HOW TO START A EVENT PLANNING COMPANY

Event planners assist their clients in organizing and managing events of any size and type. An event planner can help with everything from weddings and social gatherings to professional events and address all problems.

Find out how to start an event planning business and if it is right for you.

These 10 steps will help you start an event planning company.

Now that you have found the right business idea, it is time to move on to the next steps. It is not enough to register your business with the state. There are many other aspects of starting a business. This is a simple guide for starting an event planning business. These steps will help ensure your business is properly planned, legally compliant and registered.

We have done a lot for you.

How much does it cost to open an event planning company?

Event planning businesses can start with low overhead. You can save on rent and utility costs if you work from home. Other costs include:

  • Hosting a business website or site
  • High-speed internet and phone service
  • Marketing and advertising
  • Payroll
  • Equipment
  • Taxes and business licenses
  • Insurance

What are the ongoing costs of a business that organizes events?

The ongoing expenses include restocking supplies, payroll for employees, and replacing damaged or broken equipment. You may also need to pay for:

  • Invitations and publicity for events
  • Equipment rental
  • Flyers and signs

Who is the target market for this product?

Clients interested in corporate or social event planning will be your target market. The age range for social events is between 25-60+, while corporate events focus on employees and other business entities regardless of their age.

How can an event planning company make money?

Event planners make money by charging clients for their services, which cover the planning and operation of the event.

What price can customers pay?

Events can vary greatly because they are priced according to their size and how many people are needed. Event planners often charge a percentage (e.g., 15-20%) relative to the total cost of an event. If an event costs $100,000, then the event planner would collect between $15,000 and $20,000

What is the profit potential of an event planning company?

Your annual event volume and profit margins will determine your profitability. Social event planners can earn between $10 and $75 an hour, while corporate event planners could charge $15 to $150 per hour. The average annual salary of an event planner is between $35,000 and $75,000. An owner can expect to earn $75,000-80,000.

How can your business be more profitable?

Once it is established, you may want to add additional services such as catering and bartending to your event planning business. You can offer your clients full-service hospitality and increase business revenue by providing these services in-house.

What name will you give your business?

It is both important and difficult to choose the right name. You should have a name in mind if you aren’t sure.

You might choose to use a different business name if you own a sole proprietorship. To learn more, visit our DBA guide.

We recommend that you research your business name before registering it.

  • The business records of your state
  • Registers of trademarks at the federal and state levels
  • Social media platforms
  • Web domain availability.

It is important to ensure that your domain name is secure before anyone else.

STEP 2 – Form a legal entity

The most common business structures are the corporation, partnership, limited liability company (LLC), or sole proprietorship.

You can avoid being sued by your event planning company by creating a legal entity, such as an LLC and corporation.

You can create an LLC by yourself, paying only the minimal state LLC cost, or hiring one of the Best LLC services for a small additional fee.

STEP 3: Register for taxes

Before you can open your business, you will need to register for various state and federal taxes.

To register for taxes, you’ll need an EIN. It’s easy and completely free!

Small Business Taxes

There are many options available to you regarding how to tax your business, depending on the business structure you choose. Some LLCs may be eligible to be taxed as an S corporation (Scorp).

These guides provide more information about taxes for small businesses:

  • LLC Taxes
  • Sole Proprietorship vs. LLC
  • LLC vs. Corporation
  • LLC vs. S Corp
  • How to Start an S Corp

You might be subject to specific state taxes. Please find out more about franchise taxes and the state sale tax in our state tax guides.

STEP 4: Open your business bank account and credit card

Personal asset protection is possible by using dedicated business banking and credit cards.

If your business and personal accounts are combined, your assets, such as your home and car, are at risk. This is called piercing the corporate veil in business law.

Learning how to build business credit will help you obtain credit cards or another financing in your company’s name (instead of your own), higher interest rates, greater lines of credit and much more.

Opening a bank account for your business

  • This allows you to separate your assets and your company’s assets. It is essential for personal asset protection.
  • It makes tax and accounting filings easier.

Open net-30 accounts

  • Net-30 vendors are the best option for establishing business credit. A business credit arrangement in which the vendor is paid within 30 days after receiving the goods or services.
  • Businesses that require inventory quickly and do not have enough cash can often use net-30 credit terms.
  • Net-30 credit accounts are reported to the main business credit bureaus (Dun & Bradstreet Business Credit, Experian Business Credit, and Equifax Business Credit). This is how companies build credit to be eligible for credit cards and other lines.

Apply for a business credit card

    • You can easily separate your personal and business expenses by consolidating all of your business expenses in one place.
    • It can also build your company’s credit history, which can be helpful to raise money or invest later.

STEP 5: Establish business accounting

  • It is crucial to keep track of all your income and expenses to understand the financial performance of your company. A detailed and accurate accounting will simplify your tax filings.

STEP 6 – Obtain the necessary permits and licenses

  • Failure to obtain the necessary permits or licenses could result in heavy fines or even the closure of your business.

Requirements for State and Local Business Licensing

  • You may need to obtain certain state licenses and permits to run an event planning company. SBA has a reference to state permits and licenses.
  • Businesses are required to collect sales taxes on any goods or services they sell. For more information, see our article Sales tax for small businesses.
  • Information about permits and licenses in your area:
      • Get in touch with the clerk’s office of your county, city, or town.
      • Ask for assistance from one of the US Small Business Association’s directory listings of local resources.

