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Mubin Tisekar

Mubin Tisekar, young Entrepreneur and founder of The Entertainment Factory: Crafting more than just events, An engineer by qualification and a pilot by passion.

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Challenges Event Management Startups Face While Setting Up Business in the Indian Economy and How to Implement the Gap

Event management industry is a very capital oriented industry. Each event in the Indian market probably costs no less that Rs. 4-5 lakhs and this is just the tip of the ice-berg. The key is to optimize your cash flow effectively.

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The Indian event industry is racing ahead at a growth of 16% CAGR, overtaking Media & Entertainment Industry at 11-13% CAGR, states an E&Y report. Though the industry is experiencing a phenomenal growth, it is not easy for the startup ventures to make their mark in this dynamic industry. However, at the onset of Indian being the youngest and fastest growing economy, these challenges can be catered to with the help of few tweaks in the administrative approach and of course, the norm of extreme hard work as well as long hours.

Focusing only on the Metros

The Indian population goes far beyond the urban and tier 1 cities. While most event management companies tend to cater to the audience here, they often negate the opportunity tier-2 and tier-3 have to offer. The audience today is aware and ready to experiment with new ideas and genre. Shunning this is sidelining the growth factor and diversity that companies can experience by merely opening up their vision. There are some companies that have tapped into this growing companies and the rest can follow suit by trying the understand the geographical location, analyzing the audience and mixing & matching their ideas to form the perfect concoction.

Lack of a Financial Backing

Event management industry is a very capital oriented industry. Each event in the Indian market probably costs no less that Rs. 4-5 lakhs and this is just the tip of the ice-berg. The key is to optimize your cash flow effectively. For instance, instead of a big budgeted marketing campaigns, you can resort to social media and focus on organic growth. This will not only save money but also intrigue your audience and lure them to your event. You can also approach the funding avenue to raise your bar of financial backing but it depends upon the uniqueness that the organization will have to offer.

Short Lead Times

As the demand grows, it becomes increasingly difficult to cater to the fast paced growth and supply to the ever expanding need to do something different. Short lead times have always been a part of the industry, but this can be taken care of by systematic planning. By planning ahead, and securing the collaterals within ample time, you can counter the adverse impacts of short leads timeline and manage to ensure an optimized and conducive result.

Securing Sponsorship

It is a task to convince people to invest their money in your events. While sponsoring the event, the sponsors will only look for the ROI and if they fail to spot one, your event might be passed over for the sponsorship. It is very important to have a creative as well as realistic way of approaching sponsors. It always helps to provide a clear format of your event and how their sponsorship will help them achieve a greater audience engagement. Implore them to think about this by culminating your pitch into a positive number play and paint a profit picture for them.

Ensuring Legalities

This goes without saying. Establishing a full-fledged organization requires legal backing and you can do this by registering your business and obtain the right licenses and permissions before plunging into event organization. Moreover, it is always a good idea to obtain necessary permissions from the authorities in area of focus to avoid any last minute conflict and disappointments.

Audience Engagement

In a people-oriented industry, it is important to understand the geography and the target audience. Not every member has an affinity to the same thing and this diversification, if unattended to, can lead to a major failure. Moreover, the customer base is constantly evolving which requires the event management to stay ahead of the curve and understand the growing demands. Therefore, in order to stay afloat, companies need to embrace the facets of diversification and evolution.

Lack of Time Management

By scheduling your time as per the event, you can save yourself from the last minute hassle and end moment complications that are never good news. In order to have a more effective time management in practice, adhere to the following tips:

Scheduling by the Minute: This might sound tedious but having a minute-by-minute plan can help you pay attention to detail and plug in the minute loopholes that can later cause an avalanche of issues. As per the Forbes, most successful people in the world look at their day as not 24 hours but 1440 minutes.

Have a Buffer Time: You cannot predict the future, but you can be ready. Allot yourself some buffer time which will help you tie loose ends in case of unexpected events.

Say No: You can’t do everything, and it is okay to accept that. Say no when you have a full calendar and unable to slide in yet another task to you bursting schedule. This will help you stay focused on your work without feeling the need to rush through it.

Not Taking a Step by Step Approach

Although it is very tempting to dive straight in the industry with high end collaterals for the event or organize numerous events at one go, it is not advisable to those who are just starting out. By not taking a systematic approach to event management, companies can end up exhausting their workforce as well as the financial repository. Start small, and as you go further, you can expand your reach.

Lack of an Effective Crisis Management

Crisis management is to event management what a black box to an airplane. With a proper crisis management plan in place, you can reinforce your event and also provide

a backup in case things go wrong. Strategic planning is the key to an effective crisis management and can help companies resort to the emergency plan in case the current idea undergoes some serious dereliction.

Patience

As Rome was not built overnight, establishing an event management business is not a simple feat either. It requires patience, planning and a step-by-step methodology to ensure a positive growth and sustenance in this dynamic industry.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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event management startups business indian economy

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