Starting a small business is tough and the hardest part for most entrepreneurs is managing their cash flow. One thing I’ve learned in starting my own event management company is that when it comes to cash flow you need cash, without it there’s no flow. I’m hilarious. The trick is getting paid! If you’re not a small business owner you might not find that statement all that profound but for those of us who “live the dream” and are making a living one contract at a time it’s epic.

Here’s some advice with respect to getting paid:

Don’t work for free. Don’t do it. Ever. FREE is a four letter word that should be removed from your vocabulary. What you do is valuable. I’m convinced that the most offensive word in small business is “FREE”, especially to those in the creative sector. Unless you’re new to capitalism, I think you’d agree that the word “free,” more often than not, communicates a lack of value. Whether or not you can manage with a non-billable project is beside the point. When no monetary value is associated with work effort it creates an unstable environment for the sole proprietor, and client alike. Money is the single most commonly used method of assigning commitment and when it’s relinquished it makes for a strained relationship because it lowers everyone’s expectations. If you’re trying to grow your business then charge something, something is better than nothing. The growth potential of your career will depend on your reputation and if your reputation is that you work for free then you’re not building on a very good foundation.

I realize why sole proprietors work for free, they do it for practice, to build their resumes, and they believe it helps them get their foot in the door. The first two reasons make sense but I think that honing your skills and developing report is better served by doing personal or independent projects. However, in the attempt to score a new client you offer your services for free then their first impression of working with you is that you’re free: Client “1”, small business owner “0”. If you’re working for someone else then they’re a client and they should ante up, period. The exchange of money helps communicate a professional level of commitment and you need that.

When it comes to budget constraints, if a potential client says they have no budget know this: They’re wrong. Everyone has some budget. It may be only a few dollars but it’s something. If you’re in the creative industries, your creative and technical contribution should always be associated with monetary value. At minimum make sure that if you’re working for free that it’s truly just your time that is free and that you have zero expenses (gas, parking, meals, rentals, phone calls, whatever).

Don’t be so quick to discount. Discounts are dangerous business. I understand that fear, that some money is better than no money and in order secure a gig you feel you have to provide a discount on your services. Well, first of all, I’m assuming that you’ve appropriate priced your services – discounts on over inflated rates will only work for so long, eventually the bubble will burst. Secondly, if a discount is the only way you’ll be able to land a shoot then try this, request non-financial benefits. If it’s for a charity, request sponsor recognition. If it’s for a business, ask to receive a gift card towards their products. If it’s a service company ask to be added to their marketing material as a preferred supplier.

If you’re looking for some inspiration as to how to set your prices and understand your value I’d recommend Alan Weiss’s Value-Based Fees: How to Charge and Get What You’re Worth. It’s an intense book and I guarantee it will push your paradigm with respect to earning money but sometimes it takes an extreme perspective to get things on the right track.

Bill on time. This is the important business building strategy: bill on time. First of all I have to say that too many small business owners don’t send bills, I don’t get that. I’m a huge fan of sending bills. When you send bills you get paid. If you’ve already received your payment then sending a bill after the fact shows your professionalism. Always send a bill, even if it’s for $1. And send it before you do the work, or as early as possible in the project. It’s a great way to make sure they take you seriously and the quicker you invoice the quicker you get paid.

Helpful Tip: Use FreshBooks. Why you ask? Because its users get paid on average 14 days faster; my business is living proof of that fact. It’s a secure, online service that is free to use if you have three clients or less (if you have more clients there’s a nominal monthly fee). It does more than just make you look organized, you ARE organized. Invoices can be sent by email (links to a PDF, or you can have FreshBooks send them via regular mail). At your discretion your clients can have online access to their invoices and account history – very cool. You can generate invoices based on time, expenses, and fixed cost services/items or any combination thereof. And, they’ve got a great desktop widget and iPhone app.

If you want to try it out for free click the affiliate link below and we’ll both get some love.
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Posted by Corwin Hiebert

When someone registers or plans to attend an event that is free they automatically assign that activity the category of “maybe.” If they are not liable for not showing up then it’s no big deal in their eyes. But it’s a big deal for you, the event planner. Your event plan can be seriously impacted when attendance is such a variable.

Consider the poor success of a Facebook invitation. I haven’t seen any official statistics but, in my experience, it’s a miracle even if 1% of the confirmed attendees from a Facebook event actually show up. Sure, there are the exceptions, such as mass bike rides and water gun fights, but event promotion via social marketing tools invokes little to no commitment. And when the commitment level is low it is that much easier for someone to bail.

