So you want to open an event space? 5 Lessons I Learned Being a event venue Owner
I was speaking with a colleague about the hardships of running a rental space recently, and we talked about the saturation of the Baltimore market and the sheer number of folks telling us they want to do the same thing.
We both said, "So you want a space? Like, why would you even do that to yourself?"
In this article, I will share things I learned while being an owner of an event venue business for over 2 years. The joys and difficulties in having a rental space from my experience and what you should look out for if you're planning on doing something similar.
The beloved Studio 87 and learning how to open an event space
The opportunities organically reached us.
We didn’t start out as an event venue, we started as a photo studio and then demand expanded for us.
Studio 87 is a Dundalk community-based, minority-owned, family-operated, award-winning, 5-star rated, and published multifunctional space (now that's a mouthful!) It's located in Dundalk, Maryland; it's my first brick-and-mortar location, my third business, and it's my beloved.
The local community here in Baltimore County and Baltimore City as a whole has rented the space for everything from baby showers, bridal showers, birthday parties, workshops, corporate events, networking events, paint nights, religious services and congregations, pop-up shops, art galleries, and photo and production studio rentals.
I opened the space in September 2021 and successfully crossed the 6 figure mark in 2022, directly and indirectly, because of having a space. It was my first 6-figure year as an entrepreneur.
Don't let that fool you; I didn't get to take that cash home with me; the majority of that went into overhead, labor, online tools, and marketing costs. Beyond what I was able to take home (which wasn't much) the things I learned and the growth I made as an entrepreneur are my most valuable wins.
Studio 87
We are located in Baltimore County, specifically Dundalk, MD. We are an intimate event space of 50 people max and have garnered the love and affection of the local Baltimore community.
If you were thinking about how to open an event space, I provide some insights into my journey and five key lessons learned while being an owner and operator.
These are my insights and learnings about the event venue business and should only be used as one person's suggestions. I know plenty of other owners who have different experiences in different markets, and they also bring along their own unique experiences and skills.
I won't go into the operations of running the space in this article but will touch on marketing. If you like this article, I will write a more in-depth series on the mechanics and what it actually takes from an operational point of view.
I get a lot of people asking me why I decided to open a rental space, and I wish I had this information before I opened mine.
I hope this is useful for anyone thinking of opening their own event venue, a rentable or niched multi-use space, or even for customers looking to rent a space for a specific use. This information is not meant to be taken as a negative but mostly as insights into what running a space like this is like.
Here is an overview of the things I learned while owning an event space:
You need customers, and you need to understand their psychology
Listing your space on as many channels as possible
This isn't a get-rich-quick scheme; also, no scheme is worth it
It takes time, sometimes, a lot of it
You always need to be selling
Cashflow is everything
Let's get into it!
1. You need customers, for any business, especially an event venue business
and you need to understand the psychology of potential clients when they are looking for a venue rental business
Starting at the top.
Say you are looking for an event space, you have a gathering you are hosting; what would you do first? Ask friends or family? Post a question on Facebook and get some suggestions? Or you might search for a space on a social media platform like Facebook or Instagram, or other social media like Tiktok or Pinterest, or search for event space near me on Google.
Depending on where you are during this process, you may be in the learning or "shopping" phase or may be late and needed a space yesterday. Pronto!
I've encountered that most potential clients fit into one of those two buckets.
The customer just learning about spaces and looking for prices will contact ten or more spaces to compare and contrast what they need, especially if this is their first time doing such a thing.
They need information to make the best decision.
During this process, they start learning about different spaces, indoor or outdoor, restaurant or event space, full in-house service, or customizable. They start to analyze what each different space has, what they offer (think amenities, food, decor, tables, chairs, audio visual equipment, and others), and of course, they start to analyze pricing; the more spaces they look at, the more data they have to start to understand how this all works.
This is the first piece of marketing you need to understand in the event business
If you are considering opening an event space, banquet hall, or any other brick-and-mortar location, you need to understand who your ideal clients are. If a potential client lands on your website or Google business profile and your listing or website doesn’t display the information the customer is seeking quickly and clearly, the customer will continue on their search.
You lost them.
Many businesses don't need a website, they can operate solely on social media accounts.
While I never recommend this to people as you should aim to own your audience, have a special place they can learn more from, and definitely recommend having a website, this is especially important for the event venue industry.
You need a website for your business!
When people search for a space for any type of use, several online platforms allow them to find exactly what they’re looking for. These platforms offer tons of options.
