An event planning business is one of the best business ideas to pursue if you are passionate about event planning, decorating, and the like. While it might sound a fun business idea, it actually involves more work than you might think. It is a serious business and one that could be potentially financially rewarding if you know the strategies to build success.
With restrictions being lifted and the events industry slowly getting back on its feet, now is the perfect time to start this kind of business. Take note of the things you have to consider when taking a leap and starting your own party events business.
Pro’s and Con’s of Starting a Party Planning Business
First things first, you need to know exactly if this is the type of business you want to be involved with. It is important to weigh the pros and cons to determine if this is the right business for you.
- It requires little investment capital
- It does not require formal training
- It can be run at home
- It is potentially rewarding in the financial sense
- It will give you the opportunity to meet lots of new people
- There is a lot of job variety
- It is ideal for those who are outgoing and love to work with people
- It will require long and odd work hours
- It can be difficult to land that first client
- It involves choosing the right subcontractors
- It can be highly stressful (especially when working on multi-day events)
- Some clients might be unreasonable or difficult
Getting Started in a Party Events Business
If you can deal with the cons listed above, then you are on your way to starting an event planning business. While it does not require any formal training or education to become an event party planner, there are a few skills and factors involved.
1. Write Up a Solid Business Plan
There is no way around this one. Any new business venture will require a solid business plan. In your business plan, think about your unique value proposition. There are plenty of event planning businesses in Australia or in your local area. Think about how you stand out. For example, you can choose a specific niche, such as events planning for weddings only or events planning for kids’ parties.
If you are able to establish your unique value proposition, it will enable you to target your services to a specific market. It will also enable you to hone your skills to provide the best service for that particular niche.
2. Market Research
Before you take the leap, it is important to conduct a thorough market research. In your area, what is the level of demand for events planning services? How many other companies are offering the same services? What is the most profitable niche for this type of business?
Knowing your competition and the market you are trying to target will put you in a better position in marketing your business. Leverage the data to build a plan to distinguish your business from the others.
3. Register Your Business
Although you do not need formal training or certification to become an event planner, it is important that you register your business and your business name. The requirements for registration will vary based on where you operate your business. Apply for the applicable licences and permits in your area. The Australian Business Licence and Information Service has the complete list of permits per city and state for you to use as a guide.
4. Put Together Your Team
An event planning business is a lot of work. You need the right amount of people to work with. Make sure to hire like-minded individuals who have the same passion as you when it comes to event planning. You also need a good mix of creative and business-minded people.
When you delegate tasks to your team, try not to micro-manage them. Have confidence in the fact that you hired the right people and that they will perform the best service for the assigned tasks. That’s why it is important to take your time in hiring people and make sure to choose ones that fit into your desired company culture.
One section of your team that you may not consider is your insurance provider. Yes, party planners need insurance also. Just imagine, a party full of kids or an engagement party full of intoxicated adults, insurance is important even for small businesses. In Australia, speak to a small business insurance specialist like Midland Insurance.
5. Finding Suppliers and Building Contacts
An event planner must have a network of suppliers and contacts to work with for every event. You need to choose your suppliers as meticulously as those who are part of your team. The best way to choose them is to identify a set of requirements. If those suppliers meet those requirements, then you can have peace of mind knowing that they are the best fit for your business’ needs.
6. Pricing Strategy
Finally, you need to come up with a pricing strategy for your event planning business.
There are various strategies that you can employ here. First, you can hire a flat fee for the entire service. You can also charge an hourly rate. Or perhaps you can come up with different packages that your clients can choose from depending on their event planning needs.
Pricing is a bit tricky to deal with for an event planning business. You want to be able to price your service so it will attract your target customers. At the same time, you have to think about the expenses involved in planning a specific event. Make sure you leave a healthy profit margin.