Preparing an event budget isn’t easy, You have to cover every detail and ensuring everything is adequately budgeted for. From bargaining with vendors to get the best services at the lowest possible cost, to the scramble to make savings or minimize contingency spending. Budgeting for an event is tough but, necessary for you to even have an event at all.
Getting your budget right means the difference between a stress-free event and one marred by last minute plans and inadequacies.
Set realistic budget
Do not set an event budget that’s too low and talk yourself into believing that you would get the best bargain on items in the budget, especially, if you are an event planner, you can’t go back to your clients to ask for more money because you could not do an accurate costing of some items on the budget. Also, if you present an event budget that’s too high, you would definitely seem like like you want to rip your clients of and you may end up loosing your integrity. Do not draw up a budget too high or too low, let your contingency budget handle the unexpected expenditure.
Identify all areas of expenditure
Identify all areas of planning and the actual event that will require money and create an estimated cost for them. get organised and calculate as accurate a projected expense as possible. Even smaller elements like pens, paper, transportation, communication, cleaning, etc all add up in the end and need to be accounted for to avoid any shortfalls. Also, it’s always better to have an excess budget.
Do not forget contingency budget
No matter how hard and how accurately you plan your event budget, somethings will happen to incur additional costs that you didn’t originally plan for. From broken equipment, to extra transportation, etc. Add 10 to 15% of the budget for contingency funding and add it up to make your total budget.
Avoid spur of the moment purchases
When you’re caught up in the excitement of finally making all of the purchases for your event, it can be easier than you think to see something that you ‘just have to have.
Extra decorations, bits of stationary and even food are all additional elements that can stack up and leave your budget looking a little scarier by the end of it.
Checkout the Venue
Every event planner knows that conducting a venue inspection is the best way to find out whether a particular venue is all it claims to be. When you taking time to inspect the venue before the event, you will be able to create a mental image of how the event in the venue would be like. You can easily visualize sitting arrangements, stage settings, what decoration would work best for the venue, etc.
This can also help you notice other issues with the venue that could give problems on the the of event. For example, a hole in the roof, bad restroom maintenance, etc. Also, for events venue that are ‘hot cakes’
Record all expenses
Keeping a close eye on every expense, no matter how big or small it may seem throughout the whole lead up to your event ensures that you’re constantly in the loop.Becoming immediately aware of any drastic changes to your budget and nipping any unexpected costs in the bud as soon as they occur should be one of your budget planning priorities.
Monitor those in charge of spending
You’d be surprised where your money could go if you don’t keep an eye on who’s spending it, so best practice is to set targets for when each payment should be made, always request receipts and invoices and check whether the correct amount has been paid out on its designated date. And make sure you receive a regular progress report on expenditures.
Budgeting correctly doesn’t just help you prepare for the worst case scenario; the savings you make along the way can . their part in covering any unpredictable costs that could occur during your event. After all, you never know