Dear Preston: How Do I Start My Own Business?

May 15, 2012

Hi, Preston.

I’m sure you receive a lot of emails, but since you always post such great advice for those of us in the wedding industry, I thought I might as well ask some questions, too.

I’m an upcoming wedding planner, but I only plan on doing this on the side. So far, I have completed three weddings on my own and have four more weddings coming up this year. My concerns arise with the business aspect of becoming a wedding planner.

I started doing this for fun and for free, but, once word spread, I became busier and decided I wanted to have my own company. The problem is that while I definitely know how to plan events, I’m lost when it comes to starting a business.

I already have a company name, my own contract and packages, and a website underway. But how do I know when to get a business license? How do I make everything legal? Since I only plan on doing it on the side for now and am not making very much money, do I need a business license?

As you can see, I am very lost when it comes to these details! Any advice or recommendations would be greatly appreciated.

Thank you,
A New Planner

Dear NP,

Thank you for your letter, and congratulations on your new venture. It sounds like you’ve already had some exciting success and that folks are responding well to your work. That’s great.

Now, to answer your questions:

First and foremost, you should find a good accountant with restaurant and event industry experience.

Second, set up your company as either a Corporation, a Limited Liability Corporation (LLC), or a Sole Proprietor. Once you create a company and are filing that company in the state where you work, you’ll be able to purchase wholesale. A company will also limit your personal liability should something unfortunate occur.

Third, contact an insurance broker to obtain Workers Compensation Insurance and General Liability Insurance.

Every state has regulations for running a business, no matter how small. So it’s always a good idea to follow the rules carefully and make sure your business meets every requirement. Correcting errors later will consume a great deal of time and likely be expensive.

I urge everyone who wants to start their own business to seek professional advice. The small cost you pay up front will prevent headaches in the future and help ensure your success.

Dear Readers, did I miss anything? What advice would you add? Please share your expertise!

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http://www.lvglassart.com Set Up A Budget

I am not a Planner but am introducing a entirely new product to the Wedding Industry. My biggest challenge has been advertising and budget. Value for the Dollar in this area. I would suggest you set up a budget for everything.
http://AmysEventFlowers.com amy

The Small Business Association will be of great help! They will know the laws of your state/area. Much of what they do is free and it is a good place to connect with other start up businesses in your area. A wealth of knowledge!
Ali Hayward

Dont forget to file your fictitious business name with your county recorder. It is pretty inexpensive and necessary. When choosing a business name don’t just check first if it’s available in your state, check online and google it. Last thing you want is a competitor in another state or even in your state with a similar name that is stealing all of your SEO spotlight! Good luck!
http://lilyscloset.com Monica Smith

Dear Preston;

Having started a wedding planning business the way this person did and now having a business that is licensed by the state, there are several other steps this new planner may need to take. Everything he/she will need to know about starting a business can be found on their state’s small business incorporation website. The state will give a list of the steps that need to be taken in order for this person to be legitimate. Also, meeting with an attorney for the incorporation process (if desired) and an accountant to know what is taxable and tax deductible is a good idea. I highly recommend becoming an LLC (limited liability corporation) so that any legal ramifications that may arise will be minimal on a personal level. I also agree with obtaining liability insurance as well as an umbrella policy (extended coverage) as this will protect them from potential damages. Many of the bridal associations have training courses on how to set up a wedding planning business, even Lovegevity!

Whatever process this planner follows through on, I hope they will be strong and keep focusing on what they are doing as being a business owner comes with many challenges. Don’t let anyone steal the joy out of your dream.

Monica
http://www.teginternational.com Event Planning Business

Make a further research and studies, surround your self with well experienced and educated people in planning and execution. But more importantly, your marketing strategy to spread the good news online and offline about your start-up should be really comprehensive, effective, and efficient.