Starting an event planning business? Budgeting your startup costs!

Introduction

As event planning has become more and more popular, it requires more and more effort to stand out. A well-executed event can generate buzz that creates incredible exposure and publicity for your business. However, throwing a successful event takes a lot of careful planning and a substantial budget, and with the rising cost of goods and services, creating a successful event can be a costly undertaking.

According to a report by Statista, the global event planning and management market size was estimated at around 0 billion in 2018 and is expected to grow significantly in the future. Event planning and management is no longer considered an extravagance; It’s a must-have for businesses that take their business goals seriously.

If you are considering taking up event planning as a career and owning your own business, you need to understand exactly how much starting an event planner business will cost you. This blog post will discuss essential expenses to consider when starting an event planning business.

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start-up costs

When planning to open or launch an event planner business, there are some start-up costs to consider. Typically, costs break down into the following categories:

• Software
• Website
• Event equipment
• Assurance
• commercial license
• Advertisement
• Office supplies
• Travel cost
• Professional services

This range of start-up costs for an event planner business will largely depend on the size and scope of your business and the number of events you want to plan per year. It is important to obtain the necessary software and equipment, as well as obtain the necessary licenses and insurance. Additionally, professional services such as accountants, lawyers, and marketing experts can be invaluable during the start-up phase. Advertising is also essential to make your event planner business visible, while office supplies and travel expenses are necessary to keep the business running.

Software

When it comes to running a successful event planning business, software is a vital component. Depending on the size of your business and the scope of services you offer, investing in the right software could mean the difference between success and failure. Here’s an overview of what you should consider when considering software to run your business.

Fees: The cost of event planning software can range from tens to tens of thousands of dollars. To start with basic technology, free programs like Google Calendar and Trello may be sufficient. For more comprehensive software, pricing could start around 0 USD for basic event planning tools and up to ,000 per year for more advanced solutions for enterprise-level businesses.

Features: Depends on the type of software you choose, but typical event planning features include event page design, event registration, and ticketing, budgeting, and expense management tools , data tracking, marketing tools for sharing and promotion, and analytics tracking for post-event analytics.

Integrations: It is important to consider the different ways the software integrates with other services. For example, a lot of software is integrated with ticketing services and accounting systems that allow users to set up automated notifications and payment processing. Look for programs that sync with email, project management, and marketing tools.

Community/support: Most software companies offer documentation, online support, and a help center, so you always have access to answers and tips. It’s also helpful that the software has a large community of users who can provide advice and share best practices, or a customer list you can draw from for referrals and potential collaborations.

Website

Starting an event planner business can be a surprisingly affordable venture. Depending on the size, scope, and reach of the services you offer, you can expect to need a few thousand dollars to set up and launch your business.

Fees traditionally associated with starting an event planner business include:

• Business License – to 0 depending on city, county and state requirements.
• Insurance – about 0 per year in premiums.
• Website Hosting – You can pay as low as per month.
• Website Development – Budget around ,500 for a decent website.
• Marketing – Setting aside ,000 for marketing materials is a safe bet.

You might want to add a few thousand more to cover unexpected costs or just cover yourself for the first few months until your event planning business takes off. Overall, a decent budget to start is between ,000 and ,000.

You can also save on expenses by starting small and working as a freelancer. This option requires minimal investment and you can easily build your business as time progresses. That said, if you plan to take on other employees and add other services to your portfolio, the costs could reach ,000 or more depending on the number of services, associated expenses, and the size of the organization. crew.

It is important to have the right legal structure for your business, you can also consider legal services and overhead costs associated with running a business (accounting, secretary, etc.) from ,000 to ,000 .

Event equipment

When budgeting for an event, equipment costs should be among the first items to consider. Equipment is a necessity and it can also be a big expense. According to the Statista report in 2020, the average cost of renting equipment for events was around ,000 per event. This ranges from small equipment such as screens, projectors and speakers to larger items such as stage rigs, cabling and other facilities.

