There are many reasons for a planner to strike it out on his or her own and hang up their shingle as an independent.
Maybe it’s the result of a layoff. Sometimes it could be due to a lifestyle decision. Or perhaps one could just chalk it up to wanting to call their own shots after working in a company, association, nonprofit or for a government organization for many years.
“I think some people have an entrepreneurial spirit—they want their own gig. Some have been outsourced two or three times and had enough. Sometimes that company will come back and try to hire them to help them,” says Laurel Coote, a meeting planning veteran who teaches a two-year certificate course on meeting planning at San Diego State University’s College of Extended Studies. One of the school's elective courses is how to start your own business in the event planning industry. Coote is also an adjunct professor teaching an event management class at Glendale Community College. “Others are unemployed and don’t know what to do, but they have a skill set, and others have planned parties or weddings before. Some people are never going to want to step into it because they can’t go without structure.”
Regardless of the motivation, however, there are a great many steps one needs to build a foundation for success or even survival.
“The first thing I tell people to do is to take a look at the pros and cons of being in business for yourself, because there are wonderful advantages, but also disadvantages,”
“Have you thought about the money, the marketing, the process, the structure—all of the things besides just being a service provider, because planners are inherently service providers,” she continues. “People who go out on their own as an independent jump in because they know how to provide services, and then down the road they realize it’s a business.”
Once one takes that first step toward launching a meeting planning business, the questions begin.
How do I actually formulate a plan to have a company that provides this service?
Suddenly I need insurance, and suddenly I need employees—how do I do this?
“Step one is ‘are you ready,’” Coote says. “Do you have enough money to support yourself during the startup? Do you have enough savings set aside to float yourself for six months while you start the business?””
Before you start thinking about the design of your new business cards, Coote says, prospective independents should consult with experts.
“Do I really have to get an attorney? Do I have to get an accountant?” she asks. “Yes, you can do it without, but in three years you’ll need to.”
At the beginning of the process it’s important to identify some key areas, such as what market the business will serve, the specific services the new company will provide—as well as not provide—whether the business model will require outside contractors or if all of the work can be done in-house, and whether the business will be based at home or in an office space.
Coote, who had worked as a corporate planner, just jumped in and learned lessons along the way.
“I can speak to this because I did it the hard way,” she says. “When I jumped in I was a freelancer, and someone said ‘Can you help me, and I said, ‘yeah.’ After about two years I needed an employee—I needed a structure to support what I do. It wasn’t until three years in that I wrote a business plan, and I learned the hard way—I needed this, and this, and this…”
All of these questions and needs, of course, points to the need to create a business plan, no matter how simple. Coote recommends the website One Page Business Plan (www.onepagebusinessplan.com) for a simple template. Another great resource, she says, is a “20 questions” page on the Small Business Administration’s website (www.sba.gov/content/20-questions-before-starting-business).
Remember not to be intimidated, as you’re not a Silicon Valley techno wiz setting out to conquer the business world, she advises.
“They’re idea off a business plan is that they need to get venture capital, but we’re not talking about that level,” Coote says. “For now, if you can’t tell a prospective client who you are and why you exist, and what you provide and you provide it—and why it matters—you can’t be in business.”
Another good piece of advice from Coote is to make sure any details of the partnerships you forge, such as working with friends or close associates, are put down in writing.
“Have an agreement so that you get paid and the other party provides services, and vice versa,” she says. “It’s a business deal, not a handshake, because that will take you under.”
Other factors to consider include benefits—health insurance can cost $1,000 a month—and other overhead items (If one can access a health plan through a spouse, that’s a huge plus.)
Taxes are also a huge concern.
“You have to get council on taxes,” Coote says. “There are obviously certain requirements dependent on where you live, so you’ll need an accountant or an attorney. What structure works best? Quarterly? Annually?
Coote recommends seeking out the nonprofit organization SCORE (www.score.org), which offers the advice of retired business people who can listen and guide those jumping into the entrepreneurial pool. SCORE also offers free webinars.
Besides all of the legwork, uncertainty an overhead, however, Coote relishes her decision to be an independent.
“There’s plenty of work, in my opinion, but you have to be very clear about what kind of work you do in this industry,” she says. “You have to find that niche where you can specialize, but you also have to be willing to take what comes your way, so you can get to that place of choosing.
“I think it’s fun and exciting,” she continues, “but for some people it’s frightening.”
