How to Start an Event Venue

Starting an event venue business can be exciting, but don’t let that distract you from the work that goes into building this empire. Learn the proper steps to starting your own event venue and you’ll be planning parties, hosting proms and more in no time.

Develop a Business Plan

An important part in starting an event venue business is developing a business plan to keep your objectives clear and help you reach your goals. In your plan, be sure to include the following sections:

• Executive Summary – Summarize the key details of your entire business plan to give everyone a better understanding of your plan.


• Company Overview – This is an explanation of your business history as well as what you plan to achieve in the future. Are you planning to host mainly weddings or offer a smaller space for anniversary parties?


• Industry Analysis – Do some industry research and note key information about other venue trends.


• Customer Analysis – Document your target audience and their demographics. What do they look for in an event venue and where are they located?


• Competitive Analysis – Take an in depth look at your competitors. What are you going to do to set yourself apart from them?


• Marketing Plan – This section should touch on a few things such as the products and services you will offer, the pricing information, where your venue is and what promotional methods you plan to use such as online marketing strategies on social media and attending networking events.


• Operations Plan – Determine your staff needs, how you plan to run your event venue and create a projected growth timeline to help you reach your goals.


• Management Team – Include a detailed background of your management team.


• Financial Plan – Finally, calculate the start up costs as well as your projected sales and expenses.

Choose a Venue

If you’re new to the business and need a venue to rent out, there are a few questions to ask when considering a building. Here are just a few things to think about:

• What’s the parking situation?


• Is your location near other popular places?


• Does your venue require expensive upkeep?


• Will you have onsite maintenance crews or hire an outside team?

Make sure to go over these questions to ensure your business is ready for renting out for an event. Having a cleanup crew and parking accommodations ready will lift a huge weight off your shoulders when the time comes to book events.

Keep Track of Expenses

It’s crucial to budget when it comes to event planning, the building itself and more. Here’s a short list of some of the costs you’ll need to keep track of when starting an event venue:

• Taxes and insurance


• Staff payroll


• Maintenance


• Utilities


• Marketing

Register With the IRS

Once you have everything in order, register your business with the IRS. They’ll issue you an Employee Identification Number or EIN. Keep track of this because most banks will require this number in order to open an account for your venue.

Open a Business Bank Account

Having a bank account in your business’ name is fairly simple. Pick the bank you want to open an account with and present the documents needed including a license, the bank’s application form and any relevant information.

You may also want to consider opening a business credit card. This will help you separate personal and business expenses come tax time.

Applying for Required Permits & Licenses

There are a few different business licenses and permits to consider. While every state and county will have different requirements, there are some similarities. Here’s a small list to get you started:

• General Business License – Apply for this license in the location of your business venue. The fees will vary depending on the location.


• Occupancy Permit – In order to operate an event venue, you’ll need an occupancy permit. This is issued by the local fire department since they want to make sure your space aligns with each fire safety guideline.


• Liquor License – This only matters if you plan to serve alcohol at your event venue. The requirements vary by state so be sure to check into the guidelines in your state.

Get Event Venue Business Insurance

When it comes to insurance policies for your event venue business, here are a few you’ll want to consider:

• General liability insurance


• Property insurance


• Workers’ compensation insurance


• Business interruption insurance


• Liquor liability insurance

Invest in Event Venue Business Equipment

No matter if you buy or lease, you’ll need high-end commercial equipment to properly run your new business. While having kitchen equipment such as fridges and dishwashers is important, you’ll also want to stock up on items like the following:

• Dishes


• Chairs


• Linens


• Decorations


• Audio/visual equipment


• Flatware

The business side may also require some equipment including a computer, phone, internet and even a security system.

Set Up an Event Venue Marketing Plan

To get customers informed and ready to book your venue, you’ll need to get together some marketing materials such as a logo, update your website, and create social media accounts. Doing these things will keep your customers in the loop and aware of the new things going on with your business.

Hire a Qualified Team

Lastly, get a team together that will help you with your event venue business that include:

• Cooks (if needed)


• Servers


• Maintenance


• Hosts/Hostesses


• Marketing managers

If you need help finding the right equipment for your new venue business or want to learn about creating a marketing plan from scratch, we can help. Check out our blog to learn more about creating and operating a new business.