How Profitable Is An Event Planning Business? (Updated for 2024)
So you want to start an event planning business?
And the first question that came to your mind was, “well, are event planning businesses actually profitable?”
Especially considering:
- You could start a event planning business with as low as $25
- Based on our data, event planning businesses generate an average of $1.86M per year
- You could see gross margins as high as 40% with event planning businesses
There’s money to be made. Don’t worry.
But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a event planning business.
Let’s dive in!
Is an event planning business profitable?
Yes, an event planning business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.
For instance, since average revenue is $1.86M per year with an estimated gross margin of 32%, you could expect to recover your investment within 8 months or even less.
But of course, it all comes down to how much you earn compared to the potential revenues of your event planning business.
To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.
Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your event planning business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.
Is an event planning business worth it?
If you’re wondering if a event planning business is worth it, the answer is a big YES. With event planning businesses, you have the potential to earn $1.86M per year (this is based on data reported by real founders).
Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.
With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.
Of course, you must learn and understand every aspect of running a event planning business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.
You might want to consider reading more specifics about successful event planning businesses case studies.
Examples Of Profitable Event Planning Businesses
Here are a few examples of profitable event planning businesses, and a few more details about them:
1. Simply Decor and Events ($420K/year)
Akshay Patel, founder of Simply Decor, Tents, and Events, came up with the idea for his event rental and decor business after throwing a big party with a limited budget. Unable to afford professional decor, Patel made his own decorations and caught the attention of a bride who ended up becoming his first client. Since then, the business has grown, generating upwards of $380,000 a year, and Patel has learned the importance of innovative advertising strategies and standing his ground.
Is it profitable? Yes
How much money it makes: $420K/year
How much did it cost to start: $500
Akshay Patel's event rental and decor business, Simply Decor, Tents, and Events, saw an average ticket price of $2,000, as their advertising budget decreased from $20k to $5k, leading to 40% of their clients coming through social media advertising, 30% from expos, and 30% online in google, yahoo, and other platforms.
2. EMS Events ($600K/year)
Amana Feline's "aha" moment came when she saw event organizers struggling with equipment rentals, prompting her to start EMS Events in 1997. Today, her company generates $50K monthly, serving 500-600 events annually in London.
Is it profitable? Yes
What's the gross margin? 40%
How much money it makes: $600K/year
How much did it cost to start: $1K
Case study about the growth of an event production company in London that started in 1997, now making $50K monthly and aiming to reach $90K by offering event equipment and services such as LED video walls, sound systems, and lighting hire, serving corporate events and focusing on exhibitions for revenue growth.
3. Entire Productions ($1.3M/year)
Natasha Miller came up with the idea for Entire Productions when she was double and triple booked for private parties as a performer. Instead of turning down the gigs, she offered to bring in other talented performers and manage the whole process, unknowingly creating a mini empire. With a focus on experience design, Entire Productions has now grown into a fast-growing event and entertainment production company, primarily serving corporate clients in tech and pharma.
Is it profitable? Yes
How much money it makes: $1.3M/year
Entire Productions is a fast-growing event and entertainment production company with an emphasis on experience design, primarily working with corporate clients including many Fortune 500 companies in the tech and pharma industries, boasting a growth of 148% and a goal of reaching $20M annual mark.
Learn more about starting an event planning business:
Where to start?
-> How much does it cost to start an event planning business?
-> Pros and cons of an event planning business
Need inspiration?
-> Other event planning business success stories
-> Marketing ideas for an event planning business
-> Event planning business names
-> Event planning business Instagram bios
Other resources
-> Event planning business tips
-> Email templates for an event planning business
-> Blog post ideas for an event planning business
-> Event planning business quotes
How much can you make with an event planning business?
With a event planning business, you can make an average of $1.86M revenue per year (based on data reported by real businesses).
You can start with an initial investment as low as $25. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 8 months.
How much does a event planning business make a week?
Based on our data, average weekly revenue for a event planning business ranges around $38.8K. As such, you could see monthly revenues of $155K.
To know if your event planning business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.
Learning your weekly profit can also show whether you're hitting your target goal for your event planning business.
How much do event planning businesses owners make?
The income of an event planning business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.
But to give you some idea, the weekly revenue of an established event planning business is about $38.8K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.
While the potential for earning a good income as an event planning business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.
Event Planning Business Profit Margins
Generally speaking, an event planning business can expect profit margin of around 32%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an event planning business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.
However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, event planning business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, event planning business owners can ensure long-term sustainability and profitability for their business.
Event planning business owner salary
The salary of an event planning business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established event planning business, in a prime position, might see an average weekly salary around the ballpark of $12.4K.
But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.
Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.
Conclusion
In a nutshell, based on many of our examples, a event planning business may be a promising business to start - but the success of your event planning business mostly depends on your effort and your approach.
If you focus on these, you'll have a much higher chance of a profitable event planning business.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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