What is the most important factor when it comes to finances?
It is the budgeting. Even a homemaker understands the meaning of this term and implements it in her home, in order to curb expenses and ensure that more money is saved. In the same way, no matter what the scale of event, the most important factor is to work within budget constraints, yet maintaining quality, in order to maximize returns. The fact is the budgeting the event is not child’s play of throwing in numbers and then marketing the event.
Most companies follow a budget format or event management system, wherein all the figures are placed and aggregates made. Almost every company has on board a Financial or Accounting head, who is responsible for preparing the budget, as well as supervising the entire event execution process to ensure that all is happening within the figures mentioned.
When preparing an event management budget, usually one maintains a margin of 5% to 15%, which is also called the buffer margin, just in case the budget exceeds the actuals placed on paper. It is important for the event manager, or marketing manager to provide the budget to potential sponsors, so that they can decided how much, or which section of the event they would prefer to sponsor in order to gain maximum mileage. For instance, there are some companies who decide to sponsor the entire ground for the event, while other companies pay for the printing of tickets and other material. The amount a company is ready to sponsor decides the kind of mileage they are given.
The budget not only provides facts and figures with regards to the expenses, but also the potential returns the company can gain from the event. This would include expected ticket sales, as well as amount that can be received from sponsors. The entire plan of an event is in its budget. It is the very backbone of any event, or no matter what scale or type. It is more like a pre-event balance sheet.
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Filed Under: Event Management