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How to Start a Kids Party Planning Business That Makes Money

How to Start a Kids Party Planning Business

A kids’ party planning business specializes in organizing and coordinating events for children, such as birthdays, theme parties, and school events.

This industry includes services like venue selection, decor, entertainment, and catering, all tailored to meet the interests and needs of children.

According to IBISWorld, the party and event planning industry in the U.S. was valued at around $6 billion in 2023, with a significant portion dedicated to children’s events.

The demand for such services is driven by busy parents seeking convenience and unique experiences for their children. Please note that the market is also supported by trends in themed parties, character appearances, and interactive activities.

With parents increasingly willing to invest in memorable and stress-free celebrations, the kids’ party planning business offers a growing opportunity for entrepreneurs to create engaging and customized events for young audiences.

Steps on How to Start a Kids Party Planning Business That Makes Money

  1. Conduct Market Research

Conducting market research for a kids’ party planning business involves several key steps to understand the industry landscape and identify opportunities.

Start by analyzing industry trends and consumer preferences. Research current trends in children’s parties, such as popular themes, activities, and catering options.

This can be done through industry reports, online forums, and social media. Understanding what parents are looking for will help tailor your services to meet their needs.

Next, assess the competitive landscape. Identify existing party planning businesses in your area and evaluate their offerings, pricing, and customer reviews.

Analyze their strengths and weaknesses to find gaps in the market that your business could fill. This competitive analysis will also help you determine your unique selling proposition and pricing strategy.

Gather information from potential customers by conducting surveys or focus groups. Reach out to parents and caregivers to understand their pain points, preferences, and budget constraints when planning children’s parties. This feedback will provide valuable insights into what services are most desirable.

Finally, analyze local demographics and market size. Study the population in your target area to gauge the demand for party planning services.

Look at factors such as the number of families with young children and average household incomes. This demographic data will help you assess the potential market size and tailor your marketing strategies accordingly.

a. Who is the Target Market for Kids Party Planning Business?
  • The main customers are parents or guardians of young children, typically aged 1 to 12 years.
  • Families with a higher disposable income
  • Working parents or those with demanding schedules
  • Parents looking for unique or themed parties, such as superhero or princess-themed events, are a key demographic.
  • Schools, daycare centers, and extracurricular activity groups that host events, parties, or celebrations for children can also be part of the target market.
  • Grandparents and Relatives interested in planning or sponsoring parties for their grandchildren or nieces/nephews.
b. Is Kids Party Planning Business a Profitable Business?

Yes, a kid’s party planning business can be profitable. The U.S. party and event planning industry, valued at around $6 billion in 2023, shows strong demand for specialized services, including children’s events.

With parents increasingly seeking unique and convenient party solutions, this niche market offers growth potential. Businesses can benefit from high demand for themed parties and premium services.

It is important to note that profitability often depends on effective pricing, market positioning, and efficient management of resources. By targeting affluent families and leveraging trends, such a business can achieve substantial profitability.

c. Are There Existing Niches in the Industry?

No, there are no niche ideas when it comes to kids’ party planning business because kids’ party planning business is a niche idea in the event planning industry.

d. Who are the Major Competitors?
  • Party City
  • The Bash
  • GigSalad
  • Fun Enterprises
  • Kids’ Party Characters
  • BounceU
  • My Gym
  • The Little Gym
  • Pump It Up
  • Funtopia
  • Kidville
  • Jump! Zone
  • Amazing Jake’s
  • Birthday Party Productions
  • Kid’s Party Time
  • Party Planet
  • Zippy’s Party Rentals
  • Playdate Parties
  • Jungle Jim’s Playland
  • Lil’ Kickers.
e. Are There County or State Regulations or Zoning Laws for Kids Party Planning Business?

Yes, there are county and state regulations and zoning laws that can impact kids party planning businesses in the United States. These regulations vary by location and often focus on health, safety, and business operations.

In many states, businesses must comply with local health and safety codes, especially if they provide food or host large gatherings.

