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How to Start an Event Planning Business in OntarioLast Verified:
2006-10-12
The following document was prepared by the Canada-Ontario Business Service Centre (COBSC), a single point of access to information on federal and provincial government programs, services and regulations. It is designed to provide an understanding of potential license, permit or registration requirements when considering the establishment of an event planning business in Ontario. Although many of your questions will be answered in this document, the list of resources given here is not exhaustive. Some of the organizations listed below are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages. TABLE OF CONTENTS1. Basics to Getting StartedStarting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Ontario, it is wise to do your research. Ask yourself if you are truly suited for entrepreneurship and understand that significant effort may be required. You should thoroughly enjoy the field you are getting into and you must believe in your service; it may consume much of your time, especially in the start-up phase. There are several issues to consider such as regulations, financing, taxation, managing your business, advertising and much more. For further information: 2. Industry OverviewWhat does an event planner do?Conference and event planners plan, organize and co-ordinate conferences, conventions, meetings, seminars, exhibitions, trade shows, festivals and other events. They are employed by tourism associations, trade and professional associations, convention and conference centres, governments and by conference and event planning companies. * * National Occupational Classification, Human Resources and Skills Development Canada The event planner's job is to organize and carry out social events for clients. Companies and individuals prefer to hire experts to plan many different types of events, including baby or bridal showers, conferences, bar or bat mitzvahs, product launches, children's parties or retirement parties. Some planners prefer to specialize in a specific type of event, such as weddings, while others offer a wide range of services. Whatever you choose, you should expect a varied schedule, depending on the kinds of events you plan, and you may have to work evenings, weekends and holidays. You may be busier at certain times. For example, if you specialize in weddings, the summer will be the busiest time of the year. What does event planning involve?The National Occupational Classification also defines the main duties of conference and event planners;
As you might have guessed, event planning is more complicated than just throwing a party. A planner must carefully go over all the details of each step. The most important thing is to have a good understanding of the client's expectations and budget. You need to do research, come up with an original concept, set a date, find a location for the event, and make arrangements for the menu, the invitations, the required staff, suppliers, etc. In short, there are many details you need to look after. You can look at how your competitors work and contact them to see if they are willing to share their methods, offer advice or assess your processes. In addition, suppliers, such as caterers, can share their experiences. It is recommended that you ask for feedback from your clients after the event so that you can improve your services. Education and CertificationThere are several ways to gain the knowledge and experience you will need to operate your own successful event planning business. Many colleges and universities have courses specific to event management, in addition to degree or diploma programs in business, public relations, tourism or hospitality administration. If you decide you would like to operate your own event planning business after gaining work experience in the industry, a recognized certification program can help set you apart from your competition. The Canadian Special Events Society sponsors a national professional certification program. This demonstrates to prospective clients that you have the necessary skills and experience to meet the standards set by the society. For further information: Planning and suppliersAttendees with special needs For further information: Staffing the eventStaffing an event can be complicated. You will need to consider all the traditional requirements: caterers, waiters, masters of ceremony, bartenders, music, entertainment, cleaners, etc. Next, consider your options; some caterers, and some venues, will provide their own waiters, cleaners and bartenders. If you are also in charge of the entertainment for the event, you will need to connect with the entertainment world (performers, musicians, disc jockeys). Consult local directories, trade magazines, newspapers and the Internet. When you are networking, develop business contacts and establish relationships with individuals and agencies. Do your research, get references, and ask for referrals from other event planners or management organizations. Smart Serve Ontario For further information: Food and BeveragesSimilar to staffing considerations, you will need to develop relationships with food and beverages suppliers if you are not subcontracting those services to a caterer. Working with event management organizations For further information: Planning Tips from the LCBO For further information: Furnishings and EquipmentBefore you open your event planning business, you will need to consider whether you should buy or lease the furnishings or equipment you will need, like tables, chairs, tents, audio-visual equipment, lighting and decorative items. You might also need kitchen equipment, a bar and dinnerware. The menu, the type of event and kind of service will determine the type of equipment you will require. For assistance in this area, you might want to try to get the advice of sales representative or consult trade publications and manufacturers' Web sites. An important factor to consider when choosing equipment is the after-sales service and repair and their affordability. Financing your EquipmentSources of Financing For further information: Leasing Equipment - Another alternative is to lease equipment to help keep start-up costs down. The Capital Leasing Pilot Project, under the Canada Small Business Financing Act (CSBFA) assists small businesses in obtaining capital leasing up to $250 000 for new or used equipment. Capital leases are made directly by participating leasing companies (lessors). For