How to start an Event Management Company in India?

We believe you want to start your own event management company and make a good livelihood. In that case, first and foremost you need to make sure where you stand today. The two things that you must have to succeed in this cut-throat business are social networking skills and business development skills.

Once you make up your mind to venture into the event management business you will have to work really hard and tirelessly. It is not only your experience and knowledge which shall determine your success but besides it also largely depends on your contacts (public relations), marketing, negotiating and entrepreneurial skills.

We present the most important aspects you need to look into before you venture out and start your own event management company.

1. Event Management in India

1A. Event Management Industry

Event management as an industry is on the roll. It is a very broad industry Broadly, this industry serves to personal, organizational, cultural, and leisure event categories, which can be further categorized into social and corporate events. The market is customer-specific since clients have more purchasing power coupled with low brand shifting cost.

There is tremendous growth in segments such as marathons, music concerts, exhibitions, fashion shows, trade fairs, and talent-hunt competitions. The current growth in these event segments is facilitated by the growing company and household incomes, as well as the increasing number and rate of TV and sports events, reality shows, corporate conferences, and awards, etc. As people’s incomes grow, people increase their expenditure on parties, weddings, among other social and personal functions.

The booming Indian economy has sent out a sudden spike in the number of events taking place nowadays. This situation has fuelled the demand for talented event managing personnel. Eventually, in the days to come, the demand for creative and hardworking, result-oriented event managers is only going to escalate. Lack of entry barriers has greatly multiplied the number of players thereby increasing the competition making this industry one of the most competitive industries in India.

It is better to organize smaller events and gain experience to organize better and larger events in the future. More than half of the event industry is unorganized. However, due to the ubiquity of print media and television, the advertisers use experiential marketing to connect to their customers instead of merely reaching them on different social media channels.

With events taking place every other day, event management has turned out to become a lucrative industry. As per Economic Times, according to the EY- EEMA report it has been observed that the event industry is growing at a compound annual growth rate of 15% (CAGR) over the last 5 years and it is expected to grow with 16% (CAGR) in the next few years. By 2021, this CAGR will escalate the industry from its current value of Rs. 5, 631 crores to more than Rs. 10,000 crores.

Image Courtesy: Consultancy.in

1B. Event Management Business

That was all about the event management industry. Let’s now understand what are the various types of event management businesses in the event management industry.

• Entertainment, art and cultural events.
• Sports events, marathons
• Commercial, marketing, and promotional events
• Families Weddings, anniversaries, birthday celebrations and even Funerals
• Wedding planning
• Race management
• Entertainment company
• Professional conference organizer.

Event management organizations can assist in the following ways:

• Selecting an appropriate property for staging the event
• Managing the VIPs with special attention. For example, celebrities attending entertainment events and speakers in case of a conference and seminar.
• Developing and synergizing with vendors.
• Managing the event while it is live.

It has been observed that the concerts, TED talks, and marathons perform really well in India — so you can consider these event segments to begin with.

2. LEGAL REQUISITES

2A. Register your company

It is mandatory to get your new venture registered under the Company’s Act. If it is a firm, it needs to be registered under the ‘Indian Partnership Act’. If you have opened an establishment in India, it becomes mandatory to get it registered under the ‘Shops and Establishment Act’. An event management company is just like any other entity. Hence all the rules and procedural formalities associated with starting a new company in India shall apply to an event management business also.

In India, you could pick out to check in a business entity through the Ministry of Corporate Affairs (MCA) or Registrar of corporations, opt for the latter.

You must also choose your company type. It can be a sole proprietorship, partnership, LLP or non-public (or public) company. One needs to recollect the structure’s investment, liability, taxation, and possession and control while deciding on a business structure for an event management business. MCA entails registering an enterprise entity. Registration at this level may be crucial because an entrepreneur wishes to secure a commercial enterprise name before the use of it in lots of other documents and in advertising.

2B. Register to pay tax

An event management business pays taxes including Income Tax, TDS (tax deducted at source), GST, Entertainment Tax and TCS. You will need to apply for a PAN card for filing income tax returns and a TAN card to claim the TDS return. You will also need to register for GST Number which will enable you to file the GST applicable.

A professional Chartered Accountant will be able to help you in completing these formalities and also guide you regarding all the legal procedures.

