Here in this article, we will talk about event management and why should one start an event management company? Many people assume event management is not a difficult task. Small-scale events are comparatively easy to manage. Still, there is so much work that needs to be completed within a set period. Inviting the guests, food and drinks arrangements, deciding the venue, everything needs to be taken care of while throwing a party.
The crucial aspect in the plan is budget and the place of the party. Even if you are very cautious while completing all these arrangements, you might miss some of the essential things to be done.
That is when the event manager comes in. The event management team refers to the group of people who plan and arrange all your events on your behalf while you can sit back and enjoy the party. Whether you are throwing a birthday party or a wedding, they will plan and manage everything for you. Event management may look simple, but it is a tough grind. It is one of the profitable businesses with many new entrants at present. If you are creative, event planning is just the perfect business opportunity for you.
Event Planner – Basics
Today, the world is attracted to glamour and creativity. Event management will experience you both of it. Creativity is the unwritten rule of event management. The first step in any business to be successful in Public Relations. Event management can be successful by Public Relations. It is good to advertise your event management business to get orders from the customers. It is advisable to start with a small-scale event like birthday parties or small office parties before you dive into planning the more detailed ones like weddings.
Whether you decide to start your business from your home or office, make sure you choose a location that is easily accessible to your clients. If your clients need additional effort to meet and hire you, they might choose a more accessible competitor, and you might lose your business in the process.
Sources of Funding For your Business
Whenever you start your own business, the most important thing you will need is funds. An event management business can start with little investment. The initial investment you will need is for business registration and office setup.
The primary sources of funding can be your savings, bank loans, or angel investors. If you want to consider a bank loan for starting your business, the bank will review the business plan. If the bank finds confidence that you can repay the loan and the interest. The bank will grant a loan for your business. to gain confidence in your business plan, you need to confirm that your finances are reasonable.
Another source of funds for your event management business is angel investors. Angel investors will give funds to your business. Either they will ask for the equity for their funding or, like banks, they will provide you loans. Venture capitalists do not give funds to the event management business.
Education is Necessary
No business can be successful without sufficient skill and knowledge. Event management is a creative field, so you must pay attention to that aspect. Every minute detail needs to be taken care of. The more creative your ideas are, the more clients you will get. Another important aspect is the name of your event management company. It is another place you need to show your creativity.
Choose some catchy name for your event management business to draw the attention of the clients. Before you start your event management company, you need to take care of all legal formalities. Register your company with the required authorities. If you are willing to start your business from home, there are some legal aspects you need to fulfill. Make sure that all the legal aspects are in order.
Get the Event Planner Certification
Get a certificate in event planning or management from the local university. Many colleges and universities are offering various educational opportunities in the event management field. Consider working as a Certified Special Event Professional to run a successful event management company.
Today, many corporations and the public look for certification while hiring event planners with no experience. They prefer certified event planners to an event planner who is working without any certification. Getting the certification will allow you to professionally deal with what you do. It will have a good impression on the potential clients and also help retain existing clients.
The target market of event management services can be broadly classified into two markets. They are the corporate market and the social markets. The term corporate includes companies, charities, and non-profit organizations. The non-profit organization hosts events like an athletic competition, gala fundraisers and more to raise funds. These events are hosted every year, large events need specialized event planners.
Companies host various parties for their employees, stockholders, and board members. There is a huge market for these company events.
The Social Market
Social events like weddings, receptions, birthdays, anniversary parties, reunion parties, and more. You can choose to handle all these events or, you can specialize in one of them. The market for events like weddings and birthday parties is expected to increase in the coming years.
The money you need to start your event management business depends on various factors. Whether you choose to start your business from home or a rented office also decides the startup cost of your business. It will also depend on your taste and lifestyle choice. Keep in mind, if you choose to operate your business from home, the costs will be low.
We all know event planning is not a 9-to-5 job. By nature, event planning involves working on evenings, weekends, and holidays. The working hours needed to commit for event management depend on the niche you choose.
Social events involve weekends and holidays more than corporate events. However, no matter what specialization you choose, event management involves working in the evenings. The planning of those events is mostly done during business hours.
