Predicting the financial outcome of your event could be difficult to do even if you have a wealth of event management experience. Even though this is the case, there is no use setting a date, booking a venue and making any plans until there has been some attempt to determine whether the event is financially viable.
Putting together an event budget that can be utilised in realistically projecting the income and expenditure of the event is important. Far too often, event planners are too optimistic about the amount of sponsorship to be gained, or the number of people who will attend as spectators or participants. Over optimistic predictions are often the cause for financial losses.
For event planners it is absolutely essential to get the budget right in the initial planning phase as this could determine the financial outcome of the event. Here are the important ‘things to consider’ when planning the event budget:
- Check all venue-related costs: Make sure to factor in all projected rental fees for the event, space, AV equipment, housekeeping, baggage handling, and related expenses like event insurance, etc.
- Estimate catering costs: This includes all food and beverage charges, including service charges and any hidden taxes.
- Always have contingency funds: Depending on the size or complexity of an event, you may want to give yourself as much as up to 20% of the event budget here. Despite the best planning, charges are going to exceed projected plans with expenses that you might never have considered. Contingency funds will keep you from going over budget every time.
- Add decor expenses: Most events need to factor in expenses for decor, such as centrepieces, florals, tent rentals, etc.
- Always double-check any technical requirements: Always have a good Operations Manager on hand to cross check what you think you need and what you actually need, to pull off a successful event.