Before you can begin to look at the complex numbers that go into creating your event budget, it is crucial to identify what type of event you want to throw. Each type of event requires a different strategy and approach to be successful. The main types of events include:
Corporate Events: Thrown for business reasons such as client appreciation or employee morale. This popular and widely used event usually involves team-building activities and awards presentations. The purpose of this type of event is not only entertainment but also education and motivation to further business goals.
Networking Events: Thrown so people present could meet each other and discuss what they do within their businesses/organisations/industries. For example, an organisation throwing a networking event would be inviting potential donors or future volunteers to meet and discuss what they do.
Social Events: These events are thrown to bring people together for fun and entertainment, such as birthdays, weddings, anniversaries, etc. Often, social events require fundraisers to cover their costs since ticket sales usually don’t produce enough income.
Identify how much money you’re going to spend on your event and if it’s worth it or not. Do some research on similar events happening at the same time and place as yours so that you will know whether or not it can be successful. If your event is very successful, maybe you can gather any additional funding to have more money for this specific event.
Estimate Your Costs
Now that you’ve identified what type of event you’re planning on holding, it’s time to estimate how much your event will cost. You’ll need to make sure all the totals added together are less than or equal to the amount of money you want to spend on this specific event. A good way not to overpay for your event is to hire professionals who know what to do. Consider an event management platform while organising your event.
Venue/Location Rentals: The venue is where your guests will spend most of their time during your event, so it should be worth visiting and pleasing. If possible, try hosting your event outside in an outdoor park.
This type of scenery has a natural beauty which can give people great Instagram photos/videos, but it also allows them to get some fresh air and move around a little bit. If you’re hosting your event indoors, try finding a creative venue that will make people enjoy both the decoration and activities inside.
Consider whether or not you want your guests to sit or stand during the event. Will they need tables and chairs? Or will they be able to walk freely from activity to activity?
Excitement: You’ll need to develop an “exciting” idea for this part. Whether face painting, live music, food trucks, or photo booths, you should try organising at least one thing that will excite people about coming/ paying cover charges.
Your excitement factor can also cover entertainment costs, such as having a live DJ/band to add to the ambiance and excite your guests.
Having well-known, popular performers can attract more people to your event. Make sure that you’re not spending all of your money just bringing someone in when they won’t be bringing many bodies with them.
Food Cost: This is usually one of the most critical factors in making sure you have a successful event: FOOD! People would rather spend their time and money eating good food than listening to speakers talk about sponsorship opportunities or company policies.
It would be best if you found ways for people’s mouths to water at the idea of attending your event. This should be your priority, whether through providing an experience like how food trucks provide customers with a “foodie” experience or simply providing free food to entice them.
Sponsorship Opportunity: Sponsorships are great because it has the potential of not only attracting funders but also gaining new customers. However, finding these sponsors can be very difficult and time-consuming, so you’ll need to find ways for companies to benefit from sponsoring your event.
Think about ways that could attract these companies, such as creating opportunities for their businesses (i.e., giving companies booths at the venue to sell/promote themselves to clients) or having people create artwork promoting their business/brand.
Create/Plan Out Event Activities: Depending on the type of event you’re planning on hosting, you may have to figure out what activities your guests will be doing. Do they need chairs? Are there any additional materials you’ll need to rent for this activity?
Marketing/Advertising Your Event: It’s important not to underestimate the power of word of mouth. You should promote your event on different social media platforms such as Instagram, Facebook, Twitter, etc., to get the word out.
There are also other ways for creating buzz about your event, such as handing out flyers at popular spots around town or having a promotion code that gives discounts if people share your event with their friends.
Rent Other Items Needed: Depending on what type of event you’re planning, there may be other additional costs that you’ll have to account for. You can look into renting out equipment such as speakers/microphones, chairs, tables, etc.
Having a good video camera and editing software is also an option if hosting an event where videos are needed.
Finalise Your Budget
Now that we’ve estimated our costs let’s develop an event budget to plan our finances accordingly. Here is a simple process for creating your first event budget:
- First, list all the things that need to be purchased or rented and their prices. Note that you don’t have to include things like your personal labour because it’s not an actual expense. The expenses of other people working for you are considered “costs.”
- Second, list all the money you will receive from sponsors or donors. While we’re at it, let’s create our marketing plan and identify potential sponsors who might be interested in supporting us!
- Third, estimate how many people will be attending and factor in food or drinks costs if necessary. This is a crucial step because it will directly affect how your event strategy will turn out. For example, if you think that you’ll have a lot of people coming to the party and they would buy food or drinks, you might want to consider having catering provided. This way, you’ll be able to save on those costs! But usually, I wouldn’t recommend doing this because your business can earn from those sales, so it’s just better to sell them yourself.
- Finally, at the end of this whole process – when all expenses are considered – you should have a clear picture of whether or not your event can be successful! If the answer is YES, congratulations! You’re ready for plan execution! If the answer is NO, go back to the previous steps and adjust your budget.
Post-Event Settling and Evaluation
After the event, keep track of all expenses related to it so that the next time you plan a similar event, you will know exactly what costs can be cut down or developed into something more useful. Remember that setting goals for future events are also important!
Setting goals allows us to achieve our goals quickly, which is satisfying afterward. Additionally, when we set goals for ourselves, we are less likely to make poor decisions at the moment because we know exactly what we want in advance!
Now that we’ve finished writing this guide, it’s time to conclude what was previously said. The most important thing about creating an event budget is knowing everything – the prices, the location, the people involved, motives, etc. As long as you deal with all of these responsibly, your event should be a success!