The tasks you will be completing as an event planner as listed below:
One of the best ways to eliminate risk is to research. Conduct surveys, interviews, focus group research to figure out whether there is a demand for large events. If you are new to event management, doing your homework about the industry is essential. Your research also includes interaction with others who are doing similar work as you are. If you do not research enough, it will become difficult for you, especially if you need to plan unfamiliar kinds of events.
Your research must also include asking questions to the clients and making notes of the answers. If you choose to ask very few questions and do not pay adequate attention to the client’s answers, it will cause a difference in the success of your event management company.
Most of your creativity should come out in the design phase of event management. It requires brainstorming either from you or from your employees. It is also time to look at your idea file. Don’t forget to consider the client’s answers to your questions. These answers will help you to plan everything especially, the event budget. It will also enable you to check your idea thoroughly before suggesting it to the clients.
After interviewing the clients and finishing brainstorming, make sure you have sufficient information to prepare a proposal. The production of the proposal is time-consuming and also expensive especially if you choose to add photographs and sketches. Remember, only large companies who decide to plan large-scale events can afford to offer a proposal to the clients for free. You need to take consultation fees from the clients. You can apply this to the client if they hire you.
Under this stage, you will take care of the arrangements, such as renting a place, hiring vendors, and more. While doing all these, make sure you can contact a client with whom you can discuss all your decisions related to the event.
The bigger the event, the more you will need to plan it. Most of the conventions are planned years ago. Although if you do not choose to arrange such events on such a large scale, you will require a few months to arrange large parties.
After making all the initial plans, you must pay attention to all the activities included in the overall event. At this point, you need to make sure all are on the same wavelength. You must have proper communication. All the vendors should have a clear idea about the event. They must also be aware of what is expected from them and when they must arrive. Everything should appear in the contract with the vendors. You also need to make sure all the staff members of the event know their roles.
The most important test of the business is success in customer satisfaction. Your goal is to impress the clients with your work and to see whether you are successful in meeting the client’s expectations. They will praise you and surely hire you again. These clients will also provide word-of-mouth advertising for your business.
There are other ways to evaluate the success of your event. You can hire an event planning consultant who can host successful parties for you. You can also have post-event discussions with your employees and get feedback about the event from them. You can also get feedback from other industry professionals like caterers or bartenders, or guests after the event.
Marketing and Resources
Even in the era of online advertising, most planners agree print advertisements make good business sense. You choose from yellow page advertisements to glossy nation publications. Yellow paper advertisements are effective even today.
You can also choose to display advertisements. Advertise your event management business on broader yellow pages. It will cost you some money. If you do it bigger, then include your business logo. You can also consider advertisements in local newspapers. There are many newspapers that publish special sections for the bride and groom to be. You can use this to promote your event management business if you are planning to do any wedding consulting.
Firstly, you need to find out the direct and direct competitors your business will face, then you can think about the latter.
Direct competitors of your businesses are the other event management businesses.
Indirect competitors are caterers, venues, customers who plan their events. These are the things that customers purchase from you and not direct competitors. Such competitors are mentioned in the show, not everyone who hosts and even hires event planners every time.
When considering the direct competition, you need to know every detail about the other event management businesses. Before starting your event management business in a particular location, make sure you check if there is any other event management business in your location.
For each competition, try to know their strengths and weaknesses. SWOT analysis of the market, as well as the competition, is very important for you to be successful in the field. Unless you don’t know about your competition, you cannot render better services than them. You should know many things about your competitors like the type of customers they have, the products they offer, their pricing, whether they charge low or high prices for their services, etc.
After analysing your competitors, try to document the areas of competitive advantage. Provide superior event options such as more cuisine types, better venue options, better customer services, better pricing. Make it your customers find it easy to book your services. Include the event option that your competitors do not offer. Think about every possible way to provide better services than your competitors.
We have put together a business plan for you. If you follow these above steps and with time, you will be an expert. You will understand your competitors and customers. With the help of the plan above, you will complete learning how to run a successful event management business.