CHAPTER 9 BUDGETS Financial management 1 2 3

CHAPTER 9 BUDGETS

Financial management 1. 2. 3. 4. 5. 6. 7. Is the aim to make a profit? How much will the event cost? What are the revenue sources? How many tickets must be sold to break even? What is the cash flow situation? What control systems are needs to avoid fraud? How will legal taxation obligations be met?

Break-even point BREAK-EVEN POINT e u en v e r l a st total co PROFIT Variable cost fixed cost SIZE OF EVENT (AUDIENCE) CAPACITY REVENUE tot

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 Planning Budget Expenditure Income $ $ Cash Flow Analysis Profit and Loss Account Balance Sheet Event Evaluation Report

FIXED EXPENSES v Audio-visual equipment v Meeting site/facility/venue v Speakers v Personnel salaries v Insurance v Entertainment v Marketing and promotion v Transportation v Signs

VARIABLE EXPENSES v Accommodations v Photography v Additional site rental fees v Placards v Communications costs v Power charges v Decorations v Promotional material v Food and beverage v Rehearsal costs v Gifts v Security v Invitations/registration forms/brochures v Shipping, handling, and drayage v Labor charges v Signs v Lighting v Special effects v Mailing v Staffing v Marketing and promotion v Staging v Menus v Taxes v Nametags/placards v Transportation v Office supplies v Travel (to site inspection) v Wages for temporary staff

ADDITIONAL EXPENSES-OUTSIDE FACILITY v Alcohol sales/liquor permit v Signs v. Catering v. Staff-maintenance, electrician, v. Cancellation fees engineers, stagehands v. Glasses, dishes, silverware v. Staging equipment v. Insurance-both you and contractors v. Tables and chairs v. Labor v. Tablecloths/skirting v. Parking v. Tents v. Parking attendants v. Themes and decorations v. Permits v. Toilets v. Power v. Traffic control v. Security v. Waste/trash removal

ADDITIONAL EXPENSES-OUTSIDE FACILITY v A-V set up v. Internal access v. Baggage handling v. Meeting room setup v. Cleaning v. Meeting room key v. Computer v. Mini-bar usage v. Copying v. Minimum bartender v. Early departure v. Loading dock access v. Easel rental v. Parking v. Electricians, maintenance, engineers v. Package delivery v. Energy surcharge v. Per-person minimum v. Extension cord v. Phone access v. Fax sending and receiving v. Resort v. Gratuity v. Room delivery v. Hanging banners and signs v. Safety-deposit box v. Health club v. Security v. Hotel shuttle v. Storage v. 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 Accommodations Activities – extracurricular Administrative overhead Advertising Audio/Visual equipment Awards Bartenders Communications – cell phones, pagers, radios, copiers, computer Estimate Cost Actual Costs

Activity/Items 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 Estimate Cost Actual Costs

Activity/Items 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 Estimate Cost Actual Costs

Activity/Items Speakers / Faculty / Entertainers Staging and Lighting and Special Effects Supplies Tables and Chairs Taxes Technicians Transportation Travel for speakers/VIPs Venue – location Website design Estimate Cost Actual Costs

The End