CHAPTER 9BUDGETS

Financial management

1. Is the aim to make a profit?2. How much will the event cost?3. What are the revenue sources?4. How many tickets must be sold to break

even?5. What is the cash flow situation?6. What control systems are needs to avoid

fraud?7. How will legal taxation obligations be met?

Break-even point

SIZE OF EVENT (AUDIENCE)

fixed cost

Variable cost

PROFIT

BREAK-EVEN POINT

total cost

total revenue

RE

VE

NU

EC

AP

AC

ITY

INCOME STRATEGY

• entry tickets• rental for stalls, stands and exhibitors• merchandise sales (hats, CDs, etc.)• licensing• sale of programs• sale of food and beverage• sponsorship or grants• parking fees

Planning, budgeting and reporting process.

Event PlanningEvent Planning

BudgetBudget

Expenditure

$

Expenditure

$

Income

$

Income

$

Cash Flow Analysis

Cash Flow Analysis

Profit and Loss AccountProfit and Loss Account Balance SheetBalance Sheet

Event Evaluation Report

Event Evaluation Report

FIXED EXPENSES

Audio-visual equipment

Speakers

Insurance

Marketing and promotion

Meeting site/facility/venue

Personnel salaries

Entertainment

Transportation

Signs

VARIABLE EXPENSES

Accommodations

Additional site rental fees

Communications costs

Decorations

Food and beverage

Gifts

Invitations/registration forms/brochures

Labor charges

Lighting

Mailing

Marketing and promotion

Menus

Nametags/placards

Office supplies

Photography

Placards

Power charges

Promotional material

Rehearsal costs

Security

Shipping, handling, and drayage

Signs

Special effects

Staffing

Staging

Taxes

Transportation

Travel (to site inspection)

Wages for temporary staff

ADDITIONAL EXPENSES-OUTSIDE FACILITY

Alcohol sales/liquor permit

Catering

Cancellation fees

Glasses, dishes, silverware

Insurance-both you and contractors

Labor

Parking

Parking attendants

Permits

Power

Security

Signs

Staff-maintenance, electrician,

engineers, stagehands

Staging equipment

Tables and chairs

Tablecloths/skirting

Tents

Themes and decorations

Toilets

Traffic control

Waste/trash removal

ADDITIONAL EXPENSES-OUTSIDE FACILITY

A-V set up

Baggage handling

Cleaning

Computer

Copying

Early departure

Easel rental

Electricians, maintenance, engineers

Energy surcharge

Extension cord

Fax sending and receiving

Gratuity

Hanging banners and signs

Health club

Hotel shuttle

Internal access

Meeting room setup

Meeting room key

Mini-bar usage

Minimum bartender

Loading dock access

Parking

Package delivery

Per-person minimum

Phone access

Resort

Room delivery

Safety-deposit box

Security

Storage

Taxes

Budgeting Here is a list of expenses to get you started. Some will be appropriate for your event and some expenses are not included here. Create your own list to suit your event.

Activity/Items Estimate Cost Actual Costs

Accommodations

Activities – extracurricular

Administrative overhead

Advertising

Audio/Visual equipment

Awards

Bartenders

Communications – cell phones, pagers, radios, copiers, computer

Activity/Items Estimate Cost Actual Costs

Entertainment

Food and Beverage

Freight and Shipping

Furniture/electronic rentals

Gifts for speakers, VIPs, volunteers

Insurance

Labor Charges

Legal Services

Lodging for speakers/VIPs

Meeting Planner

Activity/Items Estimate Cost Actual Costs

Personnel / Staffing

Photographer / Photography

Postage / Mailing

Promotional Materials/Printing

Public relations

Registration Materials

Registration service/Ticket service

Security

Set-up and take down

Signage/Decorations

Activity/Items Estimate Cost Actual CostsSpeakers / Faculty / Entertainers

Staging and Lighting and Special Effects

Supplies

Tables and Chairs

Taxes

Technicians

Transportation

Travel for speakers/VIPs

Venue – location

Website design

The End