How to Start an Event Venue Business

how to start a new event space

Advertiser Disclosure

ON THIS PAGE

 

How To Start an Event Venue Business

Starting a event venue business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn how to open an event space successfully.

Importantly, a critical step in starting an event venue is to complete your business plan. To help you out, you should download Growthink’s Ultimate Event Venue Business Plan Template here.

15 Steps To Start an Event Venue Business

  1. Choose the Name for Your Event Venue Business
  2. Develop Your Event Venue Business Plan
  3. Choose the Legal Structure for Your Event Venue Business
  4. Secure Startup Funding for Your Event Venue Business (If Needed)
  5. Secure a Location for Your Business
  6. Register Your Event Venue Business With the IRS
  7. Open a Business Bank Account
  8. Get a Business Credit Card
  9. Get the Required Business Licenses and Permits
  10. Get Business Insurance for Your Event Venue Business
  11. Buy or Lease the Right Event Venue Business Equipment
  12. Develop Your Event Venue Business Marketing Materials
  13. Purchase and Setup the Software Needed to Run Your Event Venue Business
  14. Hire a Team
  15. Open for Business


1. Choose the Name for Your Event Venue Business

The first step to starting a event venue business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your event space business:

  1. Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check
    to see if a suitable domain name is available.
  2. Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
  3. Think about marketing. Come up with a name that reflects the desired brand and/or focus of your event space.

Secure your domain name now with one of these top service providers:

2. Develop Your Event Venue Business Plan

One of the most important steps in starting an event venue business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  1. Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your event venue business.
  2. Company Overview – this section tells the reader about the history of your event venue business and what type of event venue business you operate. For example, are you exclusively a wedding venue or do you host all sorts of private events? Is your space a large banquet hall or another type of event space?
  3. Industry Analysis – here you will document key information about the event venue industry. Conduct market research and document how big the industry is and what trends are affecting it.
  4. Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, are they in a particular income bracket? Where do they live? What do they look for in an event venue?
  5. Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  6. Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
    • Product: Determine and document what products/services you will offer
    • Prices: Document the prices of your products/services
    • Place: Where will your business be located and how will that location help you increase sales?
    • Promotions: What promotional methods will you use to attract customers to your event venue business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing. You might also attend networking events to promote your business.
  7. Operations Plan – here you will determine the key processes you will need to run your business operations. You will also determine your staffing needs. Finally, in this
    section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  8. Management Team – this section details the background of your company’s management team.
  9. Financial Plan – finally, the financial plan answers questions including the following:
    • What startup costs will you incur?
    • How will your event venue business make money?
    • What are your projected sales and expenses for the next five years?
    • Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Event Venue Business Plan Template and complete your plan and financial model in hours.

3. Choose the Legal Structure for Your Event Venue Business

Next you need to choose a legal structure for your event venue business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the event venue business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a event venue business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an event venue business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a event venue business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your event venue business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

Get professional help setting up your business entity with one of our preferred service providers:

4. Secure Startup Funding for Your Event Venue Business (If Needed)

In developing your event venue business plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for an event venue business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an event venue business that they believe has high potential for growth.

5. Secure a Location for Your Business

A major step to starting your event venue business is to find and secure a location. Many event venues rely on beauty, historical significance, or unique features to bring in customers, which can all be challenging characteristics to find or create on a budget. Just remember that even a simple space can be made into something elegant and photo-worthy with a bit of work.

You’ll also need to find a space that is large enough to accommodate your guests and has all the necessary amenities, such as restrooms, a catering kitchen, and parking. If you’re on a tight budget, you may need to get creative with your space. For example, you could rent a large warehouse and turn it into an event venue with the help of some DIY decor.

Once you’ve found the perfect location for your business, be sure to sign a lease or purchase agreement. This will protect you from any legal issues that could arise down the road.

