Market Research Tips For Event Planners

You don't need much to start an event planning business, and this means that event planners are a dime a dozen in a crowded city. Competition is fierce and you have to offer something unique lest the bigger, more established groups of event planners gobble you up.

Starting a party planning business is exciting to say the least, but a bit of reality check is needed every once in a while. One way of making sure you're not just building castles in the air is to make sure there is a market for your party planning business. Specialization is an option for event planners who want to corner a certain target market. For example, you could focus on the debutants and plan your business model around this group of people. However, if you feel that girls and parents won't readily spend on debutant balls, you can choose to target the bachelorettes who are more likely to shell out cash for a memorable hen party.

Event planners should engage in market research to....

1. Gauge the acceptability of your service or product
2. Isolate the specific needs of your target market
3. Estimate the scope of your target market
4. Decide on the best strategy to adopt
5. Identify your biggest competitors, and
6. Find a way to make your service more unique

You can delineate your target market according to their demographics (age, gender, income, religion, education etc.), geographical location (urban or suburban area) and psychographic traits (lifestyle, personalities and values). Remember that there is always that untapped market that your competitors are ignoring. Finding out where these people hang out and what their main concerns are will enable you to corner the market more effectively.

It's safe to assume that event planners are among the shrewdest among all the business people in a locality. They can sniff opportunity from a mile away and will always find ways to pitch their services to prospects. They have to be aggressive because the event planning business is highly dependent on trends and market demands (e.g "Jeez girl, didn't you know that carnation corsages are now considered tacky?"). You must also undergo a thorough self-analysis to determine your best selling position. Here are some questions you need to ask yourself.

1. Do you have enough passion for the business to outlast your competition?
2. Can you afford to give out generous discounts to new prospects who can promote you well in the long run (i.e. well-connected individuals, socialites etc.)?
3. Do you have loyal employees to cover your back just in case you need to work on simultaneous projects?
4. What's unique about your service?
5. Do you have enough suppliers to support your growing business? and
6. Do you have a plan B?

Now, you are probably asking...what is a plan B for event planners? No, it's definitely not "quitting". The main purpose of a plan B is for you to keep your business going and earning even when your major plans are going to the dumpster. One good plan B is to go back to your roots. Before you became a jack of all trades, you specialized in one aspect of party planning (catering, restaurant, public relations, advertising, crafts, interior design, venue reservation etc.). If business is slow or if your competition is too big for you to handle, the best thing to do is to regroup, re-organize and go back to the drawing board.