This is the Transcript of the #WeddingMarket #Chat on September 26th, 2012.

Essential Tools For WedBiz With Michelle Loretta of Sage Wedding Pros.
The answers were made on Twitter so responses will appear different.

This Transcript was sponsored by Wedding Marketing Online ( @WeddingIndustry ) at http://www.weddingmarketingonline.com

Join Our Wedding Market Chats For Wedding Professionals Every Wednesday at 10:00PST, 1:00EST, and 6:00GMT (UK time) with the #WeddingMarket Hashmark On Twitter. Learn something new to help your business grow every week. The chats are hosted by Wedding Market editor Julie Albaugh (@juliealbaugh).

Q1: How did you become involved with the Wedding Industry?

A: I launched *mmm… paper* in 2004 after working in finance & fashion. I started Sage Wedding Pros as a wedbiz blog in 2009.

Q2: What should be the first steps taken in starting a wedding biz?

A: 1) Decide: what you want to be known for. 2) Decide: Vision & Mission & Core Values. 3) Then build branding identity.

Q3: What can a business do to make creating a business plan easier?
A: Commit to working on it little by little. Set aside time each week to work on it. (Or an hour each morning. Having a buddy is helpful too! That’s how @kellysimants met. We’d meet to write our individual biz plans & drink coffee.

Q4: How do you determine how many weddings you need to be profitable?

A: Decide: 1) avg price for 1 wedding & avg costs of sales for 1 wedding 2) expenses for yr 3) earnings (profit) GOAL for yr. Then, use this formula: # weddings = (Profit Goal + Expenses) divided by (Average Price – Average Cost). ha! that formula may be insane for some of you! #ALGEBRA 🙂 We have a download here: http://sageweddingpros.com/downloads/

Q5: How do you set short or long term goals?

A: Pick 3 “top of mind” goals. I break it up into steps and estimate completion. “Pick 4” is a great goal journal book.

Q6: How do you define your target market or niche?

A: Who is your IDEAL client? Who do you want to work with? What are you good at doing? What do you want to be known for? Measuring Advertising ROI: $ earned / $ spent = ROI (here’s a post to help: http://tinyurl.com/cseb8ee

Q7: How do you create a sales or expense plan?

A: Sales plans and expense plans are goals using numbers & dollars. Make assumptions and estimates. TRACK RESULTS. Sales Plan – Decide what you want to earn and figure out #weddings as goal. How will you promote your biz? Expense Plan – If you have history, look at it to guide spending & budget. If not, create a list of startup expenses.

Follow Up Question: How is it different from a biz plan?

A: Sales forecast and expense budget are part of the business plan (in mktg/finance).

Q8: How do you make your business grow?

A: True biz growth can only be achieved if your biz is “scaleable”. More sales doesn’t always = more profit. To figure out if your biz model is scaleable, ask: Do more sales, more staff, more expense, etc. lead to more profit$?

Q9: How do you hire & train new employees?

A: Look for qualities that match company vision. You can teach tasks. Can’t teach reliability, creativity, responsibility..

Q10: How do you understand when you’re financially successful?

A: In the wedbiz, that’s depends on the individual. Ask yourself: am I earning enough to satisfy the needs of my lifestyle?

Q11: What are some of tips for networking with other wedding pros?

A: Use networking events as a launchpad for deeper networking. 1-to-1s (coffee dates) are most IMPORTANT.

Q12: What types of downloads do you offer on your site?

A: We have downloads for business planning, marketing, finances, operations, etc: http://www.sageweddingpros.com/downloads/

Q13: What would like everyone to take away from this #WeddingMarket #Chat ?

A: Rome wasn’t built in a day. Best way to eat an elephant is 1 bite at a time. Little by little… you build your business.

#WeddingMarket Question: How frequently do you suggest being in touch with prospectives?

Answer: once or twice / week

#WeddingMarket Question: How long were you in business before you created your business plan?

Answer: I created my first business plan when I started. But, it didn’t really make sense until year 2! It made more sense.

#WeddingMarket Question: Does a service business *need* to have a business plan?

Answer: A biz plan is going to help all parts fit: marketing ops finances. A business plan is required if you want a bank to finance your new business. Also reality check! But – even if you aren’t financing – a business plan is important for your development. A business plan is goal-setting with marketing, ops, and finances in mind. How much can you spend on your marketing? What growth do you expect? Will you need help with your accounting High Point? What can you do to make your finances stretch further? That’s all it is. I really encourage wedding pros to make their biz plan user-friendly for them to use. (doesn’t have to be “businessy”. Yes – biz plan is for YOU (unless you are sharing with financiers) – goal setting & tracking.

#WeddingMarket Question: How often should one update their original business plan?

Answer: Updating biz plan… review EVERY month; update once or twice / year – you may not rewrite all, but update.

#WeddingMarket Question: So many planners are doing their own mktg. How do you feel about that?

Answer: I *DO* recommend hiring a designer. Let’s not DIY our sites (unless you know how).

#WeddingMarket Question: As the wedding market changes and grows how do you change your strategy without changing your brand?

Answer: Branding identity in wedbiz is too transient IMO. Better to create something that lasts, has recognition. You can always get “facelift” on brand identity. But major changes cause lack of consistency, recognition, trust.

#WeddingMarket Question: When is the right time to think about adding staff to wed biz?

Answer: ONLY hire first employee… after you’ve paid yourself! MUST have steady cash flow.

In wedbiz, I recommend a 5 hour assistant before FT employee.

#WeddingMarket Question: How do you feel about interns?

Answer: I like interns! But you have to do it legally! Read this: http://tinyurl.com/8cpcylm (post on interns from last week)

#WeddingMarket Question: Do you suggest taking loans out to finance business or is there a suggested way to build as you go?

Answer: As a general rule in wed biz, I think loans are a BAD idea. Depends on your specific biz services/product. 3 ways to finance business – in order of preference: 1) natural growth (profits) 2) investment 3) loans

#WeddingMarket Question: What are the best ways to promote your business?

Answer: Networking gives you lots of bang for your buck! But, diversity is important. Try/do all: networking, advertising, social media, editorial.

#WeddingMarket Question: Can you give a few pearls of wisdom on Marketing? Where when and how to spend your company dollars?

Answer: Identify ideal client | where do their eyeballs go? who do they talk to? Go there! (and by “go there” I mean… promote/network/advertise/etc. there)

#WeddingMarket Question: How do you establish partnerships with others in the industry?

Answer: Start with the 1-to-1… see if you like each other. Strategic partnerships are like dating… it takes time to fall in love and truly partner.