In today’s competitive environment, every business owner wants to stand out from the crowd. This means they want to offer their customers something unique and memorable. The same goes for events. They want to create experiences that will leave a lasting impression on their guests.
Event management companies are booming. According to the Bureau of Labor Statistics (BLS), employment opportunities for event managers are expected to increase by 19% between 2016 and 2026. That’s great news for those who want to get into the field. But before you jump in headfirst, you need to consider some important things.
In this article, I will share important steps on how to start event management business in 2023. These are the basic steps to follow to form your event management business.
On this page, you’ll learn about the following:
- What is Event Management
- What You Need to Start Event Management Business
- How to Start Event Management Business
- After Starting Event Management Business
- Cost of Starting Event Management Business
What is Event Management
Event management is a wholesome process of creating and arranging events. Any type of event, such as corporate, personal, weddings, birthdays, meetings, seminars, and so on, can be managed by the event managers. The process starts with planning the event and arranging things that are needed to stage the event. It continues with the post-event strategies and follow-up with your clients.
Event management is a growing industry that provides services to businesses and organizations looking to host events. With so much competition in the event management space, it’s important to understand how to stand out among the crowd.
What You Need to Start Event Management Business
Starting an event management business is not an easy task. There are many things to consider before and after you start your event management business. Here are some tips you need to know before you start your event management business,
Know What You Want
Before you begin your event management journey, ensure you know exactly what type of events you want to manage. Do you want to plan weddings, corporate parties, or charity galas? Once you know what kind of events you want to focus on, you can narrow your search for clients.
Networking Is Key
Networking is key when starting a business. Whether you meet people face-to-face or via social media, networking is essential to getting ahead in the event management world. When meeting people, try to find common ground. Ask questions about their company and its goals.
Don’t Overlook Small Events
Small events aren’t just for small budgets. Many big corporations hold smaller events throughout the year that cost only a fraction of what a large event would. These events provide opportunities to network with executives and build relationships with employees.
You may think that being professional means wearing suits and ties all day, but that’s not necessarily true. Being professional doesn’t mean you have to go overboard in formal; however, it does mean that you dress appropriately for the occasion. Finally, while you shouldn’t let fun become your primary goal, having fun along the way is important. Enjoy yourself while managing events, and remember to enjoy life outside of work too.
How to Start Event Management Business
To start your event management business, you must go through a few formal steps. These are the basic steps to establishing a business. Steps can be changed based on the nature of the business. Here are the essential steps to start your event management business,
Step 1: Make a Business Plan
Before you start your event management business, create a solid business plan. Your business plan helps you to organize your tasks and keep everything in a single place. In general, a business plan includes the nature of the business, funding, potential clients, SWOT analysis, and future market analysis. These are the main things to consider while setting up your event management business.
Step 2: Set Your Budget
The next step is to set your budget. Setting up an event management business is not a matter of joke. It takes some serious work and a handful of money to invest. You must get the funding before you register your business. There will be a registration fee, permits & licenses fee, office set up, website, salaries, taxes, etc. These are some of the costs that you must pay to start your event management business.
Once your budget is ready, you must put your best foot forward to get the funding for your business. You can get options like bank loans, advances, and other private loans to fund your event management business.
Step 3: Register Your Business
Once you have decided on your event management business, you need to name it. To name your business, you must check the naming guidelines on the state’s official website. You must register/reserve your business name to secure it. You can register your business as a sole proprietorship, partnership (if you have a partner), corporation, or limited liability company. It is easy to start an LLC for your event management business as it is less complicated and has pass-through taxation.
You have to pay a specific amount to register your business. This fee depends on the state you are starting your business. Also, what type of business structure you’re setting up changes the fee structure. For example, if you want to form an LLC in Texas for your event management business, you must pay higher state fees than LLC in Florida.
Step 4: Appoint a Team
Once your company is registered, it is time to hire additional hands to run your business. Appoint people and build a team. Event management has different departments, such as lights, decoration, sound, food counter, bar counter, cleaning, floor managers, hospitality, and more. You need people in all these segments to cater to your clients.
