how much do i need to start an event planning business

General Tips , Your Event Career

How Much Does It Cost To Start an Event Planning Business?

How much does it cost to start an event planning business? Today, we’ll answer this very question! Starting your own event planning business can be an extremely lucrative and fulfilling endeavor – but it doesn’t come cheap. In order to start an event planning business, you’ll need to invest in a variety of equipment, supplies, software, office space, and marketing materials.

The good news is that we’ve done the research for you and have created an exhaustive list of all the estimated expenses associated with starting an event planning business from scratch. By the end of this article, you’ll know exactly how much money you need to save up and invest in your new venture!

PRO TIP: Before we get started, it’s worth knowing if YOU should start an event planning business in the first place… Check out this article to find out once and for all!

Event planning startup costs: how much does it cost to organize an event.

Now that we know you should start an event planning business, let’s get down to the nitty-gritty – how much does it cost to organize an event ?

To get a better understanding of how much it costs to start your own event planning business, we’ve broken down all the estimated expenses into 8 categories:

• Business formation expenses
• Equipment + supply expenses
• Software expenses
• Office space expenses
• Website costs
• Advertising + marketing costs
• Employee expenses
• Freelancer expenses

Keep reading for a detailed breakdown of each category!

1. Event Planning Business Expenses

The first thing you’ll need to do when starting your event planning business is to choose the legal structure of your business. Will you operate as a sole proprietorship, limited liability company (LLC), or corporation? The type of business entity you choose will affect how much money you’ll need to spend on formation expenses.

For example, if you decide to operate as an LLC, you’ll need to file Articles of Organization with your state and pay a filing fee – which can range from $50-$500 depending on your state. You’ll also need to obtain the proper business licenses and permits, which will cost you an additional $200-$500. Finally, you’ll need to purchase insurance for your business, which can cost anywhere from $500-$5000 per year (depending on the type and amount of coverage you choose).

All in all, you should budget for at least $1000 in business formation expenses when starting your event planning business.

PRO TIP: You can save a lot of money on business formation expenses by forming your LLC or corporation online! Two common resources for this are Incfile and LegalZoom .

2. equipment + supply expenses.

In order to start planning events, you’ll need to have the proper equipment and supplies on hand. This includes items like a laptop or computer, printer, scanner, and digital camera. These can cost anywhere from $500-$2000, depending on the quality and brand of the products you choose.

You’ll also need to purchase office supplies like pens, paper, folders, and sticky notes – which will require an additional investment in the ballpark of $100-$200.

PRO TIP: You can save quite a bit of money on equipment and supply expenses by shopping for refurbished or used products online! Popular websites for this are Amazon Renewed and Best Buy Outlet .

3. software expenses.

To help you run your event planning business smoothly, it’s strongly recommended that you invest in various software programs. These can include project management software (like Asana or Trello ), accounting software (like QuickBooks or FreshBooks ), and email marketing software (like Mailchimp or Constant Contact ).

Prices for these types of software programs can range from $0-$100 per month, depending on the features and functionality you need. For example, here are the current fees associated with each of the above programs (as of May 21st, 2022):

Asana (Note: 30-day free trial offered):

• Basic:  $0.00 USD/month
• Premium:  $10.99 USD/month
• Business:  $24.99 USD/month
• Asana Enterprise:  Must contact Asana for full info and pricing

Trello (Note: Premium Plan offers free trial):

• Free:  $0.00 USD/month
• Standard:  $5.00 USD/month
• Premium:  $10.00 USD/month
• Enterprise:  $17.50 USD/month

QuickBooks (Note: All plans are currently on sale for 75% off + free 30-day trial offered):

For small business accounting:

• EasyStart:  $5.50 CAD/month
• Essentials:  $11.00 CAD/month
• Plus:  $16.50 CAD/month
• Advanced:  $35.00 CAD/month

For self-employed expenses:

• Self-Employed:  $3.75 CAD/month

FreshBooks (Note: Currently offering 90% off for 3 months + free trial offered):

• Lite:  $1.90 CAD/month (normally $19.00 CAD/month)
• Plus:  $3.20 CAD/month (normally $32.00 CAD/month)
• Premium:  $6.00 CAD/month (normally $60.00 CAD/month)
• Select:  Custom pricing, to be determined by contacting FreshBooks

Mailchimp :

Marketing Platform:

• Free:  $0.00/month
• Essentials:  Starting at $11.00/month
• Standard:  Starting at $17.00/month
• Premium:  Starting at $299.00/month

Website & Commerce:

• Core:  Starting at $10.00/month
• Plus:  Starting at $29.00/month

Constant Contact (Note: All prices are based on number of contracts + free trial offered):

Digital Marketing Subscriptions:

• Core:  $13.00 CAD/month
• Plus:  $59.00 CAD/month

Sales Accelerator Subscription:

• All-in-one CRM platform:  Starting at $449 USD/month

4. Office Space Expenses

Starting an event planning company in a commercial space.

If you plan on starting your event planning business in a commercial space (such as an office suite or retail store), then you’ll need to factor in the cost of rent, utilities, and internet service into your budget.

For example, the average cost of renting a small office space in the United States is currently $600-$700 per month. Moreover, depending on your location, utilities can add an additional $100-$200 per month to your expenses. Lastly, business-grade internet service can also cost you around $50-$100 per month.

In total, you should expect to spend at least $850-$1000 per month on commercial office space rental expenses in order to start an event planning business.

Starting an Event Planning Company from Home

On the other hand, maybe you’re looking to save some money on office space rental expenses. In that case, you might want to consider running your event planning business from home !

Of course, this option isn’t for everyone. After all, some people simply prefer the structure and discipline that comes with working in a commercial space. But if you’re the type of person who doesn’t mind a little bit of extra noise and commotion in your living space, then starting your event planning business from home could be a great way to save some cash each month.

Just keep in mind that even if you do decide to start an event planning business from home, you’ll still need to factor in other associated expenses like internet service (approx. $50-$100/month) and office supplies (approx. $50-$100/month).

In total, you should expect to spend at least $600-$800 per month on office space and associated expenses when starting your event planning business from home.

Want to learn more about running an event planning business from home? This article will help you get started in 3 easy steps!

5. Website Costs

If you want to be taken seriously as an event planning business, then you’ll need to have a professional website!

Of course, you could always try to build a website yourself using one of the many DIY website builder platforms out there (like Wix or Squarespace ). But unless you have some previous experience with web design, we wouldn’t necessarily recommend this option.

