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Decide What Kind Of Entertainment You Are Looking For
Entertainment has to match the tone and mood of the event you are planning for. If you want something airy and light, a simple playlist on a computer might suffice. If you're looking for formal than you might want to hire a full band. If you're just looking to have a raucus party, perhaps a DJ is in order. Knowing what type of event you are looking to hold will help narrow down what entertainment would fit in that event.
Figure Out Your Budget
Entertainment is also highly dependent on the budget. While entertainment is available for practically any price range, you more than often get what you pay for. Be sure to have an idea of what you can spend and be realistic with what you hope to get for that budget.
Understand All The Details
The initial price you are given for might just be for an appearance. There can be a lot of hidden fee's related to set-up, extra time, etc that are hidden in and can be a surprise when you get the final bill. Be sure to completely understand what is included with the initial price given to you and what you may need to pay extra for.
Talk To Your Guests
If you are at a loss to decide what form of entertainment would be best, maybe you can ask the other attendee's? Let them know the options and have a vote or get some ideas from them. This will both have them feel more vested and involved in the event as well as potentially save yourself from making a mistake.