Zoning laws are another important consideration. Local zoning ordinances may restrict the type of businesses that can operate in certain areas, such as residential neighborhoods.

Additionally, some counties and states may have specific regulations related to noise levels, parking, and the number of guests allowed.

Party planning businesses must familiarize themselves with and adhere to these local rules to avoid fines and operational disruptions.

f. Is There a Franchise for Kids Party Planning Business?

Yes, there are franchise opportunities for kids’ party planning businesses, and here are some of them:

  • The Little Gym
  • My Gym
  • Gymboree Play & Music
  • BounceU
  • Pump It Up
  • Kids’ Birthday Parties
  • Birthday Party Experts
  • Jungle Jim’s Playland
  • Monkey Joe’s
  • Playdate Parties.
g. What Do You Need to Start a Kids Party Planning Business?
  • Business Plan
  • Licenses and Permits
  • Insurance
  • Venue or Office Space
  • Marketing Materials
  • Event Planning Software
  • Suppliers and Vendors
  • Theme and Decor Inventory
  • Transportation
  • Staff or Team
  • Website and Online Presence
  • Client Contracts and Agreements.
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a kids party planning business are;

Creative Kids Party Planning Business Name ideas
  • Tom & Jerry® Kids Party Planning, Inc.
  • Aqua Man® Kids Party Planning, Inc.
  • La Pas® Kids Party Planning, LLC
  • Judith Jorge™ Kids Party Planning, LLC
  • Aunty Julie® Kids Party Planning, Inc.
  • Athens Greene® Kids Party Planning, Inc.
  • Clem Monroe® Kids Party Planning, Inc.
  • Esther Manson® Kids Party Planning, Inc.
  • Beth Anchor™ Kids Party Planning, Inc.
  • Josh Kedron™ Kids Party Planning, LLC
  • Kate Hamilton® Kids Party Planning, Inc.
  • Raph Smith© Kids Party Planning, LLC
  • Lilian Bach® Kids Party Planning, Inc.
  • Mack Laurel® Kids Party Planning, Inc.
  • Osborne River® Kids Party Planning, Inc.
  • Eden Blaise® Kids Party Planning, LLC
  • Hannah Mackson™ Kids Party Planning, Inc.
  • Glitters Events® Kids Party Planning, Inc.
  • Ruth McQueen® Kids Party Planning, LLC
  • John Graham® Kids Party Planning, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Kids Party Planning Business?

The best type of business structure for a kids’ party planning business depends on several factors, including the size of the business, the number of owners, and the level of personal liability exposure the owners are willing to accept.

However, we usually recommend a limited liability company (LLC) for kids’ party planning business. An LLC is a popular choice for startup businesses because it offers personal liability protection for the owners while allowing them to be taxed as a pass-through entity.

This means that the profits and losses of the business are passed through to the owners’ tax returns, avoiding double taxation.

Ultimately, the best business structure for a kids’ party planning business will depend on factors such as the ownership structure, the business’s goals and objectives, and the type of services and activities offered.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Kids’ Party Planning Business?
  • Business License
  • Event Planning License
  • Food Handler’s Permit
  • Catering License
  • Sales Tax Permit
  • Zoning Permit
  • Entertainment Permit
  • Health Permit
  • Special Event Permit
  • Home Occupation Permit
d. What Type of Certification is Needed to Open a Kids’ Party Planning Business?
  • Certified Meeting Professional (CMP)
  • Certified Special Events Professional (CSEP)
  • Certified Professional in Catering and Events (CPCE)
  • CPR Certification
  • First Aid Certification.
e. What Documents are Needed to Open a Kids Party Planning Business?
  • Business Plan
  • Business License
  • Employer Identification Number (EIN)
  • Lease or Property Agreement
  • Insurance Policies
  • Food Handler’s Permit
  • Sales Tax Permit
  • Event Permits
  • Zoning Permits
  • Health Permits
  • Vendor Contracts
  • Client Contracts
  • Bank Account Documents
  • Marketing Materials
  • Business Registration Documents.
f. Do You Need a Trademark, Copyright, or Patent?

