Event Management Business
How to Start an Event Management Business:
Now a day, everyone is dreaming to make their events more memorable and extra special. The special event industry is grown drastically since a decade. My researches have proved that people are spending $ 500 billion dollars annually only for events. This made a great market for event management companies around the world. Innovations in technology creativeness and man’s search for new ideas further led to the success of an event planning business.
Everyone expecting their special events in their life to be remembered and cherished by other. And special events industry has created a boom in the past years. So, this is the best time to start a business in this unique field?
Why do we hire event planners for Event Management Business?
Due to a busy schedule, the individual often finds they lack the expertise and time to plan their events. So, people are opting the event planner to make their event successful and memorable.
The first Question in the mind is What is Event Planning?
Event planning means it has many definitions, first you have talked about, what kind of events are we talking about? And then comes what is event planning?
Speaking of the events, events are like:
- Celebration (Wedding, Birthdays, reception, gettogether, anniversaries etc.).
- Promotions (Product launches, Political rallies, exhibitions, fashion shows etc.).
- Education(Conferences, meeting, convocations, job fairs, youth festivals etc.).
- Commemorations (Civic events, memorials).
- Business Events.
Are you Ready to start an Event Management Business?
Want to start an event management Business? First, make sure you know where you are. In event management business you need solid social networking and business development skills to get succeed. Success in this business doesn’t depend on your experience and knowledge level but also your public relations. Skills to get succeed in event management business:
- Capable of managing people effectively to get the job done quickly.
- Capable of managing time and prioritize tasks.
- Good decision-making skills and problem-solving skills.
- Capable to find new and innovative ways to solve your problems.
- Capable of selling your ideas.
- Should have effective talking capacity that can attract clients.
- Manage your cash flows and keep track of financial transactions.
- Team Management.
- Leadership qualities.
- The capability of motivating yourself and others.
Event management certifications are available that help to become a certified event planner. These certifications help you to improve your skills, knowledge, experience and ability to plan and manage a successful event.
There can be many more. So now how can you plan an Event Management Business and what should we do as an event planner?
- The first step makes a complete study of the event.
- Create a perfect event design.
- Select the best place to do the event. The location should be confirmed as per customers interest.
- Next, come decoration, food and the entertainment.
- Once you are ready for the above things, next is planning transportation to and from the event.
- Designing a perfect and attractive invitation card. Sending to attendees as per customer list.
- Next is to arrange the necessary accommodations for the attendees.
- Coordination the activities of event personnel.
- You should supervise site completely.
- Should evaluate the event every moment.
Now to start an Event Management Business, first prepare the perfect Business Plan. The business plan is an important part of your business. A business plan will put your objectives in writing and keep you focused on the long-term goals of your business. Event Management Business plan will cover the major aspects of your business like About the business, objectives, how to operates, Structure and other elements.
An Event Management Business Plan includes:
- Descriptions: this is the first step in your business plans it represents that who you are or what you want your business to be.
- Objective: This should represent your goals. What are goals you want to set your business?
- Structure of your business: This represents whether you want to operate a business on a single hand and need partners or support staff.
- List out the services: it should have complete information about the service you want to offer.
- Market Potentiality: Identify the people who would be interested in your services.
- Marketing: Market your business in all possible ways to attract customers.
- Investment: Plan your investment for the business, and billing and payment process details.
Initial Business Procedures for Event Management Business:
Company Name: Decide an attractive name and logo of your company and its status whether it is partnership or proprietorship.
Initial Requirements for Event Management Business:
You would need a commercial space can also start up this company in your home. The main investment would be the event management software, computer and other accessories and internet connection. You might not need a high-speed internet connection and thus, the charge would not exceed more the 2000 rupees per month. The software cost varies from one lakh to five lakhs depending upon the company, you choose.
Your commercial space requirement would be high because you might need to store your supplies. Your office space should be aesthetically appealing. The overall capital that you would need to start up the business is 3-5 lakhs. In some cases, you would be provided with initial fund from the clients for managing the event. You would also need additional working capital as per the size of the event you are planning to manage.
Premises and staff in Event Management Business:
To start an event management company needs to rent an office space, employ workers and purchase stationery to be used for official purposes. You should also create an attractive website that offers all the details of the services.