further information: Used Equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a restaurant that is closing or dealers in second-hand equipment. The drawback to this approach is that, often, there are no guarantees with the purchase. FranchiseAs a potential business owner, you may be considering buying a new or existing franchised business, as an alternative to establishing a new business on your own. Franchisees enjoy the name and reputation of the franchise, and may also receive support from the parent company in the way of marketing, accounting, pooled advertising, etc. There are also costs associated with franchising and you most likely will have to adhere to operational standards set by the franchisor. For further information: Planning Your BusinessWhat is a Business Plan?A business plan is a recognized management tool used by successful and/or prospective businesses of all sizes to document business objectives and to propose how these objectives will be attained within a specific period of time. It is a written document, which describes who you are, what you plan to achieve, where your business will be located, when you expect to get under way, and how you will overcome the risks involved and provide the returns anticipated. Why Do I Need One?A business plan will provide information of your proposed venture to lenders, investors, and suppliers to demonstrate how you plan to use their money, and to establish a basis for credibility of your project. This plan will serve as a guide to the various areas that you as a manager will be concerned with. As you work through this plan, adapt it to your own particular needs. For further information: Interactive Business Planner (IBP) For further information: 3. RegulationsKnowing the rules and the regulations that apply to your area of expertise is necessary. The amount of regulations that you need to know depends, as might be expected, on your field of activity. Also, keep in mind that some projects may require you learn about rules and regulations you do not already know something about. Keep up to date on amendments to legislations that affect your business. Municipal RegulationsWhen starting your event planning business, keep in mind that specific municipal requirements may apply, depending on the city where your business will be located. Each municipal government has the authority to issue its own business licenses within its jurisdiction. Since there is no uniformity throughout the country regarding municipal licenses for businesses, you should consult with the appropriate local officials to determine whether your business will be affected by local regulations and licensing requirements. Businesses (including home-based businesses) must also meet the zoning by-laws that control property uses in their municipalities. Also, you may want to verify the policies regarding the noise. For further information: The Smoke-Free Ontario ActAs of May 31, 2006, the Ontario government is prohibiting smoking in all enclosed workplaces and enclosed public places. The legislation will also strengthen measures to ensure only those 19 years of age and older can buy cigarettes and will phase out the display of tobacco products, with a complete ban beginning May 31, 2008. For further information: Alcohol and PermitsAlcohol and Gaming Commission of Ontario For further information: Liquor Control Board of Ontario For further information: Related legislation : Alcohol and Gaming Regulation and Public Protection Act, 1996 Special Occasion Permits - LCBO For further information: Personal Information Protection and Electronic Documents ActThe Personal Information Protection and Electronic Documents (PIPED) Act sets out ground rules for how private sector organizations may collect, use or disclose personal information in the course of commercial activities. As of January 1, 2002, the personal health information collected, used or disclosed by these organizations is also covered. For further information: 4. FinancingThe Canada-Ontario Business Service Centre has created documents, which provide an overview of some of the main financing options for individuals starting and operating a business in Ontario, including programs offered or supported by the government. For further information: Canada Small Business Financing Program For further information: Sources of Micro-Credit Financing For further information: 5. Managing Your OperationDealing with Business TaxesAll businesses must be aware of the various taxes that may apply to their product or service. Depending on the type and location of products or services being offered, federal, provincial and/or municipal business taxes may apply. For further information: Income Tax InformationBusiness owners must be aware of the requirements of Income tax that may apply to their product or service. There are different tax implications for incorporated and non-incorporated businesses. For information specific to your organization you should consult an accountant or financial professional. For further information: Below are links to publications that cover some of the general tax requirements for business owners in Ontario. Ontario Small Business Guide Employer Health Tax Guide for Employers (EHT) For further information: Retention/Destruction of Books & Records Voluntary Disclosure Insurance and LiabilitiesInsurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, consider asking other business owners in your area to recommend one. The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent. Basic insurance:
Insurance needs naturally vary from one business to the other, depending on your field of activity. It is best to choose an insurance agent or broker that is familiar with your field of expertise. As an event planner, liability coverage will be vital. Third Party Liability Insurance implies that at all times, Liability insurance will pay damages to a Third Party because the insured is legally obligated to do so. Accidents must be reported to the insurer. http://www.dfo-mpo.gc.ca/sch/insurance/tpli-arc_guide_e.html Note: Your professional association may have information about insurance packages specifically tailored for your needs. It is best, however, to discuss your specific requirements with your insurance agent. Market ResearchSuccessful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your customers and competitors is a critical first step in market investigation and development of a marketing plan. For further information: Marketing/AdvertisingWord-of-mouth advertising and good