To find the right space, consider:

  • Driving around to find the right areas while looking for “for lease” signs
  • Contacting a commercial real estate agent
  • Doing commercial real estate searches online
  • Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

6. Register Your Event Venue Business With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

Finish Your Business Plan Today!

If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Event Venue Business Plan Template and complete your plan and financial model in hours.

7. Open a Business Bank Account

It is important to establish a bank account in your event venue business’ name. This process is fairly simple and involves the following steps:

  1. Identify and contact the bank you want to use
  2. Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  3. Complete the bank’s application form and provide all relevant information
  4. Meet with a banker to discuss your business needs and establish a relationship with them

Our Recommended Top Banking Services

8. Get a Business Credit Card

You should get a business credit card for your event venue business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

Get approved for a business credit card today with L3 Payments

9. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

  • General Business License – You will need to apply for a general business license in the city or county where your event venue will be located. Business license applications are usually very simple, but fees vary by location.
  • Occupancy Permit – An occupancy permit is also required in order to operate an event venue. This permit is issued by the local fire department and ensures that your venue meets all the fire safety guidelines.
  • Beer or Liquor License – If you plan to serve alcohol at your events, you will need to apply for a liquor or beer license. The application process and fees vary by state, so you’ll need to check with your local government office to find out what’s required.

Depending on your location and the type of event venue you launch, you will have to obtain the necessary state, county and/or city licenses.

10. Get Business Insurance for Your Event Venue Business

Business insurance policies that you should consider for your event venue business include:

  • General Liability Insurance – General liability insurance will protect your event venue from any third-party bodily injury or property damage claims that might arise.
  • Property Insurance – This will protect your event venue from any physical damage or theft.
  • Workers’ Compensation Insurance – If you have employees, you will need this insurance to protect them in case they are injured while working at your event venue.
  • Business Interruption Insurance – This insurance will protect your venue from lost income if your business is forced to close due to a covered event, like a fire or severe weather.
  • Liquor Liability Insurance – If you serve or sell alcohol at your event venue, you will need this insurance to protect yourself from any liability claims that might arise from someone becoming intoxicated and injuring themselves or others.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

Business Insurance is the Best Way to Protect Your Business

Get a quote with Hiscox to find the precise insurance you need. It only takes a few minutes.

11. Buy or Lease the Right Event Venue Business Equipment

To get your event venue business off on the right foot, you’ll need to invest in some essential equipment. This includes items like chairs, tables, linens, dishware, decorative items, and audio-visual equipment.

You may be able to find some of these items used, but it’s important to also have some replacement items on hand in case of breakage or damage. You’ll also need to factor in the cost of renting items like tents, stages, and dance floors if you don’t plan on purchasing them outright. Some events may also require specialty items that you can consider leasing.

From the business side, you will need a phone, computer, printer, reliable internet connection, and basic office supplies. You might also consider looking into security systems.

12. Develop Your Event Venue Marketing Materials

Marketing materials will be required to attract and retain customers to your event venue business.

The key marketing materials you will need are as follows:

  1. Logo – Spend some time developing a good logo for your event venue business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  2. Quickly and easily create a memorable business logo

    Use Smashing Logo’s unique logo builder to design your logo in just minutes.

  3. Website – Likewise, a professional event venue business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  4. Build a professional website for your business with B12 Website Builder

  5. Social Media Accounts – Establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your new event venue business. Events like weddings get lots of local social media attention and can help generate new customers for an event space.

13. Purchase and Setup the Software Needed to Run Your Event Venue Business

There are a few different types of software that can make running an event venue business easier.

A good booking system can help you keep track of reservations and ensure that your events are properly staffed. Some popular booking systems for event venues are HoneyBook, Tripleseat, and iVvy Venue Management.

If your booking software does not include a way to accept payments, you should also look into a point of sale (POS) system like Square, or something to help you manage all your finances like Quickbooks.

