The budget is one of the most essential aspects of planning your event and in order for your event to be a financial success, the expenses for putting it on must be balanced by the revenue coming in. Determining your event budget will help you determine the scope and scale that you can afford. By staying within your budget, you protect yourself from losing money.
You must be able to predict with reasonable accuracy whether your event will result in a profit, loss, or if you will break-even. This is achieved by identifying all probable expenses and totaling all expected revenue.
To start setting your budget, begin with identifying your expenses. Your event expenses can be divided into two categories: fixed and variable. Fixed expenses do not change based on the number of guests that attend your event. For example, a DJ will cost the same whether you have 100 or 500 guests because you are paying for their service. Variable expenses will change or vary depending on your total guest count. For example, catering is generally priced per person - the more guests you have, the greater your expense.
As you work with your expenses, you'll understand into which category your expenses fall. What anticipated expenses will not change based on your guest count? What expenses vary depending on how many guests attend your event?
We created a user-friendly Event Budget Worksheet that allows you to input numbers to help you generate the most revenue.
DOWNLOAD YOUR FREE EVENT BUDGET WORKSHEET HERE!
As you begin utilizing the worksheet, it is important to over-estimate your expenses and underestimate your revenue. This will help you stay within budget and give you a little flexibility should any unexpected expenses occur... which is likely to happen. If you overspend in one category, you will need to decrease your spending in another category to cover that expense. Play around with your numbers and watch your revenue grow!
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