This article was written by Kevin Dennis, editor of WeddingIQ.
Owning an event business is complicated. It’s not enough that you have to stay on top of trends, adapt to new technology, as well as change with fashion and the generations. You also have to focus and think about how to endure the ebbs and flows of the ever-changing economy. The economy is one of the biggest challenges a small business can face and it can make or break your business depending on how well you prepare.
But, how can the ever-changing economy affect your event business?
With few exceptions, we are nearly all in business for the revenue. You might need your revenue as a primary source of income, or simply to supplement that of a spouse – but you probably need it nonetheless. Maximizing your company’s profitability is a high priority, however this can be difficult when the economy is in flux and booking patterns become unpredictable.
There are ways that you can stabilize your business, though, to help shield it from unforeseen circumstances including:
Diversifying your revenue streams
Developing multiple streams of income allows you to sustain a business even if one of your major products or services falls victim to the economy. If you usually market your product to a luxury clientele, for example, having a more budget-friendly option ready to go in the event that the market collapses can keep the money coming in long enough for you to make necessary adjustments to your business model.
Keep your insurance updated
Be prepared for anything and everything. Make sure you have liability, business and workman’s comp insurance to keep your business safe from unfortunate events.
Price your services carefully
We price ourselves to fall a bit on the higher side so we don’t have to compromise the level of service for which we are known. This maximizes profits allowing us to save and reinvest in our businesses, and it also shields us from total devastation if the economy should take a downturn.
Nurture your professional relationships
When the economy is strained, some will fall victim and either need help to keep going or will have to close their doors. If you have a strong network of business associates, you may be able to seek and receive help during difficult times. Attend association meetings and other networking gatherings regularly to maintain your current relationships and seek new ones. Help others in time of economic hardship by sending referrals, and graciously accept help when it is offered to you.
The economy is a powerful factor when running a business, but with some forward-thinking you can prepare your business.
Kevin Dennis is the editor of WeddingIQ and the owner of Fantasy Sound Event Services, a full-service event company based in Livermore, California. Dennis is the past president for Silicon Valley NACE, and national vice president for WIPA.