Do you want to start a beauty pageant company? If YES, here is a 19-step guide on how to start a beauty pageant management business with no money or experience. Beauty pageant has more to it than just bikini modeling and brain cracking interview questions seen on television once a year. Pageant directors, pageant gown boutiques, crown manufacturers and pageant coaches are just a few of the lucrative businesses that operate within the industry.
No matter the path you choose to trend, starting and running a successful pageant business needs the ability to maintain a base of loyal clients and an excellent knowledge of the industry. Indeed this business is focused around the success of a Beauty Pageant. Your company will have to advertise the upcoming pageant to get contestants to enter, create and distribute the contest entrance forms, and decide how much the entry fee will be for each entrant.
19 Steps to Starting a Beauty Pageant Management Company in the US
1. Understand the Industry
Businesses in the Concert and Event Promotion industry create, manage and promote live performances and events, ranging from concerts and theatre performances to state fairs and air shows. Some promoters lease space from stadium, arena and theatre owners, while others own and operate their venues. Note that even with the economic downturn and resulting decline in discretionary income, Americans still attend and spend at live events.
As the economy continues its recover in the coming years, industry growth is expected to continue. Businesses in the Concert and Event Promotion industry assemble and market a variety of events, ranging from music concerts (which generate more than half of total industry revenue), theatrical performances and specific sporting events, such as boxing, wrestling and rodeos.
Whether the economy is booming or experiencing a downturn, Americans have shown that they value live entertainment. This is evident in the fact that industry revenue is expected to grow an annualized 2.6% to total $39billion over the five years to 2023.
Interesting Statistics About the Industry
It’s very important to state that even with the recent economic downturn, the Concert and Event Promotion industry’s promising performance over the past decade has led to thousands of new businesses joining the industry. Reports have it that with nearly 50,000 event promoters in the United States, the industry is extremely fragmented, with the majority of promoters having a limited geographic reach and very few employees.
Note that the industry’s four largest companies combined have less than 25% of industry revenue. The industry’s largest player, Live Nation Entertainment, has been quite successful over the past five years because it has consolidated its position in the industry through mergers and acquisitions, most notably 2010’s merger with Ticketmaster.
The number of small promotion companies has grown significantly over the past five years due to the growth of social networking sites, which has affected the process of targeting key customers and interacting with them directly. The competition in this business has been further supported by the ease of starting a management and promotion company, especially for firms that rent facilities rather than own them.
The vast majority of promoters already fall into this category, and the number of new firms that rent facilities has tipped the balance even further. You need to understand that venue ownership does provide a substantial boost to profit margins.
Experts believe that over the next five years, industry revenue will continue rising, driven by growing discretionary spending and corporate profit. Broadening ticket price options are also expected to drive attendance for events, and therefore, increase ancillary spending on parking, merchandise and value-added extras (e.g. VIP packages and event recordings).
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
Note that beauty pageant managers, coaches, makeup artists and boutique owners are industry “insiders” who draw from years of experience, perhaps from past work in the entertainment, fashion or beauty industries, or as a beauty pageant titleholder.
To survive and stay relevant in this industry, you will have to stay abreast of current trends in the pageant industry by reading trade magazines and blogs and by watching pageants on television to keep up with the latest hair, makeup, posing and gown designs of the day.
You can also watch frequently feature documentaries and programming on children pageants, and local pageants. Attend local and/or state pageants and form relationships with pageant directors and pageant contestants. Statistics has it that over 2.5 million girls participate in 100,000 beauty pageants each year in the US. Note that 5’6” is the average height of Miss America winners and 121 is the average weight.
The average age of winners is 22.6. Pageant life isn’t just for pre-teens and young adults, children and even toddlers compete in beauty pageants across the country. Child beauty pageants typically mean the contests are between the ages of 2 and 18. About 5,000 child beauty pageants are held each year, with about 250,000 total contestants included.
3. Decide What Niche to Concentrate On
One necessary thing to do when planning to start this business is to conduct a detailed market Feasibility research. The benefits of conducting a feasibility study are that it enables you make good decisions based on your findings; and it will be the foundation on which you write your business plan.
A detailed feasibility studies will give you an idea if your business will be welcomed in the area you want to start it, the number of young girls that will be willing to purchase application forms, the amount people that will be willing to pay to attend beauty pageants, and other side attraction that can help you get enough people to attend your event.
