Budgeting of any event can be difficult, particularly if the manager his are not accustomed to organizing a company conference or marketing seminar.
But for any event to be successful, it is important to understand how to budget effectively.
The event manager can prepare a workable budget for their corporate event, and to ensure that their financial investment does no go unrewarded. It includes:
The first step in preparing a budget for any event is to identify basic expenditures.
While this way seems roughly obvious, without a definite outline of expenditures it is all too easy to run over budget at the last minute.
If the event manager is planning a business event, whether its a conference, seminar, or trade show, the basic expenditures should include the following:
- Cost of the hired venue.
- Cost of speakers or paid guests.
- Printing costs for leaflets, hard copy presentations, etc.
- Cost of rental equipment, including projectors, sound systems, staging, and internet access.
- Cost of decorations and furnishing.
- Cost of marketing and promotion.
- Cost of catering including wet bar and service staff.
There are basic expenditures that impact the budget for all corporate events. With this information at hand, it will be easier to estimate your total costs and plan your budget accordingly.
Return on Investment
After tallying the basic expenditures, the manager will have a rough idea of the operating budget.
The next step is to decide what to achieve from the event, and how it can be measured.
If the event is meant to train or educate the staff on new products or procedures, the return on investment will be more difficult to gauge as the end result of the event will probably not be immediately financially quantifiable.
If however, the manager charging an entry fee for the event, he should weigh the local expenditures against the set price for admission.
While deciding on a ticket price he should remember that should he operating expenses, are to be covered admission price should maximize attendance.
Too high a ticket price may result in fewer attendees, and that can mean a significant loss on his investment.
Money-Saving Tips for Event Budget
While conducting an event, event managers should save money as far as possible.
The following tips can be used when planning corporate events, to keep costs under control.
1. Avoid Impulse Purchases
This applies to any corporate event.
It is all too easy to get caught up in the planning stages and to decide if it requires extra decorations, food items to really make the event a success.
2. Cut Your Catering Cost
On average, most people planning an event order more food than they need.
It is natural to want to ensure that there is plenty to go around, but this often leads to waste.
So the event manager must set a preliminary catering budget.
This will save money on the catering bill and will lead to less wastage.
3. Monitor All of Your Expenses
When planning any event, there may be many different people in charge of various aspects of the proceedings.
That means that there will be many different people in charge of various payouts.
The manager must keep a close eye on all of the expenditures, and monitor staff to ensure that they are not going over budget in any given area.
Planning an event is complicated, but before the manager can get to grips with the actual content of the seminar or conference he must have a working budget.
These few tips will help in setting a workable budget for the next event that will allow realizing the return on investment that is derived.