There's no time like the present to start your event planning business. But before you get your first customer, you need to do some prep work.
Maybe it started in high school, when you planned out the snacks, the agenda, and everyone's roles for study sessions. Maybe it started in college, when you organized open mic nights at a local bar. All you know is you've got the itch: You want to start an event planning business.
But how do you go from just thinking about it to actually running a business?
There are six major steps that you need to take to start your business. We'll take you through each one so that by the time you're done reading this, you'll be better prepared to open up shop.
6 steps to starting your business
1. Establish your expertise
If you want people to trust you with their events, you need to demonstrate you know what you're doing.
Outside of an undergraduate degree in hospitality, you can enroll in various certification programs that will help bulk up your expertise and let your clients know they're in knowledgeable hands.
There are so many types of certifications, however, that it can be difficult to know the best to get. Below, we'll take a look at three general (i.e. not specialized) certifications you can obtain.
There are, of course, plenty of other certifications you can obtain and courses you can take that are much more event-type specific. You can also see if your local college or university offers any courses or certificates that might help you get started.
Certified Meeting Professional (CMP) Certification
The CMP is established by the Convention Industry Council, and the exam covers planning, site management, event design, marketing, and international standards.
The Council's website offers suggested reading and preparatory materials and the exam is offered every few months. For 2020, the announced test dates are in January, May, and August.
A CMP holder earns about $10,000 more annually than their uncertified counterparts, according to the Events Council.
If there's even the slightest chance you're considering working as a healthcare event professional, they also offer a CMP for that function specifically.
Certified Special Events Professional (CSEP) Certification
This exam, administered four times a year, can be taken remotely. Similar to the CMP, it was established by a group of professionals (this time, the International Live Events Association).
With your certification you also get industry newsletters and a structured network that can help you build out your resources, get advice, and find mentors to help your business grow. However, there is an expertise requirement (three years in the event planning industry) before you can take it.
Certificate in Meeting Management (CMM)
Rather than simply taking an exam to test your knowledge, the CMM is an entire training program. It takes approximately 15 weeks and is more academic than practical in its approach.
The downside is that you'll have to travel to Indiana, so if you're not from the area it might take a little more budget than you have readily available to get this certification.
However, people with a CMM make about $30,000 per year more than those without it (and $20,000 per year more than those with the CMP certification).
2. Build an effective business plan
A business plan essentially establishes what your business goals and strategies will be moving forward.
Having a business plan doesn't just help you organize and road map the success of your business. It can also be a powerful tool to present to the outside world, such as potential investors who are curious about your strategy.
Your plan should include the following:
An executive summary—why is your company different from all other companies?
The company overview—this is what the company will look like.
An industry analysis—our niche of the event industry looks like.
Customer analysis—our customers will look like this.
A breakdown of your key competitors—this is what we're up against.
Your plans for marketing, operations, management, and finances—this is how we'll make our money.
An appendix of all your supporting documents—leases, contracts, trademarks, resumes, marketing materials, etc.
Score offers a handy template that can help you get started.
Within your company overview, you need to firmly establish what type of events you're planning to focus on. You don't need to stick with that event type forever, but it's important to start with a single effort. You can dedicate the full extent of your resources and expertise towards that goal, and then slowly build out from there.
Focusing on a single type of event will also give you a much clearer idea of who your customers will be. This can help in several sections of your business plan.
3. Secure startup capital
It only takes about $2,000 to $5,000 to get your business off the ground. Beyond that, there will be recurring costs that you need to factor in to your budget, since you won't be profitable right away.
There are a few ways you can secure that money:
Self-finance
Banks (i.e. lines of credit, small-business loans, or 401(k) business financing)
Friends and family
But what if you don't have any startup money?
If you can't self finance, don't worry—your business plan is here to help.
Whether you're incorporating it into a presentation to a bank, or using a crowdfunding platform such as AngelList, CrowdFunder, or Fundable, your business plan will demonstrate exactly where your investors' money is going, and how you plan to get it back to them.
4. Invest in the software you need to effectively run your business
There's an overwhelming number of software types you can use for your business. Some of them you'll find helpful right away, and some of them you'll find helpful further down the line.
Here's a list of core software types and why you might want to invest in them:
To help manage projects, tasks, and workflow: event management or project management software.
To help interact with your present and future customers: customer relationship management, lead management, email marketing, social media marketing, marketing automation software.
To help keep your information secure: email security, cloud security, network security, and/or SIEM software.
To keep your office running smoothly: budgeting, billing & invoicing, and collaboration software.
To improve attendee experience at your events: conference (be sure to get one with registration capabilities), venue management, and mobile event apps.
You may be able to find some free options (like in this article on free and open source event management software). Just make sure you check the user reviews of your potential purchase to make sure it won't be more trouble than it's worth. Capterra's software directory has user reviews for all of the products listed above.
5. Figure out what you need to legally operate your event planning business
Putting in the effort now to make sure that your event planning business is above board and protected means a lot less paperwork (and a lot less in terms of potential legal fees) later down the line.
The first big step is registering your business with state and federal governments. The IRS offers handy advice for exactly how to do that.
You'll also need to figure out which licenses and permits you need. Many of these will depend on the type of event planning you intend to do, but Brand Name USA has a good guide to get you started.
Finally, you have to make sure that you're covered in case of any accidents—to you, your business, or your employees. You'll need to secure a worker's comp policy, as well as a variety of different types of insurance.
6. Establish a marketing campaign and build out your network
For your business to truly succeed, you need clients and partners.
Marketing your business to clients
You know exactly who your target clients are, thanks to the research that went into your business plan. It's time to reach out to those potential clients. Use any channel you have at your disposal—email marketing campaigns, cold calls to businesses, or social media, for example.
Make sure that you focus on channels that are highly impactful for your target audience. You can do this by testing out to a wide group of channels and seeing which gets the most engagement from your network. You can also employ social media segmentation which can help streamline this process a bit.
For example, if you want to plan pop-up food experiences, Instagram, Twitter, and Facebook are great channels. If you want to plan software showcases, LinkedIn and email marketing might be a better play.
Make the most impactful marketing strategy possible, and you'll grab those leads in no time.
Marketing your business to potential partners
You need to build out your network of vendors, venues, and other industry experts whose services you might require.
You've already established what type of event you want to focus your business on. Think of every facet of a possible event. Go through our guide on how to plan an event. Look at the list of vendors there, and find local vendors that cater to each of those categories. Whether it's catering or security or A/V equipment, you'll need to know who you can turn to for events.
Reach out to them and establish a connection so that when you have an event and need their services, you have an extant relationship you can work from.
Important reading before you start your event planning business
This guide should give you a strong understanding of what you need to do to start your event planning business.