How To Start an Event Planning Business

Anyone starting a business needs a written business plan. This is not a legal requirement but a necessary, practical step.

The business plan for your event planning business should include operating basics, like:

• Description of your business ideas
• Target audience or target market
• What types of events? Do you plan to focus on social events like birthday parties, anniversaries, and galas?
• Will you focus on corporate events and trade shows?

Wedding planning is a specialty in itself. If you've done your market research, you'll know what events are popular in your area and have compiled a list of potential clients. Also know about your contractors, like florists and venues.

Also, a business plan must include money matters. You can get the event business set up for very little money if you work out of your home rather than paying for office space. But you will still need to consider finance issues, including:

• Initial funding sources like business loans
• Operating budget
• Pricing policies
• Startup costs

Consider including marketing strategy ideas in your business plan. The event planning industry is highly competitive. You'll want to include social media accounts, so reserve domain names as soon as possible. Make a list of referrals: people or companies who will testify to your successful events. Word-of-mouth is important, but it all starts with a good marketing strategy.

When looking online for an event planning business to organize their party, potential customers may pick a company based on its name.

Consider your target audience before deciding what to name your company. If you are focusing on birthday parties, something cute might be appropriate. Cute might not work so well if you hope to sign on corporate clients. If becoming a wedding planner is the goal, choose a name that tells the world about your focus.

To be a sole proprietor, consider filing a "doing business as" (DBA). For example, instead of Buffy Summers, Buffy Summers files a DBA to operate as Slayer Shindig Planning. States generally don't allow you to open a new business with a DBA that someone else is using. Once you've compiled a short list of potential DBAs, run the top choice through your state's database of company names to see if another company is using it.

Register the name with the secretary of state when you've selected and found an original DBA. It isn't "yours" until you register it.

Think of the business structure as the skeleton for your event planning services. Selecting a business structure for your event management startup is essential to making your dream a reality.

You should talk to other event planners to see what worked for them. You should also speak to a business attorney for a professional view of the best structure for your small business.

Most small business owners open a company as a sole proprietorship or a limited liability company. While state startup rules differ, it is not too difficult to begin an event planning business with either type of entity.

Sole Proprietorships

The most accessible type of business to organize is the sole proprietorship. In some states, you don't even have to register it. A sole proprietor event planner doesn't need to file a business return. They report all business profits and expenses on their individual tax return.

Courts also ignore the structure when collecting business debts and obligations. A company creditor can sue the owner personally and take their personal assets and bank accounts.

Limited Liability Companies

You'll have to jump through a few more hoops to form a limited liability company, but the effort may be worth it. A limited liability company (LLC) — offers financial protection to small business owners. As the name indicates, an owner does not have personal liability for LLC debts. Setting your business up as an LLC protects you from being personally liable in case of a business lawsuit.

What about starting a corporation? This type of business also protects the owners from personal liability for business debts. Still, it is a more complicated business entity to organize.

You register an LLC or corporation with the Secretary of State's office in the state you want to operate by filing paperwork. Or you can let our trusted partner LegalZoom handle your business formation filing for $99 plus filing fees.

You should also look into what business licenses and permits and business insurance you need for your event planning operations. 

Do you have to earn a certification to work as an event planner? It is not a legal requirement in any state. The industry is almost entirely unregulated. That means anyone can call themselves an event planner, even those who have never worked in the business.

But it's essential to establish credibility with potential clients. Credibility can be a big factor in the success of a new event-planning business. This is where certification can help. A recognized certification proves you have the training and experience to do the job.

There are a variety of certifications available. Here are four to consider:

• The Certified Meeting Professional (CMP) is an established and internationally recognized certification program for event planners. The program, run by the Events Industry Council, conditions certification on testing. But to apply, you must show proof of experience and training.
• The International Association of Exhibits and Events offers the Certification in Exhibition Management (CEM), another program with a good reputation. Those seeking the CEM must pass nine of the 14 classes offered. Only those with three years of full-time experience in the exhibitions and events industry can apply.
• Another reputed credential is the Certified Special Events Professional. Candidates for this certification must also show proof of three years of experience in the field. The International Live Events Association manages the program.
• Suppose you hope to get government clients for your new business. In that case, you might need to earn the Certified Government Meeting Professional designation. The Society of Government Meeting Professionals manages this certification. If you wish to take this exam, you must become a member.

Some contracts only hire planners with a certification. Before you buy a membership or take an exam, make sure your potential clients demand it.

When you move into a new apartment, you need to buy furniture and appliances. The same is true when you start a new business.

For your startup, you will have initial expenses:

• Business insurance
• Event management software
• Setting up a business bank account
• Setting up a phone line or Google Voice number for your business, along with a professional voicemail message
• Setting up social media platforms for your event planning business
• Website set up

Knowing your initial expenses will help determine when your cash flow is profitable.

Marketing sounds intimidating. It means how you plan to get the word out about your event planning business. The more people who know about your company, the more potential clients you have.

These days, social media is one of the best ways to advertise a new business. Ideally, your event planning business will have its own website. Establish your presence on Facebook, Instagram, TikTok, LinkedIn, and other sites people visit regularly. If you have contacts in different media outlets, like radio, television, or newspapers, you can also use these.

What about word-of-mouth? That's also important and depends more on your excellent event planning work than marketing. Ensure that everyone who deals with your business, starting with the first client, has only good things to say about the experience. Sticking to the event budget will go a long way toward creating happy clients.