All the rental spaces in the area will be listed here. It's like a Google search but neatly categorized for them to choose from.
If your website has everything very concise and straight to the point that you don’t make the customer think, then you make it easy for them to make a decision about booking directly with you.
Key Takeaways
Your customers may fit into one of those two buckets- searching for the future and searching for right now
Have a website that neatly displays your venue business (information, amenities, location, and offerings). The key here is to make it as clear as possible what you do and who you serve
Have clear call-to-actions, pricing, and booking forms and make them SEO-friendly
A quick note to the customer
Photobooth Rentals in Baltimore
Opening a rental business allowed us to also start doing other types of rentals in Baltimore, like our photo booth!
As you are contacting all of the spaces, please keep in mind that these are all small businesses.
Some may or may not have a team, and they definitely depend on new bookings to stay afloat; if you contact the space and that’s not the space for you, and they follow up with you, please just let them know that you have found a location that suits your needs and don’t leave them hanging.
You may be hesitant to provide feedback if you choose another venue but this lack of communication can leave venue owners and managers in the dark, unsure of why a potential client decided not to move forward.
All businesses have to deal with ghosting, and it's not fun. When starting an event venue, this is something you're going to deal with a ton!
Be ready.
2. Listing your event space business on as many channels as possible
Any physical location should take advantage of local marketing.
There are plenty of channels to navigate.
As an event planner, wedding venue manager, or rental space business, think about what your customer will do to find a space and then make sure your space is there for them to choose from.
Lead generation websites, Local Chamber, and Local Market
There are many options for the events industry that will help businesses with rentable spaces generate leads. (Some of these work for event planners, event planning, and other events industry professionals.)
I’ll list some of them below: (some of the links below are affiliate links, I may receive a small commission if you sign up via the link)
These websites allow people who have a space to upload their target audience and target market with information such as:
Business Location
Parking access
Photos and videos
Amenities
Policies
And other event venue business FAQS
So if a customer comes across their profile on these platforms, they can either book directly or go to their website or social media accounts for more information.
For the space owner, one thing you may have to know is that while these platforms are great, you should not depend solely on them to keep your business alive; these platforms have their own policies and guidelines that you must follow, and if for any reason you violate the policies you can be kicked off the platform.
Event Space Marketing Channels
Think social media (5 different channels) your website (another channel) advertisements (multiple other channels) direct mail and more!
Having multiple marketing channels is always a great idea
A good strategy would be to have multiple channels, so you're never stuck between a rock and a hard place.
Different channels help customers find you easily. For the customer, you must understand that these platforms have their own fees if you decide to book through them.
For instance, if you ever rented a space from Airbnb, understand that the space you are booking has to pay a commission to the platform, and normally, that amount is taken off the top in addition to you being charged a separate fee for using it.
Space Rental fee - Platform fee = Revenue for space
Customer Rental Fee + Platform fee = Cost for the customer
Going back to having a website, you would be responsible for the following:
Your own booking process and customer journey, including a contract and invoice process, we recommend Honeybook
Your own processing fees
While using third-party platforms can be beneficial for initial exposure, having your own website provides a solid foundation for establishing a strong online presence, building brand identity, and maximizing control over your business operations.
Having a website may be cheaper than using a platform for you and your potential clients.
Key Takeaways:
Any physical location should take advantage of local marketing
Lead generation websites, Local Chamber, and Local Market
Having multiple channels is always a great idea
Having a business plan is crucial!
I thought this would be easy, it wasn’t. Nothing good comes easy.
3. This isn't a get-rich-quick event venue business plan
In my experience, no scheme is worth it.
While you may see some venue owners posting about how much money they make with their spaces, you must understand that this is the exception, not the rule.
Many venue owners are enticed by the idea of simply having a space that other people rent out and are inspired by the venue owners who talk about how often they are booked and how much money they are making.
What you, as venue owner, have to understand is that there is a lot of work that goes into having a rentable space. It’s not as easy as simply opening up the space listing on a few platforms and then having unlimited customers come your way.
Sustainable success doesn't happen overnight.
In contrast, that may be the case for some people. For the rest of us, it takes a lot more than that.
Think about a few things:
Location and type of space, including leasing options and costs
Startup costs and renovations
Marketing costs and the cost of digital tools to do so
Business plan and startup costs
Business filings, business loans and business bank accounts
Catering services
Liquor license and liquor liability insurance (not necessary but useful if you want to sell or serve alcohol)
General liability insurance and personal liability
Operating expenses, monthly expenses, and other business expenses
Security systems
And last but not least - Cash flow
To put it frankly, having a rentable space business is a lot of work.
