Please enable JavaScript.
Coggle requires JavaScript to display documents.
CHAPTER 5: THE BUDGET :moneybag:, Creating a budget :red_cross: :heavy…
CHAPTER 5: THE BUDGET
:moneybag:
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.
Ignore objectives
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.
Example:
Revenue
-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:
Leisure event
Cultural event
Organizational event
Personal event
Misconceptions in the design of events is the view that an event will easily attract sponsorship.
REMEMBER :!:
Potential sponsors have to get something out of the event.
Program/brochures/guidebooks
Catering/fast food/sales stalls
Photography charges/photography sales/video
Car parking/transport services
Retail/souvenir/clothing/merchandising
Creating a budget
:red_cross: :heavy_minus_sign:
Common Budgeting Mistakes
:no_entry:
How many will attend?
:!?:
Outline budget form
:linked_paperclips:
Comparative Outline Budgets
:left_right_arrow:
The Detailed Budget
:mag:
Who Spends What?
:silhouette:
Sources of Budget
:smiley:
Event Funding
:hammer_and_pick:
Sponsorship and Public Funding
:red_flag:
Other Sources of Income
:diamond_shape_with_a_dot_inside: