It’s a good idea to review and plan your budgets for upcoming events at the beginning of the new year. Many clients are unsure of where to start when creating an event budget. The result can be affected by even the smallest mistake in budget planning.
What is a budget for an event?
A budget for an event is a summary of estimated costs. The budget includes charges such as the venue, goods, advertising, and supplier costs. Budgets should also include the number of hours that were spent planning. The event budget is usually the amount that will be allocated to a project. It is important to spend enough time on the creation of an event budget in order to ensure that it contains all elements required for success. The event budget is usually created at the same time that the objectives of the event are. These objectives will determine what areas are needed to achieve a return on investment. It is a good idea to compare the actuals with the budget after an event. In your debrief, you should make note of any significant differences.
The Key Elements of an Event Budget
1. Travel and Accommodation
Travel and accommodation expenses are associated with events such as roadshows, incentive trips, and multi-day conferences. These costs include flights, hire cars/Uber/Taxi, accommodation, tips, etc.
2. Venue Hire
Venue Hire can be a major expense in your budget. It includes many different elements. This includes room hire, security, AV supervision, and front-of-house staff. Some venues quote each cost separately. Some platforms combine them into a single package, such as the Conference Day Package. Always read the entire quote, as some venues include extras (such as security) in the fine print. These costs are often not added to the price of the event until the final bill.
3. Audio Visual
Audio Visual can also be an expensive item. Audio-visual costs can quickly rise depending on your needs. You need to budget accurately for audio-optical costs. Some venues include only a small amount in their CDP, while others require you to hire all the AV. Some platforms will allow you to use your AV equipment and operators. Others may require you to hire their preferred suppliers. For an accurate quote, you will need to know how the event is going to be run. Plan and add a little bit extra to cover any unexpected elements that may arise on the day.
4. Food and beverage (including Per Diems)
Food may be included as part of your CDP or quoted separately. You need to prepare some information before you can create a budget. To determine the cost, you need to know how many people will attend and what meals they’ll be eating. Some clients choose to rent the venue for a single event, as it may only last a few short hours. Some clients decide to have their delegates buy their lunch at nearby restaurants. When calculating the budget for food, it is important to consider:
*Event Timings. If you decide to let your delegates leave the event and buy their food, make sure that your break times allow this. You may want to consider providing a “working” lunch for your delegates if it’s only a brief break. You will then lose them, and they may be late for the meeting.
*Food habits. It is important to communicate with caterers the specific dietary needs of your group. Some may charge extra for certain nutritional requirements. You should also know if your group is a heavy drinker. You may want to budget for a drink package instead of consuming it.
Launching a new beverage or food item? Discuss this with the venue in advance. You may need their permission to serve this item. You may not require as much catering if you are serving a specific item.
Per Diems. Make sure you include all per-diems you will need to pay for your staff who are traveling to the event.
5. Costs of labor (including staff in-house)
Many people overlook or under-budget this part of the budget. Every hour your staff spends planning or attending events is time they don’t get to spend on their normal job. It is important to account for these hours and the costs associated with them. Include these costs to ensure that your ROI is accurate. Include any staff who will be attending the event, as well as the planning hours.
6. Logistics (including council approvals, special permissions, etc.)
The logistics of an event can be a very broad category. This can include special approvals and licenses. Licenses and permissions are needed for many reasons, including:
*Public Spaces. You may need the approval of your local council if you want to use a space that is public for an event.
You will need a permit if you plan to use fireworks or effects at your event. NSW permit.
*Food Licenses. You will need a food license from the caterer you choose to ensure that they are properly trained.
Check for Working with Children. It is important to check that all staff and suppliers are working with children and check if there will be children at the event. Working with Children Check for NSW is available at WWCC NSW.
*Insurances. Certain events may require insurance. Include any insurance for event cancellation or public liability costs.
7. Registration costs
Registration is an important part of every event. You may incur costs depending on the way you register attendees. A registration system for events may be needed to handle more complicated registrations. Some suppliers charge per ticket, while others require an annual subscription.
You may want to consider an event registration software such as Floktu Eventbrite or Humanitix if your registration process is simple. The systems charge a fee per ticket for the use of their software. You will need to add the time you spent on RSVP coordination if you choose not to use a system. This can be a very time-consuming task.
The actual setup of the registration on the day is another element that affects registration costs. It is important to plan out how you want this to go. Are attendees going to receive lanyards or name badges? Will they get swag bags or lanyards and name badges? Include printing costs in this step. If you decide to print badges on-site, this is included. Include the time spent on registering attendees.
8. Transport Costs
Transport costs can vary depending on how your event is laid out. You may need to pay for taxis or Uber or hire cars in order to transport the speakers and staff attending your event. You may need to hire coaches and hire cars if your event has multiple locations or delegates’ hotels are not within walking distance of the event venue. You can determine what transport you need by walking through the event mentally. Where are they going? How do they get there? You may need to arrange for several speaker transfers if your hotel is not within walking distance of the venue. Speakers will prefer to spend the day in their hotel room preparing for the event rather than at the venue.
9. Marketing and PR
How will you promote the event? Even if you have the most well-planned event, if nobody knows about it, then it is a failure. There are many ways to promote events. Consider which communication methods your target audience is likely to use. This section includes costs such as advertising, PR stunts, and the style of invitation you use. The list is endless.
10. Any giveaways/gifts
You can include the cost of swag bags for attendees, gifts from speakers, or prizes awarded during competitions. All of these costs need to be incorporated into your event budget. Some promotional items have a lengthy lead time. You may have to add additional freight costs if your event is short-term. Include freight costs in this section. The items will have to be delivered to the event, and how will the leftovers, if any, be transported to the office? Include the time spent on packing swag. Allow extra time because it will usually take longer than expected.
11. Charges for Event Management agencies
It is best to hire an event agency for more complicated events or in situations where your staff does not have event training. They are experts in this field and will complete most tasks in less time than someone else. It is important to keep this in mind. While your staff’s hourly rate might be lower than what the agency charges, it is important to consider the time required to complete tasks. Include any accrued leave for the employee. Some agencies charge a flat fee. Some agencies charge a flat rate fee. When planning your budget, you should talk to your event company about this.
12. Photographer and Video Supplier Charges
Suppliers are another important aspect of any event. Often, these items are not included in the initial budget for your event. When planning your event budget, it is important to involve suppliers in the budget. Suppliers include printing, temporary staff, generator hire, fencing, and videographers.
13. Contingency Amount
Even with the best-planned event budget, unexpected expenses will occur. It is, therefore, important to budget for contingencies. The amount of contingency required will depend on the overall event. You can check the budget as you get closer to the event to determine if contingency is needed. You can leave the money as an extra saving if it’s not required. You can also decide to spend the money on something that will enhance the event.
The conclusion of the article is:
As you can see, there are many elements to consider when creating an event budget. To avoid exceeding your budget, you need to make sure that all aspects of the event have been properly planned. Regularly updating the budget with current figures is important. You can then see how much money you still have to spend on each segment and if you’re on track. You can then see if there are any areas where you need to increase (or decrease) your budget in future events. This will identify areas that were not considered. This helps determine the ROI of an event.
Contact us if you find the above work too difficult or are unsure how to set up an event budget. Our pricing and plans are flexible. You can choose to have us handle just a section of your event or the entire event.