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Planning a successful event, like a wedding or conference, is challenging and stressful, but it can also be highly rewarding when the event goes well. Some people hate the challenge and stress that come with event planning, while others thrive on it. If you are skilled in planning events that go off without a hitch, then an event planning business might be right for you. Starting your own event planning business can be the first step in your success, and with your own business, you’ll be in charge of everything, from what types of events you decide to specialize in and how you market yourself.
Event planning businesses help corporations, businesses, and individuals to plan and execute events like weddings, parties, retreats, galas, and conferences. An event planner typically works closely with the event’s host for months or years leading up to the event, and they’re tasked with ensuring that the event runs smoothly. Most event planning businesses offer a relatively full-service program where they manage nearly every aspect of an event, from coordinating with caterers to planning the event’s layout and decor with the venue.
Some event planners work independently, establishing their own businesses and working entirely by themselves. Others will start their own businesses and develop a team of planners for large-scale events or increased project volume. Many event managers will establish relationships with caterers, decorators, florists, and other industry professionals. These existing relationships can help with future event planning and are one of the ways that planners add value to each job that they do.
From 2014 to 2019, the party and event planning industry experienced a 2.9% annual growth, according to IBIS World. The number of businesses increased to 142,097, and industry employment also grew to 132,042. In 2019, the industry was predicted to bring in $5 billion in revenue.
This growth is closely linked to the improved economy during that same time period. With more per capita disposable income, more people chose to host events and to hire professional help with those events. Similarly, companies that enjoyed increased profits during that time were also more likely to host events. The increased overall busy nature of American lives tends to leave more people with less time, making them more likely to hire help rather than attempting to throw an event by themselves.
According to Endless Events, many trends are shaping the event planning industry in 2020 and beyond. Personalization has become more important to event attendees, especially when it comes to corporate events and conferences. Personalized emails, multiple workshop tracks, and personalized content have become increasingly important, and attendees are noticing when these elements are missing from an event experience.
Event planners also need to be aware that the focus on event sustainability is continuing. Many event hosts and attendees increasingly value eco-friendly decor, plant-based catering, and the use of recycled materials. The more strategies an event planner has to make events sustainable, the better they’ll be able to keep up with this important trend.
Unfortunately, another highly important trend is the need for event security. This includes everything from onsite security, cybersecurity, and emergency communications plans. An emergency plan needs to be in place for every event, especially larger corporate events that draw significant crowds. These security needs may add one more element onto an event planner’s to-do list, but this is also a precaution that modern-day events can’t afford to go without.
Who is the target market for an event planning business?
Event planning businesses target those who are hosting an event. Some businesses focus on corporate events, while others will market to the general public with significant financial resources. In all cases, these events tend to be larger, more expensive affairs. Event planners offer both skill and convenience, and their target markets value those elements and have the disposable income to afford the event planner’s services.
Some event planners niche down even further, offering services for a specific type of event, like weddings, conferences, or fundraising galas. This will further define the business’ target market.
Skills, experience, and education useful in running an event planning business
Starting an event planning business doesn’t require a business degree, but certain skills and experiences can increase the business’ chance of success.
Event planning experience or education. A knowledge of event planning, its best practices, and experience in planning an event for others is important. A business owner might also have gone to college to study event planning and management.
The ability to think clearly under pressure. Even with the best planning, unexpected issues still crop up during an event. Event planners need to be able to think clearly under pressure, and they should be able to quickly find creative solutions to problems.
Attention to detail. Planning events requires excellent attention to detail, including elements like schedules, timelines, and budgets.
High degree of organization. Event planners have to manage many moving parts to every event, and excellent organization is important during every step of the process to ensure that nothing gets missed or overlooked.
Customer service skills. Event planners will need to have plenty of interaction with their customers, so great customer service skills can build the planner’s reputation and increase customer satisfaction.
Strong interpersonal relationship skills. An event planner will need to be able to work with many different people during the course of a single event, and many of these people won’t be the planner’s employees. The ability to build strong interpersonal relationships and work well with a variety of personalities is essential.
Starting an event planning business requires minimal startup costs, and event planners can start this type of business from their homes to further save on office space costs. It’s possible to start a basic event planning business for as little as $4,000, assuming an event planner already has a vehicle they’ll be able to use for transportation to client meetings and events.
Common startup costs for an event planning business
- Event planning software
- Professional website
- Marketing materials, like business cards
An event planning business will rely on working capital to keep it operating. Working capital helps to finance business expenses, like insurance payments and other operational expenses. If too much working capital gets tied up in expenses and the business doesn’t book enough events to replenish that working capital, it will be hard to keep the business running.
Event planning businesses need multiple types of insurance policies to be fully covered:
- General liability insurance helps to protect the business in case customers or their property are injured or damaged as a result of the business’ actions or work.
- Commercial property insurance protects the business against potential damage to its equipment, like in an event like a fire.
- Commercial auto insurance covers a vehicle that’s used for business use, offering protection if the vehicle is involved in a car accident.
- Workman’s comp insurance helps to cover expenses like medical bills or lost wages if any employees are ever injured while on the job.
The cost of insurance policies will vary according to factors like the number of employees a business hires and the value of the business’ equipment. To get an accurate idea of the costs of insurance, request quotes from multiple providers and see how those quotes compare in terms of variables like premiums, coverage limits and exclusions, and deductibles.
Common operational expenses
In addition to budgeting for the above startup expenses, an event planning business’ budget also needs to include these common operational expenses.
It’s often possible to start an event planning business out of your home. If the business expands and you decide to hire employees, then renting an office space may become a recurring operational expense. Rental rates will vary depending on the size and location of the space.
As a business grows, it may be helpful to hire an event planner assistant on a part-time or full-time basis. According to PayScale, event planner assistants earn an average of $14.66 per hour, or $35,856 per year.
In addition to budgeting for employee salaries, a business will also need to cover other employee-related expenses, like workman’s comp insurance, paid time off, and even health insurance and retirement contributions.
While some customers will become returning customers, event planning businesses need to continuously market to bring in new customers, too. Common marketing techniques include social media marketing, print advertising, establishing a customer referral program, and networking with event venues. Marketing costs will depend on the type of activity performed.
Business Licenses & Permits
An event planning business will need to obtain certain business licenses and permits. These permits and licenses can vary based on the state and town where the business is located.
Every state has specific requirements and regulations when starting a business. Select your state below to find the guide to starting a business in your state.
How much can you potentially make owning an event planning business?
Potential profits for event planning businesses range widely. According to Glassdoor, the average salary for an event planner is $49,696 per year, but salaries can actually range from $35,000 to $71,000 and more. Many factors affect salary, including the planner’s experience and years in business, location, and specialty or unique skills.
Things to consider before starting an event planning business
Getting into the event planning industry is relatively easy, since there aren’t any education requirements and there are minimal startup costs. But because it’s easy to get into the industry, you’ll probably face lots of competition no matter where you’re located. This means it’s important to find a way to differentiate your business from others, whether it’s with a unique skillset, a specialization in certain types of events, or something else that you can offer that other businesses don’t.
Marketing is also an ongoing challenge, and good marketing is essential to a business’ success. The more of your marketing that you can do yourself, the more money you can save over paying a professional marketer. But, it’s also important to recognize when your business has become profitable and your time is better spent working with clients than on trying to do everything; at times like this, you should delegate your marketing and other administrative tasks.