Related Articles on Starting an Event and Meeting Planning Business:
- How to Start an Event and Meeting Planning Business
- Starting a Career in Event and Meeting Planning
- How to Start an Event Management Business
- Startup Costs and Pricing an Event and Meeting Planning Business
- Market Segments of the Event and Meeting Planning Business
- Marketing an Event and Meeting Planning Business
- 10 Ways to Market Your Event Planning Business
- How to Succeed in the Event and Meeting Planning Business
Startup Costs of an Event and Meeting Planning Business
Your startup 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, mobile wifi, etc.)
- Rent (if any)
- Phone/Utility Deposits
- Payroll for Employees and Helpers
- Advertising/Promotion Expenses (e.g. brochures, calling cards, website, advertising)
- Legal Fees & Accounting
- Insurance (1st Quarter)
Pricing Your Event and Meeting Planning 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.
Recommended Books on Starting an Event and Meeting Planning Business:
- Start Your Own Event Planning Business (StartUp Series)
- Event Planning: The Ultimate Guide To Successful Meetings, Corporate Events, Fundraising Galas, Conferences, Conventions, Incentives and Other Special Events
- The Complete Guide to Successful Event Planning with Companion CD-ROM REVISED 2nd Edition
- The Everything Guide to Being an Event Planner: Insider Advice on Turning Your Creative Energy into a Rewarding Career
- How to Start a Home-Based Event Planning Business, 3rd (Home-Based Business Series)
- The Event Marketing Handbook: Beyond Logistics & Planning