Starting an event planning business is very much like buying a house. You will need to do detailed research before taking the big plunge to ensure you are making the best choice.
The first thing you will want to do before starting a business is to figure out if there's demand for your service. To accomplish this your will need to complete a competitive analysis, and create a plan to differentiate the service you will be offering from your competitor. Doing your due diligence can mean the difference between success and failure, and it doesn't have to cost you a penny.
Before you get the research ball rolling however, you will need to come up with a solid business idea. For example, will you be starting an engagement planning business? Once you have a concept confirmed, you will need to determine if your idea is viable.
To determine if you should pursue your business idea you will need to ask the following 4 questions. [Download our free handy worksheet to guide you along the process]
1. Is the market saturated?
Does your city really need another event planner? How much money is currently being spent in the events industry each year in your local area? Do you need to obtain any licenses or permits before you can operate?
These questions are not to discourage, but rather allow you to focus your idea and potentially customize your concept to ensure your idea will meet demand when you enter the market.
2. Does the market want what you are offering?
Here you will need to review if there are customers for the service you are offering. For example, If you're thinking of providing wedding planning services in a small town with low birth and divorce rates, will there be a demand? Get creative and research the average number of weddings in your city to get a better sense of how many clients you could be exposed to.
3. What is the competition doing?
This is the time to take a look around at what other's in the industry and your area are offering What are they doing well? What are they doing poorly? Is there a demand that their service is not meeting What's unique about their business? and most importantly, can you offer something different that will encourage clients to use your service rather than theirs?
4. Can you reach your target audience?
Are you trying to target high-end clients? and if so are there sufficient clients in your area with large budgets to make your business profitable. For example, if you're providing event planning services for brides with a budget over $100,000, are you located in an area with a population of the right age and disposable income? Head to your local government census website and lookup the demographic information for your local area to answer this question.
To track and record your findings for each of the above questions download our free worksheet to get started.