Instead, we recommend working with a professional web designer to create a custom website for your specific event planning business. Depending on your needs and budget, this can cost anywhere from $500-$5000+.

Alternately, if you’re looking for a more cost-effective solution, you can always use a pre-made WordPress theme to build your event planning business website. This will still require some basic web design knowledge, but it’s a great way to get a professional-looking website up and running without spending a ton of money. Currently, WordPress offers a basic (free) plan, a $10.00/month plan, and a $29.00/month plan.

To learn more about what needs to go into creating your official business website, check out this article !

6. Advertising + Marketing Costs

As with any business, one of the key ingredients to success is advertising and marketing. After all, how else are you supposed to let people know about your event planning business and attract new clients?

There are a multitude of different ways that you can market your event planning business. However, some methods will obviously be more effective (and more expensive) than others. For example, TV commercials, print ads, and social media ads (such as on YouTube and TikTok) can be costly. However, they also reach a wide audience and can generate a lot of buzz for your business.

On the other hand, targeted online ads and social media campaigns tend to be much less expensive – but with a smaller budget will come a smaller audience reach. So, that’s definitely something to keep in mind.

Ultimately, it’s up to YOU to decide which marketing channels makes the most sense for your specific event planning business. But as a general rule of thumb, you should expect to spend at least $100-$1,000 per month on advertising and marketing expenses.

7. Employee Expenses

If you plan on growing your event planning business beyond a one-person operation, then you’ll eventually need to start hiring employees.

Of course, the number of employees that you’ll need to hire will depend on the size and scope of your specific business. But regardless of how many people you end up hiring, you should expect to spend a decent amount of money each month on employee-related expenses.

This includes things like salaries, payroll taxes, benefits, insurance, and other associated costs. Depending on the number of employees that you have and the type of benefits that you offer, these expenses can range anywhere from $500-$5000+ per month.

8. Freelancer Expenses

In addition to (or instead of) hiring employees, you may also need to hire freelancers to help with specific tasks and projects.

Just like with employee expenses, the amount of money that you’ll need to spend on freelancers will vary depending on your specific business needs. However, you should generally expect to pay freelancers by the hour, and rates can range anywhere from $20-$100+ per hour.

So, How Much Does It Cost To Start an Event Planning Business?

Based on everything we’ve discussed, the total (estimated) amount that you should be saving up in order to start your event planning business is approx. $12,000+ . Of course, this number could be higher or lower, depending on a variety of factors – such as whether or not you already have some of the necessary equipment, how big/complex your website will be, etc.

At the end of the day, starting an event planning business is definitely not a cheap undertaking. However, if you’re passionate about event planning and are willing to put in the hard work, we believe it’s definitely worth it!

So, what are your thoughts? How much did YOU spend when starting your event planning business? Let us know in the comments below!

And as always, don’t forget to check out our other articles on event planning tips and advice. Thanks for reading! 😁

Become an internationally-certified event planner in just 3-6 months by enrolling in QC Event School’s self-paced, online certification training today !

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Event Planning Business

Back to All Business Ideas

How to Start an Event Planning Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on January 13, 2022 Updated on December 2, 2023

Investment range

$2,050 - $7,100

Revenue potential

$100,000 - $400,000 p.a.

Time to build

0 – 3 months

Profit potential

$70,000 - $160,000 p.a.

Industry trend

​​Some people thrive on planning events such as wedding receptions, parties, or banquets, but others find it an arduous task. That’s where event planners come in. Event planning as an industry is valued at over $3 billion in the US If you’re one of those who enjoy planning events, an event planning business could be a lucrative opportunity for you. You can make 15% to 20% of the total cost of the event, so think about how much you’ll make for planning a $50,000 wedding reception!

Planning and launching your business, however, is in itself an arduous task. It will take preparation, just like an event, as well as knowledge. Fortunately, you’ve come to the right source, as this step-by-step guide has all the information you need to be on your way to entrepreneurship as an event planner.

Step by Step Business values real-life experience above all. Through our Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

If you’re venturing into the world of event planning, this interview with Dominic Richards offers invaluable insights into pioneering sustainable practices.

Explore our interview with Michael Alexis for essential insights into organizing and planning successful team building events.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an event planning business has pros and cons to consider before deciding if it’s the right path for you.

• Never Be Bored! – Every event and every day will be different
• Low Startup Costs – No inventory or equipment to buy
• High-Profit Potential – Good revenue, low ongoing expenses
• After Hours Work – Evenings and weekends will be busy
• High Stress – Pressure from timing, budget constraints, difficult people

Event planning industry trends

Corporate event planning makes up a large part of the industry, so as corporate profits rise, the event planning industry thrives.

Industry size and growth

• Industry size and past growth – The US party and event planners industry is valued at over $3 billion in 2022.(( https://www.ibisworld.com/industry-statistics/market-size/party-event-planners-united-states/ ))   
• Growth forecast – Corporate profit is expected to increase as the economy improves. With bigger earnings, businesses will have more money to spend on events, raising the demand for professional event planning services.
• Number of businesses – There are more than 61,000 party and event planners in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/party-event-planners-united-states/ )) 
• Number of people employed – Nearly 67,000 people are employed in the party and event planners industry.(( https://www.ibisworld.com/industry-statistics/employment/party-event-planners-united-states/ ))

Trends and challenges

Trends in the event planning industry include:

• Virtual and hybrid events, which emerged in 2020, are continuing to be a popular option. Safety precautions are also in demand such as socially distant seating, mask requirements, and ventilation.
• Smaller but more frequent corporate events are becoming more common. This presents an opportunity for an event planner to plan a yearlong series of events rather than just an annual event.

Challenges in the event planning industry also exist which include:

• Virtual and hybrid events are challenging, and event planners need to be more tech-savvy to ensure that attendees are still interacting and having fun.
• The industry is more sensitive to economic fluctuations than other industries, so economic uncertainty is an issue for event planners. They need to be prepared for large decreases in volume and revenue during economic downturns.

What kind of people work in event planning?

• Gender – More than 85% of event planners are female, and the rest are male.(( https://www.zippia.com/meeting-event-planner-jobs/demographics/#gender-statistics ))
• Average level of education – Nearly 3 in 4 event planners hold a bachelor’s degree. They usually study business, hospitality management, or communication.(( https://www.zippia.com/meeting-event-planner-jobs/education/ ))
• Average age – Event planners are usually under 40 years old.(( https://www.zippia.com/meeting-event-planner-jobs/demographics/#age-statistics ))

How much does it cost to start an event planning business?

