Events planning as a profitable business

A recent research reveals that nearly 500 billion dollars are consumed in the events organized by some companies annually on average. This can be taken as a serious fact that would bring an opportunity to anyone who just wants to start a small business. The optimism is that most of the event management companies being operated in small scale or at home offices. However, this cannot be taken so advantageous since the event suppliers/organizers will have to negotiate high payments with the event producers. In case of a car trade, car providers, models, venue providers and some specific food caterers would be the part of event producing and event organizer must be able to negotiate a good deal with them. Moreover, creating a huge network is the utmost task for anyone who starts an event planning business providing that this network is necessary whenever new events are organized.
What really lack with many event organizers is that they try to focus vastly and it loosens their ability of serving a niche-focused network that would bring enormous profits cost-wisely. When a business focuses on different events that have no correlations among (let’s say weddings, car trades, music events and magic shows), this approach absolutely dumps the ability of serving unnecessary costs on finding new clients and supplying or outsourcing networks.  
Therefore, this is kind of a business that must be started with the right approach plus significant cost and with the right skills specifically needed. Though the capital on tangible assets (such as buildings, vehicles and machinery) can be avoided significantly, this is kind of a business that needs loads of investment in intangible asset fixing such as promotional campaigns, R&D, creative identity and unique outstanding brand building that would be used as a key differentiation point compared to other competitors. In other words, this is an industry with low entry barriers, low capital but costs significantly with overhead expenditures. Now that is it. Let’s come to the most captivating part that anyone would be ready to listen. Yes, it is about how to make profits in this industry. Some events charge a flat entry fee from their clients and this is primmest way of making money out of them. However, the event should be value-enough, well established & organized and should posses some meaning from the clients’ perspective. In case of failure, this would be a disaster to expect a boost in sales with entry fees. Another most profitable way to make money with events is to find some sponsors who are willing to pay for the event in exchange of promoting their brands. Most of the leading firms have a positive approach when sponsoring to events as they are considered as the most effective way of promoting themselves. However, the event organizer must have a well- recognized business or even a team in the industry to find some big sponsors.
Did you enjoy the article? If so, I appreciate your comments and they would help to improve the writings and to study my readers’ minds. 
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I have been reading your articles interestingly. I must say that your writing improves every time you write. Of course your every article comes with different ideas and insights. Best of luck with your writing.

i have been engaged in this business for a long time. However, this is not an easy to stay industry for all. as any other business, it also consumes some time to get established.

I agree, event organizing companies are much in demand these days.

Nice I like the way u broke it down

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