1. Acquire event-planning knowledge and experience
The long-term viability of an event planning business is determined by the experience that the planner provides to his or her clientele. That is to say, if you want to establish an event planning firm, you should first understand what an event planner is and make sure you have the following skills:
- Communication, both verbal and written
- Time management and organisation
- Budget management and negotiation
- Marketing, public relations, and other areas of expertise
- Setup the payment gateway.
- Professional accreditation in the sector, such as the CMP credential or membership in MPI, would also be beneficial.
2. Determine your market/forte for event planning
Let’s assume that you’ve been working in corporate meetings for five years and are now ready to start your own company. The first step is to acknowledge that your skills are best applied in the commercial sphere. Many event planners make the mistake of claiming to be able to plan any type of event, including corporate meetings, weddings, and fundraising galas.
While the desire to provide a wide range of services may exist, the reason you’re ready is based on your combined prior experiences. You may eventually be able to handle a wide range of events, but you must first grasp the differences between corporate, association, nonprofit, and social events. Determine your target market as a result.
3. Construct a business plan
Starting a business isn’t as glamorous as these fantasies suggest. Starting an event planning firm, like anything else, necessitates a business strategy.
The Small Business Administration of the United States is a useful site that also distributes materials on creating business plans.
4. For flawless planning, use the Rental Software.
For many event planners, renting tools and equipment is an important part of making their events a success. These programs give you access to everything you need when planning your event. However, managing these rentals can be challenging. One solution to the problem is a rental software. Rental software is a fantastic tool to assist with event planning. You can access a list of items that are available and available dates. There are numerous advantages to using this tool, including the ability to create a customer database, create an event calendar, and send automated emails. This allows the event planner to have a variety of different settings.
5. Decide which type of business entity is best for your company.
Now that you understand that starting an event planning firm is a “work in progress,” it’s critical to establish your business structure right away. The first and most important stage is to choose which sort of corporate structure is suitable for your strategy. It is critical to seek professional assistance in this regard.
You have various options, and it’s critical that you choose the form of company organisation that best reflects your interests. The IRS recognises six types of business entities in the United States, according to William Perez, an expert in tax planning. A sole proprietorship, a C-Corporation, an S-Corporation, a Partnership, a Trust, and a non-profit organisation are all examples of business structures.
6. Obtain Commercial Insurance
It is necessary to have business insurance. To protect the interests of the business owner, event planning companies should obtain public and product insurance. So it’s important to speak with an insurance counselor to learn about all of your options.
- Liability in general
- Product liability is a legal term
- Compensation for employees
- Insurance for criminals
- Advantages in health and other areas
7. Expand your supplier and staffing resources network
It’s time to take a break from the business structure for a while. It’s now time to think about who you want to include in your supplier network. Caterers, florists, event photographer, and other vendors are among the vendors that event planners work with.
And, even if you think you can manage everything, you’ll eventually need to build a resource infrastructure to support your events and overall operations. Staffing resources for administrative, sales, marketing, communications, legal, financial, and other operations are all part of this.
8. Determine the scope of your event planning services.
Some of you may be dismayed by the reference to “legal” and “accounting.”. Don’t be that way. They are extremely valuable friends and resources. However, this is also a good time to dig a little deeper and consider what types of event planning services you’ll provide.
We understand that many of you have already considered this, but it’s critical that you keep focused on your core offerings. What is the name of your product? What is your target market’s demographic?
Will you offer full-service planning and execution for venues, food, production, speakers, gifts, transportation, hotel, and other services to your customer?Will you focus on one component of the planning process? What about event communications and other communications services?
9. Develop a fee structure for event planning
With services in mind, deciding on a cost structure is critical. Many small and independent event planning companies should be aware of the many options for covering their costs and making a decent return. After all, this is going to help you stay in business in five years. The following are the most common fees charged by event planners:
- a one-time fee
- Costs as a percentage
- The hourly rate
- Expense percentage plus hourly rate
- Rate of commission
10. Securing Funding for Your Company
It’s critical to be motivated by the job that your new firm will bring so that you don’t become disheartened when faced with the facts. And each business owner will choose a different method for obtaining and obtaining such revenue.
Most businesses require an operational budget, and it will be critical to have access to a steady cash flow while the company is being established. While it is feasible to start a business on a shoestring budget, it is still necessary to have enough cash to start your firm and cover any living expenses while you wait to become profitable.
11. Focus on your event business’s business development and marketing.
It’s time to start developing crucial business and marketing materials now that you have your company model in place, a grasp of your services, and a concept of how you will charge for your services.
So, now you’re ready to pick a business name and get started on your business development plan. You’ll also need to design business cards, stationery, a website, sales collateral, proposals, and client contracts, among other things.