Creating a budget for an event isn’t easy. There are many obvious (and not so obvious) costs such as venue, caterer, event planner, and entertainment. Carefully planning your budget is an absolute must, no matter how big or small the event.
Budget planning can be divided into two areas: Planning and Savings.
PLANNING
- Identify all areas of expenditure. Examples include printing costs, audio-visual equipment, décor, promotional and marketing costs, printing, entertainment, catering, event insurance and permits.
- Set a realistic budget. After identifying all the areas of expenditure, you should have an estimated total budget. Make sure to include the time it will take you to organize and produce the event. If your event is a fundraiser, carefully consider the cost of entry and the various admission levels available to ensure maximum attendance and minimize losses. Tickets priced too high won’t sell.
- Set aside a contingency budget. No matter how hard you try, setting an accurate budget is impossible. There will always be unexpected and unforeseen costs. Play it safe. Set aside at least 10% of the total budget for contingency funding.
SAVINGS
- Purchase only the necessary items you need for the event. Avoid extra purchases such as extra food or decorations. If you’ve already set the menu and selected the décor, stick with it. Extras are not necessary.
- Search for alternatives such as an alternative venue and date. Some venues are more cost effective than others and could save you a lot of money. Explore your options and compare costs. Also, avoid booking an event during “high” season when costs are at their peak.
- As a general rule, always order 10% less food because you can bet that approximately 10% of your invited guests will be unable to attend. In addition, most caterers tend to be generous with their portions and always end up making more food than was ordered.
Budgeting correctly not only makes planning your event easier, it also prepares you for the worst case scenario. The savings you make along the way can help cover any unexpected costs that might arise.
Raquel Sananes Grad is the principal event planner at RSG Events, a leader in the event planning industry. As a Toronto party planner, corporate planner and wedding planner, Raquel has planned a variety of events for all occasions. Contact Raquel for a free, no obligation consultation. 416-398-0217 or raquel@rsgevents.ca