The biggest (and most expensive) line item you’ll need to consider is AV equipment. This includes audio mixers, amplifiers, speakers and microphones, as well as video equipment such as monitors, projectors and cameras. Depending on the size of your event, you may also need to rent or purchase additional add-ons, such as LED walls and staging. Costs for AV equipment can vary widely: for example, a small event may only require a single PA system and screen, while the cost of a larger event can easily exceed five figures.

When budgeting for equipment, you should also consider associated costs such as installation, maintenance, and delivery. According to the small business survey, the average cost of renting and installing event equipment is around US,500. Professional audio technicians and engineers can also be quite expensive, costing anywhere from to 0 per hour in labor costs.

In summary, equipment can play a major role in an event’s overall budget. The cost of equipment varies widely depending on the size and scope of the event and can range from a few hundred dollars to tens of thousands. Be sure to budget for all associated costs and always work with a professional to ensure you get quality results.

Assurance

When starting your event planning business, it’s important to think about how you will protect yourself and your business. An important part of this process is getting proper trade assurance. This insurance can help protect your business against liability claims due to accidents that may occur at your event. One of the most important types of insurance for event planners is liability insurance. According to Assureon, the average annual cost of a million policy in 2019 was 5. However, the actual cost will vary depending on the size of the events and the nature of the business.

In addition to general liability coverage, you will likely need professional liability insurance or errors and omissions insurance. This insurance covers negligent errors or accidents as a result of advice or services provided by your company. According to Assureon, the average annual cost of a million policy in 2019 was 5. The cost of this policy may vary depending on the nature of your services.

You may also need additional insurance depending on the specific events and services your business provides. For example, if you push and pull heavy furniture or equipment, you may need inland marine insurance. This can help provide coverage if property owned by you, a customer or a supplier is damaged. Depending on the size of your events, you may need other policies such as alcohol excess liability. The cost of these policies can vary, so it is important to research the specific policies and the cost.

commercial license

Opening an event planning business requires the right documents, deposits, and fees. Depending on your exact business, you may need various state and local licenses or permits. At the federal level, businesses may need licenses or authorization from the Small Business Administration (SBA) or the IRS.

Obtaining an event planner license could cost anywhere from 0 to 0. This cost could also vary from state to state, as these businesses are usually run locally. A business might need to register with the state, obtain a Unique Employer Identification Number (EIN) from the IRS, and purchase a special license from the state.

Additionally, event planner businesses may need to obtain local licenses or permits. These can include ordinances on zoning, building codes, public health, and fire safety. The requirements for these permits can vary from city to city, so the cost could range from a few hundred to thousands of dollars.

The average cost of obtaining business licenses in the United States is estimated at .80 in 2021. This is about 2.8% lower than in 2020, when the average cost of registering a business license was estimated .86 .

Business owners should research the fees they may need to pay before starting an event planner business. This could include filing incorporation documents with the Secretary of State’s office, licensing fees, and applicable filing fees. All fees vary by jurisdiction, so you should check with your local law enforcement agencies for details.

Advertisement

Advertising is an important part of launching an event planner. Without the right marketing budget to get your message across, it can be difficult to attract a large enough audience to create a successful event. With the right advertising plan, however, you can make your event a must-attend event and engage a wide variety of potential attendees.

Recent statistics indicate that companies spend a significant portion of their budget on digital advertising. According to Statista, in 2020, American businesses spend an estimated 8.32 billion on digital advertising, ranging from search engine optimization to programmatic display. Additionally, research from the Emarketer indicates that US digital advertising spending is expected to reach 6.43 billion by 2023.

Advertising can take many forms, from TV and radio ads to sponsored content on social media. Working with a professional event planner to plan your event’s publicity strategy can help ensure your event reaches the right target audience.

For example, if you’re advertising an event in an unfamiliar location, you might want to focus on targeting potential attendees located in that area. Additionally, if you’re hosting an event that’s unique or trying to appeal to a particular demographic, such as luxury events targeting high-end consumers, you’ll need to make sure you’re investing in the right channels and strategies to captivate your desired audience.

Along with considering where you need to advertise, you also need to think about the budget required. Advertising costs vary greatly, depending on the channels you plan to use. Digital ads tend to be cheaper than traditional TV and radio advertising, but it’s important to remember that the cost of a service isn’t the only factor to consider.