A kids’ party planning business may need a trademark and/or copyright, but typically not a patent. The business may want to trademark its name or logo to prevent others from using the same or similar names or logos.

A kids party planning business may want to copyright original materials such as training manuals, brochures, newsletters, or other written or artistic works it creates, to prevent others from using or reproducing them without permission.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Kids Party Planning Business?

When it comes to starting a kids party planning business, the startup costs vary, and it could range from as low as $25,000 to over $100,000.

b. Costs Involved in Starting a Kids Party Planning Business
  • Business License Fees: $50 – $500
  • Insurance: $500 – $2,000 annually
  • Event Planning Software: $100 – $500
  • Marketing and Advertising: $200 – $1,000
  • Website Development: $500 – $3,000
  • Venue Rental: $1,000 – $5,000 per event
  • Decor and Supplies: $500 – $2,500
  • Staff or Contractors: $1,000 – $5,000 monthly
  • Transportation Costs: $200 – $1,000
  • Office or Storage Space: $500 – $2,000 monthly
  • Legal and Accounting Fees: $300 – $1,500
  • Permits and Licenses: $100 – $1,000
  • Miscellaneous: $2,000
c. Factors That Determine the Cost of Opening a Kids Party Planning Business
  • Location: Costs vary based on geographical area and local market conditions.
  • Size and Type of Venue: Rental fees for event spaces or office locations impact overall costs.
  • Scope of Services: Offering a range of services, such as catering or entertainment, increases expenses.
  • Decor and Supplies: The quality and quantity of decorations and party supplies affect costs.
  • Staffing: Expenses for hiring full-time staff, contractors, or event planners can be significant.
  • Marketing and Advertising: The budget for promotional activities and materials can influence startup costs.
  • Legal and Licensing Requirements: Fees for permits, licenses, and insurance vary by location and business type.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Building a facility for a kids’ party planning business is not always necessary; many businesses operate from rented office spaces or homes. However, if you choose to build, costs can vary widely based on size and location.

Please note that constructing a small facility may cost between $100,000 and $500,000, while larger or more specialized spaces can exceed this range. Consider alternative options like leasing or partnering with existing venues to manage costs effectively.

e. Ongoing Expenses of a Kids Party Planning Business
  • Rent or Mortgage
  • Utilities
  • Insurance Premiums
  • Salaries and Wages
  • Supplies and Inventory
  • Marketing and Advertising
  • Event Planning Software
  • Maintenance and Repairs
  • Transportation and Fuel
  • Professional Fees
  • Client Contracts and Legal Fees
  • Miscellaneous Expenses.
f. Average Salary of your Staff
  • Event Planner – $52,000 per year
  • Catering Coordinator – $50,000 per year
  • Entertainment Specialist – $48,000 per year
  • Marketing Manager – $48,000 per year
  • Decorator – $46,000 per year
  • Administrative Assistant – $42,000 per year
  • Logistics Coordinator- $45,000 per year.
g. How Do You Get Funding to Start a Kids Party Planning Business
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

Ruth McQueen® Kids Party Planning, LLC, based in Orlando, Florida, is a premier event planning company specializing in creating unforgettable children’s parties.

Leveraging Orlando’s vibrant market, we offer tailored services including themed decorations, engaging entertainment, and exceptional catering to ensure every celebration is unique and memorable.

The company will operate from a strategically located office in Orlando, allowing us to serve a broad client base across the region.

With a dedicated team of event planners, decorators, and support staff, we are well-equipped to handle everything from intimate gatherings to large-scale celebrations.

By combining our expertise with exceptional customer service, Ruth McQueen® Kids Party Planning, LLC aims to become the leading choice for families seeking memorable and expertly executed children’s parties in Central Florida.

b. Services and Programs
  • Themed Party Decorations
  • Entertainment and Activities
  • Catering and Refreshments
  • Customized Party Favors
  • Venue Selection and Setup
  • Event Coordination and Management
  • Photo and Video Services.
c. Mission Statement

At Ruth McQueen® Kids Party Planning, LLC, our mission is to transform every child’s celebration into a magical and memorable experience.

