Until a few years ago the average profit margin for an event organizer entrepreneur was around 15 percent. His most recent studies show that profit margins can now reach up to 40 percent.
He attributes the good health of the industry to several factors, including the tendency of companies to outsource their meeting planning activities.
And since we do not exactly talk about a high-tech company that needs to get a team of programmers, then you can start without much money.
What is event organizer?
This question is really divided into two questions: What kind of events are we talking about? and, what is event organizer?
First thing’s first. In general, special events occur for the following purposes:
This list of fact is not as extensive. But as illustrated in the examples, special events can be related to business, social events or some combination of both.
Now let’s move on to the second question:
- An event planner can handle any or all of the following tasks related to an event:
- Conduct research
- Create and design the event format
- Find the place
- Organize food, decoration and entertainment
- Plan transportation to and from the event
- Sending invitations to attendees
- Organize the necessary accommodations for the attendees
- Coordinate the activities of the event staff
- On-site supervision
- Conducting event evaluations
The number of activities in which your company can participate will depend on the size. And type of event in particular, which, in turn, will depend on the specialization you choose.
Why do people hire event organizer?
This question has a simple answer: individuals often discover that they lack the experience. And time to plan their events for themselves.
Independent planners can intervene and give these special events the attention they deserve.
Who can become an event organizer?
Planners are often people who start in a particular area related to special events.
- The business owner had a successful catering company before he decided to plan full events. And many other entrepreneurs have similar stories.
- This explains why planners often not only coordinate full events but, in addition, can also provide one or more services for those events.
- Entrepreneurs in the event industry may also have started planning events for other companies. Before deciding to enter the business for themselves.
- Wolff led the logistics of internal events for a retail chain for 11 years and then worked for another planning company before starting on her own.
Importance of Certifying
Consider the possibility of obtaining a degree or certificate from a local university in the planning or management of events.
- There are several colleges and universities that offer educational opportunities in this field.
- Many corporations and individual contractors often look for these designations when they hire planners.
- Due to the research and study that is required to become clients know that these planners are professionals.
The corporate market
- In general terms, there are two markets for event organizer services: corporate and social.
- The term ” corporate ” includes not only companies, but also charities and non-profit organizations.
- These charities organize fundraising events, receptions and gala athletic competitions, among others, to expand their public support base and raise funds.
- Hundreds of events of this kind are held every year, and although the majors require specialized experience in planning, you may find smaller local events to begin with.
- Companies on the other hand organize trade fairs, conventions, corporate celebrations, parties and various meetings for its staff or members of the shareholders’ meeting.
There is a large market for this type of events. According to the Study of Economic Importance 2012 of the Council of the Industry of Conventions, 1.83 million corporate / commercial meetings, trade fairs, conventions, etc. took place only in the USA.
The social market
Social events include weddings, birthdays, anniversary parties, incinerate parties, children’s parties , etc.
- You can decide to handle all these events or simply specialize in one or more of them.
- It is expected that the market for social events, especially birthdays and anniversaries, will continue to increase in the coming years, as the baby boomers mature.
This group has children who get married, parents who celebrate their golden anniversaries and their own silver wedding anniversaries to commemorate.
How much money will you need to start your event organizer business?
This will depend on the cost of living in the segment in which you focus your company and if you will work from home or rent an office space.
- It will also depend, to a lesser extent, on your own tastes and lifestyle.
- Keep in mind that while you work from home you will keep your costs low and you can start small in your event organizer business and gradually grow.
- A high-end business requires office space, employing at least one full-time junior planner and a part-time accountant, as well as temporary employees who are in charge of administrative work and who can help prepare the logistics for various events.
- Both owners will obtain their income from the net profit before taxes.
Few event organizer, if any, work formally from 9 to 5.
By their very nature, planning tends to involve evenings, weekends, holidays and sometimes even specific seasons.
The time you must commit to work will depend, once again, on the specialization you choose. As a general rule, social events involve more weekends and holidays than corporate events.
Some areas of the country and some types of events have “high” and “low” seasons. However, regardless of your specialization, you must be prepared to work at least a few nights while coordinating and supervising the events.
However, the organizer of these events will take place mainly during business hours.
The best way to reduce the risk is by doing the homework.
- For large events, research can mean making sure there is a demand for the event by conducting surveys, interviews or focus group research.
- If you are new to the planning industry, research can mean discovering everything you can about suppliers.
Research can also mean talking to other planners who have produced events similar to the ones you are working on. Or else you’ll end up reading about rationalization and etiquette issues, especially if you’re not familiar with a particular type of event.
Whatever type of event you are organizer, the investigation should your client many questions and write down the answers.
Interviewing a client may not be the first thing you have in mind as part of an investigation. However, asking few questions, or not listening properly to a client’s responses, can compromise the success of the event you plan.
Your creativity comes into play in the design phase of the event organizer, during which the overall “feel” and “appearance” of the event is sketched.
This is the time to exchange ideas, either alone or with your employees.
Do not forget to check your notebook to review the answers the client gave you regarding the questions you asked in the research phase.
These answers, especially the one that refers to the budget of the event, will help you to thoroughly verify each idea to see if it is feasible to perform, preferably before suggesting it to the client.
Once you have interviewed your client and you have made a preliminary exchange of ideas, you should have enough information to prepare a proposal.
Keep in mind that the production of a proposal is time consuming and potentially expensive, especially if it includes photographs or sketches.
Keep in mind that only the largest companies that produce high-level events can afford to offer customers free offers.
You should set a consultation fee (approximately $ 150 is suggested), which can be applied to a client’s event if he or she hires it.
During this phase of intensive decisions, you will rent the place, hire suppliers and take care of more details than you can imagine. You’ll be on the phone until your ear is numb.
But before doing any of this, make sure you have a contact person with whom you will discuss all important decisions.
Having a designated person helps ensure that lines of communication are kept open.
In addition, social events in particular sometimes suffer from the too many cooks syndrome . Having a designated contact keeps you from getting caught up in disagreements between the organizers of the event.
In general terms, the larger the event, the more waiting time is required to plan it.
The main conventions are planned years in advance. While you may not be organizing events on such a large scale, you should book at least a few months for events such as corporate picnics, meetings or big parties.
Once you have outlined the initial plans, direct your attention to each of the activities that are part of the general event.
At this point, your goal is to ensure that everyone is on the same wavelength. Good communication skills are important. Make sure that all providers have at least a general idea of the general calendar of events.
Even more important, providers must be clear about what is expected of them and when. The arrival times of the suppliers should appear in the contracts, but check them anyway.
The biggest test, and in some sense the most important, of the success of an event is customer satisfaction. The goal, of course, is to end up with a client who sings praises all over the street, shouting from the rooftops the good of your work.