Overall, launching your event planner requires careful planning and consideration of marketing costs. With the right advertising mix, you can make your event a success and reach your target audience.

Office supplies

Opening a successful event planner requires collecting various office supplies that help you and your staff get organized. Purchasing office supplies needed to run an event planning business can range from -0, depending on the types of supplies you need . Some of the basic office supplies for a small event planning business would include:

• High Speed Laser Printer – 9.99
• Binders – .99
• Computer with dual monitor setup – 0
• Office chair – .99
• Stapler and Staples – .99
• Desk – .99
• White Board – .99
• Pens and Paper – .99
• Printer ink – .99
• External hard drive – .99

In addition to office supplies, some event planning companies will need additional hardware, software, or specialized equipment. For example, you may need to purchase a digital camera, video equipment, audio system, or other specialized equipment depending on the types of event planning services you offer. Depending on the type of equipment, prices can range from 0 to several thousand dollars for high-end digital equipment.

Once your event planning business is up and running, you will need to invest in basic office supplies such as paper, writing utensils, and printer ink on an ongoing basis. This can range from to per month, depending on usage and the types of supplies needed . With the right office supplies and regular upkeep, you should have everything you need to run a successful event planning business.

Travel cost

When starting an event planning business, travel costs are an important factor to consider and budget for in advance. The amount of travel you will need to do depends on the type of event and location, as well as the size of the event. You will need to consider airfare, ground transportation, accommodations and other expenses related to attending industry events in order to both plan and promote your business.

Airfare: The cost of airfare will highly depend on when and where you need to travel. On average, domestic flights in the United States can cost between 0 and 0. If you are traveling internationally, flights can cost up to ,000 or more.

Ground Transportation: After arriving at your destination, you will need to have a means of transportation. Depending on the city and the duration of the trip, renting a car may be necessary. The cost of car rentals varies by city, but generally ranges from to 0 per day. Additionally, carpooling services and public transportation are also options.

Furnishings: Staying in a hotel or Airbnb is usually necessary when traveling for business. Hotel costs also vary by city, but can range from to 0 per night. Airbnb can be even cheaper, but it’s important to consider all possible accommodation options before booking.

Miscellaneous Expenses: Other expenses you might incur when traveling for event planning include meals, snacks, props, tips, and materials like signage or banners. Typical meals can cost between and , depending on the restaurant and the city. Accidental products, tips and other materials may add an additional to to the total trip cost.

Professional services

Starting an event planning business can come with a hefty price tag. In 2020, the average cost to start an event planning business exceeded ,000 . This cost may include professional services, such as website development, legal service fees, and a professional business plan. These services are necessary to ensure your event planning business is successful over the long term and you are set up to handle multiple engagements.

Website development, for example, is a key part of starting an event planning business. In 2020, the range for low to high cost was between ,000 to ,000 . This includes purchasing a domain, logo design, and website graphic design. Choosing a domain name that resonates with potential customers and ensures that your website is attractive is important to encourage visitors to stay on your site.

Legal service fees are also another staple for starting an event planning business. Professional service fees for filing all documents, acquiring appropriate licenses, filing business entity forms and tax IDs, and other related processes can range from 0 to ,000 . Depending on the scope of services, costs may vary; However, it is essential to have a legal professional to perform these tasks.

Finally, developing a professional business plan is fundamental to any business launch. If you don’t know where to start, these services can range from ,000 to ,000 . The fee covers topics such as market understanding, target audience, key accounts, and more. All of the information gathered during the development phase is used to craft a successful business plan to launch your event planning business.

Conclusion

Opening an event planner business can be a lucrative venture with the right business model and strategy. Start-up costs depend on the size and scale of the business and can range from 0 to over ,000. The most important factor to consider is that you have a good marketing strategy to appeal to customers. Once you’ve established a successful event planning business, you can expect to generate a profit of at least ,000 per month .

Running an event planner business requires great organizational and networking skills, a creative eye, and most importantly, a lot of patience. A successful event planner is one who knows how to turn a vision into reality, budget wisely and stay calm even under pressure.