What are the pros and cons of starting an event planning business?
An event planning business has a few pros and cons, which you should be aware of before getting started.
Here are the high level benefits and drawbacks of an event planning business:
|• Flexibility||• Motivation of employees|
|• Meaningful business connections||• Longer Sales Process|
|• Pick & choose the clients you work with||• Low margins|
|• Unlimited income potential||• Niche Market|
|• Gain exposure and experience||• Customer churn|
|• Predictable income stream||• Time commitment|
|• Location is everything!||• Difficult to build trust with your customer|
|• Higher likelihood of getting referrals||• Impatient customers|
|• Greater Income Potential||• More of a challenge to run your business from home!|
|• You get to do something you truly love||• Difficult to scale|
|• You can decide who you work with||• Learning Curve|
|• Daily physical activity||• Recession-Impacted Industry|
|• Express your opinions||• Technical issues can be frustrating|
|• Travel Opportunitites||• More challenging to earn passive income|
|• You get to inspire others|
|• You establish yourself as an expert|
|• Can build solid foundation of clients|
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
• Meaningful business connections
You never know who you will meet or get to work with for your event planning business. This could be the start of an incredible business opportunity!
• Pick & choose the clients you work with
Event Planning Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
• Unlimited income potential
With your event planning business, there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
• Gain exposure and experience
This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
• Predictable income stream
With a event planning business, your income stream is typically predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
• Location is everything!
When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!
• Higher likelihood of getting referrals
The event planning business is all about referrals, which is a very effective way of attracting and retaining customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
• Greater Income Potential
When you start your own event planning business, you have the ability to make as much money as you want. You no longer work for someone else where at any point, you could be let go or get a pay cut.
• You get to do something you truly love
With starting a event planning business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.
• You can decide who you work with
Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.
• Daily physical activity
Event Planning Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
• Express your opinions
With your event planning business, you have the ability to get your point across and express your opinions to a large audience, which can be very empowering.
• Travel Opportunitites
There are many travel opportunities that come with starting a event planning business You will need to travel a lot to see and experience some of the destinations you are selling.
• You get to inspire others
Your event planning business is an outlet that encourages and inspires others, which can help you get through the challenging parts of starting a business.
• You establish yourself as an expert
Starting a event planning business helps to establish yourself as an expert in your niche. In return, people are more likely to trust you, refer you to friends/family, and support your business.
• Can build solid foundation of clients
It's unlikely you will have one-off jobs with the event planning business. Typically, you can contract work with clients and be their go to when it comes to anything event planning business related. If you do a good job for them, they will be likely to keep using your services and refer you to others.
• Motivation of employees
If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
• Longer Sales Process
A event planning business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
• Low margins
The gross margins for your event planning business are typically around 32%, which can make it more challenging to incur new expenses and maintain profitability.
• Niche Market
A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
• Customer churn
With a event planning business, people can cancel their subscription - which can make income unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
• Time commitment
With starting a event planning business, all responsibilities and duties will be in your hands. Although this is not necessarily a negative thing, it's important to understand that your work-life balance may be a bit unbalanced at times. This can place a strain on friends and family and add to the pressure of launching a new business.
• Difficult to build trust with your customer
With a event planning business and any online business, there is little physical interaction, which means it can be a lot more difficult to establish trust and clout with your customers. You'll need to go the extra mile with your customer to grab their attention as soon as they reach your site + assure them that your brand is legit and trustworthy.
• Impatient customers
Your event planning business may offer an engaging user experience for your customer, but it's important to note that customers expect a lot when it comes to your product, and are more likely to become impatient with you and your product if there are any errors or bugs.
• More of a challenge to run your business from home!
Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a event planning business, you are more likely to run your business out of your office or storefront space.
• Difficult to scale
With a event planning business, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.
• Learning Curve
When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.
• Recession-Impacted Industry
When the economy is down, event planning business's are one of the first things to be cut.
• Technical issues can be frustrating
A big part of starting your event planning business is the ability to work through technical issues. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.
• More challenging to earn passive income
One of the disadvantages of starting a event planning business is that it's much more challenging to make passive income. Typically, the amount of revenue you bring in is limited by the amount of time you have in the day and there is a ceiling to your earning potential.