Being a business owner will help you evolve as a person.
In doing the work, you become a different person. My experience has been transformative, from being able to help other event space owners to also becoming a marketer and launching my own marketing agency Another Monday.
You have to understand the most important thing, which is your niche or target audience. You also have to understand your location and the customers within a 20-mile radius that may or may not need to rent your space. You also have to understand your overall market.
Additionally, various times of the year may see higher demands for private and corporate events due to different factors. Be aware of the seasonal trends (wedding seasons, holiday seasons, peak business seasons, and graduation) so you can match your marketing efforts, pricing, and promotional activities on certain times of the year.
If there are more rentable event venues and spaces in your area, you will be up against them as competition, as there are other options your customers can choose. You will find this information in any marketing and event planning business, blog, or book you will ever read.
The fundamentals do not change.
Complete Your Entire Business Plan- Assume Responsibility
A business plan is one of the most important things you should do way before starting a business.
This business plan is not just a document that you can use to secure a lease for your event space
The business plan is also crucial to put you in a mindset of how much work will take to make your own business successful.
You need to consider catering to a diverse range of needs, such as baby showers, bridal showers, wedding receptions, corporate events, networking events, and any kind of social and private events.
Don't limit yourself to a specific type of event. If your space doesn't fit for their social gathering today, perhaps they will need it for a private gathering in the next few months. Flexibility is key!
Understand that it is an iterative process for a business owner
It’s going to help you think through the services you’re going to offer and also help you understand how much you’re actually going to need to make on a daily, weekly, and even monthly basis to pay all of your bills and make a profit. Especially for event venues. While you can host and be open for a large variety of event and rental types, attracting them is another thing and being able to serve each is work within itself.
Baby showers
Bridal showers
Birthday parties
Wedding receptions
Brand launches
Film screenings
Pop Up shops
Business meetings
Small conferences and seminars
and so much more!
Think of the business plan as the living, breathing plan of your business
Not only will you need one (check the small business administration for help), but you’re also going to have to think through a marketing plan and all the things that revolve around the big M word.
A lot of this sounds great in theory while you’re excited about a brand-new idea, or event venue business plan but the execution is where most people fail. You will need to be able to attract clients and repeat business, plus you will be up against other event planners and other venues that already in your area.
If you are planning to open an event space in Baltimore, be aware that you will be entering a market with 290 existing venues. That's a pretty wild competition!
4. It takes time, sometimes, a lot of it
Building any great business takes time
From idea to the moment you open and until the moment you close your doors for the last time. The amount of time this takes is so difficult to measure. Its so important not to compare your journey to anybody elses no matter what you encounter.
It takes time, and I had no idea how much.
One of the things that I was most worried about before opening Studio 87 was the amount of time it was going to take to run, operate, and maintain the business.
I had no idea how much time it was going to take, and I was already busy managing other businesses and a full-time job.
I underestimated how much time a brand-new business was going to take to operate.
Just imagine that any brand new business, whether brick or mortar, product-based, service-based, or even a rentable space, will take time, dedication, and a lot of resources to launch successfully, maintain, and keep going.
It's akin to nurturing a seedling into a flourishing tree, or a marathon rather than a sprint. Especially for event venues.
So if you want a space, understand that the road to success is not easy. Patience is essential, as significant achievements often take time.
Event Venues Take Time
Before your local market knows who you are, what you do, and why you exist, it will take some time.
A brand new business is like a baby
Just like a newborn, it is delicate and requires careful attention and nurturing during its early stages.
It's going to need to be fed, you have to change it when it poops itself, and you’ll have to give it a lot of attention and nurturing to get it going.
Being a father, though, I must say running a business is a lot easier than actually having a baby, of course; however, there are definitely a lot of similarities.
Nobody told me this when I wanted to start an event venue.
This is why I have to refer to the above to help you understand that writing a business plan is definitely incredibly important. The amount of time it can take to get a brand new business up and running especially the remodeling and building the web presence, so finally, being open for an event venue business plan alone takes months. View our journey here.
You have to be honest with yourself to understand if you have the bandwidth and mental fortitude it will take to get it off the ground and maintain it. You may have to allocate between 40 hours or more a week during startup, and I’m not exaggerating.