In many parts of the world, beauty contests are a really common affair, so much so that it’s become difficult to distinguish one pretty lady in a sash and shiny gown from another, which is why specializing on a particular niche, will help you achieve success and gain brand awareness quicker in this industry. Niches in this business include;
- Beauty pageant coach
- Teens beauty pageant management company
- College beauty pageant management company
- Beauty pageant consulting
- Children beauty pageant management company
- Artificial beauty pageant management company
- BBB beauty pageant management company
The Level of Competition in the Industry
It’s very important to note that the success of businesses in this industry depends on consumers’ willingness to pay for and attend live events instead of listening to studio releases and watching televised broadcasts from home. Even through the economic up and downs, Americans have long valued live entertainment.
According to experts, this has helped maintain industry revenue growth over the five years to 2018. The growing popularity of live musical performances and music festivals helped increase revenue, in addition to rising levels of per capita disposable income. Over the five years to 2023, industry revenue is forecast to continue to increase. Also note that the general Concert and Event Promotion industry is moderately capital intensive.
Capital expenditures differ greatly among promoters that own their venues or operate them under long-term leases (typically 10 to 30 years), versus those that rent. Venue costs can range from several hundred million dollars for a stadium or theatre in a prime location, such as Los Angeles or New York, to a few thousand dollars for a club in a state with inexpensive real estate values.
Venues must also be outfitted with the latest audio visual technology, ranging from LED displays at stadiums to cutting-edge sound system and lighting equipment for live performances. Also have it in mind that the rise in ticket prices reflects greater demand from consumers for major shows, and the largest players are expected to turn to mergers and acquisitions to boost market share.
4. Know the Major Competitors in the Industry
- American Angels Pageants
- American Beauties LLC
- American Miss US Pageant System
- America’s National Teenager
- Angel Face Pageants
- Anna Rosa Pageants LLC
- California Tropic Promotions
- Candy Kiss USA Pageant System
- Crowned Princess, LLC
- Cutie Pie Glitz Pageant, L.L.C.
- Dashing Dudes Pageantry
- Dee Dee’s Pageant Coaching
- Fiercely Fabulous Plus Pageant
- Florida Miss Plus America Pageant
- Heavenly Angels Pageant
- If the Crown Fits
Pageants have become a source of income not only for the organizers, but for the contestants too. Beauty Pageants can be money spinners if executed with the right strategy. Big companies are becoming eager to sponsor an event or idea they feel will be beneficial to their brands and create more revenues on the long run. Possible ways a beauty pageant management company can make money include;
If you can grow your business and create a reckoning brand, then companies will be willing to break the bank to sponsor your events. Note that it will be very hard to get financial sponsorship in your first year of managing a beauty pageant, but if you can pull it off and make it grow, then a lot of firms might be willing to associate with your beauty pageant in subsequent editions.
Although it can be very hard to get financial support for your beauty pageant, it is a bit easier to get companies to support your pageant with non-financial items. A lot of beauty pageants get boutiques and clothing companies to provide the wears for the beauty contestants. With also a bit of wheel dealing, you can get respectable hotels or event venues to host your pageant if they get convinced of the publicity gains they stand to make.
Contestants have to register or pay a particular amount to gain the opportunity to compete for the prizes. This is another way your business can make money in this industry. But note that the higher your identity in the industry, the more you can attract more models and also get them to pay the registration fee because they know it is worth it.
Making money from gate fees and charging for tables for VIPs is something that comes when you have built a very popular pageant brand which celebrities and other personalities in the entertainment industry will want to attend, until then you can only stick with the above tips.
5. Decide Whether to Buy a Franchise or Start from Scratch
Within the past few years, smart entrepreneurs have known that whenever possible, it’s more advantageous to buy an existing business than it is to start one from scratch. Buying a franchise, although is better, is not a feat you should take carelessly. There at least three reasons you should consider a beauty pageant management business franchise.
- Startup revenue. Business startups find it hard to bring in revenue right out of the gate while existing businesses usually have a steady stream of income.
- Operational Efficiency. When you’re shopping for a beauty pageant business, be sure to look for ones that have all of the necessary processes and systems to ensure seamless operations from your first day of ownership.
- Getting funding. Lenders, investors and other funding sources almost always prefer business franchise to start-ups.
Your chances of achieving success in business increases if you become a franchisee and benefit from the prior work of others and their lessons learned.
6. Know the Possible Threats and Challenges You Will Face
Running a Beauty Pageant Management Business is not an easy task. Before the judges and an audience can enjoy the smiling faces, ornate gowns and talents of the women in a beauty pageant, a management company needs to toil behind the scenes to put the event together. Note that behind all the glitz and glamor, beauty pageant management companies and directors perform a handful of duties to make sure everything goes without a hitch.