Finally, a good customer relationship management (CRM) tool such as ActiveCampaign can help you stay in touch with your existing mailing list and generate new bookings. Some booking systems may also include CRM tools, so make sure to explore all their features before buying new software.

Research the software that best suits your needs, purchase it, and set it up.

These top rated software providers make running your business a breeze:

14. Hire a Team

You might find yourself filling many roles as you launch a small event venue, but will likely need to build a team of event professionals to be successful in the long term. Your employees might include an event planner, catering manager, and marketing specialist. Together, these individuals will be able to help you create a successful event venue business.

When hiring employees for an event venue business, it is important to find individuals who have the necessary skills and experience. One way to do this is to post job openings online and review resumes. It is also important to interview potential employees and ask them questions about their experience and what they can bring to the business.

15. Open for Business

You are now ready to open your new event venue business. Start promoting your venue in as many places as you can and reaching out to potential clients to make bookings. You might also host a grand opening event to let prospective clients check out the new event space.

If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

 

How to Finish Your Ultimate Event Venue Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your event venue business plan?

With Growthink’s Ultimate Event Venue Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your event venue business plan today.

 

 

How To Start an Event Venue Business FAQs

It is not easy to start an event venue, but it is definitely doable with the right planning and execution. Starting an event venue requires a lot of coordination, from finding the perfect location to getting all the necessary permits and licenses. However, with careful planning and execution, opening an event venue can be a very rewarding experience. Following the steps outlined above will help you get started.

You can absolutely start an event venue business with no experience. In fact, many event venue businesses are started by first-time entrepreneurs. The key is to have a clear vision for your business and to be willing to put in the hard work to make it a reality. The most important thing you can do to get started is research the industry and your local market. You might also consider looking into online courses or training events for event venue managers.

Event venues and related businesses, such as catering and photography, require a significant investment.

The average startup costs for an event space range from $200,000 to $500,000.

Here are a few key costs that are associated with launching a venue:

Rent/Mortgage

This is the number one cost associated with launching a venue business.

Depending on where you get your real estate, your rent will vary quite a bit. Depending on how large of a space you need to buy or build and its location, this cost could be thousands upon thousands of dollars.

Luckily, there are many different types of commercial loans and other ways to finance this expense so it’s not impossible to get started without all the cash upfront.

Operating Expenses

These expenses are ongoing throughout the life of your business, so you need to make sure you plan accordingly to not go broke over time. You’ll have things like insurance, equipment replacement or rental (if you choose), employee wages/benefits, taxes, etc.

All these ongoing expenses add up very quickly if you’re not managing them well.

Employee Costs

You need to have the right staff members on your team to be successful. You can pick and choose who you hire for each position, but don’t forget that there’s a cost associated with every employee on your team.

Build-Out/Renovations

You’ll probably need to renovate or build out your facility to turn it into the type of space you want it to be. This is an ongoing expense, but you’ll see a large spike here during the initial buildout of the business.

Like with most businesses, if you are investing in starting a venue business on a shoestring, it may be difficult to get things off the ground. It's not impossible if you're creative (a garage sale can be used to help raise funds), but the risk is that you won't have enough money to cover monthly expenses throughout the first year of operation.

There are several ways to obtain the funding you need to start a successful venue business. You can apply for a loan, utilize your local SBA office for guidance on writing a business plan and obtaining funding from the government.

In this tough economic climate, it's important to be creative if you want to launch a new idea or venture with very little money involved. If you have a great concept paired with a well-written business plan, your chances of obtaining a loan to help you get started are greatly increased.

Venue operations vary greatly depending on the size of the event facility and its target audience.

For example, some event venues may charge a flat fee for hosting an event which allows them to focus on catering to individuals or companies that host events regularly (such as universities). Other venues may choose to work with outside caterers and allow them to take care of the day-to-day operations.

There's no foolproof way to ensure that you'll earn a profit as a venue, but it's important that you understand the needs and wants of your target market so that your business can be profitable.

