Starting a corporate events company: essential steps to succeed.

Essential Steps Before Starting a Corporate Events Business

Before launching a corporate events business, it is crucial to consider the following key steps:

• Understanding the corporate events industry
• Identifying the right fit for event planning
• Creating a comprehensive corporate events business plan
• Estimating startup costs for your corporate events business
• Exploring potential earnings as an events planner

Understanding the Corporate Events Industry

In today’s competitive landscape, a company’s image often rivals the importance of the products or services it offers. Consequently, organizations invest millions each year in activities such as conferences, charity events, product launches, and corporate parties.

To ensure these occasions run seamlessly, many companies enlist the services of event management firms. Although a knack for organizing gatherings may signal a potential career in event management, a deeper understanding of the industry is essential for success.

Established competitors typically possess a roster of clients, trusted suppliers, and a portfolio of successful events, making it challenging for new entrants to attract clients away from these rivals. To stand out, you need to demonstrate your ability to deliver exceptional events at competitive prices—no small feat without prior experience.

Nonetheless, the diverse range of events required by various clients—both corporate and personal—creates numerous niche opportunities for creative and passionate individuals ready to seize them.

What is a Corporate Events Company?

A corporate events company encompasses a wide array of organizing activities, from high-profile corporate conferences to intimate gatherings like weddings. Essentially, any occasion that requires coordination can fall under the purview of an event management firm.

For example, Sarah Withers, founder of Aspect Event Management, established her company in 2001, focusing exclusively on corporate events because of their greater financial backing. She notes, “While we occasionally receive requests for weddings, corporate clients typically have larger budgets.” Aspect Event Management is recognized for its themed parties but also excels in organizing team-building sessions, conferences, product launches, and family fun days.

Withers advises aspiring event planners to specialize in certain niches rather than spreading themselves too thin across many services. “Developing a specific area of expertise helps you cultivate relationships with service providers, leading to better deals,” she suggests.

Similarly, Sam Turner, who founded Banbury-based Heirs & Graces in June 2001, focused on corporate conferences due to a lack of competitors in her area. However, she cautions that many event companies exist, intensifying competition.

Who is Suited for Events Planning?

Starting a corporate events business has relatively low barriers to entry, requiring minimal initial investment and no specific qualifications or professional memberships. However, forging a successful path in event management demands more than simply being good at organizing evenings out.

For instance, Turner, who has 11 years of hospitality experience and an HND in hotel and catering management, emphasizes the importance of industry contacts. These relationships are invaluable when engaging potential clients and orchestrating events.

Additionally, turning prospects into loyal customers requires enthusiasm, commitment, and rapport-building skills. As Turner points out, “Your personality can set you apart from the competition.”

Having been involved in public relations, Withers faced challenges due to her young age, but she capitalized on this novelty with some clients. She advises maintaining motivation and a positive outlook, utilizing local directories and cold calling to generate leads.

Most of Aspect Event Management’s clients now come from repeat business or referrals. “Maintaining a sales diary and keeping in touch with contacts can help strengthen relationships,” Withers recommends.

Creating a Corporate Events Business Plan

While a formal business plan isn’t mandatory unless seeking a bank loan, drafting one is advisable. A template like MORFA (Market, Objectives, Resources, Finance, and Ability) can serve as a useful guideline, according to Nick Brewster, business banker at Barclays Bank in Swindon.

Market

Assess your target audience and determine if there is sufficient demand for your services. Location plays a vital role in this assessment. For example, Swindon, situated on the flourishing M4 corridor, is home to many renowned companies such as Motorola and Intel, making it ideal for corporate events.

Objectives

Clearly define what you aim to achieve with your business. Are you pursuing profitability, personal fulfillment, or high earnings? Keep an open mind for unforeseen opportunities that may arise.

Resources

Identify the resources available to you and those you may need to obtain. With minimal startup equipment required (see below), your background experience may significantly impact your success. Ensure you have support from friends and family, as their encouragement can be invaluable.

Finance

Having sufficient personal capital to invest in your business can provide a strong foundation, especially during early stages when revenue may be inconsistent. Explore grants or funding opportunities and assess the feasibility of any required loans.

Ability

Experience in event management can enhance your understanding of client needs and how to satisfy them. Brewster emphasizes that confidence and enthusiasm are crucial. “You must engage comfortably with people in this industry,” he concludes.

Startup Costs for a Corporate Events Business

The appeal of starting an event management company lies in its low startup costs and rapid setup timeline. Basic requirements typically include a telephone, a car, stationery, and a computer. Most of your time will involve communication with prospects or logistical coordination for events.

While transportation is essential for client meetings and event attendance, it can be one of your largest initial expenses. Additionally, budget approximately £500 for business essentials like letterheads, business cards, and confirmation slips. However, avoid overspending on top-of-the-line equipment, as used devices may meet your needs effectively.

One significant advantage of launching a corporate events business is the elimination of traditional office expenses. The nature of the work allows for remote operations, enabling you to work from home or meet clients at convenient locations. Withers started from her parents’ spare room, which minimized overhead costs significantly.

Marketing is a crucial component for attracting business in the event management service sector. Promotional materials such as mailshots, brochures, and a website help to establish your presence. Increasingly, a robust online presence is essential for visibility, showcasing your services to potential clients around the clock. However, investing in professional web design can be a significant expense.

When forming a brochure, featuring images from your completed events is vital; therefore, gaining initial experience is key. For example, Heirs & Graces invested £2,000 in a brochure two months after launching their business.

Earnings Potential as an Events Planner

The corporate sector is a lucrative market to target, as corporations tend to have greater budgets for events. A significant portion of revenue often comes from commissions; therefore, the more value-added services you provide, the higher your earnings potential.

As Turner highlights, “Booking venues is our core revenue source, typically earning an 8-10% commission plus VAT.” Additional earnings stem from coordinating complementary services like lighting, catering, and entertainment. When working with established suppliers, planners may negotiate flat fees rather than relying solely on set commission structures.

For hotel bookings without entertainment, Aspect Event Management also earns around 8% commission, since securing venues requires minimal effort. However, when entertainment is included, the company charges a fixed fee based on the event’s complexity and the necessary personnel.

“We prioritize offering flat fees for add-ons like catering to provide value for money, rather than marking up suppliers’ costs,” Withers explains.

As event management is often seasonal, income levels can fluctuate throughout the year. Brewster warns that cash flow management is critical, particularly between September and January when demand peaks due to conference planning and holiday events.

Heirs & Graces expands its workforce during busy periods, particularly around Christmas, to manage the increased event load. However, the months of February, March, July, and August often see lesser activities due to summer vacations, although corporate fun activities can help mitigate this decline.

“Currently, I may be earning less than I ever have before,” says Turner, “but this venture allows me the opportunity to pursue my passion without a significant financial commitment.” If you are eager for a new challenge, this might be the perfect time to explore the possibilities of launching your own corporate events business.