public relations are often the best ways of promoting your business. Depending on your market and its size, also consider flyers, business cards, brochures, newspapers (especially for holiday promotions), radio, TV, the phone book and the Internet. Also bear in mind that a satisfied customer is good advertising. Referrals are also a valuable way of making customers aware of your products or services. Trade shows can be a great opportunity for networking and to advertise your services. Our document on trade shows, listed below, contains a number of links to popular trade show related Web sites. A Web site is also a good marketing tool. It should have details to describe the location (your address, telephone and fax numbers, and directions on how to get to your establishment), hours of operation, services offered, credentials and anything else you think may be of interest to potential customers. However, once you launch a Web site, you should update it on a regular basis. Participating in community events is another way of advertising your business. You may also hold events that will promote your business. No matter how you choose to market your business, it is wise to track how your clients became aware of your establishment - this may help determine your future advertising strategies. For further information: The Online Small Business Workshop - The Marketing Basics section covers the basics from developing your customer profile to promoting your business. For further information: The federal Competition Act governs misleading advertising and deceptive marketing practices for most businesses in Canada. The Act defines which marketing practices are illegal and the process of complaint investigation. For further information: ContractsEvent planning contracts may vary widely in their format and their length, depending on the nature and the complexity of the project. There are standard articles to include in written contracts: the name and the location of the parties involved, the date the contract is signed, an offer, an acceptance of the offer, consideration (i.e. the benefit accruing to the parties), signatures of the parties, etc. A written contract helps to avoid misunderstandings, to outline the terms of payment and to protect you in case of disagreements with your client on the nature of the assignment. If you do not possess the legal expertise to draft legal contracts that include all mandatory provisions, you should seek advice from a lawyer. For further information: Clients and ProposalsVirtually all sectors of business call upon the expertise of event planners, so don't be too restrictive. Your clientele may consist of organizations from the public, the private and the non-profit sectors. To identify event planning opportunities, look for advertisements on Websites, in newspapers, magazines and trade journals. Whether you are responding to a call for proposals from the public, the private or the non-profit sector, there will be selection procedures to follow. These procedures will vary from one organization to the next, so gather all the required information before submitting your proposal. The following are a number of areas you should be aware of when pursuing a contract for service. The appropriate professional services, such as legal counsel should also be sought out and utilized.
Selecting Professional Services The use of professional services is essential to the success of a small business. Professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently. Professional services often used by entrepreneurs may include:
For further information: Accounting/Bookkeeping For further information: Setting-Up a Pay System For further information: Setting the Right Price For further information: Profit Watching For further information: Employing peopleWhat are the rules on working conditions in Ontario?The Employment Standards Branch of the Ontario Ministry of Labour is responsible for the administration and enforcement of the Employment Standards Act, which provides for minimum terms and conditions of employment in most industries. For further information: Related Legislation FeesEvent planners work for a fee. Pricing of their services will influence consumers and consequently the total revenue of their event planning business. In the end, the right price for the services of an event planner is the price that the consumer is willing to pay. For this reason, correct pricing decisions are a key to success. For further information: As an event planner, there are many ways to set your fees: by the hour, by the day or by assignment. When you are quoting, make sure you include in your fee not only the cost of your labour, but also your daily overhead for the duration of the project, the indirect and direct expenses you will incur, as well as a profit margin. You want to build in your fee enough money to cover the operating costs of your business and the time you spent on marketing your services, maintaining your skills and administration. Do not bill clients exclusively on the basis of the time spent delivering your services. From your clients' perspective, you are an authority on a subject matter that is important to their operation; set your fees accordingly. However, when setting your fees, make sure you find the right balance between overcharging and undercharging: your business must be profitable, but your fees should not be scaring clients away. Research what your competition is charging to see if you are asking for too much or not enough. Many factors influence the worth of your services. When setting your fees, take into consideration the following:
*This paragraph adapted from How to be a Consultant, Canada-Manitoba Business Service Centre, Western Regional Office, Manitoba Industry, Trade and Mines. For further information: 6. AssociationsCanadian Federation of Independent Business (CFIB) For further information: Canadian Special Events Society (CSES) For further information: International Special Events Society (ISES) For further information: 7. Resources and Web Sites of InterestCanadian Event Perspective (online magazine) Charity Village - Q & A Charity Village Research Library - Special Events and Promotions Strategis Business and Consumer Site Labour Market Information Statistics Canada The University of Western Ontario - Business Library (references) Entrepreneur.com - How to Start an Event Planning Service (article) PowerHomeBiz.com - How to Start an Event and Meeting Planning Business (article)
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