Businesses in this space can be highly profitable, but profits vary depending on several factors. Location, size of the venue, and type of events hosted are just a few of the many things that influence how much revenue the owner will bring in.

There are many different types of event venues, and each has its own unique set of profitability factors. To maximize profits, it is important to choose a venue type that is well suited to the target market and location. Wedding venues are usually profitable when managed correctly, but the type of venue that will bring in the most profit really depends on demand in your area.

There are some costs that you will need to pay on a regular basis in order to keep your business up and running. Some of the most common ongoing expenses for an event venue business include rent, utilities, insurance, wages, and marketing.

 

Rent is likely going to be your biggest expense, as you will need to find a suitable location for your venue. The amount of rent you pay will depend on the size and location of your venue.

 

Utilities, such as electricity and water, will also need to be paid on a regular basis. The amount you pay will again depend on the size of your venue and the number of events you host.

Insurance is another important expense, as it will protect your business in case of any accidents or damages that occur on your property. You will need to get both general liability insurance and property insurance.

Paying your employees is also an ongoing expense. If you have any staff working for you, you will need to pay them a salary or hourly wage.

Finally, you will need to spend money on marketing in order to attract clients to your venue. There are many different marketing strategies you can use, such as print ads, online advertising, and word-of-mouth marketing.

It is hard to estimate how much venue owners make because the amount of money that a venue owner can make varies depending on a few different factors.

Location

One of the biggest factors that affect how much a venue owner can make is their location. Venues located in larger metropolitan areas will typically bring in more revenue than those located in smaller towns.

Size of Venue

The size or square footage of the venue is also a major factor. Venues that can accommodate a lot of people will generally bring in more revenue than those that are on the smaller side.

Type of Events

The type of events that a venue hosts also has a big impact on how much money the owner can make. Venues that host a wide variety of events will typically have higher revenue than those that specialize in hosting one type.

Generally, owners of professional, full-service banquet halls and meeting facilities can expect to make $45,000 to $100,000. Those that do not have banquet facilities can expect to make significantly less revenue.

Where Will The Venue Be Located?

The location of your venue is the most important factor when it comes to determining if you will make any money or not.

You can choose to open in a high-traffic, well-known area along with the great potential for growth in your local market. The other option is to find an underused space that may not have much foot traffic but offers great rates on rent might just be right for you.

The downside to this strategy is that you will need to put together marketing campaigns and advertising methods to reel people in which always costs more than renting low and selling high.

Your rent will also determine how much profit you take home so be sure to do your research before signing anything.

What Types of Events Will You Host?

Depending on the type of events you host will determine how many employees you need, what equipment is needed, and how much money you will make.

For example, if you are hosting concerts at your venue then you will want to hire security for the safety of the attendees. If it is a smaller event with fewer guests expected, then maybe just one or two security guards should be good enough.

The amount of money you will make also depends on the cost of hosting the event. If it is a business meeting, you might not charge as much in fees as if it was hosted at your venue.

How Big is Your Venue?

The size of your venue will affect your bottom line in more ways than one when it comes to hosting events.

For example, if your venue is too small you will not be able to fit many guests so, therefore, charge less for the space and attendance fees. If it is too big, then you will need more staff to accommodate every guest promptly.

How Will You Be Different?

Before opening, you need to know the things that make you different from other venues.

This can be anything from competitive pricing, customer service, or the location itself. Think about how you will attract potential clients and what happens once they walk through the front door.

Will you have a restaurant with great food? Will you have an outdoor area for patrons to mingle and enjoy themselves? Many questions need to be asked before opening your doors.

The more, the better since it will set you apart from other venues which can only help your business succeed.

What Is The Price for Your Services?

When it comes to the price you charge for your services, this all depends on what type of venue you are running.

For example, if you are hosting a wedding at your place, make sure to check out different venues in your area that will host that specific event since their prices might be better than yours.

