The starting point as a rule is the development of a budget. This is always the most challenging aspect of any event. What amount of money do you have to spend to get what you want?
As in anything one does, from buying a home to dining out, finances are the determining factor. This isn't a nebulous task. Shaping finances is based on accurate information. To acquire a pre-approved mortgage, all financial factors are taken into account, allowing the potential buyer to stay within their means.
It is the same with event budgets. How much do you have to spend? Whether it is corporate, for profit, charity or not for profit, every business will have an annual budget, long term budgets and strategic plans. Events are a part of the financial plan. The challenge is to use the money wisely, to allot the available resources to cover all areas.
A common mistake that an event committee can make - not knowing when to ask for help. The committee meets, talks about the event, discusses whether they can afford a planner or producer, then decide they can save money if they do some of the work themselves. Budget development is where experience and a consultation can save events the most money.
Why most events go over budget is the lack of knowledge in identifying all the items that need to be included. Labour is the most unidentified expense, often wrapped into staff costs. The other area that causes overruns on budgets - all the last minute items that pop up because no one knew they needed them. Added charges at venues because no one read the contract. What do you mean we have to pay for power?
Most event producers, especially successful ones, love to share, teach and train. Call them. Ask for help. They may even share an event budget from past events. I know I will. We will give you a template should you not know what you need to know, or even what questions to ask.
Determine what is the most important part of your event - is it the activity, the food, beverages, venue, marketing, media, memories? Allocate a percentage of the budget to each line item. Remember, when added up the percentages must not go over 100 percent.
First time events, charities and not for profits with no event experience - ask for help. This is where an event producer can really help. Most event producers may assist with this portion of the development process on an hourly rate. We used to offer this service for free, however, we found that our expertise was taken advantage of and have changed this service to a consulting fee. We charge $1000.00 for budget development. Should we be awarded the complete event contract we apply the consulting fee to the overall event management fee.
The one thing we ask – don’t call us and ask for a quote without giving us information to quote on. Don’t ask for a creative brief just to take it and do it yourself, or give to the just out of school or next door neighbour newly minted event planner. New Event Planners, please, do not send out a false Request for Proposal or Request for Quote, just to get an idea of what you should charge.
Call us, ask us, tell us the truth - we will help. Shared expertise is good for one and all.
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