During the event planning process, budgeting comes pretty early on – we’re talking about immediately after the goals and purpose of holding the event. Whether you will be paying for the event, or you are needing to present a realistic budget to your client, it is important to establish how much this is going to cost as well as how much revenue will be made. If these things are not established early on, it’s possible that you could end up spending far more than you had anticipated, and this could potentially lead to making a loss on the event.
How To Draw Up A Budget For An Event
Step 1: Determine Your Fixed & Variable Costs
There are certain costs that should remain fixed such as your venue and entertainment. There will be costs that are variable and will probably fluctuate depending on how many adjustments are made during the planning, such as catering and bar costs. In our experience, the largest portion of your budget will be spent on food, beverages and the venue, whether you are doing a corporate, private or wedding.
When creating an event budget, it is a good idea to keep a small portion of the allocated budget for those things that can pop up during the planning process. As an example, if you are planning a corporate event your client may at the last minute decide that they want a really WOW photo backdrop or “Instagrammable moment” that wasn’t initially included in the décor budget. This can then come out of your reserved budget.
Step 2: Review Your Capital
To begin, decide how much you have in the bank to pull the event off successfully. This is your starting point as you don’t want to put on an event that is going financially cripple you!
Step 3: Establish Your Profit Goal
Next, you need to look at how much you can make from the event itself and then find a profit you are comfortable with. It is not a bad idea to get costs from various suppliers to compare, as well as have a look at previous event budgets to come up with a realistic number to work with.
Final Remarks
Your event budget is something that must be looked at constantly throughout the planning process; putting on an event comes with many moving parts and it’s essential to keep an eye on cash flow and make sure you know where your money is going right up until invoicing post-event.
Good luck with your budgeting!
If you’re feeling overwhelmed by the idea of organising an event, remember that Urbantonic is here to assist you. We provide a variety of event planning services to make your life easier. Our skilled team can assist you with various aspects, such as finding a venue and arranging entertainment, guaranteeing a flawless event. Get in touch with us today to discover how we can help you plan a remarkable and successful event.