Start by looking at different venues in your area that offer similar services. Once you have a list of potential competitors, study their pricing model and come up with something comparable.

What Is Your Budget?

The budget you have set aside is the fourth factor for opening your business.

This includes everything from advertising costs, equipment and staff salaries to rent and taxes. Without a proper budget in place, you will not succeed.

To calculate how much money you need to get started, add up all of your expenses then subtract that number from your income. This will help you fine-tune your venue and make it more profitable for the success of your business.

Before starting a venue, you need to know what type of events you want to host, how big your place is, the different types of people who will be attending your events, and so on and so forth. Knowing all the information before you even start thinking about your business is important to its success.

When it comes to figuring out what types of events, just make a list of all the possible things that can be done at your venue and narrow down the type of clients you want attending each event. Your budget also plays a huge role in starting a venue, so make sure to get the right number of customers.

Overall, just be marketable and study your competitors to find out their prices and what is successful for them to get your business

There are a few keys to making a new event venue business successful.

Plan Ahead

This is a big one and takes time. You need to have some sort of business plan as far as how long things will take for each step of your own business. You need to know how much things will cost you in terms of rent, utilities, equipment, insurance – everything that your operation will require.

You also have to think about what you’re going to do differently from everyone else in this space so figure out where your target audience is and how you can fit into it with a great product or service offering. Be sure to make comparisons based on similar businesses in different markets when doing this market research.

Stand Out

There’s a lot of competition out there, but if you do something better than the others, people will come to your venue. Have a great idea for a venue that is different from what is currently available in the market. This can be something like a unique theme, location, or type of event that you plan to host.

Scale

You don’t necessarily need to invest a huge amount upfront. Think about how much revenue you can bring in and then think about whether that justifies the investment down the road. Be open to this growth and start small, but to grow and scale your business over time (and hire help as needed).

Determine Your Marget Market

You can create marketing materials that cater to different types of customers (like brides, corporations, festivals) but it’s not enough just to know your target audience – you need to understand their wants and needs so you can communicate these effectively in everything from sales calls to venue website copy. Find out what’s most persuasive when marketing to customers with this type of business.

One way that venue owners can maintain a competitive edge is by offering discounts for customers who are willing to book events well in advance of the date they want the event held. This idea might help venue managers compete with hotels, convention centers, and exhibition halls that offer business travelers rooms at discounted rates if they book well in advance.

Using social media accounts, such as Facebook and Twitter, also helps customers find out about upcoming bookings. Keeping customers informed is good customer service, but it also builds loyalty for those customers who have never used a venue before. Reach out to satisfied clients to obtain positive reviews for your website and social media profiles.

Many businesses making the transition to hosting their events don't advertise because they are unsure of the best way to go about it. There are many different options available when advertising, so use your creativity and brainstorming abilities to figure out which ones will work for you.

A few options that can be considered to find customers are hosting open houses, sending out flyers to local businesses, listing your event space on business directories and social media websites, and visiting popular spots in your area to leave fliers.

 

The event industry is a massive market that does not stop growing. The market is currently about $3 billion with continued growth each year. This number includes all aspects of party and event planning including event venues, arenas, amphitheaters, clubs, bars/pubs/restaurants, etc.

The events industry can be segmented into these categories: music concerts, festivals, sports, exhibitions & conferences, corporate events & seminars, and others.

Music Concerts

Music concert venues are the biggest segment in the industry due to their massive popularity throughout the world, especially in live music venues.

Festivals

Music festivals are where people go to see a variety of different genres all at once and then party hard with other people who enjoy similar musical tastes.

Sport Venues

These events allow people to see their favorite players and teams compete against each other in a stadium or arena.

Exhibitions & Conferences

They provide a chance for companies to showcase their products and services to potential clients and customers.

Corporate Events & Seminars

These events allow companies to hold large meetings or conferences in an attempt to spread the word about their brand, products, and services.