Personally speaking, since opening Studio 87 while also managing everything else that’s going on in my life, I was working more than ever before.
I’ve worked over 100 hours a week for over a year straight!
This is why some people say that entrepreneurship is not for everybody. However, anybody can do it. You have to be real with yourself.
5. Always be selling, building community, and inviting people to your space.
Always be selling!
You trade one job for another, the cycle of life. For a small business owner, the selling never stops. The overhead needs to be covered, your staff needs to be paid, taxes, rent, heating and cooling, insurance, and ultimately, hopefully, you can afford to also pay yourself. Some people start an event venue because of the potential upside.
You need to sell.
You need to build a community and always invite people to your space. Aside from marketing campaigns- social events are a great way to do this.
Whenever we talk about business or anything related to business, I tell everyone who crosses my path the most important skill is sales.
Even if you never plan to get into business, being able to sell is a skill that will forever pay dividends.
You need to be able to sell yourself to everyone you cross paths with, even if you aren’t selling anything. Remember that when navigating through life, you’re going to want friends, acquaintances, go-to job interviews, incite relationships, and even when you want to buy things, you may need to sell why you need a discount.
Building relationships and establishing partnerships with caterers, event planners, florists, and other local businesses is paramount.
And the Word of mouth becomes a powerful tool in the realm of business.
We are always selling. Especially if you’re starting a business, any business at all, especially a rental space, you’re always going to have to be selling--it is an unending commitment and an essential aspect of your journey.
6. Cashflow is everything
Why is this hyperbolic phrase important?
Simply because-- it is the lifeblood of any business. Whether you are a small startup or a large corporation. This is vital to your ability to function, adapt, and thrive.
While profitability is a key goal, you must ensure that profits translate into positive cash flow. You can face challenges if it is profitable on paper but struggles with flow management.
Maintaining a positive and consistent flow is crucial for several reasons:
day-to-day operational expenses
investing in new equipment
unexpected drop in sales
Revenue can be unpredictable
Especially if there are seasonal fluctuations or if there are periods with fewer events booked. This is SCARY for us.
As an owner, you must understand that without enough cash on hand or cash in the bank, your business may struggle to pay its bills, salaries, rent, utilities, taxes, and supplies on time.
However, when you manage it well, when you have effective marketing strategies and promotions during slower periods, it can help you attract clients. It can provide a comprehensive view of costs versus revenue and ensures you have enough funds to pay your obligations while also generating a profit.
Having positive flow of revenue brings peace of mind
Who doesn't love peace of mind?
It is a wonderful feeling that can improve your quality of life in many ways, but in the demanding nature of running a business, especially event venues, it is almost impossible for us to be stress-free.
Having multiple jobs plus managing my businesses requires me to work long hours so when I say I’ve worked over 100 hours a week for over a year straight-- I am not exaggerating at all.
You need to understand that when you are an entrepreneur, the pressure to meet goals, stay ahead, and avoid setbacks can be stressful. Trying to handle on your own can contribute to stress.
That is why implementing efficient systems is important in creating a healthier work-life balance.
Delegate tasks and empower your team.
Trust your team members to take on responsibilities, and provide them with the tools and training they need to excel. You can streamline your business operations by implementing efficient systems and processes.
Automation and well-defined workflows can free up time and mental energy, allowing you to focus on strategic aspects of your business.
Remember, communication is key! As an owner, you need to maintain open lines of communication. Share your goals and vision so everyone understands their role in achieving these objectives.
Your role as a leader is not solely directive. You should be involved in working alongside the team. View yourself as an enabler rather than a controller. A leader who evolves hand-in-hand with their team can navigate challenges more effectively.
So do you still want to start an event Venue?
"Yes! Absolutely!"
"I'm still considering options."
"Nah, I'm okay"
"Oh no! I've changed my mind!"
Which of these four are you at?
Just a piece of advice-- Take your time to reflect and process this venture. If you're not convinced of the insights above, you can always delve into or do some thorough research to better understand the demand and competition.
In the world of entrepreneurship, imagine the canvas as vast, offering numerous opportunities and challenges. Every step of preparation is like adding color to the painting.
Just as an artist carefully selects colors, business owners choose their tools, resources, and plans wisely.
And finally, a few key takeaways before you make up your decision. Trust your instincts, Think outside the box, and Create something that aligns with your values and aspirations!
Be real, be bold, be authentic, and be your own kind of entrepreneur!