Startup costs for an event planning business range from $2,000 to $7,000. The high-end costs include a larger marketing budget and virtual event planning software. 

How much can you earn from an event planning business?

You can charge between 15% to 20% of the total cost of an event, or you can charge an hourly rate of between $100 to $150. These calculations will assume that average events cost $20,000 and that you’ll charge 20%. If you hire assistants to work with you at the events, your profit margin should be about 70%.

In your first year or two, you could work from home and do 25 events per year, bringing in $100,000 in annual revenue. This would mean $70,000 in profit, assuming that 70% margin. As your brand gains recognition, sales could climb to 100 events per year. At this stage, you would rent a commercial space and hire additional staff, reducing your profit margin to around 40%. With expected annual revenue of $400,000, you would make about $160,000.

What barriers to entry are there?

There are a few barriers to entry for an event planning business. Your biggest challenges will be:

• You need to have excellent event planning skills
• You’ll face competition from large companies including hotels

Related Business Ideas

How to Start an Event Venue Business

How to Start a Wedding Planning Business

How to Start a Party Rental Business

Step 2: hone your idea.

Now that you know what’s involved in starting an event planning business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research event planning businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a virtual corporate event planning service.

You might consider targeting a niche market by specializing in a certain aspect of your industry such as wedding receptions.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You need to determine what kinds of services you want to offer during the course of your event planning. You can provide a full service in which you handle all the logistics of getting everything to the event and setting it up, or you can just do the planning and scheduling. You could also expand your business by adding additional services including:

• Photography

Those might be things that you add later as your business grows.

How much should you charge for event planning services?

Generally, event planners charge 15% to 20% of the total cost of the event. For smaller events, it might be better to charge by the hour. Hourly rates can range from $100 to $150. If you work from home your costs will be limited to labor costs, fuel, and marketing. You should aim for a profit margin of about 70%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the kind of events you want to do. If you do corporate events, your target will be corporate managers, most likely human resources managers. You can reach those people on LinkedIn or by making direct calls to corporations. If you do parties and wedding receptions your target will be broader, but generally, it will be more well-established people who you can also find on LinkedIn as well as Facebook.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low, and you may want to continue to do business from home. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Event Planning Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “event planning” or “event planner”, boosts SEO
• Name should allow for expansion, for ex: “Divine Celebrations” over “Baby Shower Planners”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Event Planning Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Highlight the vision and strategy of your event planning business, focusing on providing comprehensive planning services for a variety of events, including corporate, social, and special occasions.
• Business Overview: Describe your business’s specialization in event planning, including services like venue selection, vendor coordination, theme development, and day-of event management.
• Product and Services: Detail the range of event planning services, from full-service planning to consultation and specific event components like catering or entertainment management.
• Market Analysis: Assess the demand for event planning services, considering target markets like businesses, bridal couples, or non-profit organizations.
• Competitive Analysis: Compare your business to other event planners, focusing on your unique selling points like niche event expertise, creative design approaches, or exceptional vendor relationships.
• Sales and Marketing: Outline your strategy for attracting clients, including networking, social media marketing, or partnering with venues and vendors.
• Management Team: Highlight the experience and qualifications of your team, particularly in areas like event coordination, design, and customer service.
• Operations Plan: Describe the process of event planning, from client consultations and concept development to execution and post-event feedback.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and anticipated revenue.
• Appendix: Include supplementary documents such as portfolios of past events, client testimonials, or detailed market research to support your business plan.

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to event planning businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your event planning business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship   – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership  – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) –  Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp  – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp  – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Your best bet will be personal funding since you don’t need much cash to get started.

Step 8: Apply for Licenses/Permits

Starting an event planning business requires obtaining a number of licenses and permits from local, state, and federal governments. Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. You could also check this SBA guide for your state’s requirements. 

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

For peace of mind and to save time, we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state, and provide them to you to make sure you’re fully compliant.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account . Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your event planning business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You can use industry-specific software, such as Backstage , Cvent , or Planning Pod , to manage your planning tasks, scheduling, pricing, billing, and workflows.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Launching an event planning business is an exciting venture, and to ensure its success, you’ll need more than just a website and networking. Here are some practical marketing strategies to help you stand out in the competitive event planning industry.

• Collaborate with Local Influencers: Partner with local influencers who align with your brand to increase visibility and credibility, as their endorsement can significantly impact your business.
• Host Free Workshops or Seminars: Offer free workshops or seminars on event planning tips and trends to showcase your expertise, build trust, and attract potential clients.
• Social Media Challenges and Giveaways: Create engaging challenges or giveaways on social media platforms to increase your online presence, encourage user participation, and generate buzz around your event planning services.
• Strategic Partnerships with Venues and Vendors: Establish partnerships with popular local venues and trusted vendors to expand your network, enhance your offerings, and gain referrals through mutual collaboration.
• Client Testimonials and Case Studies: Highlight successful events you’ve organized through client testimonials and detailed case studies, showcasing your ability to turn visions into reality and build client confidence.
• Leverage User-Generated Content: Encourage clients to share photos and testimonials from their events on social media, creating a portfolio of diverse events and leveraging authentic content to attract a wider audience.
• Implement a Referral Program: Create a referral program that rewards clients, vendors, and partners who refer new business to you, fostering a network of advocates who actively promote your services.
• Localized SEO Optimization: Optimize your online content for local search engine optimization (SEO) to ensure that your business appears prominently in local searches, attracting clients within your service area.
• Targeted Email Marketing Campaigns: Develop targeted email campaigns to reach potential clients directly, offering exclusive promotions, insights, and valuable content to keep your business top-of-mind.
• Participate in Community Events: Engage with your local community by participating in events or sponsoring local activities, providing an opportunity to connect with potential clients face-to-face and showcase your expertise.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your event planning business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your event planning business could be: 

• Professional planning for your virtual corporate events
• Party planning to make your event fun and safe
• Start to finish planning – we handle every detail of your event

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an event planning business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in event planning for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in event planning. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an event planning business would include:

• Event Assistants – assist with planning, events
• Delivery Drivers – deliver items to events
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Event Planning Business – Start Making Money!

An event planning business can be a dynamic and rewarding way to make some money and have fun at the same time. It’s a $3 billion industry so clearly, your services will be in demand. All kinds of events need planning, from corporate events, to birthday bashes, to wedding receptions, and more. 

