Event budget planning / Event Management

1. EVENT BUDGET PLANNING
A presentation
By
SUSITRA ANANDAN
Tourism Management
ANNA UNIVERSITY

3. Basic event budgeting rules
Although the budget takes time to develop, there are some basic rules that
should be followed from the outset:
• Budget to avoid making a loss
If an event looks likely to make a loss, it calls into question whether the event
should go ahead according to the existing plan. If it is not to late, plans should
be changed so that the event will at least break-even.
• Be realistic about event incomes
Far too often, event plans are far too optimistic about the amount of
sponsorship to ge gained, or the number of people who will attend as
spectators or participants. Over optimistic predictions are often a cause for
financial loss as a result of staging an event.
• Have a contingency plan
In thinking through what could possibly go wrong with an event, it is a good
idea to determine what must be done if something does go wrong. For
example, what happens if the sponsorship pull out, or there is very bad
weather

5. Item
• This is for each individual item in your event budget. When listing items in
your event budget be as specific as possible. Break down every single item
you will be paying for. Don’t lump items together. For example, grouping
alcohol and food together might seem to make sense but may cause some
problems. It could cause issues if you need to make changes or cut out a line
item down the road in planning. Say you wanted to add an extra $100 to the
food and alcohol line item. Which would that money go towards? The key is
to be as detailed as possible when creating your event budget and keep each
item separate. The more detailed the better.
Description
• Descriptions are absolutely necessary for your event budget! Add a detailed
description to the item you’ll need for your event. This is an important
column to include in the case where your budget needs to be approved by
someone in your organization who may not know what each line item is. If
that person isn’t directly involved in planning they won’t know how essential
or non-essential the item is to making your event happen. By adding a
description you can provide clarity on why it is needed and what is a must-
have.

6. • Amount Needed
Quantities play a big role in budgeting. Increasing quantities can quickly drain your
budget. On the other hand, eliminating unnecessary quantities of something can
rapidly replenish your budget. Tracking what you think you’ll need before the
event as well as noting the actual quantities you used will help you mold what
your future event budgets look like.
• Estimated Cost
While costs are going to vary, simply knowing a ballpark figure can help you
understand what kind of budget you need for your event. In the next step, we’ll
tackle how to get the estimated cost as close to the actual cost as possible to make
for an accurate budget.
• Actual Cost
Just like the name suggests, this column is where you’ll track the actual cost of the
item. This step is crucial for future budgeting sessions to understand how costs are
increasing (or decreasing). It will a serve as a reference when planning the event
for years to come.

9. 6 Tips to Get Your Event Budget Planning
Right
• Start the budgeting process early
• Update your event budget regularly
• Get multiple quotes from vendors
• Plan for the unexpected
• Find additional sources of income
• Become a spreadsheet ninja

10. • Do not procrastinate creating your budget.
It may seem like a daunting task, but it is a vital first step in your event planning journey. If
you aren’t sure when this should happen check out our event timeline guide.
• Define the focus of your event.
Do you want people leaving remembering the electric ambiance, or do you want them
leaving remembering the delicious food? What is your goal? Why are you having the event?
Allocate your funds according to your priorities.
• The more details you add, the more accurate your budget will be.
Ignoring one small item can be the difference between being under or over budget.
• Keep in mind that sometimes the cost of one element is dependent on the cost of
another.
For example, your AV costs could change depending on the venue you choose. This is
especially true if your venue requires union staffing.
• Explore all your venue options.
Some newer venues are transforming into one-stop event shops that help eliminate the back
and forth in sourcing multiple event vendors. These newer venues could potentially save you
a significant amount of money in the long run! Not to mention time. Just be sure this one size
fits all approach fits your vision for your event.
• Don’t underprice an item to make your budget look pretty.
Underpricing something may look good on paper (or screen), but it will ultimately lead to
losing money when the event comes to life.

11. • Use your rainy day fund for emergencies only.
It might be tempting to use your safety net to add some extravagance to your menu or to add
some extra decor. However, dipping into your backup funds for frivolities may leave you in a
scramble if a real catastrophe strikes.
Do your research. If you put in the time when researching venues, catering companies, and AV
companies, you could end up saving a lot of money. It may be tedious, but you find the best deals
when you compare all your options.
• Make sure everyone is on the same page.
After you create your budget, make sure you share it will everyone involved in the event. You may
know how much you want to spend, but the rest of your team might have a different idea. You
need the entire team on the same page.
• Don’t be afraid to spend.
You don’t always have to go with the cheapest option if you have the money for it. Yes, you may
be rewarded for showing your boss a receipt that is incredibly under budget, but the quality of an
item is important too! Adding a little extra money here and there can be the difference between a
mediocre event and an incredible experience. Invest in vendors you know will help elevate your
event.
Spending money can be a stressful part of event planning. No one enjoys seeing their hard-earned
money flying out of the bank account! However, this stress can be alleviated with the creation of a
simple budget spreadsheet and doing your homework. Sitting down and plugging numbers not
only allows you to visually see where your money is going and coming from, but it also forces you
to think about the focus of your event. It will help you prioritize while planning. Does more money
need to be put towards AV? Is there enough money to cater a nice meal?

12. THANKYOU
https://www.linkedin.com/in/susitra-anandan-323a21123