Start & Run an Event-Planning Business. Mardi Foster-Walker
and running a successful special events business. You are capable of capitalizing on your strengths and compensating for your weaknesses as long as you know what they are and if your desire to do so is powerful enough.
Once you have determined that starting a special events business is the right venture for you, take some time to test your ability to create special events. If you have not created events before, we recommend that you create on paper two or three theme events. Organize them in a portfolio with sketches, photos, fabric swatches, menus, rental details, production schedules, and budgets. Use this portfolio of event ideas when doing your market research by showing them to family and friends.
Determining Your Market
Once you have decided on whether or not this field is right for you, your next step is to determine your market or area of specialty. Is there a big enough market waiting to hire you to produce their special events? Make certain you discover this before you risk time and money on starting a business.
Many start-up operations are established solely on instinct and optimism. The enthusiastic new business owner may have only a vague idea about who his or her clients are or, indeed, whether or not there will be any clients at all. Operating on blind faith, such people are relying on plain old luck to see them through, and sometimes, it takes just that. However, while every business needs a little luck now and then, banking on it is hazardous to the long-term health of your enterprise.
The special events industry is so vast that the event organizer is not limited to just one market segment. Even those who are experts in the events business will have a difficult time trying to define all the potential markets. But to be successful in a field that is so broad, you need to find your niche — a specialty that combines your best capabilities with a service that is necessary and, preferably, underserved in your area. As outlined in the introduction, the choices are plentiful: conferences, conventions, incentives, corporate meetings, expositions, trade shows, fund-raisers, weddings, sporting events, concerts, festivals, parades, children’s events, golf tournaments, and the list goes on. When you concentrate on one market, referrals and word-of-mouth businesses come your way much more quickly. On the flip side, when you work in different fields and functions, you reduce your chances to become known as the best in the business.
Where do you see yourself? What makes sense to you and the community you plan to serve? You may need some experience to gain this insight, but what’s important is to keep your options open and remember that you cannot succeed if you spread your special events business too thin. The key to your success is to identify your potential customers, to know what they want, and to determine how to fill that need.
Market Research
Your market is that segment of the population that could potentially use your service. Finding out who they are and what they want is called market research. This research will provide you with the data you need to help identify your potential clients and determine how to reach them. Conducting thorough market research is the foundation of any successful business.
First, you must research your competition. Any special events company that is doing serious business will be advertised in the Yellow Pages and will likely have a website. Spend time looking at your competitors’ websites and studying their printed materials. This should give you a good idea of who the major players in the marketplace are and the type of competition you are up against. Remember that these people may be your competitors now, but there is a good possibility that they will become your future colleagues — people who will refer clients to you and people with whom you may associate professionally to share information on growing your businesses. It is not in your best interest to pretend to be a customer and waste another event professional’s time asking for quotes or ideas. This type of behavior can return to haunt you.
Competition is not a deterrent to going into business. However, it is important to know who your competitors are and where they are located so that you are on an equal footing. Knowing your competition allows you to learn from them. What do they do right? What do they do wrong? How will you be better?
Market research helps confirm market size, minimize financial risk, save time, and pinpoint where you should concentrate your service. Researching your market can also uncover market segments that you may not have originally considered. It establishes a foundation for decision-making and positioning your service. However, not taking the time to do some basic market research can cause you to fail when you might otherwise have succeeded.
The steps in basic market research are outlined here.
Set a realistic time limit
Decide how much time you intend to devote to market research and stick to that time limit. Think in terms of normal working days and eliminate weekends. Do not become so caught up in doing research that it takes precedence over getting the business started.
Define your information needs
What do you need to know? By properly defining your needs, you can save valuable time and avoid having to cope with too much information. To give your special events business a realistic chance of success, and to have the information necessary to write a comprehensive business plan, you must define what data is relevant for your proposed business.
When you are starting out, you should collect information about the following aspects of the industry:
(a) Number of potential markets
(b) Size of each market
(c) Market trends
(d) Demographics of the clients served within markets
(e) Competitive companies
(f) Market share
Within the market as a whole, you will also want to identify demographics, industry outlook, growth potential, economic trends, population shifts, consumer trends, and relevant economic indicators.
For example, if your proposed business is located in an area with a convention center, you could consider convention management, trade shows, event or conference registration, and spousal programs as potential markets and gather all relevant data. The size of the market is the number of meetings and conventions booked each year. Market trends would be the size of the conventions, conferences, and trade shows booked and the types of associations, industries, and corporations booking the facility. Your target customers would be the decision-makers at the companies who organize the meetings and events. Competitive companies are the number of other companies in your area that offer their special events services to the convention center. Market share is the percentage of the convention center special events you realistically think you could attain.
Allocate resources
Your resources for market research are personnel and funds. If you are starting a business with a partner or if a family member is available, delegate tasks and responsibilities and try not to step on each other’s toes. One person could make phone calls while the other goes to the library. If you are not already set up at home with a computer and an internet connection, this is the time to install this equipment. See chapter 3 for more information on getting set up.
Much of the information-gathering will require time, but the cash required should be minimal. However, be prepared to spend some money, for government reports and publications on industry trends and statistics may be of interest, and many of them cost money.
Gather the data
Identify and contact the most appropriate sources for the information you need. Organize and file your research results as they accumulate. Don’t keep unnecessary data, and do keep an eye on your projected completion date. The following are some good sources of information, from the general to the more targeted:
The internet
The internet provides a wealth of information at