The right event can do wonders for any business, association, or non-profit organization. It’s a great way to boost your brand image while also creating new opportunities for revenue growth and increased profitability.
However, executing an effective event is challenging since you must carefully orchestrate the planning process while simultaneously managing costs. If you don’t properly manage expenditures, it could put your entire event at risk.
Events are challenging enough to execute without worrying about expenses spiraling out of control. Many planners underestimate both the costs of implementing an event and how much they will spend on supporting it long after all the participants have left town.
So what should you be looking at when it comes time to a budget? How can you avoid overspending? What are some of the most common expenses you should pay attention to?
This article will answer all these questions and more. We’ll walk you through the entire budgeting process so that it’s easy for you to estimate the actual costs involved in holding your next event.
Where Do I Start?
You can’t get anywhere without a roadmap, which is why our first step is figuring out your destination; that is, what type of event do you plan to hold? Will it be a conference, exhibition, or seminar?
How many people will be attending if you’re hosting a dinner function, and where does the location fall on the spectrum between casual or upscale? It would help if you also considered the potential financial implications of your decisions.
For instance, you would not want to host a high-end dinner function that only 30 people could attend at a local hotel when you could choose to host it at a convention center and accommodate 200 attendees for the same budget.
Once you have worked out all the details related to your event type and guest count, it’s time to turn your attention towards costs. There are many components to a successful event, including site selection, date and time, food & beverage, decor & styling, entertainment, follow-up activities, and more.
In this guide, we will tackle this head-on so that you have everything you need to estimate the total cost of holding your next meeting or social gathering.
Types of Event Costs
Event marketing and planning is no easy task, which is why it’s essential to look at the various costs you will encounter when executing a function. The list below outlines all the major expense categories that will require your attention:
Venue & Site Selection Costs
These expenses include everything from rental or purchase of a site, tent, or room for your event to loss and damage waivers depending on where you choose to hold your function.
In addition, make sure to factor in travel and lodging for out-of-town guests and any fees to use equipment such as tables, chairs, or equipment rentals.
There may also be costs in securing technology like projectors and screens, and audiovisual equipment is commonly included within the rental fee for specific events such as conferences.
Another thing to think about is if your team is working in different parts of the country or the world, getting everyone in the same place for a conference may seem impossible with your budget. Think virtually! Many companies have chosen to go with a virtual ‘venue’ saving themselves money and enabling them to spend the extra on fun things to do with or for their team, from virtual escape rooms from companies like Escapely to giving more team swag and offering additional team-building activities.
Food & Beverage Costs
Event planners need to consider catering or on-site food service for all types of events. However, you’ll often find it most helpful to estimate these costs for conferences and seminars where guests tend to be engaged in breakout sessions during meal times.
Be sure to factor in not only your preferred menu items but also taxes, gratuities, and any other miscellaneous expenses that may arise due to last-minute changes.
If your event has separate bars set up throughout the venue, make sure you’re accounting for liquor, beer, wine, soda, and any non-alcoholic beverages. You should also include enough staffing levels depending on the duration and size of your event.
Event Production Costs
Event production expenses can quickly add up, depending on the type of function you’ve chosen to hold. In this article, we’ll be covering some of the more common expenses that arise when putting on a conference, seminar, or reception.
However, there are several other events where you will encounter unique production costs, such as live concerts, sporting events, and festivals.
Technology & Support Costs
Anytime you use technology at a meeting or social gathering, it’s essential to include those charges as part of the overall budget. This includes projectors for presentations and any laptop rentals needed to connect them to screens in each breakout session.
You should also factor in any internet access charges or software licenses needed to run your event, especially if you’re looking to provide access to documents or other digital assets.
Guest & Attendee Costs
It’s equally essential for you to factor in attendees’ costs, whether purchasing passes for an industry conference or providing meal vouchers at a charitable fundraising dinner. The more meals and snacks you include, the more expensive your overall food costs will be.
Similarly, if you plan on offering complimentary beverages throughout your function, this may quickly add up when taken into consideration with additional staffing needs.
Sponsorship & Marketing Costs
If one or more organizations are sponsoring your event, their support should factor into your budgeting process. You want to make sure that any agreed-upon fees are included as part of your overall budget.
In addition, keep in mind that you should be covering the cost of marketing your event either by hiring a PR firm or running ads to promote it through online and offline channels.
Other Costs
Finally, don’t forget to consider any other miscellaneous costs that may occur during the planning and implementation of your function. This could include everything from shipping and storage fees for transporting equipment before and after the event to postage for invitations and necessary licenses if alcohol is served at an off-site location.
How to Develop an Event Budget?
Now that we understand some of the major expense categories involved with event marketing and planning let’s look at how you can establish a thorough yet manageable budget.
When it comes to developing a budget that will help you stay within your set limits, there are several essential factors you’ll need to consider.
It’s always best to divide your event expenses between those with a high level of certainty and those where there is room for some flexibility. In the former category, you may want to include items such as technology and audiovisual equipment rental fees, catering menu options, guaranteed guest attendance numbers, and overall venue costs.
When it comes to production expenses such as live entertainment or unique decor items, you’ll have more wiggle room in cost estimation since these details aren’t always known until closer to the actual event date.
In any case, be sure that you’re providing detailed descriptions of each line item along with the related estimated costs. Doing so will help you avoid any confusion while assembling your final expense report.
Finally, it’s recommended that you maintain a list of all proposed expenses in an easy-to-read format such as a spreadsheet or automated table. This way, if needed, you can compare and contrast various choices based on their initial cost vs. projected end prices before actually making commitments.
Conclusion
There are many potential pitfalls associated with event planning. Therefore, it’s always best to be mindful of the overall budget at every phase of the process, including pre-planning, during implementation, and after completion when finalizing your expense totals.
By taking a more calculated approach to developing a budget, you’ll find it easier to work within your predetermined allotment while generating a more successful event.
