Event Planning: Budgeting and Money Management

For organizing any event, specific requirements cost money. And for most events, earning revenue from the event is one of the objectives. Thus, for every event, there is a need for a budget. It is one essential early step in organizing an event.

A budget is telling your money where to go instead of wondering where it went.

DAVE RAMSEY

The first step towards creating an event budget is by preparing a cost sheet. The cost sheet consists of every item required before, during, and after the event. It helps later in avoiding unwanted surprises.

Beware of little expenses. A small leak will sink a great ship.

BENJAMIN FRANKLIN

Significant expenses are the ones that cost you more than a pre-decided amount. You can anticipate the considerable costs from the following categories:

• Venue
• Food and drinks
• Entertainment
• Decor
• Staff
• Marketing
• Technical equipment

For the significant expenses, it is advisable to get at least three quotes from different vendors or sources. Also, it is vital to get the quotes in a written format rather than on their word. These written quotes can come in handy for the future if you want to delegate the work, or if there is any difference of opinions. The multiple quotes would let you know about the market price and about the difference in the offerings. And it always helps to have a choice.

Wealth is not about having a lot of money, it’s about having a lot of options.

CHRIS ROCK

While making the cost sheet, you must add the taxes and the additional costs like transportation and setup costs to each item. It would save you from making assumptions and miscalculating the price you pay.

It is imperative to update the cost sheet whenever there is new information in the picture. Keep it up to date, so that it keeps converging to the reality.

Always review the bills. Make sure it is accurate and that there are no surprises. Match the figures with the quotes you had, and look if there are any extra costs added.

Schedule the payments according to the flow of money that you’re expecting. If there is a requirement of an advance payment, make sure that you’re completely ready for the event with the plan and the budget. Also, schedule the payments after a day or two of you receiving the money.

It is always better to consider extra for contingencies, which is applicable for money and time here. For the money, make sure you have 10% more than your fairest estimates. For the time, always have 20% more time than you need.

One thing that makes it possible to be an optimist is if you have a contingency plan for when all hell breaks loose.

RANDY PAUSCH