The ‘Big B’ aka the budget; the backbone and catalyst to any endeavor. Not always the most fun part of the job, but accurately projecting and forecasting your expenses and revenues can make or break any project. There will be many details and moving parts when executing a live event, so this key step will help you stay on track and give you the proper guidelines to move forward. The budget is by far one of the most important pieces of any event and is the glue that holds everything together. In order to successfully execute and complete your dream event, there must always be detailed projections to set the tone, and overall dictate the progression of the financial plan.
Research shows the key expenses associated with any event are as followed:*
Marketing and promotion: 43%
Speakers and talent: 32%
Printed materials: 29%
Venues: 18%
One thing to keep in mind when creating your budget is making sure each important component has realistic projections. For example, the marketing budget sets the tone for your food and beverage budget. If you do not allocate enough room for marketing then the attendance will reflect this and you could potentially be left with an event full of food and drinks but no one to enjoy them.
1. Define the focus of the event.
If you are having trouble figuring out where to start when creating your event budget, you will begin by first figuring out what the main focus and goals of the event are. If having a great venue with yummy food is more important than the guest speakers or entertainment, then the focus of the budget should reflect that.
Creating a list and ranking the importance of each item will help you put each aspect of the event into their correct place in the budget.
2. Check out the past
Usually, I would always say to not dwell on the past. In this case, unless the event is in its first year, there should be tons of great data to look at when it comes to making the budget. Check out the details of last year’s event, and identify what expenses went over your budget and where you had some wiggle room to make any necessary adjustments that could help improve your next event.
Also, take into account any past customer reviews. If people complained about not having enough food or drink options, maybe beef those up at the next one. Once all of the areas of your past budget have been reviewed and updated then the changes can be made and you can move on to the next steps.
3. Be specific
Careful not to group too many line items together when building a budget. For example, only combine your food and beverage costs if you are using a catering company. Create an overall budget for them and then break down the costs of each line item within that order and figure out how much will be allocated to each expense. If you do not have vendors or a catering company then each item in your budget should stand on its own and have specific breakdowns of the costs. If supplies are coming from different vendors, then they need to be on different lines of the budget.
Typically, budgets have a column for the projected costs and the actual costs. The more research done on the costs, the more similar these two columns will be. Comparing these will make your life so much easier when building out the rest of the details for the event
Food for thought
Here are some of the aspects of the budget that you might not think about when initially building one prior to your next event. A few ideas
1. The cost of the experience
Events aren’t just about showing up, being fed, hearing a speaker or performer, and then leaving. It is about the whole experience and the event planner needs to think about that. Here are the most common details to consider.
- Decor
- Signage
- Travel
- Activities
- Insurance
2. Staff
Look into whether the venue includes general staffing needs. The event planner might have to hire out additional staff for tasks like registration, A/V crew, brand ambassadors, and even cleaning crews. Norton National has fantastic event staff for all of your needs.
If hiring staff, also budget out not only their compensation, but also their travel expenses, meals, and any uniforms that they will be wearing. Or better yet, let Norton National take care of this. Then, your only line item is the “payable to” line item for Norton National.
Let us know how our team can make your dream work!! We can also arrange any equipment rental needs for your event.
3. Oh sh** fund
Even if every cent is counted out, there are always going to be last-minute changes or hail-mary moments that everyone should be prepared for. It is very important to squirrel away some money as an emergency fund.
Imagine if the top guest speaker or headliner cancels and the event planner has to find someone on the fly. That might be expensive! No one knows what will happen, so we recommend setting aside around 15% of the total budget just for those emergencies.
4. Swag
Sending attendees home with something is always a nice gesture. It doesn’t need to be a new flat screen or a puppy or anything, but no one should leave empty-handed. Clever swag that is cute and small but will help them remember their time at the event, like a sticker or an Uber/Lyft coupon to help them get home.
Consider getting a little something, something for speakers or talent. This should probably be a bit nicer, like merch from the event, or two tickets to attend next year. Anything that is to thank them for being a part of the event.
Detailed consideration goes into making an event budget. Everyone’s event budget will be different but once the priorities are in check, the event planner will be able to delegate money effectively!
Recent Comments