Start a Party Planning Business

A party planning business can be a fulfilling and profitable opportunity for someone who is social, organized, detail-oriented, and has a flair for entertaining and coordinating events. Unlike other startups, a party planning business does not require much capital or dedicated space. However, figuring out how to start a party planning business does require some basic steps that are similar to all home based ventures, as well as those that are unique to the field.

Steps

Doing Your Homework

  1. Figure out what kind of party planner you would like to be. While many party planners dabble in multiple customer and event types, most others find their niche and specialize. While you can always change your business later on, it's helpful to think of these questions in its planning phase.
    • What kind of client do you want to focus on? There are two main customer markets for a party planner: corporate and social. Corporate party planners organize events, such as major meetings, retirement parties, receptions, conferences, and trade shows. Social events, on the other hand, make up the category most of us think about when we hear "party." These cover a wide range of occasions, including birthdays, wedding receptions, baby showers, and family reunions.
    • What types of parties do you want to plan? Many party planners pick a niche they enjoy most. This can be an event type, such as birthday parties, or a particular style or theme you may offer.
    • Do you want to work with kids? Parties for young children are very different from family and adults-only gatherings. Everything from decorations to entertainment to refreshments must be tailor-made for the right age group. Because of this, some party planners choose to specialize in children's parties. Others prefer not to plan these types of events.[1]
  2. Consider your education and background. While a college degree isn't necessary for starting a party planning business, many party planners hold bachelor's and advanced degrees in a variety of related fields. College majors that offer valuable skills for a would-be party planner include business management, marketing, and hospitality management.[2] Some colleges and professional organizations also offer certificate programs in event planning specifically.[3][4]
  3. Talk to an attorney or someone else knowledgeable in local small business law. Although party planners don't typically need a license, some state and local governments may require it.[5] Because parties often involve large, possibly unruly crowds, it is also prudent to invest in liability insurance for your business. This will help protect you in the event a guest is injured or causes damage to the party venue. Talk to your lawyer about what kind of coverage may be right for your business.
  4. Learn more about the party planning industry where you live. Do some research on which other party planners and companies organize events in your area. Try calling or visiting and ask them a few questions.
    • Get information about local competitors and take their styles and focus into account. Keep this in mind when determining your niche. Try to set yourself apart as unique in some way by offering a different type of service or experience.
    • Ask around for possible new business contacts and find out more about local event venues. As a party planner, you will need to know a wide variety of reliable local caterers, suppliers, entertainers, and other professionals. It will be your job to organize and coordinate these disparate elements to create a memorable event.
  5. Write a business plan. Write out exactly what niche you plan to fill and how your business will accomplish this.[6]
    • Create a market analysis for your industry. Use the information you gathered earlier to determine the size of your potential market. Determine the rates you will charge for your services and the income target you will need to aim for.[7]
    • Estimate any startup costs that may be required, such as initial advertising fees and an office space rental if you aren't working from home. Figure out if you can fund your business yourself or if you need to take out a small loan to cover initial costs.[8]

Starting Out

  1. Choose a name for your business. Pick an unambiguous name that will tell potential clients exactly what your company does. It could be something as simple as "[City Name] Formal Event Planners." Try to find a name with a simple available web address.
    • Use the U.S. Patent and Trademark Office's trademark search tool (or your country's equivalent) to check potential names against existing trademarks. If your business's name is similar to one already registered, it's best to pick another.[9]
    • You will may need to register your company as a "Doing Business As" name with your state or county government. Consult local business laws to find out.[10]
  2. Register your new business if necessary. Check local and state business laws to determine if your business requires any type of registration, licensing, or permits.
    • Aside from tax collection, party planners in the US are not typically subject to any special types of business registration. However, be sure to double-check with your state and local government's policies before doing business. You can use the U.S. Small Business Administration's website as a guide to help you.[11]
  3. Set up your office. Although minimal compared to other businesses, you will still need some space to do your work effectively. Many party planners simply use their home office. You will need a personal computer and a printer capable of large batch stationary and advertisement jobs. Your office should also have a place where materials like party supplies may be stored safely and away from grime. A large closet and/or a few storage bins may be all you need.
    • You may choose to rent out a permanent office space or a temporary meeting room when seeing clients.
    • Many professionals who work from home see clients in public spaces, such as a coffee shop or restaurant.[12]
  4. Set yourself apart from your competition. Consider what types of parties you specialize in and compare your style to other party planners in the area. When advertising your services or meeting with clients, be sure to emphasize what makes you unique.
    • In the early stage of your business, it may make more sense to be a "generalist" and plan a variety of very different kinds of parties. As your reputation grows, you can start focusing more on specific types of parties, becoming a "specialist."[13]
  5. Price your services properly. Party planner rates vary widely, ranging from $12 to $150 per hour. There are a variety of factors to take into account when setting prices for your business.
    • What are the typical rates for your location? Look at your competitors' rates to get a good idea of what to charge. In general, areas with a high cost of living will result in higher hourly rates.
    • How much experience do you have? A planner with previous professional party planning experience will command a higher rate than one just starting out. To attract clients, you may have to start out low and gradually raise your prices over the years as you gain a positive reputation.
    • Are you charging on a strict per hour basis or are you adding markup fees? A standard practice in the party planning field is to charge a markup fee of around 15 percent for each item you contract. For example, if you coordinate an event where the venue costs $500 and catering $200, you may charge for your billable hours plus $105. In contrast, some party planners charge for billable hours plus a flat "project fee." This billing method is more common among corporate party planners.[14]
  6. Be flexible and prepare for the unexpected. As anyone who has planned an event knows, plans can change. A successful party planner must be prepared to throw a successful party no matter what happens. Your caterer may get sick or the venue's roof may collapse the day before. Don't panic. Instead, have backups for every event. Have a long list of reliable caterers, venues, and entertainers with overlapping skills and specialties.
    • This is especially important when planning outdoor events. Predicting the weather is difficult from day-to-day, but as a party planner you will regularly make plans months in advance. There is no way of knowing that far ahead if you may be dealing with inclement weather. Be sure to be able to change venues or provide cover for your guests at a moment's notice.[15]

