PROJECT MANAGEMENT Budgets and Finance

Week 4

Propedeuse ICM 2011-2012School of Communication & Media - INHOLLAND

• What phase begins here and now?

Verhaar (events): Grit (general):

Initiative Phase ConceptPreparation Phase DefinitionDevelopment Phase Design(Production Phase) PreparationPerformance Phase ExecutionEvaluation Phase Aftercare

How do you prepare a project budget?Firstly, you need a detailed list of all activitieshttp://www.williamkate.com/ http://www.theroyalweddingwilliamkate.com/

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How do you prepare a project budget?

Secondly, you need to categorise each expenditure.

BUDGET CATEGORIES

PRIMARY ACTIVITIES (core costs):

•Includes all presentation and production costs

•Cost for different primary activities can be listed separately

BUDGET CATEGORIES

SECONDARY ACTIVITIES:

•Includes all presentation and production costs for secondary segment (e.g. film of the event)

•Not: catering or security (see SUPPORT costs)

BUDGET CATEGORIES

LOCATION COSTS:

•Making the location ready•Parking spaces•Utilities

•NOT: decorations and furnishings

BUDGET CATEGORIES

SUPPORT FACILITIES:

•Catering•Decoration & Furnishing•Communication during event•Security•Cleaning•Ticket sales•Wardrobe

BUDGET CATEGORIES

PROMOTION, PUBLICITY & PR:

•Advertising•Publicity & Press kits•Printing of programmes, brochures, posters, invitations, entrance tickets, etc.•Mailing costs•Sponsorship costs•Opening events including press receptions

BUDGET CATEGORIES

DESIGN, CONSULTATION & SUPPORT:

•Fees and expenses of consultants, designers, stylists, etc.•Support personnel•Additional expenses for staff & volunteers

BUDGET CATEGORIES

ADDITIONAL COSTS:

•Transport•Insurance•Royalties

BUDGET CATEGORIES

INTERNAL COSTS:

•What will you charge the client?•What does it cost the organisation to plan a project?•What are the indirect costs?

How do you prepare a project budget?

Now let’s look at REVENUE.

REVENUE:

•Entrance fees•Sales of programmes, merchandise, food and drink•Fundraising activities (auctions, benefits, etc.)•Sponsor contributions (in cash or kind)•Donations (from individuals or companies)•Grants from government•Grants from foundations•Co-production