How to Write an Event Planning Business Plan
The event planning industry has taken quite a hit due to the coronavirus over the last several months. However, industry experts anticipate a huge demand for event planning companies within the next 6 to 12 months.
When demand starts to pop for this industry, entrepreneurs need to be ready. Unfortunately, preparing for the expected surge in demand for industry planners is not an easy process. One of the first steps to prepare is to have a well-written and professionally structured business plan. Because of the need for this type of plan, our business plan writer has come up with some tips and tricks to help you write your own event planner business plan.
Executive Summary for an Event Planning Business Plan.
When writing the executive summary section of an event planner business plan, entrepreneurs should make sure to touch on each important topic that is contained in their business plan. However, our business plan writer suggests that entrepreneurs in the event planning industry focus on their niche services in the executive summary. For example, if your organization excels at preparing corporate events, make sure to discuss in detail this niche service. By focusing on services provided, event planners are able to set the reader’s expectations for services upfront.
In the company information and location section of an event planner business plan, make sure to discuss services that your company will provide, the geographic area that your organization will service, and if your location is important, discuss the benefits of your event planning location. For example, some event planners base their operations out of a facility that can host large parties, such as weddings or corporate events. This type of business model makes the location critical for explaining how your business will best compete in the marketplace. In contrast, some event planners travel the country putting on corporate events for different multinational organizations. In this type of business strategy, the company’s location is really not that important. From this, determine the importance of your location from the perspective of your business, and then provide the details accordingly.
Product Description and Competitive Advantages
Our business plan writer has found that event planners fall into two general categories, which are generalist and specialist. A generalist event planner often has a large location that they rent out for weddings and other types of celebrations. Further, the event planner will also help clients design and prepare for their events regardless of whether it’s a birthday party for 10 children or a corporate event for 100. When writing this type of business plan, make sure to highlight the benefits and opportunities related to a generalist strategy in your service section of the business plan.
If your organization is a specialist or niche event planning organization, then discuss the specific types of events that you specialize in. For example, if you are a corporate event planner, then make sure to discuss why you selected this niche market and how your business strategies align with exploiting these types of opportunities. If you’re unsure of whether you are a niche or generalist, write down a list of types of events that you will and will not do. If the event list for the “not dos” is longer than your “will dos”, then you are a niche provider as compared to a generalist.
Your target market for the event planning business section of the business plan should focus on who your main customers will be. As a generalist, you are event planning target market may be anyone hosting a large gathering within a five, 10, or 50-mile radius of your location. As for a niche event planning business, your target market may be corporations, wealthy individuals, or other narrow demographics. By identifying your target market, regardless if you are a generalist or specialist, an entrepreneur is able to create business strategies and models that will allow the firm to exploit opportunities related to your target market as well as mitigate challenges in operating a niche or generalist event planning business.
Industry research for an Event Planning Business Plan
For the event planning industry research section of your business plan, make sure to start with a broad overview of your industry, popular services provided, and general industry statistics. For example, industry research shows that approximately 73% of conferences and over 50% of trade shows use event planners and some way, shape, or form. Further, research is shown that the event planning industry has been growing at approximately an 11% growth rate before the pandemic hit. Further, experts anticipate substantial growth in the market once the pandemic is under control. This shows that well-prepared entrepreneurs may be able to exploit market opportunities, as event planning demand increases as projected.
The owner and management section of the business plan for event planning should focus on your work experiences first. If you’ve been in the event planning industry for 10 or 15 years, then discuss your previous work histories, events hosted, and even lessons learned. Once you set a solid foundation for your work credentials, then dive into explaining how your educational experiences have supported your professional growth. By intertwining your work experiences and educational foundation, a solid and logical next step for your career aspirations is leading your own event planning organization.
Funding Request for an Event Planning Business Plan
The funding request section for your event planning business should first start with a specific dollar amount needed to start your organization. The next step is to break your funding needs into specific categories. An important category for event planning may be acquiring up-to-date software related to event planning and scheduling. Another category popular in event planning business plans is purchasing furniture such as foldable chairs and tables. Regardless of your categories, make sure to be specific in that category section but general in listing the items. For example, if a category is furniture, then list tables, chairs, and others. This allows for wiggle room in funding the organization if prices change. Finally, once you’re done with categorizing your funding needs, make sure to show a total at the bottom of your page with a specific dollar amount needed to start your company.
When preparing your financial projections for your business plan, start with identifying how many events you plan to host or lead in a given week or month. Estimate your revenues based on your projected number of events. The next step is to align your variable cost with each event. For example, an event may require significant travel. If this is the case, then a variable cost would be gasoline, airline tickets, or other expenses. Once your variable cost or align with your expected revenues, then project your weekly gross profits to a monthly level. Finally, deduct your fixed costs, including labor, from your gross profits, and this will give you a rough estimate of your monthly profits for your event planning company. With this rough financial model, event planning entrepreneurs can then expand their projections to cover the next 12 months and even five years.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author