Event planning budgeting is the most crucial component of event planning. Remember to really think about all the components that are going into your event before settling on a specific event budget. Below are 5 tips to help event managers keep an eye on their expenditure and stay within their budget.
#1. Don’t ignore small expenses
Most times when a budget is being set, event managers tend to pay more attention to only the major expenses forgetting that the minor ones also count and can make a difference in your profit. Be sure to note all the expenses you make. Also once the list has been made, determine which items are the most important and which are not as important at all. Knowing this would make your decision a whole lot easier if you had to cut one area to stay on budget.
#2. Prepare your budget
Before you make your budget, take out time to find out the prices of items. Just sitting around making estimates based on past experiences can make things go wrong since prices fluctuate always. Doing a little research on prices will go a long way and you will have the ability of finding a comparable vendor that will make your wallet much happier.
#3. Unforeseen cost category
Once you start planning your event you will realize that there are some things that you didn’t add to your budget. Probably because you forgot or didn’t just see it coming. Creating an ‘unforeseen cost category’ means that some cash will be set aside for unexpected costs. By doing this, you can get everything you want done and still not go over budget.
#4. Plan early
It’s important to know that there is more to event planning than just calling and booking the vendor. You can never go wrong with planning early. Planning ahead will not only give you time to relieve the stress of making arrangements last minute, but will also save you a bundle on rush fees. Always remember to keep a schedule with constant updates that will inform your team of where you are in the preparation process and what still needs to be done. You will be required to approve everything, from the graphics to the decor, which will most likely require you to consult with your marketing and sales departments as well. If you are not comfortable with the decorations, for example, you will need to set aside enough time to make these corrections.
#5. Ask for discount.
This is one way you can make easy and quick savings. Request a discount if you pay in cash rather than credit card. When vendors accept credit cards, they have to pay a percentage to the credit card company. By using cash you are saving them money, so see if they can reciprocate.
It is crucial that the event manager learns to stay within their budget otherwise their profit margin will be affected. Remember that prices change always, so make your research and also plan early.
Thanks for reading this article, we hope it helped.