BUDGET: EVENT PLANNING, EVALUATION OF THE EVENT EXPENDITURES

BUDGET: EVENT PLANNING, EVALUATION OF THE EVENT EXPENDITURES

BUDGET FOR EVENTS:

AN IMPORTANT item that event planners should not forget is the budget. A budget is not only a spreadsheet but a document that is generated as final product of the planning process. A complete budget should include including a detailed list of expected expenses, resources, and associated costs. Also, sources of income and the expected benefits should be detailed. In many cases, the organizers will be forced to work with a fixed budget. On the other hand, it is possible that the event is expected to reach break-even or throw a benefit through registration fees, ticket sales, booth rental, sponsorship, grants, marketing, product sales, etc.  

Speaking of expenses, people often forget about insurances. Although premiums are getting higher, you should consider all potential risks before determining what coverage your event will require in order to protect against civil liability.

It is highly recommendable to shape a budget planning committee headed by a coordinator.

Since it is the "owner" who normally covers the costs, it is advisable to make him to participate in budget planning throughout the process. This approach has the added advantage of keeping the coordinator and the planning committee always aware of all decisions.   The coordinator should have the sole responsibility of the budget and authorizing payments from preliminary planning to the closing of accounts.

Accountability should be clearly on the coordinator, to guarantee expenditures control.  Generally, the coordinator or the person responsible for planning the budget must set aside 20% for contingencies.

An important trend that is here to stay, and that is intrinsic to budget planning, is measuring the return on investment (ROI). Currently, it often requires the organizers, whether external or internal, to justify the budget of the event until the last dollar. Good budget planning should be based on measurable and quantifiable goals, increased sales, increased brand awareness, lead generation, etc. Modern event planning has budgeting and Return of the Investment (ROI) as key elements in events managerial decisions.