Target Market The Corporate Market Broadly speaking, there are two markets for event planning services: corporate and social. The term “corporate” includes not only companies but also charities and nonprofit organizations. Charities and nonprofit organizations host gala fundraisers, receptions and athletic competitions, among other events, to expand their public support base and raise funds. Thousands of these events occur each year, and although the large ones require specialized event planning experience, you may find smaller local events to start out with.
What’s Inside Introduction Target Market Startup Costs Operations Income and Billing Marketing and Resources More articles on event planning » Companies host trade shows, conventions, company picnics, holiday parties, and meetings for staff members, board members, or stockholders. There is a huge market for these types of events. According to the Convention Industry Councils 2012 Economic Significance Study, 1.83 million corporate/business meetings, trade shows, conventions, etc. took place in the U.S. alone.
The Social Market Social events include weddings, birthdays, anniversary parties, bar and bat mitzvahs, Sweet 16 parties, children’s parties, reunions and so on. You may decide to handle all these events or just specialize in one or more of them.
The market for social events, especially birthdays and anniversaries, is expected to continue to increase over the next few years, as baby boomers mature. This group has children getting married, parents celebrating golden anniversaries, and their silver wedding anniversaries to commemorate.
How to Start an Event Planning Service
Startup Costs How much money will you need to start your event planning business? That will depend on the cost of living in the area your business serves and whether you work from home or rent office space. It will also depend, to a lesser degree, on your taste and lifestyle choices.
Keep in mind that while working from home will keep your costs low, you can’t start any but the smallest of event planning business on a shoestring.
What’s Inside Introduction Target Market Startup Costs Operations Income and Billing Marketing and Resources More articles on event planning » This chart lists the startup costs for two hypothetical event-planning services. The first business is home based and has no employees. The high-end business occupies 1,000 square feet of office space. The owner/manager of this business employs a full-time junior planner and a part-time bookkeeper, as well as temporary employees who handle clerical work and who may help prepare for various events. Both owners will derive their income from pre-tax net profit. Annually, these businesses will gross $85,000 and $250,000, respectively. The startup table lists pre-opening costs for the businesses.
Startup Expenses Low High Rent $0 $2,300 Equipment $5,000 $17,000 Inventory $0 $500 Licenses and Taxes $250 $350 Communications $100 $250 Payroll $0 $4,000 Advertising/Promotion $500 $2,000 Legal Fees & Accounting $650 $1,500 Insurance (1st Quarter) $800 $1,700 Miscellaneous $750 $1,500