Although not an uncomplicated activity, the rapid evolution of the sector and the increasing demand for this type of services have made the organization of events become an excellent business opportunity for those entrepreneurs who have had a relationship with it. David García, says that “this business can be very profitable in the very short term, if you have a good portfolio of clients and a great knowledge of the sector that allows you to respond to all the demands and anticipate the problems. In short, if you show your professionalism in each job “. For David García, Talante’s event organizer, “the main disadvantage of the sector is that you can not enter if you do not know it previously. First, because the competition is very strong and to make a dent the experience is the best letter of introduction. And second, because it is a business that basically works through contacts. ”
David García, also believes that one of the main disadvantages of the organization of events is the excess of competition: “The problem is more serious if you only dedicate to acts for companies, because this is a more consolidated market, with many companies specialized, and in which the old agencies of image, communication and publicity are diversifying to offer an integral service to its clients. On the contrary, the physical people still offer many possibilities because they represent a little developed market in Spain “.
For David García, “the main disadvantage of the business derives from the intrusiveness that accompanies it. It is a profitable sector, does not require much infrastructure and seems easy to do. ” Another problem is that it is a very slave business, without schedules. Bello explains that “you can be several months without doing anything more than commercial work and suddenly come a work streak of fifteen hours a day from Monday to Sunday.”
Money in your pocket
It is a business that needs a strong investment in the search of new customers and suppliers, in the maintenance of the ones you have, in the organization of the acts, etc. It is also important that customers perceive that your company is solvent and that they can rely on your financial possibilities to face the organization of an event before they pay you.
He explains that “to set up a company of this type is not enough with the 3,000 euros needed to create a limited partnership. You need to have, at least and as an example of 8,000 euros to rent a palace to hold a convention and other so many to pay suppliers and be able to organize the next act. Besides, you have to take into account that you will need money for an event management software because it is essential for an event agency.
According to García, “it should not be forgotten that generally suppliers are paid in advance, while customers always pay after the event. In addition providers are usually not habitual because each act has different characteristics and needs, so do not trust and, depending on the degree of confidence you maintain, may demand the cash payment with an advance of 60 days ” .
Unobtrusive. An event organization does not require a lot of staff. It is enough to have a secretary, an accountant and one or two people to assist you in the commercial work. The rest of the services are going to be subcontracted like en event management software, so the fewer staff expenses you have, the less you will lose your results. He says that “the ideal company that starts in this market would be made up of a single person who became president and commercial director with the ability and contacts to hire the best professionals for each event.” And García says that the staff “must have training in tourism, public relations, interpersonal communication, etc. They also have to master several languages. ”
Location and decoration
Before starting your business, ask if there are enough companies interested in hiring your services in the area of influence of the future business, as well as infrastructures to provide them (conference rooms, hotels, restaurants …). The ideal is to settle in medium-sized cities where there is still room in the market and provide services to customers in the surrounding area. In order to locate your office, García says that “it does not take a very big place but it is located in an area that sells itself when it appears on your business card”. The decoration matters as it serves to enhance your image. Do not forget that your office, your wardrobe, etc., give your client a reference of the events you organize.
Regarding the advertising investment, this will not be very high because the most profitable formula for an event organization is the commercial work and, above all, the mouth-ear. According to García, “it’s a business that has a lot of contacts and that’s why advertising in large mass media is not effective.” In any case, you can insert ads in very specialized media and use forms of advertising that reach more directly to your target audience: mailings, yellow pages, attendance at fairs, etc. but what you really needs is engage attendees and for that you need an event management software”
Diversify or disappear
The organization of events encompasses many activities. This makes many companies and services come into play. If you can take advantage of the common points that this business has with other sectors, you will be able to offer better service and redistribute risks.
This extension of services is closely linked to the relationship created with customers. Diversificar serves to attract new customers, but also to expand the offer to customers who already have and demand new services. Now, if you offer new services you will have to subcontract them. Organizing events involves a lot of work, so to start it is good to focus on the business and grow as you get the best suppliers in each sector.
There are several possibilities to expand the business:
Image and advertising. Do not limit yourself to product launch acts. If you gain the confidence of the client and demonstrate your ability, you can also participate in the advertising campaign of the presentation of the product.
Software Services. Offer conference management software outsourcing for other agencies por instance.
Communication. You can take advantage to help your clients in their relationship with the media and offer them to be their press office.
Sales force. Offering support to the sales force of a company, not only for an event but on a continuous basis, is a way of diversifying that also allows you to create better links with the customer.
Own products. You will have to delegate a large part of your services, but you can offer products of your own to increase the profit margin: photos or videos of an event, Power Point presentations for companies, website design and hotel contracting …