You will also have to put together contestant information kits that include materials that help the girls before and during the pageant such as potential interview questions, wardrobe requirements, judging criteria and travel arrangements.
You will also have to decide on a date, time and place for the pageant and secure all the necessary reservations and permits. Although largely unseen and unnoticed, other aspects such as audio, video and music must also be lined up and scripted by your company.
Your business will also have to perform a number of smaller, yet still very crucial duties like creating the pageant’s program, which is shared to the audience, and advertise the pageant to bring in audience members. Each of the winners of a pageant receives a number of prizes including cash, scholarships and merchandise, and coordinators line up the sponsors and donors of the prizes.
Also note that after the pageant is over and a lady is crowned the queen, you will have to work with the winner, setting their travel, media and personal appearance, schedule and coaching her to represent that pageant and your organization.
Becoming a Beauty Pageant manager requires drive and determination which should be moved by love and passion. This industry is fiercely competitive but once you’ve made it, it can be one of the most fulfilling and often financially rewarding industries in the world. The possible challenges you might face may include;
- Writing a business plan
- Registering your company
- Getting a good location and registering focused workers
- Auditioning and promoting your pageant
- Establishing a brand
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
Your job in this industry will include arranging deals and managing events. Most companies in this era prefer to sign business deals with legal entities, not just private individuals. Choosing a legal entity for your business will be one important decision you will have to make when starting a beauty pageant management company in the United States.
Note that the legal entity you choose might be influenced by the place you intend to start this business. But for the sake of this article, the best legal entity to use in the United States is perhaps a Limited Liability Company (LLC). You can also consider starting a corporation; it all depends on your business vision and mission.
8. Choose a Catchy Business Name from the ideas Below
- Crescent Beauty pageant
- Mixed Blood Management
- Otis Theatre
- Peak Promotions Inc.
- Warrior Entertainment
- Lion Multimedia Group
- Phantasm Sound Production
- Source Interlink Co Inc.
- Platinum Theatre
- Neolite Beauty pageant
- Winter Beauty pageant Group Inc.
- Royal Theatre
- Copycats Media
- KMP Beauty pageant Group
- Dark Sea Beauty pageants
- Award Lane
- Exquisite Productions
- Zeus management Group
- Alfred Beauty pageant Company
- Tiller Outdoor Management
9. Discuss With an Agent to Know the Best Insurance Policies for You
You need to understand that the pageant industry and insurance to an extent work together. As a business owner, you have to always stay insured at all times because of unforeseen circumstances. Here below, are some of the insurance covers that an average beauty pageant management company should have;
- General insurance
- Health insurance
- Liability insurance
- Workers compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
You should be prepared to secure your intellectual property if you plan on venturing into the beauty pageant management Business. Intellectual property (IP) protection is important for every industry, especially beauty. In this business, intellectual property helps you to prevent others from copying your proprietary business information, the intangible assets that you have worked so hard to create.
Have it in mind that IP is a weapon that can be used to keep competitors at bay. Also IP is very crucial if you intend to license your IP rights to others. You should also make sure that the logo of your beauty pageant management company is totally secured and legally recognized as part of your company property by the law.
11. Get the Necessary Professional Certification
You do not need a professional certification to open or mange a beauty pageant company. As much as this industry is very competitive, any entrepreneur who has an interest in beauty pageant can launch his or her beauty pageant management company without acquiring any special certificate.
But you must have the passion and experience to start a Beauty pageant management Business. But be warned that getting certifications in other fields like human resources might help your business stand out.
12. Get the Necessary Legal Documents You Need to Operate
It’s advisable that you start by crafting a business plan that lays out marketing, operational and financial strategies for your business. You should plan for start-up costs because this business will require out-of-pocket costs before collecting fees from delegates or obtaining sponsors to underwrite operational costs.
You should also research the industry and inquire at your local county the legal requirements of starting this business. These are some of the basic legal documents that you would need to successfully run a beauty pageant management company in the United States of America:
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement
- Insurance Policy
- Employees Handbook
- Contract Document
- Trademark registration for your logo
- Tax Payer’s ID number
13. Raise the Needed Startup Capital
Every entrepreneur must source for startup capital in every way legal when it comes to Starting up new businesses, but the truth is that if your business idea is workable and promising, you would not fight to raise startup capital. One notable way of getting external funding in this business is through event sponsorship.