Other Venues

Other venues include everything from restaurants and bars to nightclubs and hotels. These types of venues can be found in any major city and allow customers to do a variety of different things such as view sports games, listen to live music, or dance the night away with friends.

As new event venues are created, there are new external factors that affect the industry. Taking a closer look at the external factors allows for accurate data from the industry to be produced. External factors include the following:

As with all industries, economic factors heavily affect event venues. The success or failure of an industry depends upon the state of the economy. If the economy is in a recession, then businesses are less likely to spend money on extravagant events, which means there will probably be fewer events at venues.

The population of a certain area also affects the industry. If there are very few people in a certain area, then that can limit the number of events held at a venue.

Another external factor is the number of competitors within a specific area. This directly affects prices and what kind of special events will be hosted as well as how often they are hosted. If there are fewer competitors, then this means higher demand and prices for customers.

Social media is another external factor that affects the industry. Event venues need to be aware of what their clients are saying about them on social media. There should not be any negative comments because it could cause potential customers to think negatively about the venue as well.

The last of the major external factors is the weather. Bad weather can cause people to have less of an urge to attend events at outdoor venues, which means there will probably be fewer people attending these types of events during unfavorable conditions.

The key competitors in the event industry are primarily hotels, convention centers, and exhibition halls.

Hotels

In the event industry, hotels serve as a primary competitor for event venues. Hotels typically offer similar services to that of an event space, such as catering and transportation.

In addition, convention centers work closely with hotels in promoting their facility through advertising and marketing opportunities. The hotel-convention center industry is a close-knit one, with many large hotel corporations also owning a convention center.

However, when it comes to developing relationships with potential clients, it is important to note that clients perceive hotels and exhibition halls to be more convenient than convention centers when planning meetings.

Convention Centers

The main competitor in this space is convention centers, which are generally larger venues that have more capacity for hosting gatherings. Convention centers are seen as a valuable marketing tool by many businesses for holding trade shows and attracting new customers.

However, there is often little incentive to hold smaller-scale events at convention centers due to their relatively high cost. Most convention centers are tied to cities or states that help pay for their upkeep. They are used not only by exhibitors but also by individuals looking for venues for wedding receptions, parties, family gatherings, etc. Convention centers also can host concerts and provide audio-visual equipment.

Exhibition Halls & Event Centers

Most of these large halls are considered “public assembly facilities” where people can gather together to listen to political or commercial speakers or watch performances. The type of event held depends on the size of the hall and its amenities. The more amenities provided in connection with an exhibition hall, the more expensive it will be to hold an event there.

The key customer segments in the venue market are businesses and individual consumers.

Businesses

Businesses use event venues for a variety of purposes, including meetings, conferences, trade shows, and product launches. Businesses account for the majority of event venues’ revenues. Many corporations, especially larger ones, have a dedicated meeting department that typically oversees their needs in this area.

Individuals

Individual consumers also rely on event venues. They use venues to host weddings, engagements, birthday parties, fundraisers, showers, and family events such as reunions or holiday gatherings. Individual consumers account for the second-largest source of revenue for event venues. In recent years, there has been an emphasis on attracting individual potential clients because they spend more money than businesses do per event.

 

Helpful Videos & Images

How To Start And Operate an Event Venue Qith Bonnie Hawthorne (Atlanta, Georgia)

How To Turn Your Home Into an Event Venue

Creative Venue Marketing Ideas

7 Major Venue Types and the Benefits of Each

types of venue rental business

 

Additional Resources in the Event Venue Industry

 

How to Finish Your Ultimate Event Venue Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your event venue business plan?

With Growthink’s Ultimate Event Venue Business Plan Template you can finish your plan in just 8 hours or less!

Click here to finish your event venue business plan today.

 

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan writing services
can create your business plan for you.

 

Other Helpful Business Plan Articles & Templates

[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]
[class^="wpforms-"]