We are dedicated to delivering exceptional service, creative solutions, and personalized attention to detail, ensuring that each event is unique and perfectly tailored to our clients’ needs.

Vision Statement:

Our vision is to become the leading provider of innovative and enchanting kids’ party planning services in Central Florida. We strive to set the standard for excellence in event planning, fostering joyful memories, and creating extraordinary experiences for families through our passion, creativity, and commitment to excellence.

d. Goals and Objectives

At Ruth McQueen® Kids Party Planning, LLC, our goals are to deliver exceptional, personalized party planning services and to become the top choice for kids’ celebrations in Central Florida.

Our objectives include consistently exceeding client expectations through innovative and creative event solutions, expanding our service offerings to meet diverse client needs, and building strong relationships with local vendors and partners.

e. Organizational Structure
  • Event Planner
  • Decorator
  • Catering Coordinator
  • Entertainment Specialist
  • Marketing Manager
  • Administrative Assistant
  • Logistics Coordinator.

Marketing Plan

a. SWOT Analysis
Strength:
  • Specialized Expertise: Experienced team in kids’ party planning with a focus on creative and customized solutions.
  • Personalized Service: Ability to tailor events to clients’ specific needs and preferences, enhancing customer satisfaction.
  • Strong Market Presence: Located in Orlando, a region with high demand for kids’ parties and events.
  • Comprehensive Service Offerings: Themed decorations, entertainment, catering, and event coordination, providing a one-stop solution.
  • Established Vendor Relationships: Access to a network of reliable vendors and suppliers for decorations, catering, and entertainment.
Weakness:
  • High Dependency on Local Market: Business growth is limited to the Orlando area, potentially restricting market expansion.
  • Seasonal Demand Fluctuations: Party planning may experience peaks and troughs depending on the season, affecting revenue consistency.
  • Resource Constraints: Limited initial resources for large-scale or high-budget events could impact service capabilities.
  • Brand Recognition: As a new business, establishing strong brand recognition and trust may take time.
Opportunities:
  • Growing Market Demand: Increasing demand for personalized and themed children’s parties provides growth potential.
  • Expansion Possibilities: Opportunities to expand services to neighboring cities or offer new event types, such as corporate family events.
  • Partnerships and Collaborations: Potential to collaborate with local businesses, schools, and community organizations to increase visibility and client base.
  • Technological Advancements: Utilizing digital marketing, social media, and event management software to enhance outreach and operational efficiency.
Threat:
  • Competitive Market: The presence of established competitors and new entrants could impact market share and pricing strategies.
  • Economic Downturns: Economic fluctuations may affect clients’ budgets for discretionary spending on events.
  • Regulatory Changes: Potential changes in local regulations or zoning laws could impact operations or increase compliance costs.
  • Seasonal Weather Conditions: Adverse weather conditions could disrupt outdoor events and affect scheduling and logistics.
b. How Do Kids Party Planning Businesses Make Money?

Kids party planning businesses generate revenue through a variety of streams, including service fees for event planning and coordination, charges for themed decorations and party supplies, and fees for entertainment and catering.

They often offer packages that combine these elements, allowing for customized pricing based on client needs. Additional income can come from add-on services like photo booths or party favors.

