your firm expands, your lease might be made more accommodating.
- A space that is ready to use and does not require any substantial upgrades or repairs
Step 3: Write a Business Plan
Every company requires a strategy. This will serve as a manual to help your business through the launch process while keeping you focused on your primary objectives. A business plan also helps potential partners and investors understand your company’s mission and vision:
- Executive Summary: A brief summary of the full business plan that should be written after the plan is completed.
- Business Overview: A description of the organization, including its vision, mission, ownership, and corporate goals.
- Product and Services: Provide detailed descriptions of your offers.
- Market Analysis: Conduct a SWOT analysis to evaluate market trends such as variances in demand and development potential.
- Analyze your top competitors’ strengths and weaknesses, then produce a list of the benefits of your services.
- Sales and marketing: Investigate your company’s unique selling propositions (USPs) and create sales, marketing, and promotional plans.
- Management Team: A summary of the management team’s functions and professional backgrounds, as well as a corporate hierarchy.
- Procurement, office location, critical assets and equipment, and other logistical aspects are all part of your company’s operating strategy.
- Financial Plan: A three-year financial plan that includes initial expenses, a break-even analysis, profit and loss predictions, cash flow, and a balance sheet.
- Include any extra financial or business-related papers as an appendix.
Step 3: Create a Marketing Plan
Although some of your revenue will come from infrequent internet visitors, you should nonetheless spend in digital marketing! It is extremely vital for new businesses to spread the word since it increases consumer and brand recognition.
After you have launched your website, connect it to your social media accounts and vice versa. Because you can generate compelling posts that sell your items on social media, it is an excellent tool for promoting your business:
- Facebook: A fantastic paid advertising network that allows you to target certain demographics, such as males under the age of 50 in the Cleveland region.
- Instagram has the same advantages as Facebook, but with a different target demographic.
- Website: SEO will help your website rank higher in relevant search results, which is critical for driving sales. Make certain that your website’s calls to action are optimised. Experiment with the wording, color, size, and location of calls to action like “Schedule Now.” This has the potential to dramatically increase sales.
- Google and Yelp: Getting listed on Yelp and Google My Business can be critical to creating awareness and consumers for businesses that rely on local clients.
Increase awareness of your services and promote your brand by utilizing your website, social media presence, and in-person events. Here are some ideas:
- Distribute fliers in your area and at industry gatherings.
- In-Person Selling – Present your services to business executives.
- Make a video describing your goods. Try utilizing comedy to see if it goes viral!
- Send out frequent emails to consumers and prospects. Make them unique to you.
- Start a blog and post regularly. Change up your content and distribute it across numerous platforms.
- Seek recommendations – Provide incentives for customers to refer new clients.
- Paid social media advertisements – Select sites that will reach your target audience and run targeted ads.
- Pay-per-click advertising – Use Google AdWords to appear higher in search results. First, conduct keyword research.
- Create a podcast to interact with your consumers on a more personal level.