How to Start an Event Planning Business (Step-by-Step Guide)

Some people have a special talent for planning parties, whether it's a wedding, a large corporate event, or a small gathering. If you have a knack for tackling complex issues and making sure your big day goes off without a hitch, then you could be a successful professional event planner. Whether you work alone or with a team, starting an event planning service is not an easy task. Here are some important questions to consider before starting your event planning business, as well as a step-by-step guide to starting and growing your business.

Related: Finding your event planning niche

What is an event planning business?

Event planning is the art and science of ideation, planning, coordination, and execution. When large-scale events, such as trade shows, nonprofit celebrations, and big anniversaries, need to run smoothly, people hire event planning services or coordinators. Event planners are key service providers who ensure the production and execution of events go smoothly and are often used for the following purposes:

• Corporate events such as after-work cocktail hours and galas.
• Education-related events such as graduations and conferences.
• Major promotional events such as product launches and fashion shows.
• Celebrations and social events such as parades, weddings, birthdays, and reunions.

Primary duties of a full-time or part-time on-site event planner include:

• Research the venue and vendors before the event.
• Choose the right venue for your event.
• Event design and team building for project management.
• Prepares budgets and conducts fundraising activities as required.
• Coordinate event décor, entertainment and food.
• Send invitations to attendees.
• Coordinate transportation to and from the event for attendees.
• Arrange accommodations, including seating charts and seating arrangements.
• Coordinate tasks for on-site event personnel, including caterers and entertainers.
• We are always available to assist with any questions or issues that arise during the event planning process.
• Supervise activities at the event venue.

Why do people hire event planning services?

There are two main reasons why people hire event planning services: to ensure that the organizers and guests don’t have to focus on the inner workings of the event, and to ensure that the event runs smoothly from start to finish.

Think about weddings. Many engaged couples hire an event planner or event planning service to coordinate, organize, and execute their wedding plans. This allows the couple to enjoy their special day and focus on the wedding instead of worrying about details like catering, parking, and schedules.

Some events, especially those involving hundreds of guests or more, are so complex that it's nearly impossible to properly plan and run them without the help of a professional. A knowledgeable and experienced event planner knows how to organize groups of people, how much food to serve, and other details that can make or break an important event.

Related: The Price is Right: Making a Profit in Your Event Planning Business

Who should become an event planner?

If you have a knack for planning, love hosting parties, and get excited about the challenge of coordinating large-scale events, you might consider becoming an event planner. Planners deal with a lot of moving parts at once, some of which require managing chaotic tasks and competing schedules. Event planners also often work weekends and holidays, since those are the days when most people schedule their events.

Many event planners have experience working as managers or coordinators in other industries. Good communication skills are required in the event industry, including wedding planning and other event planning. A bachelor's degree in public relations, marketing, or a related field is helpful, but not required. You should also consider getting certified in event planning services. Earning a certification can give you relevant professional skills and open up more job opportunities. Meeting Professionals International (MPI) provides a list of degrees and certifications from various universities.

You can also become a Certified Special Event Professional or Certified Meeting Planner, offered by MPI or the International Live Events Association (ILEA). Earning these certifications lets potential clients know you have the training and experience necessary to tackle complex events.

How to Start an Event Planning Business

Step 1: Set up your company

To start an event planning business, you must first incorporate your company, file the appropriate paperwork, and create a business plan. Your business plan should include the following details:

• The name of your business.
• The tax structure of your business (sole proprietorship, LLC, S corporation, etc.).
• What kind of services do you provide?
• Market research.
• management plan.
• Financial factors, including how to make a profit.

Related: Check out these business plan templates to get started.

We also recommend that you apply for an Employer Identification Number (EIN), which is essentially a social security number assigned to your business by the Internal Revenue Service (IRS). This allows you to run your business independent of your personal affairs, makes it easier to hire employees, and makes quarterly tax filing easier.

Step 2: Choose your target market

It's important to find the right market for your services based on the research you did to create your business plan. For example, if you want to cater primarily to weddings, you'll need to determine how many other planners are in the area, how much you should charge for your services, and what services you need to offer to be competitive.

By doing plenty of research beforehand, you will know exactly what kind of customers you should target and what their expectations are, which will allow you to advertise your event planning services competitively compared to other local planners.

Step 3: Create a financial plan

When starting an event planning business, you need to consider not only the start-up costs, but also how you want to grow your business and how many customers you need to have to make a profit. For example, if you work mostly alone from home, your costs will be low. But if you hire employees, rent an office, or expand into new markets, your monthly expenses will increase significantly. All of this can add up and get expensive.

You can always expand your business once you have steady work. You could start out as a one-person event planning service that only takes on smaller events. Once you're successful and earning an income, you can hire employees or rent a warehouse to store your equipment, like cameras and chairs. You don't need to have all the questions about growth answered when you start your business, but you should at least keep them in mind.

Step 4: Understand the work required and consider hiring employees

Successful event planning services require a thorough understanding of the nature of each job and determining if or when to hire employees. This will vary from event to event, so you'll need to determine how much work each event will require. Even small events require attention to detail and advance planning, but as you gain experience, you'll become better at predicting how much help you'll need, and if any, you'll need. For example, you might hire two or three people to be on-site for a particular event to ensure the event runs smoothly.

Related: Event planning recipe for success

Step 5: Determine your pricing structure and fee criteria

How you price your event planning services will affect the amount of business you get. Factors like these can determine your pricing structure and fee criteria:

• Market segments served: For example, a non-profit event may have a different pricing structure than a wedding or corporate event. Understanding the type of event will help you know how much to charge and how to structure your pricing.
• Your Location: If you live somewhere with a high cost of living or a competitive events market, you'll need to price your services accordingly.
• Your reputation: As your business gains a reputation for being successful, and especially if you are very busy and clients are competing for your services, you will be able to charge a higher premium.

Step 6: Start marketing your event planning services

Once you know how much you want to charge your clients, it's time to start marketing your event planning services. Use digital marketing tools like Google Ads, social media profiles, and email to promote your business. You can also consider newspaper ads, public venue flyers, and other traditional, low-cost marketing tactics. As your business grows, so will your reputation, which means you'll likely need to spend less money on marketing once you're well-known. Before you get to that point, though, it's important to devote significant time and resources to marketing your services (learn more about the tools and strategies you'll need to create a marketing plan here).

Related: 8 Smart Ways to Promote Your Event Planning Business

The cost of starting an event planning business

The cost of launching a business varies greatly depending on where you live, what kind of clients you work with, and how large you plan to expand your business. At the very least, you'll need to pay for the cost of setting up your company, purchasing basic technology like a computer, purchasing business insurance, and paying for advertising. But there are many other potential costs, like certification programs, hiring additional employees, renting office space, and more. Here's a breakdown of some common costs associated with event planning and the range of expenses you'll need to get your business off the ground.

Consider the initial costs

Like any business, the start-up costs of event planning vary depending on your region, the size of your business, and the type of clients you want to attract. Below are some estimates to help you determine what you can expect to pay in the first year:

*All figures are estimates and subject to change based on factors such as location, business size and customers.

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