Event planners assist their clients in organizing and managing events of any size and type. An event planner can help with everything from weddings and social gatherings to professional events and ensure that all problems are addressed.

These steps will help you start an event planning company.

Plan your business

For entrepreneurs to succeed, a clear plan is crucial. This will allow you to map out your business’s details and uncover hidden opportunities. Here are some important points to remember:

How much does it cost to open an event planning company?

Event planning businesses can start with low overhead. You can save on rent and utility costs if you work from home. Other costs include:

• Hosting a business website or site
• High-speed internet and phone service
• Marketing and advertising
• Payroll
• Equipment
• Taxes and business licenses
• Insurance

What are the ongoing costs of a business that organizes events?

The ongoing expenses include restocking supplies, payroll for employees, and replacing damaged or broken equipment. You may also need to pay for:

• Invitations and publicity for events
• Equipment rental
• Flyers and signs

Who is the target market for this product?

Clients interested in corporate or social event planning will be your target market. The age range for social events is between 25-60+, while corporate events focus on employees and other business entities regardless of their age.

How can an event planning company make money?

Event planners make money by charging clients for their services, which cover the planning and operation of the event.

What price can customers pay?

Pricing for events can vary greatly because they are priced according to their size and how many people are needed. Event planners often charge a percentage (e.g., 15-20%) relative to the total cost of an event. If an event costs $100,000, then the event planner would collect between $15,000 and $20,000

What is the profit potential of an event planning company?

Your annual event volume and profit margins will determine your profitability. Social event planners can earn between $10 and $75 an hour, while corporate event planners could charge $15 to $150 per hour. The average annual salary of an event planner is between $35,000 and $75,000. An owner can expect to earn $75,000 to $80,000.

How can your business be more profitable?

Once it is established, you may want to add additional services such as catering and bartending to your event planning business. You can offer your clients full-service hospitality and increase business revenue by providing these services in-house.

What name will you give your business?

It is both important and difficult to choose the right name. You should have a name in mind if you aren’t sure.

You might choose to use a different business name if you own a sole proprietorship. To learn more, visit our DBA guide.

For example, you can form a legal entity.

Most common business structures are the corporation, partnership, limited liability company (LLC), or sole proprietorship.

You can avoid being sued by your event planning company by creating a legal entity, such as an LLC or corporation.

Register for taxes

Before you can open your business, you will need to register for various state and federal taxes.

To register for taxes, you’ll need an EIN. It’s easy and completely free!

Small Business Taxes

There are many options available to you regarding how to tax your business will be treated depending on the business structure that you choose. Some LLCs may be eligible to be taxed as an S corporation (Scorp).

Get a credit card and a bank account for your business.

Personal asset protection is possible by using dedicated business banking and credit cards.

If your personal and business accounts become mixed, you could end up with your assets, such as your home and car, if your business is sued. This is called piercing the corporate veil in business law.

Learning how to build business credit will help you obtain credit cards or another financing in your company’s name (instead of yours), higher interest rates, greater lines of credit and much more.

Opening a bank account for your business is not only a requirement to apply for business loans but also a requirement to open a bank account for your business.

It would help if you separated your assets and your company’s assets to protect your assets.

It makes it easier to file taxes and accounting.

Establish business accounting

It is crucial to keep track of all your income and expenses to understand your company’s financial performance. A detailed and accurate accounting will simplify your tax filings.

Our LLC Expenses Cheat sheet makes LLC accounting simple.

Get the permits and licenses you need

Failure to obtain the necessary permits or licenses could result in heavy fines or even the closure of your business.

Requirements for State and Local Business Licensing

You may need to obtain certain state licenses and permits to run an event planning company. SBA has a reference to state permits and licenses.

Get business insurance

Your business requires insurance to be legally and safely operating. Your company’s financial security is protected if a covered loss occurs.

There are many insurance policies available for businesses of different sizes and with different risks. Start with General Liability Insurance if you aren’t sure what risks your business might face. This coverage is what small businesses most commonly need. It’s a great place for your business to start.

Your brand should be unique.

Your brand represents what your company stands for and how the public perceives you. Your business will stand out from its competitors by having a strong brand.

Make your website for your business.

After creating your brand and logo, the next step is to build a website for your business.

Although creating a website can be a crucial step, others may feel that they cannot do it because they lack the necessary experience. This may have been a valid concern in 2015, but web technology has made it much easier for small business owners.

These are the top reasons you should not delay building your website.

• All legitimate businesses should have websites. It doesn’t matter how big or small your business is when getting online.
• A business website you have created is not replaced by a social media account like LinkedIn pages or LinkedIn business profiles.
• Website builders tools such as the GoDaddy Web Build

Install a business phone system

• It is a great way to keep your business and personal lives separate. This is not the only benefit. It also makes your business more efficient, gives you legitimacy, and makes it easier to contact potential customers.
• Entrepreneurs who wish to set up a business telephone system have many options. We have reviewed the best companies and rated them on their price, features and ease of use. To find the best small business phone service, check out our Best Business Phone Systems review.