If you are planning to start a party planning business from home, you are in the right place.
Party planning can be a perfect and lucrative field to work for somebody who is social, organized, detail-oriented, and has a flair for entertaining people. According to Salary.com, the median annual Meeting/Event Planner salary is $83,040, as of January 2023, with a range usually between $73,741 – $92,924.
However, starting a party planning business needs some simple measures that are identical to starting any type of home-based venture. But some measures are uncommon in this department of work.
15 Steps to Start a Party Planning Business
1. Understand the Market
You have to find out which other party planners and event companies organize parties in your locality. Do market research and collect as much information as possible about the local demand and trends of the party planning market in your locality.
It is essential to know more about your local rivals and understand their focal point and their approach. You have to remember this while determining your unique selling point. By providing a unique type of service or experience you can try to be different or extraordinary.
Additionally, one should find out more about local venues for events and find more business contacts. You will need to be familiar with different kinds of dependable local caterers, vendors, artists, and other professionals. You will be responsible for organizing and coordinating these different components so that the event is noteworthy.
2. Select your Niche
While many party organizers switch between different clients and different kinds of events, many find their niche and concentrate on it. If you want you can later change your niche. You have to consider the following aspects if you want to start a party planning business.
You should first decide the type of clients you want to concentrate on. There are two main types of clientele for a party planner. Either they are corporate or social.
Most popular corporate party events include:
- Corporate meetings
- Retirement parties
- Trade shows
- Business conferences
- Farewell parties
However social party organizers cover different kinds of social events Some of the popular party events are as follows;
- Birthday parties
- Wedding receptions
- Family reunions
- Baby showers
- Dinner parties
- Christmas parties
- Dance parties
Secondly, you have to decide the type of parties you want to organize. Many party planners plan only those kinds of parties that they enjoy organizing. They may concentrate on a particular type of event like birthday parties or a certain kind of theme they specialize in.
You can also organize parties for children. Birthday parties with kids are not similar to parties with adults, and family gatherings. You have to keep the age group of the children in mind while customizing the decorations, entertainment, and refreshments. Some party organizers, for this reason, choose to organize kid’s parties. On the other hand, others prefer not to plan children’s parties.
3. Get Certified
You don’t necessarily require a college degree to start a party planning business. However, for a better understanding, you can consider obtaining a bachelor’s degree or certificate in event planning from a college or university.
A master’s in business management, marketing, and hospitality management would teach you more about the required skills to be a party organizer. Event organization certificates are specially offered by some colleges and professional institutions.
4. Hire a Lawyer
Even though party planning does not usually need a license it is required by some local and state governments. It is wise for you to spend money on getting a liability license since you may have to deal with the large unmanageable crowd at some of the parties you plan.
If a guest is hurt or causes a loss at a party location it will protect you. You should understand the right kind of coverage required for your business. For this, you need to talk to your local lawyer.
5. Create a Business Plan
You need to jot down what your unique selling point will be and the steps you will take to achieve this. Build a market analysis for your business. Well-Planned market research will help you a lot in this regard.
To decide the volume of your probable market. You can use the information that you collected earlier. Then you can decide the rates that you will impose on your business and the income group you will target.
Next, you need to evaluate the initial cost that you may need, the basic advertising fees, and the rent for office space. You have to plan if you can incur the cost of business yourself or if you will need to take a loan to meet your expenses in the beginning.
6. Choose a Name For Your Party Planning Company
Choose an uncomplicated name that will inform your clients about the exact services given by your company. You can choose your city name or you can try looking for a name with a simple web address that is applicable. Check this article to know more about naming a business.
You will have to choose another business name if it is identical to the name of any other business. Your company has to be registered with the state or country government.
7. Register Your Party Planning Business
It is not mandatory to register your home-based party planning business. However, it is always advised to make it legally compliant. Research and find out the laws of your local and state business and decide whether your company requires any kind of registration, license, or permit.
Party planners in the U.S. are not accountable for any kind of business registration apart from tax collection. You have to, however, check again with your local and state government policies before you start a party planning business. However, most entrepreneurs prefer forming an LLC as it provides certain benefits.
8. Setup your Office
To do your work systematically you will need some office space although the space required will be lesser than other businesses. Few party planners use their home offices for this purpose.
You will also require a computer and printer which can help you to print advertisements in big quantities. Your office should be spacious enough to safely store materials like party supplies which can be kept away from dirt.
Renting out a permanent office space is a good option. If you are a professional who works from home you can choose to meet clients in public places like coffee shops and restaurants.
10. Define Unique Selling Propositions
Select the type of party you will concentrate on and analyze your unique selling point with other party planners in your locality. When you are meeting your clients or advertising your business ensure to stress your unique selling point.
In your initial days when you start a party planning business, you can begin with planning various kinds of parties. As people start trusting you and the business you can concentrate on a particular type of party.
11. Set a Price For Your Party Planning Business
There are different factors that have been taken into consideration while setting the price for your services.
You have to check the rates in your locality. You should also check the rates of your competitors to get a fair insight into what to charge. Areas that have a high cost of living will have a higher hourly rate.
The price of your services also depends on the experience that you possess. If you have previous party planning experience then you can charge a higher price than someone who is going to start a party planning business.
You will also have to decide whether your price is on an hourly basis or if you are going to take a markup fee. You can choose to charge a markup fee of 15 percent for all the items that you take from suppliers and supply at the event.
12. Be Adaptable And Get Ready For Surprises
The one thing that is known to everybody who plans events is that plans can change. If you want to be a successful party planner then you must be prepared so that the party you have planned is successful under all circumstances.
Don’t get alarmed. Instead, you should have an alternative for every party you are planning. You should have a list of dependable caterers, entertainers, and venues.
13. Advertise Your Business Efficiently
When you start a party planning business marketing becomes an integral part of building customer relations and reputation. It is essential to create a website that is pleasing to the eyes and simple to operate. One should make sure to have the name of your website and your contact information clearly mentioned.
You can create flyers and do a door-to-door distribution. Furthermore, inform your family and friends about your party planning business and request them to suggest your name to anybody who wants an event organized.
Suggested Read: Low-Cost Ways To Promote Your Small Business
14. Strong Social Media Presence is a Must
Social Media is a highly powerful form of advertising for your company. You can create a social media account on Facebook, Twitter, Instagram, and YouTube for your company.
If an existing client questions you on these social media platforms and if they are relevant then you should reply to them so that everybody can see them. It will show that you are interested in their queries if you participate personally with your existing clients.
Display your expertise by uploading photos of parties that you have successfully planned. Ascertain that you receive permission from your clients if they are present in the photos.
15. Hone your Networking Skills
When you start your business as a party planner you have to sharpen your networking skills since it is important to operate your business effortlessly. You should keep your eyes open for new entertainers and catering services.
It may happen that a client may ask for the type of catering service or performer with whom you should be in contact. In addition, you have to keep your contact list updated because a business may change addresses or close down.
You should meet other party planners and service providers by visiting trade shows for party planners. You can pursue your education and keep yourself updated on what is in vogue.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.