Growing Your Business

  1. Market your business effectively. In the early phase of your party planning business, marketing is crucial to establish a reputation and customer base.
    • Make sure your website is aesthetically pleasing and easy to navigate. Try to have your company's name and contact information written clearly on each page.
    • Create flyers that show off your graphic design skills. Distribute them door to door and ask local businesses to display them on their corkboard.
    • Tell family and friends about your new business and ask you to recommend you to anyone they know who is looking for a party planner.
  2. Have a strong social media presence. Social media is an incredibly effective advertising method that is often free to use. Register official accounts for your business on popular websites like Facebook, Instagram, Twitter, and YouTube.
    • If current and potential clients submit questions through these channels that are broadly applicable (such as your rates or specialties), reply to them publically for others to see. Actively and directly engaging with customers will show them that you care.
    • If you're trying to drum up business for a specific holiday or party type, try posting with appropriate local hashtags. For example, if you want to advertise your services for a Halloween party in New York City, you could use #HalloweenNYC.
    • Showcase your talents by uploading photos and videos of successful parties you have planned. Be sure to always obtain express written permission from your clients if they are featured in them.
  3. Solicit reviews from your clients. When a client is happy with the party you've planned, ask him or her to post a review of your services. Don't ask for a positive review or mention a specific website.
    • Register your own account on applicable review websites. Thank reviewers for their time. Address any concerns or negative reviews honestly and maturely. Remember that these posts may be your first impression with potential future clients.
  4. Volunteer your services. Donate your time to help with community events, such as school functions. While this will be a lot of work for you, it will be good exposure and excellent advertising for your company. Make sure to include your business's name and contact information on all materials where it would be appropriate to do so. For example, it's common to have such information on the back of any paper programs.
  5. Keep networking. As a party planner, good networking skills are crucial to make your business run smoothly.
    • Always be on the lookout for new catering services and entertainers in the area. You never know when a client may request a type of food or performer you don't have an established contact for. Additionally, businesses may eventually move or shut down. It's important to keep your contact list fresh.
    • Go to event planning trade shows to meet other planners and service providers. You can learn about new trends and developments in the industry or continue your education. Trade shows are a great way to get inspired to try something new with your business.[16]

Tips

  • Make sure to have some experience planning parties casually before you commit to starting a business. Not everyone is suited for this surprisingly stressful occupation. Unless you're very talented, it can be difficult to make party planning a career. Know what you're getting into before investing the time and money to create a company.
  • While most party planners handle administrative duties themselves, if your business takes off you may choose to hire an assistant. Even though event planning is an extremely low-risk job, you will likely need to purchase workers' compensation insurance. Check your local laws.[17]

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Sources and Citations

  1. ↑ http://www.entrepreneur.com/article/37892
  2. ↑ http://www.besthospitalitydegrees.com/faq/what-kind-of-degree-is-helpful-to-become-an-event-planner
  3. ↑ http://www.mpiweb.org/ProfessionalDevelopment
  4. ↑ http://learningpath.org/articles/Becoming_a_Party_Planner_Job_Description_Salary_Information.html
  5. ↑ https://www.sba.gov/content/what-state-licenses-and-permits-does-your-business-need
  6. ↑ https://www.sba.gov/content/company-description
  7. ↑ https://www.sba.gov/content/market-analysis
  8. ↑ https://www.sba.gov/content/funding-request
  9. ↑ https://www.sba.gov/content/how-name-business
  10. ↑ https://www.sba.gov/content/register-your-fictitious-or-doing-business-dba-name
  11. ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/obtain-business-licenses-
  12. ↑ http://www.businessknowhow.com/homeoffice/clientmeetings.htm
  13. ↑ http://www.forbes.com/sites/georgebradt/2012/08/10/us-womens-olympics-gymnastics-team-lessons-re-generalists-vs-specialist
  14. ↑ http://www.entrepreneur.com/article/233684
  15. ↑ http://learn.latpro.com/senior-event-planner-expects-the-unexpected
  16. ↑ https://www.qceventplanning.com/2015/02/best-tradeshows-event-planners/
  17. ↑ http://www.entrepreneur.com/article/79594

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