Learn from event mentorship program expert May Silvers as she runs down the top 10 rookie mistakes people make when they start their event planning company. Learning these will save you lots of heartaches in the future!
1. Buying inventory
You are an event planner, you want to own an event planning business, right? Unless you plan to be in the event decor/prop/furniture rental business, why do you need inventory? As an event planner, you form relationships with vendors, like event decor/prop/furniture rental companies so you can rent from them at an industry rate. They keep up with the maintenance of the inventory and the latest trend in the events industry, and they also have the space to these inventory. Do you want your home or your garage to become a storage space??
2. Invest in office space
One of the perks of being an event planner is we have the flexibility to work anywhere in the world as long as you have your laptop and there is internet. Why do you want to have an office? To show that you are a legit business? You are legit when you register your company with the state, you are legit when you have paying clients. Having an office doesn't make you legit, it may make you FEEL legit, but that's ego and insecurity talking. If you say you want your clients to come to your office for meetings, sorry to break this to you honey, YOU go to your client, you meet your client wherever they are. And now we are able to
use virtual meeting options, who needs an office???
3. Not understanding your financials
If you decide to just quit your job and go all in into your event planning business, you have got guts, kudos to you. If your risk appetite is high, this may be the best decision you will ever make. You thrive in a "do or die" situation, you will rise to the occasion and bust your toushy to make it happen.
But if your risk appetite is low, you don't function well under the pressure of not knowing when the next paycheck is, you MUST know your financials before you decide to ditch your day job to go work full time for your business. If you don't assess your financial risk appetite and understand your financial, I am almost certain that you will go look for a full time job the very first time you don't have enough money in your bank account to pay your bills.
4. Spending your own money on clients events
You want the events you planned to look beautiful. But your client only gave you a small budget to pull off the event. Because you are so passionate about what you do and you have so much pride for your work, you forked out YOUR OWN MONEY to make the event look good. You just turned your passion into an expensive hobby
5. Bidding too low
You want that client, the competition is stiff, you are so afraid of losing the client so you go into a price bidding war so you can get the client. What happens when you do that? You just build yourself a reputation that you are the "cheap" event planner, and start getting "cheap" clients. And you keep doing your work at a "cheap" price, and you realized that you worked your butt off and you make pennies, if any money at all. You start to resent what you do, your passion fizzles... Do you need me to elaborate more?
6. Thinking that if you build it, they will come
How could your clients come to you when they don't even know you exist??? Your ego tells you that you do great work, but how would you expect anyone to know that your work is great, when you make no effort to broadcast your work?? Rule number 1 in business: Always sell and market what you offer. Rule number 2: Refer to rule number 1