The possibilities are endless, as is the opportunity to make a comfortable living. Now that you’ve started your planning process by gathering information, you’re ready for the rest of your entrepreneurial event! 

• Event Planning Business FAQs

Event planning can be very profitable. You can charge 15% to 20% of the total cost of an event, so if you, for example, do a corporate event that costs $50,000, you can make up to $10,000. Corporate event and wedding reception planning will tend to be your most profitable services.

Typically, you can charge 15% to 20% of the total cost of the event. For smaller events, you can charge by the hour. Rates should be between $100 to $150 as a general rule. 

To create event proposals and contracts for clients, you should start by conducting a thorough needs assessment with the client to understand their goals, preferences, and budget for the event. Based on this information, you can develop a detailed proposal that outlines the scope of services, event concept, budget breakdown, and timeline.

There are several strategies for getting clients for an event planning business, including networking with other professionals in the industry, establishing a strong online presence through social media and a website, offering specialized services or expertise in a specific niche, and attending industry events and conferences to build relationships and generate leads.

Yes, it is possible to start an event planning business on the side, although it may require significant time management and organization skills to balance the business with other commitments. It is important to carefully consider your available time, resources, and expertise, as well as the potential demand for your services and the competition in the market.

Some popular courses and certifications include the Certified Special Events Professional (CSEP) certification offered by the International Live Events Association (ILEA), the Certified Meeting Professional (CMP) certification offered by the Events Industry Council, and courses offered by industry organizations and professional associations such as the National Association of Event Planners and Suppliers (NAEPS) and the Wedding Industry Professionals Association (WIPA). 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an Event Planning Business Name
• Create an Event Planning Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Event Planning Business - Start Making Money!

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How To Start An Event Planning Business

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If you have a passion for logistics and organization, and the ability to network and promote yourself effectively, you may have a future in the event planning industry.

You don’t need any special training or education. Although if you have a degree in hospitality, event planning or tourism, it can add weight to your credentials. You can also get certified as a special events or meeting planner, as well as read books to get a handle on event planning basics.

It will help if you enjoy thinking creatively to create a desired ambiance or impression, liaise and negotiate with suppliers, solve problems and work with a budget. If you have the time management, marketing, and organizational skills for event planning, you can start up the business with relatively little capital and equipment.

How Big Is The Event Planning Industry?

Entrepreneur reports that people around the globe spend $500 billion every year on special events.

Why Starting An Event Planning Business Now Is A Good Idea 

There are no shortage of birthdays, anniversaries, reunions, weddings, graduations, parades, fairs, conferences, meetings, product launches, political rallies, fashion shows, memorials and civic events in need of a savvy planner to oversee the logistics, organization and myriad details that go into making an event run smoothly. More and more businesses are hiring outside services to plan their events. The profit margins for event planners have risen from 15 to around 40 percent in the last few years.

Event Planning Business Facts

Here are some facts and figures about the event planning business you should consider:

Event Planning Business Startup Costs

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

1 st Quarter Insurance: $800 – $1,500

Miscellaneous: $750 – $1,500

Total Startup Cost: $8,050 – $31,110

 how much do event planners make.

An event planning service can gross between $85,000 to $250,000 per year depending on the structure of the business.

How much do event planners charge?

The size and complexity of events vary widely, so generally event planners calculate the cost of all the materials and services for any given event and then tack on a 10 to 20 percent markup as a service fee.

How do event planners find customers?

Social media and networking in the community, yellow pages, and a professional business web page. Your target markets include hotels, resorts, non-profits, conventions, country clubs, theme parks as well as brides, Fortune 500 companies, universities, and colleges.

What skills are required?

Creativity, communication, organizational and time management skills, passion for budgeting, planning and negotiating, ability to network and coordinate with suppliers and service providers for an event, a cool head under pressure, and ability to think and solve problems on the go.

What do I need to operate an event planning business?

Computer, printer, telephone, fax machine, business license, a basic stock of common party supplies, a truck or a van, social media accounts for the business, a professional website and a portfolio of your work.

Event Planning  Business Ideas

Effective promotion is the key to your success and social media is gold when it comes to promoting your event planning business and landing event contracts. Use it for more than promotion, though. If you leverage your social media presence as a way to make connections and build a solid following, people are more likely to think of you and give you a call when they have an event to plan.

When you first start out in event planning, specialize on one type of event and master it. Charity balls, proms, and corporate galas are the spectacular end of the spectrum while meetings and conventions fall on the comparatively simple and straightforward end of the spectrum. Don’t try to do it all at once. On the other hand, seasoned event planner Liz King says diversification of services is important to the success of a small company. Add services one at a time as you gain experience.

Are catering services included?

Offering outdoor/indoor venue options.

Struggling with what to name your event planning business? Here are a few ideas:

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Top 15 Event Planning Blogs, Are You Following Them?

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How Much Does It Cost To Start An Event Planning Business? (In 2023)

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The cost of opening a an event planning business can vary based on several factors. However for a an event planning business you can expect to spend $62 to $28,347 with an average cost of $14,887.

• The minimum startup costs for an event planning business: $62
• The maximum startup costs for an event planning business: $28,347
• The average startup costs for an event planning business: $14,887

Here's a detailed list of an event planning business startup costs:

Learn more about starting an event planning business :

Where to start?

-> Pros and cons of an event planning business

Need inspiration?

-> Other event planning business success stories -> Examples of established event planning business -> Marketing ideas for an event planning business -> Event planning business names -> Event planning business Instagram bios

Other resources

-> Event planning business tips -> Email templates for an event planning business -> Blog post ideas for an event planning business -> Event planning business quotes

Equipment & Supply Expenses

Starting an event planning business may require purchasing some equipment, whether that's for producing the product or packaging the goods, or equipment needed in the back office.

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Software Expenses

Your event planning business needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Office Space Expenses

It will be your call to determine if you need office space. It is not a requirement but may be necessary as your event planning business grows.

Employee & Freelancer Expenses

Website costs.

Every business should have a website, and it's worth spending a bit of money to set it up right.