By providing comprehensive solutions and premium options, these businesses can maximize profitability while meeting diverse client demands.

c. Payment Options
  • Credit or Debit Card
  • Cash
  • Electronic Payment Systems such as PayPal or Venmo
  • Checks
  • Bank Transfers.
d. Sales & Advertising Strategies
  • Social Media Marketing: Use platforms like Instagram and Facebook to showcase event highlights, client testimonials, and themed party ideas.
  • Local Partnerships: Collaborate with schools, daycare centers, and local businesses to offer exclusive discounts and cross-promotional opportunities.
  • Referral Programs: Implement a referral program where existing clients receive discounts or rewards for referring new customers.
  • Event Showcases: Host open house events or participate in local fairs to display your services and attract potential clients.
  • Search Engine Optimization (SEO): Optimize your website for relevant keywords to improve visibility in local search results and attract organic traffic.
  • Paid Advertising: Invest in targeted online ads, such as Google Ads or social media ads, to reach your ideal audience.
  • Email Marketing: Build an email list and send regular newsletters with party planning tips, special offers, and updates to keep potential and existing clients engaged.

Financial Projection

a. How Much Should You Charge for Your Service?

Kids party planning businesses charge a range of fees depending on the services provided. Here is a general breakdown:

  • Event Planning Fee: $500 – $3,000, depending on the complexity and size of the event.
  • Themed Decorations: $200 – $1,500, depending on the theme and level of customization.
  • Entertainment (e.g., clowns, magicians): $150 – $1,000 per entertainer, depending on duration and type of performance.
  • Catering: $10 – $50 per child, depending on the menu and catering options.
  • Venue Rental: $500 – $5,000 per event, depending on location and size.
  • Party Favors: $5 – $20 per child, depending on the type and quality of favors.
  • Photo and Video Services: $200 – $1,000, depending on the duration and level of coverage.
  • Additional Services (e.g., balloons, face painting): $100 – $500 per service, depending on the scope and duration.

Please note that the prices can vary based on location, service level, and specific client requirements.

b. How Much Profit Do Kids Party Planning Business Owners Make a Year?

Kids party planning business owners typically earn between $30,000 and $100,000 annually, depending on their business size, location, and client base.

Smaller operations may earn closer to the lower end, while larger or more established businesses with multiple events and high-value contracts can exceed the higher end of this range. Profitability is influenced by factors such as overhead costs, pricing strategies, and the number of events managed annually.

c. What Factors Determine the Amount of Profit to Be Made?
  • Pricing Strategy: The fees charged for services, including event planning, decorations, and entertainment, directly impact profitability.
  • Number of Events: The volume of events booked annually affects overall revenue and profit margins.
  • Operational Costs: Expenses such as rent, utilities, staff salaries, and supplies influence net profit.
  • Client Acquisition and Retention: Effective marketing and strong client relationships can lead to repeat business and referrals, boosting profit.
  • Service Quality and Efficiency: High-quality services and efficient operations can reduce costs and increase client satisfaction, leading to higher profitability.
d. What is the Profit Margin of a Kids Party Planning Service?

On average, the profit margin for kids party planning business ranges from 10% to 30%, depending on the location, and service offerings.

e. What is the Sales Forecast?

Below is the sales forecast for a kids’ party planning business. It is based on the location of the business and other factors as it relates to such startups in the United States.

  • First Fiscal Year (FY1): $300,000
  • Second Fiscal Year (FY2): $400,000
  • Third Fiscal Year (FY3): $580,000
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Kids Party Planning Business?
  • Proximity to Target Market: Choose a location close to residential areas with a high population of families with young children.
  • Accessibility: Ensure the location is easily accessible with ample parking and convenient transportation options for clients and staff.
  • Space Requirements: Select a location with adequate space for office operations, storage of party supplies, and potentially hosting smaller events if needed.
  • Visibility and Foot Traffic: Opt for a location with good visibility and foot traffic to increase brand awareness and attract walk-in clients.
  • Zoning and Regulations: Verify that the location complies with local zoning laws and regulations for operating a party planning business.
b. What State and City is Best to Open a Kids Party Planning Business?
  • Orlando, Florida
  • Los Angeles, California
  • New York City, New York
  • Dallas, Texas
  • Atlanta, Georgia
  • Chicago, Illinois
  • Houston, Texas
  • Miami, Florida
  • San Diego, California
  • Seattle, Washington.
c. What Equipment is Needed to Operate a Kids Party Planning Business?
  • Event Planning Software: For managing schedules, client information, and event details.
  • Decorations and Supplies: Themed decor, balloons, tablecloths, and centerpieces.
  • Audio-Visual Equipment: Speakers, microphones, and projectors for entertainment and presentations.
  • Catering Equipment: Serving trays, chafing dishes, and utensils if offering food services.
  • Transport Vehicles: For moving supplies and equipment to event locations.
  • Office Supplies: Computers, printers, phones, and stationery for administrative tasks.
  • Inventory Storage: Shelving or storage units for organizing and storing party supplies.
  • Photography and Video Equipment: Cameras and accessories for capturing event moments.
  • Cleaning Supplies: For maintaining cleanliness before, during, and after events.
  1. Hire Employees

