Your event planning business had a good year in 2024, but you want more. Maybe there was a time when you dreamed of being where you are now. However, you know that stagnating — especially in New York — will ultimately make your event planning business lose its edge. Stay competitive and keep the event planning excitement alive by tackling your next mountain: scaling your event planning business in 2025. We’ll share the seven essentials you need for event planning growth, based on the proven results of today’s most successful event professionals.
1. A Comprehensive Accounting System
Running low on cash is one of the top reasons businesses go under. In fact, according to SCORE, 80% of business failures can be attributed to poor cash management. So, make sure you have a comprehensive accounting system in place that would make your ninth-grade algebra teacher proud. In addition to event planning income and expenses, you should know and track the following accounting metrics.
Cash Flow
If that hard-to-get NYC event venue needs a deposit right this minute, or else you lose the reservation to your top event planning competitor, do you have the cash on hand to make the deal happen?
Having a healthy cash flow gives you the leverage to make snap decisions and peace of mind when things don’t go as planned.
Gross Profit Margin
Increasing the number of event clients you serve isn’t the only way to grow your event planning business. You already know that your gross profit margin is how much money you earn for each event over and above what you spent on that event, and it’s a useful figure for making sure you’re charging enough for your event planning services.
What’s important though, if you want to scale your event planning business, is steadily increasing your profit margin by becoming a more efficient and skilled event planner and commanding higher prices from a more targeted clientele. Increasing your gross profit margin is an effective strategy for growing your event planning business.
Net Profit Margin
Your net profit margin is really the nuts and bolts of your profitability. It takes into account your overhead, in terms of staffing, technology, and other expenses, when calculating the success of your business. Your net profit margin is the key to knowing whether or not your event planning business is growing.
Debt-to-Equity Ratio
However, it’s all smoke and mirrors if you have too much debt. It’s easy to focus on growth and lose sight of the debt that is piling up around you. Your debt-to-equity ratio helps you determine if you have an unhealthy amount of debt. It basically measures your debt against your assets.
On the one hand, debt can provide the capital you need to grow your business. However, if your debt-to-equity ratio grows above 50 percent, then you run the risk of being unable to pay your loans or unable to raise capital to scale your business.
Accounts Payable and Receivable
You may have landed a nice, sizable contract for a corporate event. But it’s not income until the check arrives in the mail. Tracking your accounts payable and receivable will help you anticipate your cash flow and make better decisions.
Customer Lifetime Value (CLV)
Cultivating long-lasting, high-quality event clients is key to growth. So, you’ll want to pay close attention to your customer accounting metrics when growing your event planning business. Your customer lifetime value (CLV) is a way of rating how profitable each event client is. It answers questions, such as:
- Do clients come back for repeat business?
- How much hands-on service does a client need?
- What is the typical gross profit margin for each event client?
Customer Acquisition Cost (CAC)
Your customers’ lifetime value goes down if you have to spend a lot of money and time to acquire them. Customer Acquisition Cost (CAC) monitors how much you spend to acquire new customers and takes into account items, such as the cost of marketing and time spent cultivating a lead.
2. Written Plan (With Goals) for Growing Your Event Planning Business
Just as when you started your business, create a written plan for how you’ll scale your event planning company. You may want to structure your written plan like a formal, updated business plan. Include detailed information about how you plan to grow your event business, including the following.
Updated Company Description: Likely, your growth will include moving into different event markets and tweaking the event packages you offer. Write a detailed company description that takes your expanded business goals into consideration, including updated mission and vision statements.
Ideal Event Client: Scaling your event business likely includes targeting corporate clients or wealthier clientele. Create client personas to assist you in creating marketing strategies and event packages to appeal to this new demographic.
Market Analysis: Include a section that analyzes the NYC event market space as it relates to your expansion goals. Research the players currently occupying that space to identify your unique selling proposition.
3. Marketing Plan Within (or Below) Your Current Event Client Acquisition Cost
Harvard Business Review reports that a common mistake companies make when scaling up is failing to consider the “economies of scale and scope.” Essentially, companies eagerly invest in their growth, but neglect financial efficiency. So, expenses grow as fast as (or sometimes faster) than income.