Advertising & Marketing Costs

• 112+ Best Quotes For Your Event Planning Business [2023] 1 of 10
• 150+ Event Blog Post Ideas & Topics [2023] 2 of 10
• 1,000+ Best Event Planning Business Names [2023] 3 of 10
• 7 Event Planning Business Success Stories [2023] 4 of 10
• 73 Marketing Ideas For An Event Planning Business (2023) 5 of 10
• 42 Trending Event Planning Businesses [2023] 6 of 10
• 8 Functional Email Templates for Event Planners 7 of 10
• 3 Tips For Starting A Successful Event Planning Business (2023) 8 of 10
• 165+ Best Instagram Bios For Event Planners in 2023 [+Ultimate Guide] 9 of 10
• 31 Pros & Cons Of Starting An Event Planning Business (2023) 10 of 10

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How Much Does It Cost To Start An Event Planning Business?

Starting your own event planning business can be a very rewarding experience, but it’s important to understand the cost involved in getting started. This article will explore the different expenses you can expect to encounter when starting your own event planning business. We will also offer tips on how to save money and how to budget for your new venture.

Costs of Starting an Event Planning Business

You need to consider a few different costs when starting an event planning business. The first cost is the initial investment, which can range from a few hundred dollars to several thousand, depending on the size and scope of your business. The second cost is the ongoing costs associated with running your business, such as marketing, advertising, office expenses, etc. The third cost is the cost of your time, which is important to consider if you plan on running your business full-time.

• The estimated cost range is between $600 and $5,000.
• The average cost of an event planning business is $3,500.

What to Expect When Starting an Event Planning Business

When starting an event planning business, you can expect to incur some initial costs, such as the cost of a website, business cards, and marketing materials. You will also need to factor in the cost of your time, as you will need to dedicate a significant amount of time to get your business off the ground. In addition, you may need to hire staff or outsource some services, which can add to your costs. However, there are ways to save money when starting an event planning business, which we will discuss later.

Ongoing Costs Associated with Running an Event Planning Business

There are a few ongoing costs associated with running an event planning business. The first is marketing and advertising. You will need to spend money to promote your business and attract new clients. In addition, you will need to budget for office expenses, such as rent, utilities, and supplies. You may also need to hire staff or outsource some services.

• The estimated monthly cost of running an event planning business is between $200 and $2,000.
• The average monthly cost of running an event planning business is $1,000.

How to Save Money When Starting an Event Planning Business

There are a few ways to save money when starting an event planning business. One way is to start your business part-time and gradually transition to full-time as your business grows. This will allow you to keep your costs low while you get your business off the ground. Another way to save money is to use low-cost or free marketing and advertising channels, such as social media, to promote your business. You can also save money by doing some of the work yourself or partnering with other businesses to share costs.

Starting an event planning business can be a very rewarding experience, but it’s important to understand the cost involved in getting started. This article has explored the different expenses you can expect to encounter when starting your own event planning business, as well as how to save money and how to budget for your new venture. The estimated cost range is between $600 and $5,000, with the average cost being $3,500. The estimated monthly cost of running an event planning business is between $200 and $2,000, with the average monthly cost being $1,000. There are a few ways to save money when starting an event planning business, such as starting your business part-time, using low-cost or free marketing and advertising channels, or doing some of the work yourself. With a little planning and preparation, you can be on your way to starting a successful event planning business.

1. Build a solid business plan

I can’t tell you how many small event planning businesses fail because the founder didn’t put together a business plan in advance.

Start by researching successful plans and businesses that are similar to your scope of work. Then reach out to others in the events industry who may be able to guide you! 

Reach out to others in the events industry that may be able to guide you. Click To Tweet

Even if you’ve never seen a business plan, there are plenty of resources and templates online that can get you started. Additionally, when you look to grow your business, an up-to-date business plan is vital to secure any kind of investment.

Start with the right event tools for your business

Get Started Free

2. Set a marketing budget and use a PR company when possible.

When starting your party planning business, your marketing budget may be 30% or more of your business expenses. Does that seem like a lot? Think about all the things you’ll need:

• A website for your business
• Business cards
• Flyers and other printed info
• Digital marketing and online ads
• Expenses to travel to events for networking

Don’t leave anything out! You will need to spend money to make money, ultimately. The goal in the early months is to secure your base of customers as quickly as possible. If you deliver on the promise of creating memorable events, your clients will stick around and recommend you. As a result, your marketing costs will start to drop.

Here’s How to Start an Event Planning Business Click To Tweet

3. Clearly define your scope of work, mission and goals for your event business.

Your event planning business may evolve over time, but even when you’re just starting out, it’s important to clearly outline what you are and aren’t willing to do. You can even put this on your website to attract the right type of clients.

When you’re still building your business, saying “no” to clients  is one of the hardest things to do. But it might save you from dealing with the kinds of customers that take up too much time and don’t offer enough value in return.

4. Have your elevator speech ready.

After I set up my first events business, I had a hard time selling it to people because my 30-second pitch wasn’t refined. Make sure to spend time developing this ” it is the key to introducing everyone to your business.

Pro tip:  Don’t stress about the name of your event planning business. At the end of the day, the name of your business doesn’t matter ” as long as you produce truly memorable events. However, a catchy event business name idea might stick in someone’s brain better during an elevator pitch.

5. Do your market research

Before jumping, in I always tell people to understand their market and competitors. What is your unique value proposition? Are your fees similar to, better than or higher than others in your area? Understanding your competition and your clients will give you the leg up in this market. Don’t skip this step!

6. Spend some time learning tax laws and business filing in your area.

No matter what kind of business you want to start, there are lots of legal pieces to understand. I spent time researching which type of business would be best for me (LLC made the most sense for my consulting business).

It’s also critical to understand the tax implications before you dive in. For example, when I moved my business from Virginia to California, I had to go through the process of dissolving the business. I should have taken more time to research other possibilities!

There’s a lot to navigate, but some great resources exist for building small businesses. Here are a few I recommend:

• IRS.GOV “ Starting a Business
• SBA.GOV “ 10 Steps to Starting a Business
• Legalzoom.com

One of my favorite resources in Women In Events . New event planners can take advantage of our mentoring/coaching program after signing up.

Now You’re Ready to Start a Great Event Planning Business!

Have questions? We’ve got answers. Connect with @socialtables on Twitter.

Up next, here’s how to pick an event company name for your business . Or check out Social Tables free event planning tools to manage seating, meals, and so much more.

Try the event management software planners love

More tips for aspiring event planners.

• The 6 Must-Have Event Planning Skills You Need for Career Success
• The Top Event Planning Conferences This Year
• 10 Event Planning Tips Every Budding Coordinator Needs to Know

Still searching for answers about starting an event planning business?

Do your research, make a plan, set a budget, define your scope of work, and throw amazing events!

You should plan to set aside at least $15,000 to $25,000 to start a small event planning business.

