Advancing Marketing

Event Planning And Budgeting

When it comes to organising an event, setting a suitable budget is of the utmost importance.It will help you to visualise where your costs are likely to lie, how much money you will need to earn back in order to break even and more importantly - how much profit you intend to make.

It is often the case that a smaller event event planning company who organises their own events will never know exactly how muc profit they are likely to make.This can be due to factors such as insurance, office costs, fuel and tax being overlooked so it can often be difficult to include such costs into the budget.We all know that time equals money and it is for this reason that time is the most important factor.  Event management companies will always take into account the amount of time that it will take to organise an event as well as the financial costs that will be incurred in order to decide whether the event is viable or not.  For example, if you calculate that your time is worth £500 per day and that the event will take four days to organise then you will have to make over £2000 to be worthwhile.  This is what is referred to as an ‘opportunity cost‘ and is the amount that the activity has cost your business when you could have been doing something else.

Setting a suitable budget can be a difficult task but there are many ways you can do this.In some cases an event manager may decide to look at the cost of the event they are thinking of putting on and then decide the ticket price so that it will be in line with the amount of money required to break even.If this is how you are going to plan your ticket price then it is best that you leave this job until the end when you have a complete list of your outgoing costs.