Event Planning: How to Organize a Community Festival or Fair

Photo: 2012 Annual African Festival of the Arts, Chicago, Illinois

Outdoors festivals give local vendors a unique business opportunity to showcase and sell goods. Create a successful one with proper business planning tools.

tarting a new festival or fair begins with simple business planning. A business plan is a road map of all of the tasks and activities, procurement services and financial and human capital needs for the business venture. Through proper business planning you can identify the target market and secure the right mix of vendors - making the festival business a feasible and profitable community affair.

Conduct Market Research for the Event

“The ultimate goal of market research is 'know how',” writes S. Robert Tralins in his book Dynamic Selling (Prentice-Hall, 1961). “For those who are willing to sacrifice a few hours of their leisure for serious study the rewards are unlimited.”

Understanding the target market will help you determine the type of vendors to select for the festival or fair. Market research will include gathering information that will help you anticipate the different transactions, goods and services involved in organizing a festival. It will also help you to select the best date or dates for the event. Transferring this information over into a business plan assists in identifying all start-up costs – addressing both available and additional capital need.

"Very few products should be targeted at the total market,” states marketing experts Al Ries and Jack Trout in their book Bottom-Up Marketing (McGraw-Hill, 1989). “Most programs would benefit from the emotional opportunities created by a narrowing of the target audience. Again, it's the power of focus."

Finding Fair Vendors and Entertainment

Add Attractions. Simon Howden/FreeDigitalPhotos.net

Hand-crafted items and unique products fit best for special festival and fair events. Goods that can easily be obtained in local retail markets should be avoided. There is, however, no hard and fast rule. For instance, a vendor of commercial soft drinks will naturally be in demand at a street marketplace of walkers. On the other hand, a vendor that makes on-sight fresh fruit drink blends for festival attendees is an added treat.

Entertainment can include live musical performances selected from local talent, fairground amusement rides and performing artists such as face-painters, clowns and mimes. An event planner can be of great assistance in organizing both entertainment talent and product vendors.

The quickest way to find potential vendors is to attend other fairs in the area. Request business cards from those vendors whose works you believe best represent goods the target market would show interest. Another idea for finding fair vendors is to advertise in local media -- including print publications, television and radio.

Develop a sales letter directed to known vendor prospects. This letter should include dates, target market information, anticipated attendee numbers, entertainment and types of publicity and fair booth costs. Also mail this sales letter to local shop-keepers whose inventory represents a viable match to the target market tastes. Consider including a vendor application and self addressed stamped envelop to the organizer for return of completed applications and fee payments.

Secure Festival Event Grounds, Equipment and Supplies

The festival or fair can be held as an outdoor event at a park, along a beach-walk or along the streets of a popular commercial thoroughfare. Weather is always a big issue for the outdoors festival. The event can also be held indoors. Convention center halls, community centers and indoor malls are only a few of the options. Make a list of facility prospects in your area. Keep in mind transportation convenience for attendees in selecting the venue.

Festival equipment and supplies can include tables, pop-up tents, performance stages, lighting and electrical outlet wiring for vendors. Festival organizers may elect to supply some or all of these resources. Costs are generally factored into the vendor booth fees. Suppliers of tents and tables typically offer better rates for big orders - a savings that can be passed on to the vendor. Consider contracting with an event planner who can assist with securing b2b suppliers for festival equipment rentals.

Public Vending Licenses, Permits, Contracts, Security and Insurances

2012 African Festival of the Arts, Chicago, Illinois.

Obtain governmental licenses and/or permits required for festival and fair organizers in your jurisdiction. Contact the local government agency charged with regulating and issuing permits and licenses. A local attorney can be of great assistance to ensure business compliance with permit and licensing requirements. Legal counsel can also help to prepare a contract that fairly addresses the legal obligations and duties between the organizer and vendors.

Public crowd control and vendor security are important aspects of developing a community festival or fair. Security requirements will be dictated by the community where the event is held and the anticipated attendance numbers. Small town festival and fair events may only require contracting with one or two local off-duty security officers. Consult with a bonded security firm if the target market, facility capacity and consumer demand all have the potential to draw a large public crowd.

Promotions for Festival and Fair Events

The festival organizer is charged with delivering the audience. Publicity leading up to the event will be very important. Remember that the ability to organize vendors in the future will be impacted by an unprofitable event -- especially from a poorly marketed event. Pay to advertise on cable network television and radio stations. Display advertisements in local publications also help to get out the word.

Publicity firms can sometimes cost less and be more effective in the long run than individual advertising efforts. Consider hiring a local public relations firm to pitch festival story ideas to local media. Local stories can be developed both around the general event, as well as the individual entertainers and artisans showcased at the event. An effective PR firm will also ensure that the event is listed on all local media's calendar of events.

Also, look into securing a corporate sponsors. This is another important resource for festival and fair organizers. Big brand corporations in the local market often benefit from associating with positive community activities. For a cost a corporate sponsor's log can be included on all promotional material. This includes being prominently listed in printed festival booklets and fliers.

Make a listing of potential sponsors. Draft a sales letter to mail to each prospect. Follow this up with a friendly telephone call.

Organizing Fun and Profitable Community Events

A community festival or fair is an excellent opportunity to promote the works of local arts & crafts talent and to showcase the unique inventory of retail shop owners. It is also a great way to sample local fresh and cooked food items and to engage with local entertainment. Conduct market research and know your target market. Reach out to professionals like business lawyers, event planners and publicists to ensure the event is profitable to both the organizer and vendors. Proper business planning is key to successfully organizing this type of community event.

Book References:

• "The Business of Bliss: How to Profit From Doing What You Love," Janet Allon and Editors of Victoria Magazine (Hearst Book, 1999)
• "Budgeting for a Small Business: A Primer for Entrepreneurs," Terry Dickey (The Grisp Small Business & Entrepreneurship Series,1994)

About the author

Vanessa Cross is a freelance writer who writes about international trade, business law and small business development issues. Copyright 2013.