Event planning can be quite a profitable career choice. The best event planners will make a name for themselves and be able to charge high prices for their vision, creativity, execution, and results.

How Much Does It Cost to Start an Event Planning Business: Unveiling the Capital Expenditures

By henry sheykin, resources on event planning.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan

Startup Costs

Introduction.

Event planning is an exciting and lucrative industry that has seen significant growth in recent years. According to the Bureau of Labor Statistics, the event planning industry is projected to grow 8% from 2019 to 2029, faster than the average for all occupations. This growth is largely due to the increasing demand for well-executed events, from weddings and corporate conferences to music festivals and product launches.

Starting an event planning business can be a dream come true for those who enjoy planning and executing events of all kinds. However, aspiring event planners must be aware of the startup costs associated with launching this type of business. In this blog post, we will cover the most common one-time costs associated with starting an event planning business, including office equipment and furniture, marketing expenses, legal fees, and more.

Whether you're planning to branch out on your own or are simply curious about the costs involved in starting an event planning business, this blog post will provide you with valuable insights into the financial considerations associated with this industry. Let's dive in and explore the startup expenses you can expect to cover.

Starting an event planning business requires careful consideration and planning, particularly when it comes to budgeting for startup costs. The amount of money required to launch an event planning business may vary based on factors such as location, services provided, and the scale of the business. Here are some of the typical startup costs associated with starting an event planning business:

Keep in mind that these figures are just estimates and the actual cost of starting an event planning business may vary based on the specific needs of each individual proprietor. However, identifying the potential costs associated with starting an event planning business can help entrepreneurs prepare and budget accordingly to minimize financial risks and maximize profitability.

1. Purchase of office equipment and furniture

One of the most important aspects of starting an event planning business is acquiring the necessary office equipment and furniture. These items are crucial to creating a professional work environment and establishing a positive first impression with clients. According to recent statistics, the average cost of purchasing office equipment and furniture for a small event planning business is approximately $5,000.

Desks and chairs: A comfortable and functional workspace is essential to ensuring productivity and client satisfaction. The cost of purchasing desks and chairs for a small event planning business can range from $500 to $1,500, depending on the style and quality of the furniture.

Computers and software: In today's digital age, having a reliable computer system and software is crucial to running a successful event planning business. The cost of purchasing computers and software for a small event planning business can range from $1,500 to $3,500.

Printers and other office equipment: In addition to computers, a small event planning business may also need to purchase printers, scanners, fax machines, and other office equipment. The cost of purchasing these items can range from $500 to $1,000.

Decor and ambiance: Creating a welcoming and inviting work environment is important for both employees and clients. Investing in decor and ambiance can enhance the overall atmosphere of the office and improve the client experience. The cost of purchasing decor and ambiance items can range from $500 to $1,500.

Storage and organization: Proper storage and organization is important to ensuring efficiency and productivity in the workplace. The cost of purchasing storage and organization items, such as file cabinets and shelving, can range from $500 to $1,000.

• Example 1: A small event planning business may choose to purchase high-quality, ergonomic desks and chairs, which can cost upwards of $1,000 per workstation. Additionally, the business may choose to invest in premium computer systems and software, which can cost up to $3,500 per computer.
• Example 2: A small event planning business may opt for a more budget-friendly approach and purchase standard, mass-produced office furniture. This can reduce the cost of purchasing desks and chairs to approximately $500 per workstation, and computers to $1,500 per computer.

Overall, the cost of purchasing office equipment and furniture for a small event planning business can vary depending on a number of factors, including quality, style, and quantity. As such, it is important for business owners to carefully consider their needs and budget before making any purchases.

2. Investment in software for event planning and project management

Investing in software for event planning and project management can significantly streamline the process and increase efficiency and productivity. According to recent statistical information, the average cost of event planning software ranges from $20 to $1,000 per month, depending on the size and complexity of the business and the features included in the software. Some software options are free or have a one-time purchase fee, while others require a monthly or annual subscription.

Event planning software typically includes features such as budget management, client management, calendar integration, task management, and vendor management. It may also include features such as online registration, report generation, and mobile access.

When considering investing in event planning software, it is important to assess the specific needs and requirements of the business. A smaller business may not require as many features and can opt for a more affordable option, while a larger business may require more advanced features and customization, resulting in a higher cost.

• Example: The event planning business may require software with advanced accounting and billing features to manage finances, while a business handling more complex events may require software with detailed venue and vendor management features to handle multiple aspects of the event.

Project management software can also be a valuable investment for event planning businesses. The cost of project management software varies widely, ranging from free options to those costing several hundred dollars per month. Project management software can help with tasks such as task allocation, resource management, time tracking, and team collaboration.

• Example: A project management tool such as Trello can be used to organize tasks, deadlines, and comments for event planning projects.

When investing in event planning and project management software, it is important to consider the long-term benefits and the potential return on investment. Improved efficiency and productivity can result in cost savings and increased profits, making the investment in software a worthwhile expense for the business.

• Example: Investing in a project management tool such as Asana can result in improved communication and organization, leading to more projects being completed on time and more clients being satisfied with the service provided.

3. Marketing and advertising expenses to attract clients

One of the most significant investments that must be taken into account when starting an event planning business is marketing and advertising expenses. It is crucial to promote your services to potential clients and attract them to your business. According to recent statistical information, the average marketing budget for a small event planning business in the US ranges from $1,000 to $5,000 per month. However, it is worth noting that this figure may vary depending on the size, location, and type of event planning business.

Online advertising: Online advertising is one of the most effective ways to reach potential clients. Pay-per-click (PPC) advertising, social media advertising, and search engine optimization (SEO) are the most popular forms of online advertising. The cost of online advertising can range from $500 to $5,000 per month, depending on the type and frequency of advertisement.

Print advertising: Print advertising can be expensive but can be useful for reaching a local audience. Advertising in local newspapers and magazines can cost anywhere from $500 to $1,500 per month. Business cards, brochures, and flyers are also great print options that can be more cost-effective, ranging from $200 to $1,000 per month.

Networking events: Attending networking events is a valuable way to meet potential clients and industry professionals. Attendance fees for networking events typically range from $50 to $500 per event, depending on the event's location and size. Additionally, it is necessary to factor in travel expenses if the event is held out of town.

Sponsorship: Event planning businesses can sponsor events to gain exposure and attract potential clients. Sponsorship opportunities range from small events to large conferences and can cost anywhere from $500 to $10,000 depending on the size and scope of the event.

