How to Start a Party Decorating Business

Pay attention to these important factors as you establish your party decorating business:

1. Services — Decide on the range of services you will offer, such as event theme design, floral arrangements, balloon decorations, table settings, lighting, and backdrops.
2. Specialization — Consider offering specialized services like custom-made decorations, eco-friendly options, or niche market services such as children’s parties, weddings, and corporate events.
3. Supplies — Invest in high-quality decorating supplies, such as balloons, fabrics, flowers, lights, centerpieces, and tableware. Ensure you have a variety of items to cater to different themes and styles.
4. Equipment — Purchase essential tools and equipment, such as ladders, scissors, glue guns, and installation hardware, to efficiently set up and take down decorations.
5. Storage — Set up a storage space to keep your supplies organized and easily accessible.
6. 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 on the market.
7. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
8. Online presence — Create a professional website with detailed information about your services, a portfolio of past events, client testimonials, and contact information. Get listed on Google Business and Yelp and encourage positive reviews.
9. Social media — Use platforms like Instagram, Pinterest, and Facebook to showcase your creativity.
10. Collaborations — Partner with local event planners and venues to offer joint promotions and cross-promote services.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a party decorating business has pros and cons to consider before deciding if it’s right for you.

Party decorating industry trends

Industry size and growth

• Industry size and past growth – The US party and event planning industry is worth $3.2 billion. The market declined sharply during lockdowns, but expects steady 4% growth in 2022.((https://www.ibisworld.com/industry-statistics/market-size/party-event-planners-united-states/))
• Growth forecast – The party planning industry is expected to remain stagnant for the next five years.((https://www.ibisworld.com/industry-statistics/number-of-businesses/party-event-planners-united-states/)) 
• Number of businesses – In 2022, 61,047 businesses in the party and event planning industry were operating in the US. 
• Number of people employed – In 2022, the party and event planning industry employed 66,882 people.((https://www.ibisworld.com/industry-statistics/employment/party-event-planners-united-states/)) 

Trends and challenges

Trends in the party decorating industry include:

• Outdoor parties with nature themes and floral décor are trending.
• Paperless menus and eco-friendly décor items are in demand.

Challenges in the party decorating industry include:

• When planning the decorations for a party or event, it’s important to keep the client’s budget in mind, which can be a challenge. 
• Party decorating is a luxury service, so the business is very sensitive to inflation and economic fluctuations. 

Demand hotspots

• Most popular states – The most popular states for event planners are New York, Massachusetts, and Connecticut.((https://www.zippia.com/event-planner-jobs/best-states/))
• Least popular states – The least popular states for event planners are Montana, New Mexico, and Wyoming. 

What kind of people work in party decorating?

• Gender – 71.2% of event planners are female, while 23.3% are male.((https://www.zippia.com/event-planner-jobs/resume/))
• Average level of education – The average event planner has a bachelor’s degree.
• Average age – The average event planner in the US is 37.6 years old.

How much does it cost to start a party decorating business?

Startup costs for a party decorating business range from $2,000 to $5,000. The main costs are for a website and a marketing budget. The customer will pay for all décor items, so there is no need for inventory.

To brush up on your skills, you might also take an online party planning course, such as at Udemy. 

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Initial marketing budget	$500 - $1,000	$750
Total	$2,050 - $5,100	$3,575

How much can you earn from a party decorating business?

You can charge by the hour for your party decorating services, and rates generally run between $60 and $80. The average party decorating job will pay around $600. Your profit margin after marketing costs should be about 90%.

In your first year or two, you could decorate 2 parties per week, bringing in $62,400 in annual revenue. This would mean about $56,000 in profit, assuming that 90% margin. As your brand gains recognition and you begin to get referrals, sales could climb to 10 parties per week. At this stage, you’d hire staff, reducing your profit margin to around 40%. With annual revenue of $312,000, you’d make a tidy profit of about $125,000.

What barriers to entry are there?

There are a few barriers to entry for a party decorating business. Your biggest challenges will be:

• Having outstanding decorating skills
• Competition from other party decorating companies

Step 2: Hone Your Idea

Now that you know what’s involved in starting a party decorating, 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 party decorating 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 party decorating business that specializes in corporate events.

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

What? Determine your services and offerings

You’ll just need to determine the scope of your services in terms of how elaborately you’re willing to decorate, and if you’ll do the decoration tear down. Be sure to list all of your services and offerings on your website.

How much should you charge for party decorating?

You could charge $60 an hour to start, or you could determine flat rates based on the scope of the decorating and the client’s budget. Your costs will be limited to marketing costs and fuel, so you should aim for a profit margin of 90%.

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

Who? Identify your target market

Your target market will tend to be more established people who you can find on Facebook or LinkedIn. You could also reach out to local party planners, corporate planners, wedding planners, and party stores to get referrals.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can 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 a Party Decor Business Name

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 “party decorating” or “event decorating”, boosts SEO
• Name should allow for expansion, for ex: “Dreamy Decorations” over “Kids’ Party Magic”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

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. 

