You started your wedding planning business to plan fabulous weddings but that’s not the only thing you do when you have a business. You also need to market and sell your services and manage your business finances. Many times wedding planners aren’t prepared to handle the financial side of their business and run into trouble.
Here are 3 money management mistakes many new wedding planners make and what you need to do instead:
Mistake #1 – They don’t know how to invoice their brides
The contract you have your bride sign (yes, you need to have a contract) should spell out when she owes you a payment and how much it is. However, your bride may not remember the terms of her contract so don’t be afraid to present her, or the person paying for the wedding, with invoices.
Be aware that not everyone pays on time and you might need to remind them when payments are overdue.
Mistake #2 – They don’t plan for slow periods in their business
You may get wedding planning opportunities all year but there still may be times when your business is slower than you would like it to be. Be prepared by stashing some money aside for these slower times so you can still pay your bills.
You might also want to investigate the possibility of getting a line of credit for your business, just don’t use it unless you need it.
Mistake #3 – They don’t protect their personal assets
In order to protect your home, savings and other things you own, chose the right ownership structure, sole proprietor, partnership, Limited Liability Company or corporation, use a contract with your clients and purchase liability insurance. You want to be protected in case something unfortunate happens. An attorney can help you with these aspects of your business.
Be smart, learn to manage the financial side of your wedding planning business as well as you manage weddings and you’ll have a successful, thriving business for many years to come.
And if you want more help to become a top wedding planner, sign in to get my ezine “Wedding Planner Tips.”