In the United States, event sponsorship is a billion dollar business. Your company can gain from having advertisers wanting to associate with your beauty pageant business. Read on to learn how to get sponsors for a beauty pageant.
- Start by making a list of all the people you know or businesses that you frequently visit in order to approach them for sponsorship. Note that a sponsor is any person or business that provides scholarships, services or products to your beauty pageant business in exchange for advertising.
- Outline the services or products you might need for your pageant, for example flowers, trophies, and others. From this list, think of which individuals or business can provide you with the items you need for your pageant.
- You need to have a specific budget for your business. If you still need money to cover additional pageant expenses aside from the products and services you will receive from your prospective sponsors, you can ask for monetary donations from other sponsors who are still on your prospect list.
- Be confident when approaching your prospective sponsors in person or in writing by introducing yourself and your involvement with the pageant. Always be ready to discuss the kind of sponsorship you would like from businesses and what you will include in return for a sponsorship. You can include your sponsors name in all of your event promotions.
- You can have as many sponsors as you require, but do not have more than one sponsor in a particular area. There are some businesses that compete with each other, so you do not want two or more competing businesses as your sponsors at the same time.
- Always strive to keep your sponsor’s company at the top. Your sponsors should receive what you promise them. You want to create a solid reputation for your pageant business in order to line up more sponsors for the following year.
14. Choose a Suitable Location for your Business
This will be one of the most important decisions when starting a Beauty pageant management Business. Note that you don’t have to break the bank to pay for rent. A Beauty pageant management Business can flow in any location as long as there youths or pool of aspiring models. Some of the factors that you would to put in place when considering a location for a Beauty pageant management company are;
- Should have appreciable numbers of youths and aspiring beauty models
- Close to the hub of beauty pageant in your city or state.
- Easily accessible and secure.
- Can be notable for producing good models in your city, or state.
- The location should be free from noise; noise can frustrate your effort.
15. Hire Employees for your Technical and Manpower Needs
This business can be run from the comfort of your home; this is to show the little manpower you need in this business. Also with outsourcing becoming a normal process in this age, you can run this business without stress. You will surely need a director, promotional manager, talent manager/sales and marketing executive and a receptionist.
You will also have to hire judges for the pageant, coach them on the particulars of that pageant and prepare the judging sheets used during the pageant. Whether you’re equipping your first office or just re-stocking your current one, this checklist will help you determine and track which furniture, equipment, technologies and supplies you need to help your business run more smoothly.
Office Furniture and Equipment
- Office decorations
- Labeling machine
- Wall whiteboard and markers
- Comfortable chair
- File cabinets
- Overhead and work lighting
- Client seating
- Fireproof safe
- Desktop and pocket calculators
- Postage meter
- Paper shredder
- Recycling bin
- Alarm system
- Fire extinguisher
- First-aid kit
Computer Hardware and Accessories
- Notebook computer
- CD writer
- Desktop computer and monitor
- Keyboard and mouse
- PowerPoint projector
- Digital camera
- Handheld organizer
- Surge protector
- Computer locks
- Contact management software
- Website building and maintenance software
- Word processing software
- Virus protection software
- Accounting software
- Desktop publishing software
- Payment processing software
- E-commerce software
- Inventory management software
General Office Supplies
- Postage stamps
- Printer cartridges
- CD and floppy disks
- Business cards
- Imprinted advertising specialties
- Pencils and pens
- Printer paper
- Cleaning supplies
- Fax paper
- File folders
The Service Delivery Process of the Business
No matter how much modernization sets in, beauty pageants never go out of style. Though many are now referred to as “scholarship pageants” or “talent showcases” to avoid the suggestion of contestants being judged on prettiness alone. Just like we stated above, to start and run this business, you must obtain licensing in your state, decide where and when to hold it, detail the activities in your pageant and market it to potential participants and sponsors.
Note that some cities in the United States demand you meet particular requirements to obtain a license to operate. For example, the Arkansas Department of Finance and Administration demands you be registered as a beauty pageant operator in Arkansas.
You will also need to create a business plan that will allow you to judge how much you will need and how to obtain funding. When starting this business, you might need money for renting a venue, hiring judges, marketing, decorations and prizes.
Also while you will depend on entry fees to cover expenses and make a profit, you will need funds up front. You will also need to rent a venue and put the date on your calendar. Its advisable that you give yourself at least two months in advance to complete your planning and marketing.
Consider community centres, hotel ballrooms or large church banquet halls as possibilities for your event. You should schedule your pageant on a weekend day, preferably a Saturday, for the best turnout. You also have to decide how many contestants you can handle and what age groups you will offer.