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 a Party Decorating Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief overview of your business plan, highlighting key points and objectives.
• Business Overview: An introduction to your party decorating business, including its name, location, and a concise mission statement.
• Product and Services: Detailed descriptions of the decorations and services you offer, such as balloon arrangements, theme party designs, and event setup.
• Market Analysis: Research and insights into your target market, including demographics, trends, and potential customer needs.
• Competitive Analysis: Evaluation of competitors in your area, their strengths and weaknesses, and how your business will differentiate itself.
• Sales and Marketing: Your strategies for attracting customers and promoting your party decorating services, including advertising, social media, and partnerships.
• Management Team: Introductions to key team members and their roles in the business, highlighting relevant experience and skills.
• Operations Plan: Details on how your business will operate, from sourcing materials to managing orders and logistics.
• Financial Plan: Projections for revenue, expenses, and profitability, including startup costs, pricing strategies, and financial forecasts.
• Appendix: Supporting documents and additional information, such as resumes, legal documents, and any supplementary data that reinforces your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

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 party decorating 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 party decorating 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. 

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.

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.

Bank and SBA loans are probably the best option, other than friends and family, for funding a party decorating business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Business Licenses and Permits

Starting a party decorating 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 (DBA), health licenses and permits 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 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, but 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 ensure you’re fully compliant.

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.

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 party decorating 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 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 may want to use industry-specific software, such as SOCIO, EventPro, or GoodShuffle, to manage your planning, workflows, invoicing, and payments. 

Accounting

• 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. 

Marketing

Here are some powerful marketing strategies for your future business:

• Social Media: Leverage the power of social media platforms like Instagram, Pinterest, and TikTok to showcase your vibrant and creative party decorations through visually appealing posts and short videos, engaging with potential clients and influencers to expand your reach.
• Collaborate with Event Planners: Establish partnerships with local event planners, offering them exclusive deals or discounts for bringing clients your way, creating a mutually beneficial relationship that can lead to a steady stream of business.
• Themed Package Deals: Create themed package deals for popular events or occasions, such as birthdays, weddings, and corporate parties, providing customers with a convenient and cost-effective option for their specific celebration needs.
• Interactive Workshops: Host hands-on workshops or webinars demonstrating DIY party decorating tips and tricks, positioning your business as an authority in the field while building a community of engaged customers who may later hire your services.
• Loyalty Programs: Implement a loyalty program that rewards repeat customers with discounts or exclusive offers, encouraging them to choose your services for multiple events and fostering long-term relationships.
• Local Sponsorships: Sponsor local community events, school fundraisers, or sports teams, putting your brand in front of a diverse audience while contributing to the community, enhancing your business’s reputation.
• Showcase at Trade Shows: Participate in relevant trade shows or bridal fairs to display your decorations, network with potential clients, and stay updated on industry trends, ensuring your business remains current and competitive.
• Customer Testimonials and Case Studies: Request and showcase customer testimonials and case studies on your social media and marketing materials, building trust with potential clients and providing tangible evidence of your ability to create memorable events.
• Google My Business Optimization: Optimize your Google My Business profile with high-quality images, detailed service descriptions, and positive customer reviews, making it easier for local clients to find and choose your party decorating business.
• Referral Program: Encourage word-of-mouth marketing by implementing a referral program that rewards existing clients for recommending your services to friends and family, turning satisfied customers into brand advocates.

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 party decorating 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 party decorating business could be: 

• Corporate event decorating – impress your team!
• Party decorating — for the 1st birthday to the 100th
• Last-minute party? Let us decorate for you!

Networking

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 a party decorating business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in party decorating 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 party decorating. 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 a party decorating business include:

• Party Decorating Assistants – help with setup and tear down
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

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 a Party Decorating Business – Start Making Money!

Party decorating can be fun, but it can also be a lucrative business. If you’re a passionate party decorator and have a creative touch, this is a great time to turn that passion into good money. Party decorating is part of a growing $3 billion industry, and for a small investment, you could grab a share of that market.

You’ve now got all the required business know-how, so it’s time to put together your plan and start partying toward entrepreneurial success! 

Frequently Asked Topics

Can a party decorating business be profitable?

Absolutely. You can earn up to $750 per party, which includes the planning, item purchasing, setup, and teardown. If you do a great job, you’re bound to start getting referrals to new clients.

How can I differentiate my party decorating business from competitors in the market?

To differentiate your party decorating business, focus on unique design concepts, offer specialized themes or styles, provide exceptional attention to detail, and prioritize customer satisfaction through excellent communication and prompt service.

How can I offer customized and personalized party decorating services?

Offer customized and personalized party decorating services by conducting detailed consultations with clients to understand their preferences, creating tailored decor packages, incorporating personalized elements such as custom signage or monograms, and providing options for personalized touches like custom centerpieces or party favors.

Can I start a party decorating business on the side?

Yes, you can start a party decorating business on the side. However, ensure you have a clear business plan, effectively manage your time and resources, and consider starting with smaller events or gradually building your client base before committing to larger or more complex projects.

How can I find clients for my party decorating business?

Find clients for your party decorating business by networking within your local community, attending local events or expos, leveraging social media platforms to showcase your work, offering special promotions or discounts, partnering with event planners or venues, and encouraging client referrals through satisfied customers or positive online reviews.