As the end of the year looms over us, there is much to celebrate.
From Halloween to Christmas and New Year’s Eve (and all the other fun stuff like weddings and launching new brands), our summers are packed with events and parties that must be planned and executed with the utmost precision.
Good weather means more incredible turn-outs, but have you ever asked yourself what it takes to run an event? Maybe you’ve asked yourself how big it should be, its purpose, the budget, and who you would want to attend.
Sitting down and seeing what the event finances are, makes it much easier to allocate a budget for different things your event needs, such as furniture, marketing, staff and a whole other bunch of expenses that come with running an event.
As a general rule of thumb, events should make a profit or break even.
However, it is not unheard of that some events can incur losses, so it is essential to be as realistic as possible in your planning. Don’t be over-enthusiastic with the numbers attending your event (We assume that half your guestlist won’t participate), as this can lead to problems. Always try to go with the lowest expected income and attendance for events.
There are many ways to budget, and finding the best option is essential.
The amount a company is willing to spend affects the venue, location, size, and more. It’s a matter of working backwards and determining what you need for the event and what things you’d like to have.
If you intend to run an event at a loss, you must explain and be prepared to be questioned about it.
If you notice your budget is off track, you’ll need to determine what caused the budget to go off track. Are you working on a deal with that person to decrease the price? Are there still dollars available? Can more sponsorship packages be sold?
Financing and budgeting events can be daunting, especially if you have never done so.
However, MCO Events has had its fair share of organising budgets and getting sponsorships locked in and ready to go, so get in touch with the team today and let’s have fun!
