A Look into the Wide World of Entrepreneurship in Event Planning

Entrepreneurship is a popular term being used quite often in recent times. When approaching the term “entrepreneur” from a definitional or uniform perspective, one’s findings may result in an explanation much like that found on Merriam-Webster’s online dictionary: “one who organizes, manages, and assumes the risks of a business or enterprise." A very similar definition is found on Wikipedia: “someone who seeks to capitalize on new and profitable endeavors or business; usually with considerable initiative and risk." These definitions are indeed very similar. In contrast, when thinking about the theory of an enterprise, one may come to the conclusion that their thoughts differ greatly from the person sitting next to them. For example, my classmate, Kelly, told me how she works for an entrepreneur. She explained to me how he is a general contractor who decided to take matters into his own hands when he realized that there was no at-home study program for the state-mandated tests that one must take to obtain and renew a general contractor's license, and he creates at-home study software that has become very successful. She went on to tell me he has also owned a dry cleaners and dabbles in real-estate. There is undoubtedly a vast array of possibilities when exploring entrepreneurship. Entering the field of technology with things such as creating software is an excellent idea for a business in our day and age. Entrepreneurs exist in every field imaginable; a fashion designer for example, is an entrepreneur. Opening a restaurant, a clothing shop, starting a tutoring business or software repair company are all examples of enterprises. I, however, plan to focus on a service-related business: event-planning.

As I remix Shannon’s narrative I wonder…was Shannon born with this innate drive to own her own event-planning business or has she picked up this want to spear-head her own enterprise as she has evolved through her adult-life. Are entrepreneurs born or made? According to new research, 6 out of 10 entrepreneurs in the U.S. claim that their entrepreneurial drive is a result of nature, not nurture. This long debated question of whether entrepreneurs are born, or bred through work experiences, education or other factors has been researched at Northeastern University's School of Technological Entrepreneurship (STE) in Boston. This research proved to have some interesting results such as, 62% believe their “innate drive” was the main reason they began their venture capital. Another astonishing result was the mere 1% who felt their higher education was part of their decision to start their own businesses. In contrast, one in five felt that their work experience was a factor in setting up their own venture while some one in six (16%) had been inspired by peers within the industry.

"The survey results indicate a major issue in academia today: institutions of higher education are not adequately preparing students for careers in entrepreneurship," said Paul Zavracky, Dean of Northeastern's STE. "The traditional 'silo-approach' to teaching entrepreneurship is flawed. An independent, interdisciplinary approach that marries business and marketing with technology ensures students are well-rounded and fully prepared to start their own ventures." These results reiterate that our higher education system is flawed, as my narrative points out as we evolve, so must our education. Perhaps this is why few entrepreneurship’s make it past the first year of opening their doors. Although with the countless amount of entrepreneurship’s popping up everyday our education system is not the sole reason for their demise.

They say from a young age many people can tell what career one will pursue because of instinctive qualities and an entrepreneur is no different. An entrepreneur as the U.S. Small Business Administration website points out there must be some natural qualities that are desirable in an entrepreneur, including being a self-starter, getting along with a variety of personalities, being a good decision-maker, having the ability to plan and organize, and maintaining the motivation and stamina it takes to tackle such an enormous task. It is important to keep in mind that you will be outsourcing with numerous companies and people when running a business. I find that I hold many of these attributes, for I am very organized, the idea of bringing many different elements together to form one big project (or event in this case) excites me, I enjoy receiving and building from feedback of others, and most importantly, I am very passionate about learning more and exploring this field. I do tend to falter in the everyday aspect of decision making (I usually dread the process), but when it comes to applying decisions to a creative process, I will prevail. It seems it is in my nature to be an entrepreneur.

 Entrepreneur's How-to

There are many steps to take when forming a business. First, one must establish a business idea, and then begin planning strategically. The initial stages of planning includes, but are not limited to gaining a clear understanding of what their business is, deciding whether they are providing a service or a product, who their clients/customers are, and most importantly, identifying their goals (Kwon and Swafranski 1). This is where mission statements come into play; where your business is identified and your objectives are stated (5). A mission statement can be a great tool in that, if constructed effectively, it will attract clients and/or persuade investors to provide you with capital. The most efficient and effective entrepreneur takes a proactive route planning for the future, all while acknowledging the present successful tactics (3). The next step is to produce a philosophy for your organization that will define how it is to operate (8). Then, you must clarify your goals and what it will take to reach them in order to keep your business running productively. It is during this step that you must also prioritize your objectives and consider the elements of environment and how they may affect you and your business. Such elements include, but most certainly are not limited to: shifts in population, trends in the economy, technological developments, legislation, and perhaps the activities of special interest groups. After analyzing these and other factors, it is then time to develop an information system. Such a tool will help you filter and store all the data that may be needed at the time and in the future (organization certainly plays a key role here). Once this external information is collected, you then apply it to your enterprise and conduct an internal business analysis. After defining customers, competition, potential situations, the business’s strengths and weaknesses, and your goals and objectives, it is then time to finalize your plan. Your final plan will include an executive summary, an industry analysis, a marketing plan, an organizational plan, a production plan, a financial plan, and an appendix (9-14).

