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How to
Start an Event and Meeting Planning Business: Start-Up Costs and Pricing
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If you are thinking of a career in meeting and event planning, there is a
lucrative market awaiting you on many fronts. An event, whether big or
small, always require planning and preparation.
by
Jenny Fulbright
PowerHomeBiz.com Staff Writer
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Introduction
Required Skills Needed
Getting into the Event Planning Business
Market Segments
Start-Up Costs
Pricing Your Services
Marketing Your Event Planning Business
Keys to Success
Resources
(article continued below ...)
Start-Up Costs
Your start-up expenses will depend on the goals you’ve set for your
business, the area that your business will serve, and the market you are
planning to target. For example, deciding to work from home during your
start-up period will be less expensive compared to renting an office
downtown. The number of assistants or employees, if any, you will require to
help you run your business and whether they will be working for you full
time or part time will also affect your start up costs.
Below are some common startup expenses in starting an event and meeting
planning business. For exact costing, you may need to check the going rates
and prices in your locality:
- Research and Development costs
- Licenses and Taxes
- Fees in professional associations and
clubs
- Office Supplies such as stationeries, etc.
- Office Equipment
- Communications equipment (e.g. cell phones, 2-way radios, etc.)
- Insurance
- Rent (if any)
- Phone/Utility Deposits
- Payroll
- Advertising/Promotion Expenses (e.g. brochures, calling cards,
advertising)
- Legal Fees & Accounting
- Insurance (1st Quarter)
- Miscellaneous
Pricing Your Services
According to Jill Moran in her book “How to Start a Home-Based Event
Planning Business”, there are four ways you can price your event planning
services:
Pricing by Percentage. In this approach, you set your price based
on a certain percentage of the total budget (e.g. 15-25 percent) depending
on your negotiations with the client.
Pricing by Fee for Services. You can list down and define the
specific tasks that you need to do to successfully run the event and offer a
set fee with the option of charging an hourly rate for additional tasks.
Using this approach, your price will depend on your experience and
qualifications. This type of pricing is best if you feel that the client
will need a lot of handholding (hence, more work for you).
Pricing by the Hour. To ensure that you are compensated for the
time you spend on an event, you can set an hourly rate with each action item
tied to a cost line. Then fees can be as low as $25 per hour to as high as
$125 per hour, depending on your qualifications and experience.
Pricing by Commissionable Rates/Add Ons. This type of pricing
involves adding compensation or handling fee to all services provided at the
event. You basically negotiate a discount from all service providers
including florals, linens, among others that then serve as your commission.
It is important to remember that the price you set for your services will
be determined by a variety of factors, including the market segment you
serve, geographic location, as well as your experience and reputation.
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For information on other businesses, please visit our
Business Ideas for Small & Home Based Businesses section
March 28, 2005
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