Anyone can run an event planning business, but running one that makes a profit consistently and sustainably – that’s a little more difficult. Let’s look at how to stack the odds on your side.
1. Be clear about your costs
Make sure you’re clear about the difference between fixed overheads and variable costs. The overheads are the things you have to pay for before you get any business through the door. Telephones, advertising, broadband, brochures, marketing – these have to be paid for whether or not you are getting any trade. When you’re starting, it can be difficult to estimate costs because you clearly don’t want to load a year’s worth of expenses onto the first event you organise.
Set up a simple spreadsheet, add up all your fixed costs and then distribute them over twelve months. After that you need to add the variable costs, one of which is your labour.
2. Set a reasonable price point
Be realistic about pricing. Yes, earning a thousand pounds an hour would be great, but how likely is your new business to attract that kind of payment?
Corporate clients can pay more than private clients, but they can also be a lot fussier, wanting assurances on risk management, safety, public liability insurance and other things.
Corporates tend not to want to go out on a limb with a completely new, whacky kind of event. Private individuals may do, but you’ll need to know your client if you’re to get it right. It’s important to work out how you charge – a percentage or a fixed fee? Clients expect you to give a clear answer.
3. Get fixed prices from your suppliers
If you’re doing an event that involves 10,000 daffodils and for some reason the daffodil crop is poor, you’re going to find yourself paying an awful lot for daffodils and losing your profit.
OK, that’s an extreme example – but by fixing the price of items, you are effectively transferring the risk to your supplier. Some items, such as marquees will have an agreed price which won’t change. For marquee hire in Kent, try firms who have a good reputation for helping novice weddings and events planners, such as http://www.2intents.co.uk.
And whatever you do, don’t forget to smile – that’s what your clients expect!