2C. Licenses an event managing firm should have

The final stage is to get all the papers in order. There is a list of licenses an event management firm should have before hosting or organizing an event.

The licenses you must have are as follows:

• “No objection certificate” from the Additional Collectors office, fire brigade, local police station, traffic police department, and Rangbhoomi license.
• In the case of organizing a live performance at an event, you must have Indian Performance Rights Society Ltd license.
• If there are artists that you’re planning to bring from abroad to perform at your event, then you must have foreign artist permission and you need to submit a few other documents to the authorities most importantly the performer’s passport and visa.
• To get the above-mentioned license an event management company must submit a No Objection certificate from the venue, the venue’s ground plan, and a Letter of utility to the various identified licensing departments (James, 1982).
• You must also keep in mind that everything you do should be in accordance with the Indian supreme law. It is also important to follow the Indian Contract Act 1872, as this industry of event management is more about the contracts between the planners, hotels, and artists.
• You also need to have a liquor license if you plan to use alcoholic beverages and a public works department license if you’re planning to use the generator at your event.

3. HOW TO START?

3A. Areas you need to begin with

1. Creating a business plan is very important before starting up any business. A business plan includes everything from the idea of what business you want to start, to the execution plan, implementation of strategies, financial analysis, competitive analysis, marketing strategies, setting and achieving targets, and attaining profits.
2. It is very important to define your vision and mission statement.
3. Perform a proper SWOT analysis to understand your strengths and weaknesses and also to unveil your threats and opportunities from outside.
4. Plan your budget wisely. It is a must to perform an ROI calculation. This would help in having a proper financial plan.
5. Research on your competitors. Find out their strengths, weaknesses and the strategies that they follow.

Another important thing is to know about your target audience and the market in which you’re planning to set up your event management business. Make sure you learn about the best marketing practices.

3B. Office Space:

You need to consider various things while choosing the right workspace for your Event Management Company. One major point is to consider choosing a place which is not crowded. There should be enough space for people to move around and work comfortably.

Be ready with an estimate for the number of people you are expecting to work at the office. Furthermore, make sure there are proper arrangements in place to make them comfortable.

Business Plan

Your event management business should bring in a unique value for your clients as well as the event. Do a reality check of your capabilities and resources and see how you can optimally use them to compete with your contemporaries and in favor of your target audience. Identify your strengths and your weak links and make the most of it.

E.g. If you want to become a marathon organizer then you should check out for cities that are growing and are not very crowded at the same time.

3C. Verticals in which you can make an event management company

You will find events happening around you everywhere. Research in your target audience and their needs play a vital role in the success of the event. E.g. Organizing a Christmas carnival in a place which has very few or no Christians will lead to less footfall. Thus, resulting in an unsuccessful event. You need to know the taste of the target audience and then decide on the events you take up.

There are various events that an event management company organizes like a marathon, entertainment — concerts, gigs, conferences, start-up events, fashion shows, exhibitions, seminars, etc.

You also need to decide whether you want to open an event planning service to host events for other companies with their brands or you want to start your own brand of Event Management Company like Wizcraft, Percept, Cineyug, etc.

4. HOW TO GROW? — Key essentials to shape your business

4A. Certifications

There are many organizations that offer certifications for event planners. Acquiring few such certifications would help you gain a reputation of professionalism and high credibility when you’re still in your start-up phase.

The most sort out certifications in the event industry is — Certified Meeting Professional, administered by the Events Industry Council (EIC). This certificate has helped in boosting careers of 14000+ event organizers across the globe.

Other certifications that you can apply for is CSEP — Certified Special Events Professional, administered by the ILEA. Please find a list of all the recognized certifications.

4B. Human resource and Staffing

It is very important to have a proper organizational structure. The business plan should focus on owners having the following qualities:

It completely depends on the owner, how he leverages these to bring out the best. They should also have an eye on others who are important for the growth of the business. This will also help in the future recruitment process.

4C. Alliances and Partnerships

Remember to establish a partnership with your service providers before providing service to your clients. Contact the hotel chain, travel providers, caterers to develop a long-term partnership. This will help you build a relationship and get you offers on your future contracts. This will, in turn, lower your expenses and maximize your profits.

