CHAPTER 5: THE BUDGET :moneybag:, Creating a budget :red_cross: :heavy…
CHAPTER 5: THE BUDGET
For commercial organizations:
-Senior management or head of department prepare the budget.
Budgeting especially to non-financial background is not easy. They need a great deal of info to be collected. Also they got many new techniques to be learned.
Plucking a figure out of the air for ticket sales
Do not involve others
Over-optimistic over demand
Overlooking subsidiaries issues
Not enough capital or start-up funds
No receipts or invoice
Attendance may be based on:
-Surveys of market
-Attendance at similar or previous events
-Knowledge of the size of the available customer base
Important to be realistic about attendance
-Ticket's can be sold
-Venue can be filled
-Estimate break even
Helps you to understand:
What is needed?
What information may be missing?
To help decision-making process
For issue: like the venue of the event
To compare between few possible venues.
Common financial term of "Budgetary Control"
In event management, "control" minds costs/expenditure (the whole picture) are equally important.
Each part of budget needs to have someone responsible to it.
-responsibility of marketing department together with their expenditure
"in-kind" arrangements, mutual benefit exchanges of goods or activities, volunteer work or donations.
Grants from local, regional or national government.
Fund-raising activities related to the event.
Commercial borrowing (from bank or etc.)
Types of event funding:
Misconceptions in the design of events is the view that an event will easily attract sponsorship.
Potential sponsors have to get something out of the event.
Catering/fast food/sales stalls
Photography charges/photography sales/video
Car parking/transport services
Creating a budget
Common Budgeting Mistakes
How many will attend?
Outline budget form
Comparative Outline Budgets
The Detailed Budget
Who Spends What?
Sources of Budget
Sponsorship and Public Funding
Other Sources of Income