Starting Growing and Managing an Event Business

¶ … management has been a business in Washington, DC since Jefferson held parties with heads of state in the early part of the 19th century. However, economies of scale have recently made it more profitable to outsource events to a greater scale than traditional catering services. Whereas once it was essential that an organization maintain a small staff of its own in order to secure a venue, parking, catering, print handouts for the event and co-ordinate the arrival of guests and visitors, these now can be handled by full service agencies.

To start such an agency, it is first necessary to develop a revenue model and a business plan. Questions to be asked are: do we maintain our own catering staff or maintain a relationship with one or several catering companies? Do we attempt to compete with existing service providers or do we generate our customer base by seeking groups that do their event planning in-house and are seeking to cut costs? Do we service customers that are used to dealing with their traditional vendors in areas such as printing and the rental of facilities used to host events?

The best revenue model for such a company is one that is small and dynamic, relying on its comparative advantage in organization rather than significant capital outlays. Although partnering with specific service providers may at a later point allow the company to develop efficiencies, it is initially important to keep fixed costs low.

The maintenance of a small office is essential. This may initially be home to a staff that is divided into two functions: promotion and supervision. The promotional staff would be responsible for advertising and the maintenance of relationships with customers, whereas the supervisory staff would co-ordinate the rental of facilities, the arrangement of any necessary accommodations at those facilities, and catering.

The location of the office is essential. Top considerations might be Capitol Hill, as rent in this area is inexpensive compared to Georgetown or other areas of Northwest. However, most of Capitol Hill is fairly residential. Another hot location would be in Washington's K. street corridor, where most of the city's most powerful lobbying agencies are said to reside. However, commercial rents in this area are considerably more expensive. Certain types of organizations are located in certain areas of the district; embassies are traditionally along Massachusetts Avenue and the World Bank and IMF are located near George Washington University. If the connections held by the partners that own the new company dictate the nature of its business, it should seek to locate office space that is convenient to the people that are expected to be its biggest clients are located. If the organization finds a particularly good deal on rent, they should try to be in a taxicab zone that is close to those in which the K. Street Corridor and House and Senate Office Buildings are located.

Assuming a permanent staff of 10, it would be ideal to rent an office in Northwest within reasonable walking distance of the Mall. A typical office would have a conference room with teleconferencing capabilities, two or so offices, and a large room in which most of the company's employees would be located. Renters of commercial space generally require a contract of from six months to a year and often require lessees to pay up front. The type of office equipment necessary depends on the variety of amenities available at rented facilities. Typically such facilities will be equip with tables and audio-visual software. Utilities will typically include phones, electricity, and a T-1 connection for the Internet. Many consolidators offer insurance programs to small businesses, as do professional organizations.

Quarterly Expenses and Revenues, 2004

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Caterers

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