How to Start a Party Planning Business

Starting Out

Choose a name for your business. Pick an unambiguous name that will tell potential clients exactly what your company does. It could be something as simple as "[City Name] Formal Event Planners." Try to find a name with a simple available web address. Search online and use the U.S. Patent and Trademark Office's trademark search tool (or your country's equivalent) to check potential names against existing trademarks. You will may need to register your company as a "Doing Business As" name with your state or county government. Consult local business laws to find out.

Register your new business if necessary. Check local and state business laws to determine if your business requires any type of registration, licensing, or permits. Double-check with your state and local government before you start doing any business. You could run into legal trouble if you aren’t properly registered.

Set up your office. Although minimal compared to other businesses, you will still need some space to do your work effectively. Many party planners simply use their home office. You will need a personal computer and a printer capable of large batch printing. Your office should also have a place where materials like party supplies may be stored safely and away from grime. A large closet and/or a few storage bins may be all you need. You may choose to rent out a permanent office space or a temporary meeting room when seeing clients. Many professionals who work from home see clients in public spaces, such as a coffee shop or restaurant.

Set yourself apart from your competition. Consider what types of parties you specialize in and compare your style to other party planners in the area. When advertising your services or meeting with clients, be sure to emphasize what makes you unique. Early on, take as many jobs as you can. This will help you establish a reputation as a great planner, which is a great way to set yourself apart!

Price your services properly. Party planner rates vary widely, ranging from $12 to $150 per hour. There are a variety of factors to take into account when setting prices for your business. Look at how your competition prices their services to get a good sense for the range in your area. How much experience do you have? A planner with previous professional party planning experience will command a higher rate than an unseasoned planner. To attract clients, you may have to start out low and gradually raise your prices over time as you gain a positive reputation. Most planners will charge a 15% commission per vendor. For example, if you find and hire the florist, you could charge 15% of their cost as a fee.

Be flexible and prepare for the unexpected. As anyone who has planned an event knows, plans can change. A successful party planner must be prepared to throw a successful party no matter what happens. Your caterer may get sick or the venue's roof may collapse the day before. Don't panic. Instead, have backups for every event. Have a long list of reliable caterers, venues, and entertainers with overlapping skills and specialties. This is especially important when planning outdoor events. Always have a backup plan for inclement weather!

Making a Plan for Your Business

Figure out what kind of party planner you would like to be. While many party planners dabble in multiple customer and event types, most others find their niche and specialize. While you can always change your business later on, it's helpful to think of these questions in its planning phase. The two most popular types of party planner are corporate and social. Corporate party planners organize events for companies, while social planners focus on weddings, birthday parties, etc. Many party planners pick a niche based on what they enjoy the most. This can be a specific type of event or a unique style you offer. Most party planners either focus exclusively on children’s parties or only offer services for adult parties.

Consider your education and background. While a college degree isn't necessary for starting a party planning business, many party planners hold bachelor's and advanced degrees in a variety of related fields. College majors that offer valuable skills for a would-be party planner include business management, marketing, and hospitality management. Some colleges and professional organizations also offer certificate programs in event planning specifically.

Talk to an attorney or someone else knowledgeable in local small business law. Although party planners don't typically need a license, some state and local governments may require it. Because parties often involve large, possibly unruly crowds, it is also prudent to invest in liability insurance for your business. This will help protect you in the event a guest is injured or causes damage to the party venue. Talk to your lawyer about what kind of coverage may be right for your business.

Learn more about the party planning industry where you live. Do some research on which other party planners and companies organize events in your area. Try calling or visiting and ask them a few questions. Study your local competition. If there’s something you can do that they can’t, you can gain a big competitive advantage! Establish relationships with local caterers, suppliers, entertainers, and venue owners. It will be your job to organize and coordinate these disparate elements to create a memorable event.

Write a business plan. Write out exactly what niche you plan to fill and how your business will accomplish this. Using your market research, determine the rates you will charge for your services. Don’t undercharge, but aim to set competitive rates. Estimate your startup costs and secure funding. If you can’t fund the business yourself, you may need to take out a small loan or find investors.

Growing Your Business

Market your business effectively. In the early phase of your party planning business, marketing is crucial to establish a reputation and customer base. Make sure your website is aesthetically pleasing and easy to navigate. Try to have your company's name and contact information written clearly on each page. Create flyers that show off your graphic design skills. Distribute them door to door and ask local businesses to display them on their corkboard. Tell family and friends about your new business and ask you to recommend you to anyone they know who is looking for a party planner.

Have a strong social media presence. Social media is an incredibly effective advertising method that is often free to use. Register official accounts for your business on popular websites like Facebook, Instagram, Twitter, and YouTube. Actively and directly engaging with customers will show them that you care. Respond to folks when they comment on your posts or ask questions. Use hashtags to target specific areas or holidays. For example, if you want to advertise your services for a Halloween party in Chicago, you could use #HalloweenCHI. Showcase your talents by uploading photos and videos of successful parties you have planned. Be sure to always obtain express written permission from your clients if they are featured in them.

Solicit reviews from your clients. When a client is happy with the party you've planned, ask him or her to post a review of your services. Don't ask for a positive review or mention a specific website. Register (or claim) your accounts on the applicable review sites that people use in your area. Address any concerns or negative reviews honestly and maturely. Remember, these posts may be a first impression for potential future clients.

Volunteer your services. Donate your time to help with community events, such as school functions. While this will be a lot of work for you, it will be good exposure and excellent advertising for your company. Make sure to include your business's name and contact information on all materials where it would be appropriate to do so. For example, it's common to have such information on the back of any paper programs.

Keep networking. As a party planner, good networking skills are crucial to make your business run smoothly. Always be on the lookout to make contact with new vendors the area. You never know when a client may request a specific type of food or performer. Attend event planning trade shows to meet other planners and service providers. Trade shows are also an opportunity to learn about new trends and developments in the industry.