How to Write an Event Planning Business Plan and Template
Competitors in the event planning industry plan and manage various types of events such as meetings, conventions, trade shows, birthday parties, weddings, holiday gatherings, and other event-type activities for corporations, small businesses, and private parties.
Because of the wide array of services provided by event planning business owners, demand for event planners has been growing over the last several years. As demand grows for event planners, the need for an event planner business plan all too often grows in tandem.
There are numerous reasons for the substantial growth in this industry, now and in the long term. First, corporations and families, have been postponing events such as corporate retreats, weddings, and other gatherings, until the pandemic subsided. As more organizations and families feel comfortable with large gatherings, the need for professional event planning is critical. In addition, individuals, as well as companies, have saved up significant funds due to stimulus payments sent out by various government agencies. These funds have been sitting in checking and savings accounts just waiting for the right time to use for gatherings.
Regardless of why the expected surge for event planners is taking place, industry competitors need to be ready to meet customers' demands at a drop of a dime. From this, our business plan writers have put together some tips and tricks on how to professionally and effectively write up an event planner business plan as well as how to structure an event planner business plan template for use in the near and long term.
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.
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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 and document them in your business plan or event planner business plan template. 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.
The target market for an event planning company should align with the organization’s core competencies as well as the niche services provided. For example, if any event planning company specializes in weddings, their target market should be individuals within a 30-mile radius of the organization’s location planning to get married. In contrast, if an event planning company specializes in corporate events, then the target market may be corporations within their region that typically plan one or more events that need specialized skills to ensure their success. By aligning the organization’s target market with their niche services, event planning business owners are able to increase the likelihood of synergy in their marketing and operational practices (3/22).
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 a 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 or business plan template, 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 aligns 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