Last week I posted the first 5 steps to becoming an event planner:
the importance of volunteering to get experience, taking on more
responsibility and networking, creating an event portfolio, and getting
your CMP and/or CSEP designation.
Step 7 – Before you tell everyone you know that you’re now in business, develop a Business Plan. Just because you’ve decided on your market, doesn’t mean you’re ready to share the news about what you offer. Google ‘event planning business plan’ and find a template that works for you.
Two key pieces of your plan is to establish your event planning business name and fee structure. As an independent or small event planning firm be aware of the various ways to cover your expenses and make a profit. This will keep you in business for years to come. But, before you decide which fee structure is best for you, determine your event planning operating expenses, salaries and your profit.
- Percentage of Expenses – Qualified event planners should feel comfortable with charging between 15-20% of the total cost of an event. Depending on the complexity of the program and amount of time it takes to plan and execute an event, sometimes this is enough to cover a planner’s entire cost and source of profit.
- Hourly Rate – Similar to the flat fee rate, establishing an hourly rate allows for more flexibility for both parties to adjust to changes that along the way. The average tends to be $50/hr.
- Percentage of Budget PLUS Expenses – this is my preferred way to charge for event planning services. Charge 15-25% of the overall event budget as a service fee plus all expenses. This way you’re charging for your time and your client pays all expenses associated with the event. A detailed event budget needs to be presented to your client for every event so they know how much the event will cost them.
- Commissionable Rate – Another way that event planners may collect fees for services is by securing event space through venues that offer commissions. Many travel agents take advantage of this for booking tickets, hotel rooms and possibly transportation. Beware of this option because your client may question your sense of loyalty.
Step 8 – Secure Funding For Your Event Planning Business. Businesses require an operating budget, and it will be important to have access to cash while getting established. It’s possible to establish your business on limited funds, after all I started my business on less than $500, but it’s important to have enough money to start your business and cover any living expenses as you build a profitable business.
Step 9 – Then, create a website, a Facebook fan page, Pinterest page, LinkedIn profile, and twitter account to help keep your services top of mind. Let your former clients and contacts know you’re now an independent event planner and use those contacts you’ve been saving to solicit business and referrals. You will also need to create business cards, company stationery, sales collateral, client terms & agreements, and more.
Step 10 – Develop your network of suppliers and staff resources and network with vendors you’ve met or worked with at events. Often caterers, photographers, or florists will recommend an event planner to their client, as long as they know and trust you. Clients with major events prefer to use planners and vendors who work well together.
Adding to those steps, here are the last 5 items to check off your list before you get started.
Step 6 – Form your business entity. Where you live will depend on what you need to register for in order to create your legal business. Do some local online research to find out if you need to create a corporation, a limited liability company or a limited liability partnership, and where and how to register your business name. If you are opening an office, get a business license from your city or county. And don’t forget to obtain business insurance to protect your business interests. Several forms of insurance exist, so it’s best to speak with an insurance agent to learn more.Step 7 – Before you tell everyone you know that you’re now in business, develop a Business Plan. Just because you’ve decided on your market, doesn’t mean you’re ready to share the news about what you offer. Google ‘event planning business plan’ and find a template that works for you.
Two key pieces of your plan is to establish your event planning business name and fee structure. As an independent or small event planning firm be aware of the various ways to cover your expenses and make a profit. This will keep you in business for years to come. But, before you decide which fee structure is best for you, determine your event planning operating expenses, salaries and your profit.
Some of the the different event planners fee structures to consider:
- Flat Fee – Most clients prefer to know how much a project will cost, inclusive of all fees. The event planner must determine a flat fee and determine what services will be covered for that amount. This is good for packaged events.- Percentage of Expenses – Qualified event planners should feel comfortable with charging between 15-20% of the total cost of an event. Depending on the complexity of the program and amount of time it takes to plan and execute an event, sometimes this is enough to cover a planner’s entire cost and source of profit.
- Hourly Rate – Similar to the flat fee rate, establishing an hourly rate allows for more flexibility for both parties to adjust to changes that along the way. The average tends to be $50/hr.
- Percentage of Budget PLUS Expenses – this is my preferred way to charge for event planning services. Charge 15-25% of the overall event budget as a service fee plus all expenses. This way you’re charging for your time and your client pays all expenses associated with the event. A detailed event budget needs to be presented to your client for every event so they know how much the event will cost them.
- Commissionable Rate – Another way that event planners may collect fees for services is by securing event space through venues that offer commissions. Many travel agents take advantage of this for booking tickets, hotel rooms and possibly transportation. Beware of this option because your client may question your sense of loyalty.
Step 8 – Secure Funding For Your Event Planning Business. Businesses require an operating budget, and it will be important to have access to cash while getting established. It’s possible to establish your business on limited funds, after all I started my business on less than $500, but it’s important to have enough money to start your business and cover any living expenses as you build a profitable business.
Step 9 – Then, create a website, a Facebook fan page, Pinterest page, LinkedIn profile, and twitter account to help keep your services top of mind. Let your former clients and contacts know you’re now an independent event planner and use those contacts you’ve been saving to solicit business and referrals. You will also need to create business cards, company stationery, sales collateral, client terms & agreements, and more.
Step 10 – Develop your network of suppliers and staff resources and network with vendors you’ve met or worked with at events. Often caterers, photographers, or florists will recommend an event planner to their client, as long as they know and trust you. Clients with major events prefer to use planners and vendors who work well together.
Thank You for showing steps to become a best event planner in Kerala
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