How to Start an Event Venue Business

Events are happening again, and people are anxious to get out and have fun! Event venues suffered during the pandemic, but now the events industry is poised to expand more than 35% by 2028 to reach an astounding $1.5 trillion. Event venues rake in a large part of that total, so starting your own event venue could be very lucrative. It takes an investment and hard work to get started, but you can bring in some good money.

But before you start hunting for that perfect venue, you’ll need to prepare yourself by learning some business skills. Fortunately, this step-by-step guide details everything you need to know about starting an event venue business.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting an event venue has pros and cons to consider before deciding if it’s right for you.

Event venue industry trends

Industry size and growth

• Industry size and past growth – The global events industry was worth $1.14 trillion in 2019.((https://www.alliedmarketresearch.com/events-industry-market)) 
• Growth forecast – The global events industry is projected to expand by nearly 37% by 2028 to reach $1.55 trillion. 

Trends and challenges

Trends in the event venue industry include:

• In the wake of the pandemic, hybrid events in which some attend in-person and some attend virtually are popular, and seem to be a trend that will continue. This means that event venues need to have up-to-date technology.
• Corporate events are becoming smaller but more frequent, which is an opportunity for event venues to get repeat business.

Challenges in the event venue industry include:

• Wedding receptions are tending toward the smaller side, which means lower revenue for those events since venues often charge per person.
• Labor shortages are making it difficult for event venues to find and retain employees.

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 event venues?

• Gender – 71.2% of event planners are female, while 23.3% are male.((https://www.zippia.com/event-planner-jobs/demographics/)) 
• 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 an event venue business?

Startup costs for an event venue range from $50,000 to $135,000. The largest expense is for the down payment on the event space. 

You’ll need a handful of items to successfully launch your event venue business, including: 

• Tables and chairs
• Various décor items
• Podium
• Tents for outdoor events

How much can you earn from an event venue business?

Prices for an event venue depend on the size of the event but average about $13,000. Your profit margin after labor and overhead should be about 30%.

In your first year or two, you might host 15 events per year, bringing in $195,000 in annual revenue. This would mean $58,000 in profit, assuming that 30% margin. As you ramp up your marketing and get repeat business, that number could grow to 25 events a year. With annual revenue of $325,000, you’d make a tidy profit of $97,000.

What barriers to entry are there?

There are a few barriers to entry for an event venue. Your biggest challenges will be:

• The cost of the venue and its preparation
• Finding an ideal location for your venue

Related Business Ideas

If you’re still not sure whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.

How to Start an Event Planning Business

Read Now

How to Open a Wedding Venue

Read Now

How to Start a Wedding Planning Business

Read Now

Step 2: Hone Your Idea

Now that you know what’s involved in starting an event venue, 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 venues 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 an event venue that hosts networking events or corporate cocktail receptions. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as corporate events or family reunions.

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

What? Determine your products or services

You can host any number of types of events including:

• Networking events, such as for the local chamber of commerce
• Wedding receptions
• Corporate events
• Cocktail receptions
• Birthday parties

You could also offer your venue as a meeting space. For additional revenue, you could also provide event coordinator services. 

How much should you charge for event venue rentals?

Your prices will depend on the size of the event and the scope of preparations involved. Check other event venues in your area to make sure that your prices are competitive. 

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 depend on the type of events you host. If you want to specialize in corporate events, you can find business owners on LinkedIn. If you want to specialize in wedding receptions, you should spread out your marketing to include TikTok, Instagram, and Facebook. 

Where? Choose your event venue location

Choosing the right location for your event venue business is crucial to its success.

Look for a spot that’s accessible to your target market and has ample parking space. Consider the size of the venue and the number of guests it can accommodate, as well as any nearby amenities that can make your venue more attractive, such as hotels, restaurants, or shopping centers.

You’ll need to ensure that your business complies with any local rules and regulations, including those related to parking, noise levels, and building codes.