• Example: An event planner in a small town with a marketing budget of $2,000 per month may choose to invest $500 on online advertising, $500 on print advertising, $500 on sponsorship, and $500 on networking events. This combination of marketing strategies can help the business generate brand awareness and attract potential clients.

It is essential to develop a marketing plan that focuses on targeted advertising channels to gain the best return on investment. It is also essential to monitor the impact of these marketing strategies and adjust them accordingly to maximize their effectiveness.

4. Lease or purchase of a commercial space for the business

When starting an event planning business, one of the biggest decisions that entrepreneurs have to make is whether to lease or purchase a commercial space. The cost of space will vary depending on the location, size, and type of space that is required. According to recent statistics, the average cost of commercial space for lease in the United States is $23.23 per square foot, while the average cost of purchasing commercial space is $120.00 per square foot.

The cost of leasing or purchasing a commercial space will depend on several factors, such as the location of the space, the size of space required, and the overall condition of the space. For example, leasing a larger space in a prime location will be more expensive compared to leasing a smaller space in a less desirable location. Similarly, purchasing a commercial space in a popular city center location will be more expensive compared to purchasing a space in a less popular area.

Entrepreneurs who choose to lease a commercial space will need to consider additional costs such as rent, utilities, insurance, and maintenance. The cost of utilities and insurance will vary depending on the size and type of space, while maintenance costs will depend on the age and condition of the space. In addition, entrepreneurs may also need to invest in renovating the space to suit their needs and preferences, which can also add to the overall cost.

On the other hand, entrepreneurs who choose to purchase a commercial space will need to consider additional costs such as mortgage payments, property taxes, insurance, and maintenance. The cost of mortgage payments will vary depending on the purchase price, interest rate, and loan terms, while property taxes and insurance will depend on the location and condition of the space. Maintenance costs will also need to be considered, as entrepreneurs will be responsible for the upkeep of the space.

• Example 1: An events planner who is just starting out may choose to lease a small commercial space in a suburban area for $15 per square foot, which includes utilities and insurance. The entrepreneur also invests $5,000 in renovating and customizing the space to better suit their needs.
• Example 2: An events planner with an established client base may choose to purchase a commercial space in a popular city center location for $200,000. The entrepreneur puts down a 20% down payment, resulting in a mortgage payment of $1,200 per month, as well as property taxes of $500 and insurance of $200 per month.

5. Legal and accounting fees for establishing the business

While starting an event planning business, it's imperative to comply with the legal and accounting requirements in the country or state where the business will operate. The costs associated with legal and accounting formalities can vary depending on the location of the business, the size of the company, and the complexity of the business structure.

The average cost of registering an event planning business in the United States varies from $50 to $400, depending on the state and the type of registration required. For example, in California, the cost of registering a business ranges from $100 to $800, depending on the type of entity and the nature of the business. In contrast, registering a business in Florida costs $150.

Another essential expense for establishing an event planning business is the cost of legal services. The cost of hiring a lawyer for business registration, contracts, and other legal requirements depends on the complexity of the legal work. The average lawyer fees for business registration range from $500 to $1,500. However, the hourly rates for attorneys could be higher, depending on their expertise and the location of the business.

Accounting fees are another expense to consider while establishing an event planning business. Every business must maintain proper financial records for accounting and tax purposes. The cost of accounting fees varies depending on the complexity of the business structure and the type of accounting services required. Typically, accounting fees for bookkeeping, tax filings, and financial planning range from $500 to $5,000 per year.

In addition to legal and accounting fees, there are other expenses associated with starting a business, including insurance, permits and licenses, office rent, marketing expenses, and employee salaries. Event planning businesses can expect to spend approximately $10,000 to $50,000 in the first year of operations, with legal and accounting fees accounting for a portion of that budget.

• The cost of registering an event planning business ranges from $50 to $400, depending on the state and the type of registration required.
• The average lawyer fees for business registration range from $500 to $1,500.
• Accounting fees for bookkeeping, tax filings, and financial planning range from $500 to $5,000 per year.
• Event planning businesses can expect to spend approximately $10,000 to $50,000 in the first year of operations.

In conclusion, starting an event planning business involves various legal and accounting formalities, and the cost associated with these requirements can differ depending on the state and the business structure. However, proper compliance with legal and accounting rules is essential to ensure long-term success for the event planning business.

6. Training and development costs for employees

One of the important costs associated with opening and running an event planning business is the training and development of employees. In the US, the cost of training and development varies depending on the type of training, the size of the business, and the level of employee expertise required. According to the Training Industry Report, in 2020, companies in the US spent an average of $1,111 per employee on training and development.

It is essential to provide adequate training and development to the employees to ensure the success of the business. This includes both technical training, such as event planning software and tools, and professional development training, such as communication, customer service, and time-management skills. The costs associated with this training can range from a few hundred to a few thousand dollars per employee, depending on the duration and level of training.

The cost of training and development can be reduced by providing on-the-job training, mentorship, and coaching programs. These programs can be provided at a lower cost than traditional classroom training and can be tailored to the specific needs of the employee. Additionally, businesses can leverage online learning tools and resources to provide cost-effective training solutions to their employees.

In addition to training and development costs, businesses also need to consider the cost of providing benefits and perks to employees. Providing benefits such as health insurance, retirement plans, and paid time off can help attract and retain top talent. According to the Bureau of Labor Statistics, employee benefits accounted for 38.6% of total compensation costs for private industry employers in September 2020.

To reduce the cost of benefits and perks, businesses can opt for low-cost options such as flexible work arrangements, remote work options, and wellness programs. Additionally, businesses can provide non-monetary benefits such as opportunities for career advancement, recognition and rewards programs, and a positive work culture.

• Training and development costs for employees vary depending on the size of the business and the level of employee expertise required.
• The cost of training can be reduced by providing on-the-job training, mentorship, and coaching programs.
• Employee benefits accounted for 38.6% of total compensation costs for private industry employers in September 2020.
• Non-monetary benefits such as opportunities for career advancement, recognition and rewards programs, and a positive work culture can help attract and retain top talent.

7. Purchase of a vehicle or transportation equipment for event set up

Event planning requires various types of transportation equipment to ensure the successful execution of events. The type of vehicle or equipment needed will depend on the size, type, and location of the event. The cost of purchasing transportation equipment can vary greatly depending on the type required.

