Creating an event budget is important to set long-term goals, save money and make dreams a reality. The earlier you can get this high-level plan together and communicate it to stakeholders, the better!
The next steps include building out your detailed list of line items, receiving quotes from vendors and recording and evaluating actual expenses vs. projected.
Determine Your Goals
It’s important to determine your goals before you begin budgeting. Whether you’re using an Excel sheet or some other event management tool, having clear goals will make it much easier to manage your event budget throughout the planning process. For example, if you’re hosting a sales meeting, you might want to increase the number of qualified leads generated at your next event or achieve a certain ROI. Whatever your goals, make sure they’re specific and measurable. When you need photo ops for your events, you can contact Special Events Photo Booths on Issuu.
If you work with a team, be sure to include them in the goal-setting process so everyone is on the same page. A miscommunication between two or more people can completely ruin your event budget, so it’s important to get everybody involved at the beginning.
Another way to set your goals is by looking at your overall company budget and determining how much you can afford to spend on the event. This is the best way to ensure your goals are in line with your available resources.
Once you have a clear idea of your goals and available resources, it’s time to start mapping out the individual items on your budget. Be sure to include all the expenses you expect, such as venue, food and beverage, and marketing costs. Also, don’t forget to account for any travel expenses (including airfare and hotel rooms), per diems, and other miscellaneous fees.
It’s a good idea to create a spreadsheet that shows the projected cost and actual cost of each item on your event budget. This will help you keep track of your spending and identify any areas where you can cut back. It’s also helpful to note any savings you made compared to your original budget, as this will show you the value you brought to the project.
Estimate Your Expenses
Once you’ve determined your goals and have a clear process for determining the values assigned to the necessary event aspects, it’s time to start piecing together your budget. For each item on your list, estimate the cost to be spent on it, and then look for ways to keep costs down. This is where the ‘must-haves’ and ‘nice-to-haves’ come into play, as you may be able to make cuts in some areas to accommodate other areas of the event.
When estimating your expenses, it’s important to be as detailed as possible. This will help you keep your budget on track and prevent overspending. If you’re unsure of what an item will cost, ask for quotes from multiple vendors to get the best price.
Remember to include a contingency for any items that are more expensive than expected. It’s not uncommon for these unexpected costs to arise, so having a buffer is always a good idea.
Once your list of estimated expenses is complete, compare it to your planned event revenue to see if you’re within budget. If not, it’s time to make some changes. If you have extra money in one area, consider spending it on a feature that will increase attendee engagement or brand awareness.
Whether you’re using software that automatically totals up your line items or simply going in with a spreadsheet, it’s important to record every expense as it comes in. This will not only allow you to stay on track with your budget but also provide insight into the event’s success. For example, if you had an unexpectedly high food cost or speaker fee, it will help you determine how to change these for future events.
Set a Budget
Once you’ve figured out what your event costs are going to be, set a budget. The best way to do this is to create a spreadsheet and add the estimated costs for each line item. This will give you an idea of what your total costs are, and it’s important to always keep this number in the front of your mind as you continue planning.
It’s also important to add in your expected income. This could include ticket sales, sponsorships, or any other ways that you think that you might be able to generate revenue for the event. This is the only way to make sure that you’re on track to break even, or better, come in with a profit.
When you have your projected line item costs and your final budget, you’re ready to start sourcing vendors and entering into contracts. Be sure to include any additional items in your budget, like speaker gifts, swag bags, and any competition prizes. These are items that people often forget to include in their budget, and they can end up adding up quickly.
Finally, don’t forget to add in any per diems for your staff that need to travel for the event. This includes any staff that may need to stay in hotels, as well as any staff that is assisting with the event and needs to be compensated for their time.
It’s important to remember that unexpected expenses are not uncommon, especially for larger events. It’s recommended that you leave a minimum of 10% of your budget as an emergency fund to cover any unavoidable expenses. This will give you peace of mind, and will allow you to make decisions throughout the planning process with confidence that you’ll be able to afford it.
Evaluate Your Expenses
When your event is over, it’s important to review all of your final costs and compare them to your estimated numbers. This step will help you identify areas for improvement and ensure you stay on track with future budgets.
Start by evaluating your high-level items, such as venue cost, catering, and any other essentials. Once you have a rough idea of these totals, you can begin calculating the costs of your specific line items. You may need to ask for quotes from vendors if you don’t have an idea of the going rate for certain items. This is an important step that will save you time and money in the long run by providing a more accurate estimate of your expenses.
Then, look at all of your potential revenue streams to see how much your event stands to bring in. This is the best way to see if your event will be profitable and ensure you don’t overspend. It’s important to be realistic when estimating your revenue because not every event will generate the same amount of income. However, if your projected revenue is significantly higher than your expected expenses, it may be worthwhile to consider increasing your budget accordingly.
On the other hand, if your actual expenses are lower than expected, it’s important to know why so you can learn from the experience and adjust your expectations for future events. This could be because you under-budgeted a particular line item or it might be that you were able to negotiate with vendors and get better rates on some items. Either way, it’s important to analyze the reasons why your expenses came in under budget so you can continue to improve and grow as an event professional.
Set a Goal
Once your high-level plan and budget are in place, it is time to begin mapping out the logistics of the event. This will also help you estimate your costs. For example, if you know that you need a venue, catering, and planning services you can start to build those into your cost estimations.
Once you have estimated your costs, it is important to add in a contingency fund. This allows you to have a set amount that can go toward any unexpected expenses that may arise. Depending on the size of your event, you may want to include up to 20% of your overall event budget in this category.
It is also important to keep in mind that even the best planned events can have unexpected expenses. As a result, it is essential to have a set budget for your event and to stay within that budget as much as possible.
The easiest way to do this is to make sure that your actual expenses are being tracked throughout the event process. Whether you are using an Excel sheet or a paid project and budget management tool, it is crucial to have real data that can be evaluated and compared to the original estimated budget.
When you are comparing actual to estimated expenses, you will quickly identify which areas of the event need more money and which ones can be cut. For instance, if you have overspent on marketing for the event, it is a good idea to reduce those ‘nice-to-haves’ and focus on getting more value out of your event attendees. Similarly, if the event has brought in more revenue than expected, then it is a great idea to increase your spending on other areas of the event.
