How to Start an Event Planning Business – Learn from Pros

Pay attention to these important factors as you establish your event planning business:

1. Define your niche — Decide on the types of events you will plan, such as weddings, corporate events, parties, conferences, or fundraisers. 
2. Event planning tools — Invest in high-quality tools and software necessary for planning and managing events, such as event management software, design software, and project management tools.
3. Supplies — Ensure you have all the necessary supplies for planning and executing events, such as decorations, audiovisual equipment, and promotional materials.
4. Website and online presence — Create a professional website showcasing your services, portfolio, client testimonials, and contact information. Offer online booking options and maintain active social media profiles to engage with potential clients.
5. 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.
6. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
7. Hire staff — Hire experienced and skilled staff for various roles, including event coordinators, designers, administrative support, and marketing professionals.
8. Partnerships — Build relationships with local vendors, venues, and service providers to generate referrals and collaborate on projects.
9. Learn from real entrepreneurs who run an event planning business:

• How Zentive Agency is Redefining Sustainable Events
• How to Innovate in Bachelor Party Planning
• How Carla Bejan-Negru Blends Art & Structure in Event Planning
• How to Plan ‘WOW’ Events: Tips from Christa Guglielmelli
• Crafting Unique Love Stories: Amber’s Approach to Wedding Planning

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.

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. 

Start-up Costs	Ballpark Range	Average
Setting up a business name and corportation	$150 - $200	$175
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
Virtual and hybrid event software	$0 - $2,000	$1,000
Initial marketing budget	$500 - $1,000	$750
Total	$2,050 - $7,100	$4,575

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

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.

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

What? Determine your 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. Here are the most common types of event planning services:

• Corporate event planning
• Wedding planning
• Bachelor party planning
• Social event planning
• Non-profit event planning
• Festival and concert planning
• Conference and seminar planning
• Sports event planning
• Destination event planning
• Virtual event planning
• Exhibition and trade show planning

You could also expand your business by adding additional services including:

• Catering
• Bartending
• 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

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”
• 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 below. 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 an Event Planning Business Plan

Here are the key components of a business plan:

• 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

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.

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.

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. 

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.

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:

• 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.
• 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.
• Local 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.

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

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 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! 

Q&A

How profitable is an event planning business?

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.

How do I create event proposals and contracts for clients?

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.

How do you get clients for an event planning business?

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.

Can I start event planning business on the side?

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.

Which course is best for event planner?

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).