If you are looking to start a kids’ party planning business, you should make plans to hire employees, as this type of business requires a team to operate efficiently.

Employees can specialize in areas such as decorations, client communication, or logistics, ensuring that each aspect of the event is handled professionally.

Apart from that, having a team allows for better scalability, enabling you to handle more events simultaneously and provide high-quality, personalized service to clients. A well-rounded team enhances operational efficiency and contributes to business growth.

  1. Launch the Business Proper

Organizing an opening party for your new kids’ party planning business is a strategic way to introduce your services to the community and build awareness.

To ensure a successful launch, invite potential clients, such as local families. Include key stakeholders such as local business owners, community leaders, and partners who can support and promote your business.

Additionally, you may also want to consider inviting media representatives to generate publicity and create a buzz around your opening.

Offer a variety of interactive activities, themed displays, and samples of your services to make the event memorable and highlight your expertise.

This approach not only creates excitement but also builds trust and credibility within the community, setting a strong foundation for your business.

a. What Makes a Kids Party Planning Business Successful?
  • Creative and Unique Themes: Offering innovative and engaging party themes that stand out from the competition.
  • Exceptional Customer Service: Providing personalized attention and responsive communication to meet client needs and exceed expectations.
  • High-Quality Vendors and Supplies: Partnering with reliable suppliers and using top-notch materials to ensure a professional and impressive event.
  • Effective Marketing Strategies: Utilizing targeted marketing and social media to reach potential clients and build brand awareness.
  • Strong Local Connections: Building relationships with local businesses, schools, and community organizations for referrals and partnerships.
  • Attention to Detail: Ensuring every aspect of the party, from decorations to entertainment, is meticulously planned and executed.
  • Flexibility and Adaptability: Being able to adjust to clients’ changing needs and unexpected challenges during events.
b. What Happens During a Typical Day at a Kids Party Planning Business?

A typical day at a kid’s party planning business involves various activities centered around organizing and executing events. The day begins with reviewing client schedules, coordinating with vendors, and finalizing event details.

Team members prepare decorations, arrange catering, and set up entertainment based on the specific party theme. Throughout the day, staff handle client inquiries, manage logistics, and ensure all elements are in place.

During events, the team oversees setup, monitors activities, and addresses any issues that arise to ensure a smooth experience. Post-event tasks include clean-up, evaluating the event’s success, and following up with clients for feedback.

c. What Skills and Experience Do You Need to Build a Kids Party Planning Business?
  • Event Planning Expertise: Experience in organizing and coordinating events.
  • Creativity: Ability to design and implement unique and engaging party themes.
  • Project Management: Skills to manage multiple tasks, timelines, and budgets effectively.
  • Customer Service: Strong interpersonal skills to interact with clients and address their needs.
  • Negotiation Skills: Ability to negotiate with vendors and secure favorable terms.
  • Marketing Knowledge: Understanding of promotional strategies and brand building.
  • Financial Management: Competence in budgeting, pricing, and financial planning.
  • Attention to Detail: Precision in executing event elements and ensuring high-quality results.
  • Problem-Solving Skills: Capability to handle unexpected challenges and find solutions quickly.
  • Team Leadership: Experience in managing and motivating a team to achieve business goals.