Holiday organization business from scratch

The holiday agency is called upon to organize any solemn event, bring bright colors to life, and do everything possible to make guests and customers satisfied. His services are gaining popularity every year.

The holiday business attracts with ease of opening , minimal investment and the following features and benefits :

  • Independent decision-making on the format and scope of activities
  • Flexible work schedule
  • Free planning of the list of services provided, its adjustment
  • High demand for agency services
  • Opening from scratch
  • No seasonal factor
  • Various work options
  • Decent earnings

There are also disadvantages , among others:

  • Increasing competition
  • Difficulties with finding orders at first

It is better to open such an agency in medium-sized cities or metropolitan areas, where a large number of festive events are organized and held.

Step by Step Business Plan for Opening a Holiday Agency

The main task of the agency is to organize holidays for clients and resolve all issues related to it. Having opted for this interesting type of activity, you need to draw up a business plan with a step-by-step study of each stage.

elaboration of a business plan for a holiday agency

Demand and competition analysis

You should start by studying the demand for specific services , the work of competitors-organizers, their price and offer. You can get acquainted with the information on the Internet resources and calling competing organizations. You can also give a test ad and count the calls.

After evaluating the opportunities, they determine their niche. I must say that the service sector in the entertainment industry is versatile, providing freedom of choice for a novice entrepreneur.

In the market of festive services there are not only competitors, but also partners: sound engineers, hosts of events . It is beneficial to exchange contacts and cross-recommendations with them, increasing the number of orders without additional effort and investment.

We define the list of services

The next item in the business plan is a list of servicesprovided by the company and their cost. When choosing a direction, they stop at one or more options for specialization:

  • Holiday decoration
  • Anniversaries, birthdays, memorable dates
  • Organization of wedding celebrations
  • Children’s holidays, matinees
  • Conducting business events: corporate parties, seminars, conferences
  • Themed club parties for individuals
  • Festive events for calendar dates: New Year, March 8, February 23, Valentine’s Day, etc.

For each direction, you need to make a ready-made script with a list of animators, participants with their photos, according to which customers will have an idea about the upcoming event. It is optimal to deal with 1-3 related topics. In addition to holding a holiday, the agency can provide photo and video services, negotiate with a cafe or restaurant to rent a hall, and so on.

The target audience will be women and men aged 25-55 with an average income and above, who are ready to spend part of it on the spectacular holding of a significant event.

The service delivery process will include the following steps:

  1. Acceptance of an order with agreement on the type and terms of delivery
  2. Conclusion of an agreement with the customer
  3. Preparation for the organization of the event, delivery of the necessary equipment
  4. Direct provision of services
  5. Quality assessment by communicating with the customer and generating feedback

Finding and repairing an office space

It is necessary to find a suitable premises for the office of the company. It can be located in the central part of the city in a commercial building, business center, but in this case the cost of rent will be higher.

A more budget option for renting a room on the basement floor of a first-line apartment building located in a residential area is also suitable. The main thing is to designate the visibility of the place with the help of a bright signboard, original design at the entrance.

All communications, heating, plumbing and power supply must be connected to the building in accordance with the norms. It is desirable to have parking, convenient access routes.

Required office area 20-40 sq. m ., divided into rooms for receiving visitors, staff and a room for storing details, inventory. The rental price depends on the location and is 20-30 thousand rubles. per month.
Repair of the premises will cost 20-50 thousand rubles. with cosmetic work on painting, applying finishing materials, etc. On the wall, you can hang photos from the celebrations held.

Paperwork and business registration

In parallel, they are engaged in registering activities with the tax service as an individual entrepreneur or a legal entity. To apply for an individual entrepreneur , you must submit an application in the form with the provision of a passport and TIN and paid state duty of 800 rubles. For an LLC, you will need an authorized capital of at least 10 thousand rubles, a company charter and 4 thousand rubles. to pay state taxes.

The taxation system for both versions of the simplified tax system with a deduction of 6% from income. OKVED codes:

  • 93.29 on other entertainment activities;
  • 74.20 on activities in the field of photography;
  • 96.09 on the provision of other personal services not included in other groups

You will also need permission from the SES and the Fire Service, a lease agreement for premises and for the provision of utilities.