Employ professional internet marketers to promote the website. As and when the website becomes popular the company will get a lot of visibility as well as some clients, which should help it get started on the right note.
Register your Company:
Like other companies, the event management company have the registration process. So, all the procedure like service tax, getting PAN number etc must be done in case of an event management company also. Contact and CA firm and they will help you with the event management company registration process. Registrations process will take up 30 days if you have all required documents in your hand. To register a company in India there should be two directors or board of directors.
- Register the company under the Company’s Act. In India you get it registered with ‘Indian Partnership Act’. – If it is a company.
- Documents required are PAN card of both directors.
- Address Proof and identity proof.
- Need Electricity bill, Bank Statement, Phone bills in the name of directors.
- NOC- No Objection Certificate from landowner if space is rented for registration of official address of your company.
- Electricity bill of the official address.
- Shop and Establishment Act- if it is an establishment.
- Indian partnership Act- if it is a firm.
Register for paying Taxes:
An event management company needs to pay different types of taxes and they need to register to pay them properly. Various forms of taxes may be mentioned as below:
- Income tax.
- Entertainment taxes.
- Taxes deducted from source.
- Taxes for moving merchandise and goods between locations.
- Services taxes.
The company needs to file income tax returns and TAN card for filing TDS returns.
Income and Billing in Event Management Business:
Giving price to your service is to mark up your labor and material costly sufficiently to cover overhead expenses and generate an acceptable profit. Charges vary mainly three factors:
- Type of Event: Each event has its own fee structure, social, special and corporate events have its own prices. For example, social events have a different fee structure for their services, plus a percentage of some or all vendor fee. The two income streams produce enough revenue for a profit. In case of corporate events, the planner needs to charge a fee for their services, plus a handling charge for each item they took for the contract. Another way is large, and the corporation wants to give a “not to exceed” figure.
- Location: Fee depends on the cost of living. They depend upon the location, on and off seasons base their prices in which season they are in.
- Experience: If you’re just entering this business you can charge less for your planning services.
- Event planning budgeting involves labor, supplies, and materials involved in producing an event and charges the client a service fee of about 10- 20 percent of the total cost of the event.
Decide the services you are offering to Event Management Business:
You must choose the event management services in which you have enough experience and expertise, and which can generate maximum income. Do not mix up all the services and try to sell. If you have expertise in wedding planning, then wedding planning is the best for you. The market may be favorable for corporate events. Planning a corporate event can be risky in implementation, accomplishment, and evaluation. So, don’t try to mix up and organize everything.
Apart from wedding planning and corporate events, there are lot more options which can think of, like organizing birthdays, anniversaries, exhibitions, trade fairs, kitty parties, promotional events etc.
Analysis of Competitors in Event Management Business:
Make deep study on your competitors, are and where they live. See their number of employees and client base. Check out the popularity and market presence. See their specialties and why people attend their events and how they get their clients and sponsors. There are huge competitions is metros cities, rural and urban areas. Event planners have great demand cities, town, and even small towns.
The scope of the market:
There is a 15% increase in the market annually. The industry is expected to reach 6000 crore rupees size by the end of 2019. Social events are main key steps for the demand of event managers market all over India.
ROI of Event Management Business:
Your most asset is your brochures and samples. You should spend less than 5000 rupees for this asset. A website is very essential and thus, you need to spend not less than 5000 rupees per month. Apart from these, the rent of space, utility bills, insurance amount and salary for the freelancers and employers would go up 3-5 lakhs for startup, as mentioned before. Thus, you would have to make at least 40,000 rupees per month to break, even within a few months.
Important Tips for Event Management Business:
- Contacts are the major assets in this business. So, build up your contacts.
- Trade shows are most profitable shows. So try to get trade show event.
- Expose your work through samples.
- Register with offline and online yellow pages.
- Small events should have minimum working capital of 30,000 to 60,000 rupees. For large events working capital should be 2 to 5 crores.
- Small time event management business takes 5 years to break even.
- SEO driven website can get you solid customer base.
- You can buy client list from the information companies.
Event Planning business is very slow revenue at the earlier stages. But if you can move contacts through many associations, you would be able to create a good network that would help you to find more clients and provide holistic service. This is very fast-growing sectors with huge competition.