After a business plan is completely constructed, the next step may be finding a mentor; an experienced professional in the field you chose to show you the ropes and help your business take off (SBA). In event-planning, networking is the key to success; this will also come into play when choosing the site for your business. It is important to not limit your networking, keep in mind it must go beyond your initial thoughts of important roles you believe your business will be involved with. After choosing a mentor, the grueling process of financing takes place. One must first determine start-up costs, then estimate the cost of the first several years the business is up and running, then separate these expenses into fixed and variable. Next step is conducting a break-even analysis which estimates when you will begin to make a profit. Determining where the money to start your business will come from may be one of the most flabbergasting factors of financing. A new and growing business will probably use limited equity financing, most commonly dealing with venture capitalists; “institutional risk takers that may be groups of wealthy individuals, government-assisted sources, or major financial institutions (SBA).” Non-professional investors, such as friends and family, also fall into this category. Choosing whether or not to borrow money is an important and grueling decision, of which I am not going to explore further at this moment to avoid confusion. Researching loans and grants is also a fundamental step in the financing process that requires too much detail for my purpose.

After nearly finalizing a finance plan, it is then time to choose a business structure. This may fall into one of five broad categories: sole proprietorship, general partnership, limited partnership, corporation, and Limited Liability Company. When choosing your structure, there are two main factors to take into consideration: legal liability, and tax considerations. Though it is taking on all or most of the legal liability, I would choose a sole proprietorship or partnership for an event-planning company. It is after this stage, you choose your business name, location, obtain an occupancy permit, secure a business license, and apply for a registration number for your operation (Stemmy 1). Operating under a partnership will require additional paperwork such as, a written agreement pertaining to the rights and duties of each partner, how capital is assigned, etc (2). In the events industry, it is wise to consider becoming certified. You may earn a degree in event planning/management from a University, or choose to work towards becoming a CSEP (Certified Special Events Professional) or CMP (Certified Meeting Planner), designated by the ISES and MPI. Many clients, wanting the best, look for these titles when hiring planners (how to 1). After conducting some further research and tying up the loose ends, you may be ready to start your business. Of course, these steps are just the building blocks of venturing into the world of a new enterprise, but they provide general guidance and direction to get your business off the ground.

No one wants to take the possibility of failure into consideration when excited about beginning something new but unfortunately, the rates of small-business failure are sky high. A smart business woman takes this aforementioned information into account. The Small Business Administration website provides a limited list of possible reasons for small business failure including lack of expertise, insufficient capital, poor location, poor inventory management, and/or over-investment fixed assets. Elaborating on the topic of expertise and the lack of, I would like to note that through my research, it has been made clear to me that gaining experience early on is critical. With this in mind, I plan to intern with the Abilities Foundation located here in the Tampa Bay area (hopefully next semester) where I can gain useful knowledge and experience into the event planning field. They are a non-profit organization that puts on events such as large-scale wine tastings with proceeds going to help thousands of Floridians with various disabilities obtain jobs and affordable housing. Event-planning is an ever-growing industry that seems to be gaining more and more interest. Dr. Joe Goldblatt, Certified Special Events Planner, has found an estimated $500 billion is spent annually on special events worldwide (How to 1).  This enormous budget allows me to seize this future opportunity!

 Event Planning and You

Event planning may be linked to your personal life in more ways than you have ever imagined. Think back to the last time you were at a planned event. Those exciting moments must have played an important part in your life. It could have been at a concert, providing you with entertainment and memories that would last a lifetime; maybe a school reunion, reuniting you with old friends; a benefit, in which you were helping others; or perhaps a celebration was thrown in your honor. It may have even been something such as a business meeting that may have seemed mundane at the present time, but ultimately provided you with valuable information. In any of these cases, much thought and hard work was put into providing you and the people that surrounded you with knowledge, fun, relaxation, accomplishment, or many other feelings of value. This is why I have the desire to open an event-planning business.