Once you gain some real experience in working various events and feel completely comfortable with the planning process, you can start your own successful event planning business.
Please don’t confuse this with working as an independent contractor. While they appear very similar at first, there are a few differences. For a more thorough explanation, visit the
Event Planning Employment
page.
**Please note that the ideas outlined on this page do not represent or replace legal advice in any way. Be sure to consult with a small business attorney and/or accountant before deciding if starting your own event planning business is the right move for you!***
Where do I start? Ummmm...this seems obvious, but... Be sure that you have worked in the industry for a few years and have a thorough knowledge of event planning before deciding to start your own event planning business. Remember that it’s not “all about you” and your desire to have a fun career. There is a lot at stake, including a lot of money and someone else’s trust in you to plan a perfect event.
I only say this because I know at least three different people who attempted to start their own event planning business without ever having worked an event. True story!!! And it wasn’t pretty, for anyone involved.
Before you go any further, PLEASE read the
Starting an Event Planning Business
page to make sure you are in the right position to be taking this important step!
Fair enough! I have years of experience in events and now I am ready! Now what? Once you have the experience, starting your own event planning business is really very simple. It requires very little overhead, compared to a lot of other types of businesses out there.
Below I will outline a few of the basic steps toward starting your own event planning business. For a much more thorough guide, including checklists and forms as well as a detailed explanation of legal business structures, check out Small Businesses for Dummies on the
Event Planning Books
page.
There are also many, many resources on the web for starting your own business. One of the most reputable is the Small Business Association, at
www.sba.gov.
This is a FANTASTIC site which outlines legal structure, business plans, and other useful articles. They also have a mentorship program and links to numerous resources.
It's all in the details... In the meantime, here are a few things to consider when contemplating starting your own event planning business:
Office Space: it is not necessary to find expensive store-front property to be an event planner. You can easily work out of your home, given that you have a private, quiet work space that is designated just for this purpose. Working at your kitchen table with vocal children in the background might not give off the most professional image. You will need the following:
Desk
File Cabinet (or two or three)
Shelf Space (for various event binders and reference material)
Dedicated Phone Line (separate from your house phone)
Dedicated Fax Line and Fax Machine
Computer (preferably a laptop to take with you to the events)
Printer and Copier
Internet
Branding: you will need to
Name your company and register it
Create a logo or hire someone to do it for you
Create stationary, envelopes, and business cards
Create a website; many people will determine your professionalism based upon your website. These days, it’s a very important marketing tool.
Computer Knowledge: it is imperative that you are very proficient with the computer. Event planning is much more than just picking out pretty décor. There are lists and documents and mail merges and Excel grids. If you aren’t extremely comfortable using the internet, Microsoft Word, and Excel, then it would be worth the investment and your time to take a few classes. It’s a sign of the times; you simply can not run a business without the computer!
EIN and Separate Business Checking Account: for further explanation, check out the SBA website and/or “Event Planning Books” from the
Event Planning Resources
page
Contracts: be sure to consult with an attorney and create some standard contracts to be signed by both parties at the beginning of any assignment. This small investment in lawyer fees could save you thousands, perhaps millions, in the future!
Determine Your Pricing Structure: event planners charge for their services in a variety of ways. Your fee structure will change from client to client, but usually will fall into one of the following:
Hourly Fee: research what the common going rate is in your area; event planners in New York City will make a much different hourly rate than someone in Dallas.
Flat Fee: estimate your best guess of how much time a certain project will take, multiply it by your standard hourly fee, figure in overhead costs (printing, phone calls, and other expenses) and offer a flat fee. It is highly recommended that you put a cap in your contract, to ensure your client doesn’t take advantage of your time.
Percentage: many planners take a percentage of the final cost of the event, anywhere from 9 to 17 percent or more.
Finances: many clients expect meeting and event planners to float money for events, such as deposits to hold venue space, etc. Be prepared to not get paid by your client for 30 to 60 days or more, depending on their accounts payable. If you are just starting out and can’t float money, be sure to work a “good faith” deposit into your contract (which is good practice anyway). Be prepared to deal with finances accordingly – events require a lot of money up-front.
Create a Team: regardless of the size of your company – if you plan on eventually having 30 employees or if it’s just you – you will need to surround yourself with a great team of people. You will need attorneys, accountants, and suppliers such as décor companies, photographers, DMCs, entertainment references, AV companies, hotel references, and the list goes on and on! Your success is riding on your partners, they all reflect back on you; so pick wisely! Network and ask around until you build up a good “stable” of partners.
On-Site Event Managers: regardless of the size of your event, you will need additional help when you work on-site. Learn how to work with on-site managers, the going day rates, and how to contract them.
Getting Clients: the hardest part is, just as with any industry, building up your clientele. However, if you’ve been in the industry for a few years, hopefully you’ve learned how to network, and you’re great at keeping an organized contact base. That will create a great foundation and a natural place to start!
Determine Your Niche: of course, the competition is high, as there are many successful event planning businesses already out there. What will make you different? What will set you apart from the crowd? Determine your “niche” and live it!
As you can see, there is a lot to consider before starting your own event planning business. But once you get up and going, and find yourself a few clients, you will live a very rewarding life with a career that you love, all while working for yourself. For many, that is the American Dream; and it is perfectly attainable!
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