Here’s How to Make an Event Venue Business Plan
Perhaps you own a fabulous space of one kind or another, and you believe it has the potential to be a moneymaker as an event venue for short-term rentals. Perhaps you’ve got an ultra-cool loft with lots of sunlight that you’d like to outfit as a space for high-profile meetings. Maybe you own a distinctive gallery filled with gorgeous art, and you’d like to add an additional source of income by hosting photoshoots. Or perhaps it’s a stunning mansion that would be perfect for wedding receptions and parties. Either way, you probably won’t want to jump right into renting your venue. Practically, it’s wisest to begin by creating a realistic, structured roadmap for yourself. That’s why your first step should be to create an event venue business plan.
What is a business plan?
Let’s establish what this actually means! At its most basic, a business plan is a description of what you envision for your business. They typically look forward to the next three to five years. Business plans can be used by the entrepreneur (you) alone as a guide for yourself, as a way to demonstrate your ideas to possible investors, or even to draw in new employees, among other purposes—really, anytime you need to clearly summarize your business and its goals.
The average business plan is about 15 to 20 pages long (but some are much longer, for more complex ideas). In the case of an event venue, your plan will probably run on the shorter side, especially if it’s just for your own planning purposes. Whatever the length, a business plan is typically made up of three central sections, each addressing its own category:
- Description of the business itself—what will your business be like?
- Description of the market—who will your customers be?
- Financials—this is where quantitative stuff like income, cash flow, balance sheet, etc. will go
How to create an effective event venue business plan
Now that you know what a business plan is, how does this apply to the particular situation of an event venue business plan? Here’s our guide to creating this type of plan. It’s a list of key steps that you can adapt to your specific needs and goals. (After all, if you’re writing this plan with the intention of attracting investors, it’ll probably be different than a document that’s just for internal purposes.)
Do some initial research
This is one of the most important steps to writing an event venue business plan. You should be spending lots of time understanding your product, how it fits into the larger market, and the nature of your competition.
Brainstorm possibilities for your space
Now that you understand your product, market, etc., it’s time to think outside the box! It’s a total cliche, but it’s helpful to remember that there really are no bad ideas in brainstorming. Just go ahead and generate a big list of thoughts about what the space could do, who might be interested in it, how to redesign or redecorate to optimize its value to renters—and more. This is so individual that we can’t really give any specific suggestions, but we’d recommend that start by you checking out this guide to mind-blowing brainstorming techniques.
Define the purpose of your event venue business plan
Decide whether you’re trying to attract investors or just funding the establishment of your event venue yourself. This makes a big difference in what kind of information you’ll need to include in the final document—for instance, targeting investors means you’ll want to be especially concise while being explicit about every detail that might concern investors (especially financial aspects).
Gain a general understanding of the structure of a business plan
According to the U.S. Small Business Administration, the most well-known form of “lean startup” plan is known as the Business Model Canvas, created by Alex Osterwalder. This form of business plan should include the following elements:
- Key partnerships: Other businesses you’ll work with—this might include suppliers, cleaning companies, caterers, and so forth
- Key activities: How your business will achieve a competitive advantage, such as technological strategies (this might include use of Peerspace, which we’ve highlighted below); revenue streams, distribution channels, etc.
- Key resources: Significant resources and assets like capital, staff, etc.
- Value proposition: What it is, in a nutshell, that sets your business apart and allows it to make a distinctive contribution to the market
- Customer relationships: How your business will connect and interact with customers—the “customer experience”
- Customer segments: A defined target market or set of target markets for your venue
- Channels: The most significant modes of communication to customers
- Cost structure: Whether your business is more cost driven (with the leanest possible cost structure) or value-driven (more premium offerings); includes the most important costs (e.g. what key resources and key activities will be the costliest?)
Check out this helpful visual overview of the nine key business model building blocks listed above. And of course, as you adapt this structure to your event venue business plan, you may or may not need all these sections. Feel free to omit whatever you decide is irrelevant to your goals, or to add more whenever you think some aspects of your plan require greater detail.
Plug it all into the business plan structure
So you’ve done your research, you’ve brainstormed a list of innovative possibilities that will set your venue apart in its market niche, and you understand how your business plan needs to be structured and what it should include. Now it’s time for the nitty gritty: you’ve reached the point of actually creating the event venue business plan itself! (Good luck! We believe in you.)
The best way to list your space for rent
Once you’ve got a business plan to be proud of, and your vision for your event venue feels concrete, you can move on to listing your it for rent on a revenue-generating platform. Try Peerspace to draw in as many potential customers as possible: it’s the largest online marketplace for short-term rentals and will be most people’s go-to when they’re seeking out a location for their meeting, wedding, photoshoot, or other important event. Plus, to simplify rentals even further, Peerspace also offers an accompanying Concierge service that can help renters to coordinate catering, furniture, A/V rentals, and other important event logistics. Having your listing on Peerspace will help considerably raise its profile, giving your new business its best shot at success.