Event Planning 101: Budgeting

Budgeting is an integral part of the event planning process. In fact, creating a budget is one of the foundational steps to developing your event logistics. While there can be an element of “guesswork” in budgeting, it is vital to your event’s success. If creating a budget seems a bit daunting, consider this basic premise: don’t spend more than you have! Here are a few helpful hints as you begin your event budgeting process:

  1. Know what you need. Make a list of everything you need for your event. Marketing, speakers, worship leaders, audiovisual rentals, travel, printing, venue, caterings, office supplies—be thorough as you brainstorm. As you develop your list, include subcategories for broader items. For example, “office supplies” might encompass everything from name tags and Sharpies to large post-it pads and dry-erase markers. While you don’t have to list basic supplies such as paper clips and staples, be on the lookout for more “out of the ordinary” items that you don’t have on hand and will have to purchase. In addition, create an “emergency” category for all of the unexpected expenses that will undoubtedly arise (and often break your budget).
  2. Know what it will cost. Once you have your list of items, determine cost estimates for each of them. This will take time, but meticulous research will only benefit you in the long run. Separate expenses into two categories: fixed and variable. Fixed items are those that will be the same price regardless of how many attendees you have. These include costs such as speaker fees, audiovisual rentals, venue expenses, and pre-event marketing. Variable costs are those that fluctuate based on the number of guests attending and can include catering, housing, printing costs, event supplies, etc. As you record costs, err on the side of higher amounts. This will give you a greater financial cushion.
  3. Know your bottom line. Consider these two factors when determining your bottom line: will your organization be supplementing any costs and what will your program fee be? In order to determine a program fee, it’s important to know your financial purpose. Are you just trying to break even for your event, or are you trying to make money? In order to budget for a break-even event, determine a realistic number of guests you expect to attend. Be conservative! Divide your expenses (determined in step 2) by the number of attendees expected. This will give you an estimated program fee. If your organization will be supplementing any costs, factor this amount into your expenses prior to developing your program fee. As you analyze this fee, think about what your attendees can realistically pay. You can create a great event, but if the fee is too high, your attendance will be limited. If you hope to make money, set your program fee at a higher rate than needed to simply break even.

Budgeting is a tedious process, but careful planning can allow you to create the best “bang for your buck.” Budgeting conservatively can also give you the freedom to have a few extras if your event registration comes in at higher numbers than originally planned.