Like any other business, in event management, you can work with third-party vendors instead of appointing your own team. However, that costs you more than having your in-house team.
Step 5: Get Licenses & Permits
The next big thing is to get the licenses and permits wherever required. When you talk about event management business, you need a handful of permits and business licenses. If you operate in different states or cities to plan an event, you might need a different permit for the location. Check with the local authority/government for the permits and licenses to plan an event in any city or state.
Step 6: Get Started
Finally, all your things are done. Now, you are ready to go on the field. You can start your event management business and cater to all your client. As soon as your company starts operating, you must file annual reports and tax returns, open business bank accounts, and get business credit cards. Also, you need to get insurance for your company and employees.
After Starting Event Management Business
After you set up your company, you need a few things. The first thing is a business website. You need an attractive and detailed website that includes what you do, how you do it, who to contact, and how to contact. You can share your product and service photos on your site to exhibit your work and expertise. Here are the things you need after you set up your event management business,
- Business bank accounts
- Insurance and coverage for employees
Cost of Starting Event Management Business
The event management business is not something you can start for free. You must be prepared with around $20,000 to set up your company. An event management company has the following costs,
- Office space (rent/purchase): You can rent an office space instead of buying it. It costs less. If you have any space in your home, like a garage or burn, and you want to set your office there, then it would be even less costly. It costs around $5000
- Business registration fee and Tax: This depends on the state and structure of the business. If you wish to start an LLC in Wyoming, you must pay $100 for business registration. Based on the location, you get to pay your taxes. LLCs have tax benefits. So, if you start an LLC in California, you don’t have to pay any business taxes. However, you will have to pay Franchise Tax.
- Employees’ salary: Employees’ salary depends on the company’s volume. How many employees you hire on a permanent basis and how many you appoint on a freelance basis – decides the amount of money you spend on their salaries. It costs around $500 per employee per month (average)
- Software cost: Software is an integral part of every business now. For an event management business, CRM can be used to track follow-ups. It costs around $300-$2000.
- Website cost: It includes domain name registration, hosting, content, and other website-related issues. It costs around $6000 (average)
- Marketing cost: This is a dynamic cost. Depending on how vast your advertising game is, the cost varies. Marketing and advertising include newspaper ads, TV/Radio ads, merchandise such as coffee mugs, shirts, t-shirts, stationeries, etc., and business cards. This costs around $1000 (average)
Revenue From Event Management Business
Event management businesses are booming. Be it a corporate meeting or an intimate wedding, event managers are always required. Hence, you can always make a lot of money from your event management business. But you must know that it does not happen overnight. Before you start making a profit, you must increase your client base. Invest more in networking, and give time to go out and talk to people about your services. You can also get partnered with biggies (under contract) and host all their events in a year. Most corporate houses work like that. It will be secure for your business, especially in the initial days. Generally, you can charge $50-$100 an hour for any event. If the event is huge, it can go up to $500 an hour or more.
Event planning is one of the best ways to earn money from home. There are several different types of events, such as weddings, birthday parties, corporate events, etc. If you know how to plan these events, you can charge anywhere between $50-$100 per hour for your work. But before you make money, you need a proper business plan, a registered business, and a fancy website that exhibits your work.
Event planning is one of the best ways to earn money from home. There are several ways to find potential clients for event planning. One way is through networking. Another way is to use social media sites such as Facebook and Twitter. The third way is to search Google for “event planner” and then contact those who appear at the top of the list.
People know that you are an event planner when they hear about your business from someone else who has hired you for events. If you want to be known as an event planner, then you need to start networking and getting referrals. Also, you can share your work on social media to gather more people.
Event planning is one of the best ways to market yourself as an event coordinator. If you want to be successful at event planning, you need to know how to plan events, create promotional materials, and execute them effectively. The key to event planning is to understand what makes each event unique and then use those elements to design an effective promotion for your client.
An event management company is profitable and not so easy to start. It needs a lot of homework before you make your investments. Networking and contacts are the keys here. In the event management business, referrals are the most desirable way to get more clients. This article explains basic information to start your event management business. If you have any questions, then comment below.