Starting a event venue business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn how to open an event space successfully.
Importantly, a critical step in starting an event venue is to complete your business plan. To help you out, you should download Growthink’s Ultimate Event Venue Business Plan Template here.
15 Steps To Start an Event Venue Business
Choose the Name for Your Event Venue Business
Develop Your Event Venue Business Plan
Choose the Legal Structure for Your Event Venue Business
Secure Startup Funding for Your Event Venue Business (If Needed) 카지노사이트
Secure a Location for Your Business
Register Your Event Venue Business With the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Event Venue Business
Buy or Lease the Right Event Venue Business Equipment
Develop Your Event Venue Business Marketing Materials
Purchase and Setup the Software Needed to Run Your Event Venue Business
Hire a Team
Open for Business
- Choose the Name for Your Event Venue Business
The first step to starting a event venue business is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your event space business:
Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check
to see if a suitable domain name is available.
Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
Think about marketing. Come up with a name that reflects the desired brand and/or focus of your event space.
- Develop Your Event Venue Business Plan
One of the most important steps in starting an event venue business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business. 안전한카지노사이트
Your business plan should include the following sections:
Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your event venue business.
Company Overview – this section tells the reader about the history of your event venue business and what type of event venue business you operate. For example, are you exclusively a wedding venue or do you host all sorts of private events? Is your space a large banquet hall or another type of event space?
Industry Analysis – here you will document key information about the event venue industry. Conduct market research and document how big the industry is and what trends are affecting it.
Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, are they in a particular income bracket? Where do they live? What do they look for in an event venue?
Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
Product: Determine and document what products/services you will offer
Prices: Document the prices of your products/services
Place: Where will your business be located and how will that location help you increase sales?
Promotions: What promotional methods will you use to attract customers to your event venue business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing. You might also attend networking events to promote your business.
Operations Plan – here you will determine the key processes you will need to run your business operations. You will also determine your staffing needs. Finally, in this
section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
Management Team – this section details the background of your company’s management team.
Financial Plan – finally, the financial plan answers questions including the following:
What startup costs will you incur?
How will your event venue business make money?
What are your projected sales and expenses for the next five years?
Do you need to raise funding to launch your business?
- Choose the Legal Structure for Your Event Venue Business
Next you need to choose a legal structure for your event venue business and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
1) Sole Proprietorship
A sole proprietorship is a business entity in which the owner of the event venue business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a event venue business together. The partners share in the profits and losses of the business. 카지노사이트 추천
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
3) Limited Liability Company (LLC)
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an event venue business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
4) C Corporation
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a event venue business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
5) S Corporation
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your event venue business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
- Secure Startup Funding for Your Event Venue Business (If Needed)
In developing your event venue business plan, you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for an event venue business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an event venue business that they believe has high potential for growth.
- Secure a Location for Your Business
A major step to starting your event venue business is to find and secure a location. Many event venues rely on beauty, historical significance, or unique features to bring in customers, which can all be challenging characteristics to find or create on a budget. Just remember that even a simple space can be made into something elegant and photo-worthy with a bit of work.
You’ll also need to find a space that is large enough to accommodate your guests and has all the necessary amenities, such as restrooms, a catering kitchen, and parking. If you’re on a tight budget, you may need to get creative with your space. For example, you could rent a large warehouse and turn it into an event venue with the help of some DIY decor.
Once you’ve found the perfect location for your business, be sure to sign a lease or purchase agreement. This will protect you from any legal issues that could arise down the road.
To find the right space, consider:
Driving around to find the right areas while looking for “for lease” signs
Contacting a commercial real estate agent
Doing commercial real estate searches online
Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space
- Register Your Event Venue Business With the IRS
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
- Open a Business Bank Account
It is important to establish a bank account in your event venue business’ name. This process is fairly simple and involves the following steps:
Identify and contact the bank you want to use
Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
Complete the bank’s application form and provide all relevant information
Meet with a banker to discuss your business needs and establish a relationship with them
- Get a Business Credit Card
You should get a business credit card for your event venue business to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
- Get the Required Business Licenses and Permits
Every state, county and city has different business license and permit requirements.
Nearly all states, counties and/or cities have license requirements including:
General Business License – You will need to apply for a general business license in the city or county where your event venue will be located. Business license applications are usually very simple, but fees vary by location.
Occupancy Permit – An occupancy permit is also required in order to operate an event venue. This permit is issued by the local fire department and ensures that your venue meets all the fire safety guidelines.
Beer or Liquor License – If you plan to serve alcohol at your events, you will need to apply for a liquor or beer license. The application process and fees vary by state, so you’ll need to check with your local government office to find out what’s required.
Depending on your location and the type of event venue you launch, you will have to obtain the necessary state, county and/or city licenses.
- Get Business Insurance for Your Event Venue Business
Business insurance policies that you should consider for your event venue business include:
General Liability Insurance – General liability insurance will protect your event venue from any third-party bodily injury or property damage claims that might arise.
Property Insurance – This will protect your event venue from any physical damage or theft.
Workers’ Compensation Insurance – If you have employees, you will need this insurance to protect them in case they are injured while working at your event venue.
Business Interruption Insurance – This insurance will protect your venue from lost income if your business is forced to close due to a covered event, like a fire or severe weather.
Liquor Liability Insurance – If you serve or sell alcohol at your event venue, you will need this insurance to protect yourself from any liability claims that might arise from someone becoming intoxicated and injuring themselves or others.
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
- Buy or Lease the Right Event Venue Business Equipment
To get your event venue business off on the right foot, you’ll need to invest in some essential equipment. This includes items like chairs, tables, linens, dishware, decorative items, and audio-visual equipment.
You may be able to find some of these items used, but it’s important to also have some replacement items on hand in case of breakage or damage. You’ll also need to factor in the cost of renting items like tents, stages, and dance floors if you don’t plan on purchasing them outright. Some events may also require specialty items that you can consider leasing.
From the business side, you will need a phone, computer, printer, reliable internet connection, and basic office supplies. You might also consider looking into security systems.
- Develop Your Event Venue Marketing Materials
Marketing materials will be required to attract and retain customers to your event venue business.
The key marketing materials you will need are as follows:
Logo – Spend some time developing a good logo for your event venue business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
Website – Likewise, a professional event venue business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your new event venue business. Events like weddings get lots of local social media attention and can help generate new customers for an event space.
- Purchase and Setup the Software Needed to Run Your Event Venue Business
There are a few different types of software that can make running an event venue business easier.
A good booking system can help you keep track of reservations and ensure that your events are properly staffed. Some popular booking systems for event venues are HoneyBook, Tripleseat, and iVvy Venue Management.
If your booking software does not include a way to accept payments, you should also look into a point of sale (POS) system like Square, or something to help you manage all your finances like Quickbooks.
Finally, a good customer relationship management (CRM) tool such as ActiveCampaign can help you stay in touch with your existing mailing list and generate new bookings. Some booking systems may also include CRM tools, so make sure to explore all their features before buying new software.
- Hire a Team
You might find yourself filling many roles as you launch a small event venue, but will likely need to build a team of event professionals to be successful in the long term. Your employees might include an event planner, catering manager, and marketing specialist. Together, these individuals will be able to help you create a successful event venue business.
When hiring employees for an event venue business, it is important to find individuals who have the necessary skills and experience. One way to do this is to post job openings online and review resumes. It is also important to interview potential employees and ask them questions about their experience and what they can bring to the business.
- Open for Business
You are now ready to open your new event venue business. Start promoting your venue in as many places as you can and reaching out to potential clients to make bookings. You might also host a grand opening event to let prospective clients check out the new event space.
If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.