Write out your business goals, reasons they are attainable and your plan for reaching them!
This is what a business plan is.
As someone who is about to start a business (you), I recommend you do this even if it is on one page.
By formulating a step-by-step process to follow, your new venture will have the structure it needs to excel into a profitable and rewarding experience.
A recent study by Dr. Joe Goldblatt, CSEP (Certified Special Events Professional), found that the average event planner receives a profit margin of up to 40%.
Additionally, US News recently reported that a study by the Bureau of Labor Statistics stated that the median annual income for event planners is $46,260 and increases up to $79, 550 for high-end planners who run their business in larger cities, such as New York.
However, these results are the average. You want to be above the average and one way to do that is to work on building a solid event planning business plan.
According to bplans.com, there are many major and minor details that need to be addressed when gathering information for your plan of action.
By following the guidelines below, you will be able to set the momentum to get the ball rolling in the exciting and profitable world of event planning.
Mission Statement and Objective
- Develop a mission statement and objective that includes your exact purpose for your business and what you are going to do to provide clients with the best events possible.
Keys to Success
- What will make your business stand out from the rest?
- How will you ensure customer satisfaction?
- What steps are needed to implement these ideas?
- What is your pricing strategy?
- Describe, in detail, the owner or owners of the company. If there is more than one owner in the company, list percentage each person owns as well as the responsibilities of each party involved.
- List all expenses involved in getting your business off the ground. This includes any legal fees, equipment, supplies, insurance, rent and advertising materials.
- Calculate your assets. How much do you have on hand to invest in materials and other costs?
- Determine if you will require a loan and how the repayment plan fits into your budget.
- List any other liabilities and investments to determine total funding required.
- Will you have a home office or rent a space? Consider the overhead costs when making this decision.
Products and Services
- What type of packages will you offer to your clients?
- Develop a menu of services and products. List the various types of events you specialize in and how your services will provide an amazing experience for your clients and their guests.
Compare the Competition
- What services do you offer that are unique to the others in the market?
- Evaluate your pricing with other event planning businesses in the area to ensure you are not over or under charging for your services.
- Research the current trends and types of events that are popular in your area.
- Consider the ages of potential clients and what types of events they usually hold.
- Find out what public and private organizations are located in your region.
Develop a Business Strategy
- Discover new ways to bring interest in events not normally organized by the above mentioned groups by using the research results you discovered.
- Determine how you can compete with other event planners in your area as well as on-site coordinators such as hotel and conference center staff.
Set Sales Targets and Company Milestone Goals
- Forecast your sales and growth, as you would expect it to unfold by using the tactics in your business plan.
- Set start and end dates for these milestones to stay on track.
- Specifically list employees and their duties, along with their pay scale and any projected pay raises for the future.
- Calculate the number of events you must hold in order to break even and the cost that would have to be applied to each event.
Profit and Loss
- Determine how you can best utilize the lack of overhead to increase profits.
- Find the lowest price wholesalers to purchase your equipment from.
- Advertise wisely. Research the most cost effective yet productive forms of advertising.
- Using the figures you have compiled, project what your net worth will be for the next three years.
Business plans will need to be revisited and revamped from time to time as your business grows. There may be unexpected profits or losses that were not originally accounted for. By using these basic guidelines, you will be able to easily adjust your plan and goals to create the event planning business of your dreams.
For more information about starting your own event planning business please read:
How a Stay at Home Mom Created a Successful Event Planning Business