Service-based companies, such as event planners, are especially susceptible to the rising costs of doing business. As you plan larger events, you’re spending more on deposits and supplies, while clients, especially corporate clients, pay for the bulk of your services after the event.
Curtailing the amount of money going out is an essential strategy to growing your business. Your marketing plan is an ideal place to start. With your current customer acquisition costs in hand, you can create a marketing strategy that reins in the expense of attracting new event clients. Follow these tips to keep your CAC within budget.
Invest in in-person marketing. Meeting with potential clients face-to-face is far more effective than pricey paid ads. Pro Tip: Meet corporate decision makers when you reserve your booth at The Event Planner Expo.
Expand your network. Your personal and professional networks together create a powerful pipeline for new event clients. Try investing more time in growing and nurturing your network by attending events and scheduling one-on-one meetups.
Create a referral program. Your current event planning clients are a potential treasure trove for new customers. People are more likely to trust recommendations from trusted loved ones. So, make it a no-brainer for happy event clients to recommend you by offering a tempting referral reward.
4. Staff (or Freelancers) to Handle a Growing Events Calendar
Have people in place to help you as the demands of your event planning business grow. The worst thing you can do is drum up a bunch of new business only to drop the ball when the workload becomes too much.
Avoid disaster by lining up people who can help. If you aren’t in a position to hire full-time employees, start by having a full roster of independent contractors who can pick up the slack when business heats up. Then, when the time is right, bring on more employees to safeguard your brand’s reputation and ensure consistently high service.
5. Technology to Streamline Event Planning
Investing in the right tools can do wonders to increase efficiency, boost customer satisfaction, and reduce expenses. You can stay organized and be a more effective event planner with the right software. Consider investing in the following tools.
Event Management Software
Nothing against your favorite Filofax, but event management software is a must for ambitious event planners. Event management software can help you keep track of the details for large and small events. It will also help you pinpoint your event’s ROI, a powerful selling point to help you grow your event business.
Social Media Management Software
There’s simply too much to keep track of when it comes to social media marketing for events. Free your bandwidth by investing in social media software. Schedule posts across multiple channels, gain insights with social listening, and zero in on the most effective posting strategies.
Customer Relationship Manager
If you’re still mulling around in Microsoft Outlook, consider upgrading to a full CRM that will help you scale your event business. CRMs can do things your email manager can’t. Segment your contacts, automate email marketing messages, and tweak it all to maximum effectiveness with data insights.
6. Streamlined Event Planning Processes
As you grow your business and you bring more employees or freelancers into the fold, it’s important to have standard processes that everyone knows and follows. It may sound boring and somewhat nerdy, but having a clear-cut workflow ensures everyone is clear on the next step. Your reputation as an up-and-coming, premier event planner won’t fall prey to avoidable mishaps.
7. Keep Existing Customers Coming Back
It’s been said so often that it’s almost cliché, but it’s still true that it costs less to retain a customer than to acquire a new one. Keep your existing customers coming back with a robust customer retention program. Try the following ideas.
Create a customer loyalty program. This year it may be a wedding, but next year it may be a baby shower. Give your clients a reason to hit you up every time they have a special event to plan for. Use a customer loyalty program that gives returning customers a percentage off or offers attractive event upgrades for free.
Launch an email campaign. Show up in their inbox with tips for everything events related. Give them free content to help them survive the holidays, pick the perfect dress, or answer pressing etiquette questions. Providing useful advice consistently will keep you at the top of their minds.
Host customer appreciation events. Remind them why you’re the event planning maestro by hosting a yearly customer appreciation event. Your event can pull double duty when you invite promising leads to mingle with your happy clients.
Bonus Tip: Elevate Your Profile at The Event Planner Expo
Show your audience that you’re a major player in the events industry by exhibiting your event planning services at trade shows and expos. These events are the ideal venue to show off your expertise and connect with highly qualified sales leads. The Event Planner Expo is the perfect setting to raise your profile and increase your brand’s reach. As New York’s top event planning event, you’ll have access to industry leaders, the best vendors, and most importantly, top decision makers in the corporate event planning world. Reserve your booth today.