Services contract

  • Before starting any new event, event planning companies should require their clients to sign a service agreement. The agreement should be clear and concise. It should also outline client expectations and limit the risk of legal disputes. This example shows one such service agreement.
  • Recommendation: Rocket Lawyer makes creating a professional service contract for event planning businesses easy when you sign up for their premium membership. Members receive unlimited access to legal agreements and free legal advice by calling their on-call attorneys for $39.95 per month.

STEP 7 – Get business insurance

  • Your business requires insurance to be legally and safely operating. Your company’s financial security is protected if a covered loss occurs.
  • There are many insurance policies available for businesses of different sizes and with different risks. Start with General Liability Insurance if you aren’t sure what risks your business might face. This coverage is what small businesses most commonly need. It’s a great place for your business to start.
  • Workers’ compensation Insurance is another important insurance policy many businesses require. Your state may require workers’ Compensation Insurance if your company has employees.

STEP 8: Define and define your brand

  • Your brand represents what your business stands for and how the public perceives you. Your business will stand out from its competitors by having a strong brand.

How to market and promote an event planning company

  • Your business’ strengths and areas of strength will be key to marketing and promotion. The success of previous events and the recommendations and positive words of clients will be important factors in your marketing. Use social media to share photos and videos of your events and connect with other professionals and potential clients.
  • A website is also necessary for your business. Linking to your Website will give your clients more information about your specialties. Once they’re on your site, they can reach you with additional questions or book you for events.

How to keep customers coming back

  • It is important to provide a professional service level and a great relationship with the customer to give them what they want. You are selling a service to people for an important event. How satisfied they are will affect how many customers you have in the future.

STEP 9: Create a website for your business

  • After creating your brand and logo, the next step is to build a website for your business.
  • Although creating a website can be a crucial step, others may feel that they cannot do it because they lack the necessary experience. This Website may have been a valid concern in 2015, but web technology has made it easier for small business owners.
  • These are the top reasons you should not delay building your Website.
      • All legitimate businesses should have websites. It doesn’t matter how big or small your business is when getting online.
      • A business website you have created is not replaced by a social media account like LinkedIn pages or LinkedIn business profiles.
      • The GoDaddy Web Builder has made it easy to create a basic website. A website you are proud to own doesn’t require the services of a web designer.
  • The process is simple and painless with our website-building guides. It should take no more than 2 hours.

STEP 10 – Set up your business telephone system

  • It is a great way to keep your personal and professional lives separate. This is not the only benefit. It also makes your business more efficient, gives you legitimacy, and makes it easier to contact potential customers.
  • Entrepreneurs who wish to set up a business telephone system have many options. We have reviewed the best companies and rated them on their price, features and ease of use. To find the best small business phone service, check out our review of Best Corporate Phone Systems 2021.

What happens in a day at an event-planning business?

  • Hosted events are the main source of income for event planners. It is crucial to interact with potential and current customers. A successful event planner must work hard to build their reputation and name, whether one-on-one or via larger social media platforms. The business will also be:
      • Responding to customer e-mails
      • Stocking up on event inventory
      • Communication with business partners and vendors regarding future jobs
      • Marketing and PR work
      • Training employees and continuing education

What skills and experiences can you build a successful business in event planning?

  • You don’t need to have a degree in event planning or a professional certificate. While it may be helpful, many event planners have learned the skills they need from their job. Experience in the hospitality or customer service industry is a great asset.
  • Also, you should be able or familiar with:
      • Effective communication is essential, verbally and in writing.
      • Strong organizational skills
      • Flexibility and willingness to adjust plans are key

What growth opportunities are there for event planning businesses?

  • The industry of event planning is growing steadily. As businesses become more globalized, event planning is becoming a more popular industry. Companies are increasingly looking for professional and well-organized events that will help them grow their business. Event planning will grow in importance as the international business expands.

Step 2

Find a mentor for your business.

  • Mentorship is one of the most valuable resources entrepreneurs have. To get the support you need, find a free business resource nearby as you begin to plan your business.
  • A support network is an important factor in the success of new business owners.

Get advice from other owners of businesses.

  • Learn more from entrepreneurs about starting a business. To learn more from entrepreneurs, visit Startup Savant’s founder series.

Resource for Women in Business

  • There are many resources available for women entrepreneurs. We have gathered the necessary information to help you achieve your goals professionally and personally.
      • Funding
      • Events
      • Guides
      • Support
  • This new series, Women in Business, is for women looking for guidance in entrepreneurship. It was created by our partner Startup Savant.

These are some tips to help you jump-start your event planning business.

  • Learn about your clients and find a niche to promote your business. One niche might be weddings and receptions. Events near the coast are another option. You can make your mark in the market by being unique. This will result in more customers and referrals.
      • Target the people you are most likely to find in your local area.
      • Get involved in a professional association for event planners. You can gain valuable insider information by networking with other professionals.
      • Social media can help you make your business known. A great resource is free advertising, especially for startups.

How to create a team and when

  • You will need to think about who you want on your team when starting an event planning company. You will need to select people who can understand the many roles they play in creating successful events. You will need to hire more staff as your client base grows and events become larger and more frequent. It may be worth considering having an overflow workforce of workers who can be used for larger events and as needed but not full-time employees.

 

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