You must also attend exhibitions, seminars, and trade shows to grow and expand your network and contacts. It is also critical to attend events managed by the people already in business to create contacts, such as suppliers, and potential sponsors.

5. MARKETING STRATEGY

5A. Market Research

Before you organize an event, find out whether there is a market (i.e., audiences) for your intended event. For example, if you’re organizing a fashion show in a city where people are less interested or not interested in fashion shows then it makes no sense to organize such an event.

There are two types of people or groups you need to focus on while doing the market research. People who are interested in the type of service that you’re providing and people who can become your potential clients. Below are a few things you need to consider while performing market research.

5B. Market Analysis

Once you know your market, do a proper market analysis. In this analysis, you will try to find out more about your market, your target audience their beliefs, age, income level, gender, cultural background, etc.

Market analysis is important because this will help you in not hurting the audience’s beliefs unknowingly through your event. Find out where does the majority of your target audience lives, so that you can project your marketing activities in that direction.

For example, it makes no sense to do effective marketing in the whole of India if your target audience is from Rajasthan. This way you can also cut down your marketing expenses.

5C. Competitor’s Analysis

An analysis of competitors supported by market research would help you set your business more logically, helping you to know what and how should your future goals be aligned.

Research about their promotion and execution strategies, their return on revenues, sponsors, partners, their experience in the industry, what brings people to their events, etc. To understand all this, you must attend events organized by your competitors. Further, you may consider the following aspects to analyze your competitors more profoundly.

• Knowledge level and experience
• Number of full-time employees
• Annual Revenue
• Quality and quantity of clients
• Footfall per event
• Brand and Market value
• PR & Market share
• How does the competition attract clients and sponsors? What are their methods?
• How do they promote and execute event?

5D. SWOT Analysis

It is a strategic tool to analyze strength, weakness, opportunities, and threats to the business and its industry.

Strengths

Strength addresses everything that your business can do well or is strong at. All the attributes that can help you achieve success. It can be either tangible or intangible. Any internal factor like,

• Determination of resources.
• Usage of these resources for the target audiences.
• Ascertaining capabilities.
• Advantages.
• Ways to improve. Are a few examples of strengths. Try your best to make use of these to the fullest.

Weaknesses

Weaknesses address everything that your business cannot do well or is not strong at. All the attributes that hinder your achievement as a business. Weaknesses of your business are opposite to the strengths of your business. Any internal factor like,

• Unexplored resources
• Weak business team
• Lack of coordination
• Poor competitor analysis
• Poor funding. Are a few examples of weaknesses. Try your best to minimize your weaknesses and maximize your strengths.

Opportunities

Opportunities address everything that works in favor of your business. Any external factor like:

• underserved market
• little competition
• the emerging need for the particular service and
• media coverage are a few examples of opportunities. Never miss on these opportunities.

Threats

Threats are exactly opposite to the opportunities. Any kind of external factor that refrains your business from achieving the target or making it a success like,

• Economic changes
• Changes in market trends
• Strong competition
• Natural disaster
• Taxes are a few examples of threats. Always make sure to avoid or overcome these threats to make your event successful.

5E. Strategies to follow

• Keep in mind that you have to keep aside a good budget amount for your initial marketing needs.
• Market your business smartly so as to minimize your expenses on marketing.
• Social media marketing especially professional networks like LinkedIn can help you form a group and connect with people of same business interests. For example, you may find vendors, clients and other businesses complementing your business.
• Buy some pertinent advertisements, such as bridal magazines, corporate travel magazines, and parenting magazines. Invest in big advertisements. Promote your business on multiple platforms.
• Talk about your brand and your business. Create awareness about what does your brand provide in various networking events.
• Get your business cards and brochures printed, with mentions of your services.
• Once you have reserved a name for your brand, quickly make a web page and also create social media handles for the same.

IN CONCLUSION

India no doubt is one of the fastest-growing economies in the world. Starting up any business here would bring in a lot of scope for growth. Event management has definitely become a booming industry in recent years, but to rule the industry you need to develop the required skills, gain the right experience and acquire the right knowledge required to take this business forward. This blog includes everything you need to start an event management business in India. Starting from the market research, laws to keep in mind, the marketing strategies to follow and last but not the least how to grow your event management business.

Originally published at https://blog.townscript.com on July 31, 2019.