According to recent statistical information, the average cost of purchasing a transportation vehicle for event setup can range from $20,000 to $40,000. However, it is important to keep in mind that the cost may vary depending on multiple factors such as the type of vehicle, brand, model, and age.

Additionally, the cost of transportation equipment for event planners may include items such as trucks, trailers, carts, dollies, and other movable equipment. These items can range in cost from a few hundred dollars to several thousand dollars, based on the size and type of equipment required.

It's essential to determine the type of transportation equipment required for the event and do thorough research on pricing, brands, and usage before making any purchase decisions. Event planners have the option to buy new or used equipment, or they can rent them for specific projects, which can be a more cost-effective option in some cases.

For instance, if an event planner is handling a large-scale event that requires specialized transportation equipment, renting can be a more cost-effective alternative. In contrast, purchasing specialized equipment for a one-time event may not be financially feasible, and therefore renting provides a more affordable option.

Furthermore, as an event planner, it is crucial to assess the specific needs of your clients and offer services that align with their budget and preferences. Offering efficient and cost-effective transportation solutions can be a valuable selling point for your business, attracting clients who are looking for affordable event planning services.

• Event planners must consider the type of vehicle or equipment required to ensure the successful execution of events.
• The cost of purchasing transportation equipment can range from $20,000 to $40,000.
• Transportation equipment for event planners can include trucks, trailers, carts, dollies, and other movable equipment.
• Renting specialized equipment can be a more cost-effective alternative for one-time events.
• Event planners should assess the specific needs of their clients and offer cost-effective transportation solutions.

8. Investment in Audiovisual and Lighting Equipment

As an event planner, investing in high-quality audiovisual and lighting equipment is an essential part of providing top-notch service to clients. The cost of this equipment can vary widely based on the type and scope of events that you plan to coordinate. According to recent statistics, the average investment in audiovisual and lighting equipment for an event planning business in the US ranges from $10,000 to $50,000 . This investment is crucial for creating a professional and visually engaging experience for clients and their guests.

When considering what type of equipment to invest in, it's important to keep in mind the needs of your clients. For example, if you specialize in weddings, it may be worth investing in additional decor lighting such as uplighting, pin spotting, and monogram projection. For corporate events, you may need more sophisticated audiovisual equipment, such as projectors, sound systems, and video conferencing equipment. These additional investments can increase the overall cost but can also provide opportunities for greater revenue and client satisfaction.

One option for event planners who are just starting out and do not have the budget for a large investment in equipment is to rent the necessary equipment on a per-event basis. This option can provide flexibility and can save money in the short term. However, it may not be sustainable in the long run and can limit the types of events that you are able to coordinate.

It's also important to keep in mind the ongoing maintenance and replacement costs associated with audiovisual and lighting equipment. Over time, equipment may need to be repaired or replaced, which can result in additional costs. Event planners should create a budget that includes ongoing maintenance and replacement expenses to ensure that their equipment stays in good working condition for each event.

• Example 1: A wedding planner invests $20,000 in lighting equipment, including uplighting, monogram projection, and pin spotting. This investment allows them to offer comprehensive lighting services to their clients and creates additional revenue opportunities.
• Example 2: A corporate event planner invests $30,000 in audiovisual equipment, including projectors, sound systems, and video conferencing equipment. This investment allows them to provide high-quality presentations and enhance the overall experience for their clients.

Investing in audiovisual and lighting equipment is a crucial aspect of running a successful event planning business in the US. While the costs can be significant, the benefits to client satisfaction, revenue opportunities, and overall event experience make it a worthwhile investment.

9. Insurance premiums for liability and property damage coverage

One important factor to consider when opening an event planning business is insurance premiums for liability and property damage coverage. The cost of insurance premiums can vary greatly depending on a variety of factors, such as the size of the business, the services offered, and the level of risk involved in the events being planned.

According to a report by Insureon, the average cost of general liability insurance for small businesses, including event planning businesses, is around $42 per month, or $500 per year. However, the cost can vary greatly depending on the specific needs of the business. For example, businesses that plan high-risk events, such as those with alcohol service, will likely pay higher premiums for liability coverage.

In addition to liability coverage, event planning businesses may also need property damage insurance, which covers damage to equipment, furniture, and other physical assets. The cost of property damage insurance can also vary depending on the size and scope of the business, as well as the type of events being planned. According to a report by The Hartford, the average cost of property damage insurance for small businesses is around $1,000 per year in the US.

It is important for event planning businesses to carefully consider their insurance needs and budget accordingly. In addition to general liability and property damage coverage, businesses may also want to consider other types of insurance, such as workers' compensation or cyber liability insurance.

When selecting an insurance provider, it is important to consider factors such as the provider's reputation, the level of coverage offered, and the cost of premiums. Businesses should also carefully review their policy and any exclusions to ensure that they are adequately covered in the event of an accident or other incident.

• General liability insurance: Average cost of $42 per month or $500 per year
• Property damage insurance: Average cost of $1,000 per year
• Consider additional insurance, such as workers' compensation or cyber liability insurance
• Select insurance provider based on reputation, coverage offered, and cost of premiums

As an example, an event planning business that specializes in weddings may need to purchase liability coverage for alcohol service, as well as property damage coverage for rental equipment and decor. The business may also want to consider cyber liability insurance to protect against data breaches, as they may collect sensitive information from clients during the planning process.

Starting an event planning business can be a great opportunity for those who love organizing events and are passionate about it. Although it may require a significant investment upfront, it can be a profitable venture in the long run. Here are some key takeaways:

• Starting an event planning business typically involves one-time startup costs, which can range from $10,000 to $50,000 , depending on the size and scope of the business.
• The most common startup costs include purchasing office equipment and furniture, investing in software for event planning and project management, marketing and advertising expenses, leasing or purchasing a commercial space, legal and accounting fees, training and development costs for employees, purchasing a vehicle or transportation equipment, investing in audiovisual and lighting equipment, and insurance premiums for liability and property damage coverage.
• Entrepreneurs who decide to start an event planning business should carefully consider these costs and put together a comprehensive business plan that outlines their goals, target market, services offered, pricing strategy, and marketing plan. Doing so will help them better understand the startup costs and potential revenue streams, as well as identify areas where they can achieve cost savings without compromising on quality or service.

Ultimately, the success of an event planning business will depend on the passion, dedication, and creativity of the entrepreneur, as well as their ability to meet the evolving needs and expectations of their clients. By carefully considering the startup costs and developing a solid business plan, aspiring event planners can set themselves up for long-term success in this exciting industry.

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