Hiring

For the organization of events at the initial stage of a large staff is not required. You can hire one or two assistants with imagination and organizational skills. The number of employees depends on the number of services provided and the specialization of the agency. There are several work formats:

  • Without a permanent staff
    In this case, most of the functions are performed on their own, and when orders appear, they hire a contractor or use the services of partners. This format allows you to save on wages, but creates problems with finding contractors.
  • With full-fledged planning and organization of holidays
    This option provides for a large staff: DJ, photographer, pyrotechnician, artist, animator and others, which will require large financial expenses. Therefore, the format is suitable for a company that has risen to its feet.
  • Combined option
    It consists in the formation of a small staff of universal employees with the hiring of individual specialists if necessary. It is considered the most promising format of work.

From the staff you need:

  • 2-3 showmen
  • Order and customer acquisition manager
  • Script Writer
  • Driver

The accountant and cleaner can be hired half-time or outsourced. Hire creative people with entertainment experience.

Purchase of equipment

For the work of the agency, you will need to purchase some equipment and furniture. In the office, you should place a table with a chair, a sofa or armchairs, a wardrobe, a hanger, a computer. The utility room needs shelving, shelves. From the equipment you will need a TV, speaker system, microphones, amplifiers, a helium balloon, color music, a DVD player, etc.

It is not necessary to purchase a complete list of equipment. You can do this as needed in preparation for a particular event . This item of expenditure will be about 200-300 thousand rubles.

Advertising and marketing

In order to find out about you as many potential customers as possible, declare yourself through effective advertising:

  • Promotion of your own website, filling it with photos from events, video reports, information about the services provided with prices for functionality
  • Placing advertisements of an advertising nature on electronic platforms, social networks, thematic forums
  • Involvement of outdoor advertising: noticeable signs, banners, billboards
  • Distribution of business cards, leaflets near entertainment centers, shopping centers, crowded places
  • Posting ads in elevators, entrances of apartment buildings and transport
  • Media advertisements
  • Using word of mouth (bring a friend promotions, discounts, etc.)

Get ready for the fact that you will have to spend a significant part of your time searching for clients, and in the first two months you will build up your reputation.
Design a memorable logo, call small and medium-sized organizations a few months before the upcoming holidays. Use all kinds of channels to promote your business and attract customers in order to ensure a stable flow of orders.

How much does it cost to open a holiday agency

The size of the initial investment depends on the format of the business. Renting a small office for doing business alone without a staff can cost 200 thousand rubles. On a larger scale, you will need about 450-500 thousand rubles, of which:

  • Investments for the purchase of equipment and furniture will amount to 300 thousand rubles.
  • Expenses for office rent and paperwork – 40 thousand rubles.
  • The cost of repairing the premises is 50 thousand rubles.
  • Investments in marketing and advertising will require 40 thousand rubles.
  • Other expenses – 20 thousand rubles.

The value is averaged and depends on the region of location, the amount of purchased equipment, its condition: new or used.

How much can you earn on holidays

The amount of profit and the payback period depends on the volume and number of orders, prices in your city, so it is difficult to give a specific figure. On average , the hourly holiday program costs 4-5 thousand rubles.

By holding at least 5 events per week, you can earn 100 thousand rubles per month. and more. With this indicator, the initial investment will pay off in 6 months of work, which allows us to talk about the high profitability of the enterprise.

Possible business problems and risks

The main difficulty of this business is the formation and retention of a customer base. Therefore, the level of service and quality of services must always be on top.

  • The growth of competition is not terrible with an established business with effective channels for attracting customers.
  • Unforeseen circumstances in the form of equipment breakdown or absenteeism of the animator can be easily prevented by having a universal artist in reserve for replacement and regularly checking the equipment for serviceability.
  • There is no risk of seasonality as such, since the increased demand for the New Year holidays is replaced by March 8 and a series of graduations, matinees, and summer and autumn promise orders for weddings and anniversaries.

To avoid problems in the work of the agency, you need to control the entire process of providing services, interact with the client.

Finally

With the right approach, the business of organizing and decorating holidays will bring the expected profit. Even an inexperienced entrepreneur can start a business.

The main thing is to decide on the concept and think over its phased implementation with the help of a business plan . And having gained a client base and reputation, you can think about further expansion.

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