Child pageants are very common, as are those for teens. It’s also necessary that you choose a theme for your event. Identify categories in which your participants will be judged and recruit leaders in the community, former beauty pageant winners, models, photographers or local celebrities — to judge contestants in each category.
Secure additional staff, including a few people for set-up and clean-up as well as someone to handle the sign-in area for contestants and the announcing duties. Some pageants charge as little as $10.00, but the fee may be as much as $100 or more.
Determine what other local pageants of comparable size and prizes have charged to get an idea of what your fee should be. Prepare the venue for the day of the beauty pageant. Build your stage and decorate the area according to your theme.
16. Write a Marketing Plan Packed With ideas & Strategies
Note that the beauty pageant management Business is similar to other businesses in some ways. They all need a concrete marketing plan to always sell and gain opportunities for their clients. Have it in mind that the marketing model for a beauty pageant management business has historically adapted to changes in consumer buying patterns and the market itself. With marketing pressure at an all-time high, your business needs to incorporate tactics designed to position itself at the top of the heap.
You can offer discounts or other promotional offers to new and returning clients in order to develop a loyal clientele. You can also include testimonials on your website from pageant directors or titleholders. Some pageant directors offer discounts when two or more members of the same family compete in their pageant, while a crown and banner manufacturer may offer a discount for a loyal patron.
Use Print Ads
Note that print advertising has been a marketing staple for beauty pageant management businesses. Presently, businesses have more promotional options than ever before, there are many attractive venues for featuring your beauty pageant management business in printed media.
The difference is that it’s more important than ever to make sure the publications you target reach the right people. Publications geared toward large, general readerships tend to be less productive than publications that are read by likely buyers of your products and services.
Make your community your brand
Modernization came with the internet, and with the internet came social media. Social media is an up and coming marketing channel because it coalesces a community around brands. Note that your beauty pageant management business needs to do a better job connecting with their customers.
There are many ways to launch a social media strategy. In our experience, it’s helpful to begin with a direct mail campaign. You need to understand that using vendor-provided mailing lists will help broaden your reach by informing new contacts as well as established customers about your presence on popular sites like Facebook, Twitter and LinkedIn.
Create a Buzz
In the general entertainment industry, never you underestimate the value of a good buzz with consumers. Word of mouth is without argument the best form of promotion for products and brands. For a beauty pageant management business, meaningful brand conversations have the ability to transform the impact of your marketing efforts. Note that this process begins with developing communication vehicles and mechanisms that invite discussion.
17. Develop Iron-clad Competitive Strategies to Help You Win
The best strategy to stay competitive in this business is by offering mouth – watering deals that will keep clients flowing in. Keep it in mind that your contract should not in any way appear to be a slave type of contract. Always make sure that you offer excellent deals by making it lower than what your competitors are offering.
Also launch a website and build a social media presence for your business in order to reach more clients and develop trust. Most of pageant participants are teenagers and young women competing in Teen and Miss divisions and are active users on sites like Facebook and Twitter.
You should also network with key contacts in the industry by attending local and state pageants or through social media presences to promote your business. Have it in mind that in the pageant industry, a substantial portion of new business is generated from referrals made by trusted pageant directors or successful contestants and titleholders.
18. Brainstorm Possible Ways to Retain Clients & Customers
Your contestants and sponsors will be the soul of your business, especially in this industry where your contestants have to walk the runway and answer brain cracking questions all to win prizes. You have to make them feel important and loved, you have to make them part of the business or you might lose them. Ways to increase customer retention in this business might include;
- Always welcome complaints
- Constantly Compare & Contrast Their Before & After
- Regular feedback surveys
- Show How You’ve Responded to Their Feedback Specifically
- On boarding
- Make Getting in Touch Easy & Obvious (And Respond ASAP)
- Know your clients
19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
You need to understand that the best way to develop brand awareness in this business is to make yourself visible to your target market, which is the sole reason why it is important to create a substantial marketing plan to reach them. In promoting your brand and corporate identity, you should leverage on the various print and electronic media.
Note that it is better and cost effective to Leverage the internet and social media platforms to promote your company, and besides it is pretty much effective and wide reaching. You can also sponsor community beauty pageant shows or even organize reality shows, to be able to reach and discover new talents. Listed below are the few qualities you need to leverage;
- Dedication to your clients
- Creative Problem Solving and Fast Decision Making
- Patience and knowledge
- People skills
- Business and Financial Management Skills
- Work drive and ethics
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