Discounts are dangerous too. I come across this one all the time. As an event planner you know that fear, that gut-wrenching feeling, of having empty seats and you’ll do anything to fill them. Too often, prices are hacked and slashed to get people in the room. If you discount remaining tickets, you’ve got a couple liabilities on your hands. First of all, you’ve just filled the room with people who have lowered expectations. These low-paying people can skew survey results, create a negative vibe in the room, and may not be the right people for the event. The second liability is that your pre-existing registrants will go berserk on you and demand refunds, thus lowering your overall revenue and negating the funds you just earned by bringing in the cheapies. It’s a trap. Don’t discount. Add value, don’t lower it.

Helpful Tip: Offer deals to event registrants only. When trying to increase attendance, focus on the people who have already registered for your event. By providing a discount on additional passes, they’ll be motivated to bring their own friends.

This blog post was originally published on the Eventbrite Blog on January 19, 2010.

There’s not a lot of event people talking, sharing, helping other event planners. Julius Solaris is the main man at EventManagersBlog and whenever I spend time on his site I feel he’s making a big effort to lend a helping hand. What I particularly like about the blog is that he’s got a team of contributors that also jump in (here they are, twitter links and all): Julius Solaris, Anne Thornley-Brown, Kena Siu, Jeff Hurt, Greg Ruby, and Brett Petersel. There’s a good cross-section of perspectives, interests, and experience represented by this group of collaborators and their posts compliment one another.

My 3 favourite posts on their site are:

1. Event Management Toolkit v.2
2. 15 Free Ebooks about Event Planning
3. 10 Alternative Business Models for Events

My bias here might just be because Julius calls himself an Event Geek and based on my propensity to preach about techy things (online event registration, e-mail/sms marketing, authentic viral marketing, and such) I figure we must be cut from the same cloth.

Now, let’s not leave it at that. If you know of a great event industry blog, one that is helpful to vocational event planners and managers, please let us know by leaving a comment below (or tweetit) – I’m @corwinhiebert.

Posted by: Corwin Hiebert

This past summer I had the privilege of managing the lululemon athletica Flip Flop Soiree (a swanky backyard cocktail party at a Vancouver mansion. This old Hollywood themed event was hosted by Chip Wilson and was catered by the world-famous Rob Feenie (Canada’s Iron Chef) and the amazing food concept team at Cactus Club Cafe. The decision regarding a wine sponsor/supplier was not taken lightly as the crowd was definitely high on the highbrow scale. Enter Barefoot Wines. This California-based winery produces world-class wine and proactively promotes their product in local markets through community participation (not advertising). Their support was unparalleled and they took on every aspect of the wine service. Their Pinot Grigio and Cabernet Sauvignon are absolute spectacular! This garden party for 500 people was not a simple gig – they had their hands that’s for sure… good thing they wore shoes that day.

Hats off (or should I say shoes off) to Aaron Krombholz and Barefoot Wines in their exceptional product and wonderful support of our event. The event raised over $70,000 for InspireHealth (Canada’s foremost integrated cancer-care agency). If you’re looking for a great supplier, check to see if Barefoot Wines is active in your area; you’ll be glad you checked. Cheers!

For example, check-out the Rocky Mountaineer Station in Vancouver, BC.  This fully operational train station has 4 days per week available for bookings and they’ve got all the amenities/services that pretty much any hotel would have (it’s just simply handled by outside suppliers). Portobello West (a fashion marketplace) and a runway show by Aritzia are examples of some of the great events that have happened there. 

Now a venue like that isn’t even that alternative! If you want to catch the train to crazy land what about an abandoned warehouse or an airplane hanger? Maybe roof-top patio atop a 60-storey high rise or on a floating barge? Regardless, I think it’s important to get your clients excited and inspired about holding their event at a location that makes their guests or participants go “WOW”! So whether it’s a train station or not, it’s time to get on board with the idea that your #1 decor strategy should be location verses balloons or flowers.

If this describes you then you already know that you’re not travelling in the same direction as so many other event planners out there. There seems to be a common practice of simply helping making events “happen” instead of creating a memorable experience for attendees and remarkableresults for the client. It’s not that making sense of the typical event chaos isn’t rewarding, but I want to make sure that my efforts are as valuable as possible. I want to connect, collaborate, and support those who share this passion. The competition zigs and you zag. You’re a zagger. That means we’re on the same team. Cheers to you!

That’s the direction I’m focused on. The zag. I like to think that I’m a creative person (when I’m not being a geek) and I’m convinced my clients deserve the best event possible, not just a well planned activity. I am an event producer… so there. I’ve been producing events for 12 years and now 18 months into running my own management company I’ve settled into the idea that my clients deserve the zag. That’s what I want to do with my time.

My hope for the EVENT PRODUCER blog is to provide zaggers with advice from industry leaders, the best resources from the most successful producers, and of course my own thoughts and feelings about this wonderfully challenging industry we’re in. Go ahead and bookmark this page and visit regularly, comment often, and even feel free to submit an article for posting (my blog is your blog). You can reach me through my profile.

Hail the Zaggers!