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
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Venue Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

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 venue” or “event space”, boosts SEO
• Name should allow for expansion, for ex: “Sapphire Event Center” over “Rustic Barn Events” or “Rooftop Terrace Events”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

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 an Event Venue Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Summarize your event venue business’s goal to provide an attractive, versatile space for a variety of events, from weddings and corporate gatherings to community events.
• Business Overview: Describe your venue’s focus on renting space for events, featuring amenities like a main hall, catering facilities, and audio-visual equipment.
• Product and Services: Detail the services offered, including venue rental for various events, additional services like setup and cleanup, and optional packages for decor and technology.
• Market Analysis: Assess the demand for event spaces in your area, considering factors like local event frequency, population demographics, and existing venue options.
• Competitive Analysis: Compare your venue to other local event spaces, focusing on your unique selling points like location, capacity, or special amenities.
• Sales and Marketing: Outline your strategy for attracting event planners and customers, including digital marketing, partnerships with event planners, and hosting open houses.
• Management Team: Highlight the experience and skills of your team, especially in areas like event management, hospitality, and customer service.
• Operations Plan: Describe the operational process, including event booking, venue preparation, client coordination, and maintenance.
• Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategies, and revenue projections.
• Appendix: Include supplementary documents such as floor plans, customer testimonials, or detailed market research to support 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 event venues. 

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 venue 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. 

Form Your LLC

Choose Your State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Search

We recommend ZenBusiness as the Best LLC Service for 2024

starts at $0, plus state fees

4.7/5

starts at $0, plus state fees

Visit ZenBusiness

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.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

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 an event venue business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Event Venue Business Licenses and Permits

Starting an event venue business requires obtaining a number of licenses and permits from local, state, and federal governments. For starters, you’ll need a liquor license if you’re going to serve alcohol. 

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 event venue 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 Curate, HoneyBook, or bloom, to manage your planning, bookings, 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:

1. Social Media Influencer Collaborations: Leverage the power of social media influencers in your locality to showcase your venue. Partner with influencers who align with your target audience, and have them create engaging content that highlights the uniqueness and versatility of your event space.
2. Themed Open House Events: Host themed open house events showcasing different setups and possibilities for events at your venue. Invite local businesses, event planners, and potential clients to experience the ambiance, fostering a personal connection with your space.
3. Strategic Partnerships with Local Vendors: Forge partnerships with local catering companies, florists, and event planners. Offer package deals or discounts for clients who use both your venue and their services, creating a mutually beneficial network within the events industry.
4. Referral Programs for Previous Clients: Implement a referral program that rewards previous clients who refer new business to your venue. Word-of-mouth recommendations carry significant weight in the events industry, and incentivizing referrals can boost your client base.
5. Exclusive Membership Programs: Create an exclusive membership program for repeat clients or those who frequently host events. Offer perks such as discounted rates, priority booking, or additional services to encourage long-term relationships and repeat business.
6. Online Reviews and Testimonials Campaign: Actively encourage satisfied clients to leave positive reviews on popular review platforms. Showcase these testimonials on your website and in marketing materials to build trust and credibility among potential clients researching event venues.
7. Local Community Engagement: Participate in local community events, sponsor local sports teams, or collaborate with charitable organizations. This not only increases your brand visibility but also portrays your venue as an integral part of the community.
8. Virtual Tours and 360-Degree Videos: Invest in high-quality virtual tours and 360-degree videos of your event space. Share these immersive experiences on your website and social media platforms to give potential clients a realistic preview of your venue, even if they can’t visit in person.
9. Email Marketing Campaigns: Build an email list by offering promotions or exclusive content to those who subscribe. Regularly send out newsletters with updates, promotions, and success stories to keep your venue top-of-mind for potential clients.
10. Host Industry-Specific Workshops and Seminars: Position your venue as an industry leader by hosting workshops or seminars relevant to event planning, design, or hospitality. This not only attracts professionals in the field but also establishes your venue as an expert resource in the events industry.

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 venue 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 venue business could be: 

• Host your corporate events in a luxury space
• The perfect space for your networking events
• Event planning and hosting in a unique, rustic setting

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

• Event Workers – coordinate, set up events
• Cleaners – clean up after events
• 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 an Event Venue – Start Making Money!

Who isn’t ready to get back out there and enjoy some good times again? Events of all types are coming back strong, which is why the events industry is booming. With your own event venue, you can help people get back to having fun. It will take an investment to get started, but clearly, you can bring in good money and make a nice living.

You’ve honed your business skills, so now you’re ready to go find that perfect space and get your event venue started!