Preparing the Events Budget 

The budget preparation is an essential part of event management. This is where a projection/forecast of income and expenditure are listed for the event based upon plans made and information gathered. As an event planner is of great importance to make these projections with great accuracy whether or not the event will result in a profit, loss or break even. When planning an event, it is practically useless to set a date, make bookings or make any other plans if it has not been determined if the host has the financial resource to do so. Therefore a budget must be made in the early stage of planning.

Ensuring Financial Control of an Event

Once a budget has been developed, the event planner has an idea of what constraints are needed over the event finances. Therefore the budget enables the planner to make decisions about the venue and other expenditures. Many organisations while planning events without a budget or professional help has landed themselves into difficulties; sometimes even becoming bankrupt. The budgeting process enables the planner to tally how much revenue is needed is needed to plan the event in accordance with the planned level of expenditure.

Continuous Adjustments to the Budget   

The development of the event budget is one of the earliest task undertaken by the host and the events planner however throughout the entire planning process, it is expected to have adjustments to figures. These adjustments maybe additional expenditure or removed expenditure. This is a normal process as it is impossible to have exact figures as some exact costings are not from the start. Hence the reason budgets are altered, adjustments are made as better information comes on hand.

Events Budgeting Rules

Though a budget takes time to develop, there are some rules that should always be followed.

Budget to Avoid Making a loss

If an event looks like it is not to promising, as if there is going to be a lost, change plans so at least there can be a break even. This is once it is not too late so plans can be changed.

Be Realistic About Income  

Being overly optimistic does no good. Be realistic about sponsorships and how many persons are going to attend the event. Over optimism often times causes financial loss as a result of staging the event.

Have a Backup Plan

Many times while planning an event or even on the day of, things go wrong. Having a contingency plan helps individuals be prepared for the what if scenarios.

Question: Do you think it is necessary to have a back up plan when planning an event?

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