Working on the Event Budget and TimelineEINTROEVMM.Aldana ‘17

The Event Budget and Timeline• An event manager works with two very important resources – money

and time.

The Event Budget

The Event Budget• A budget is a numeric form that puts the event plan into action.

• An Event Plan is nothing but paper without a budget to bring it to life.

• The Event Manager has to learn how to put the Event Budget together by understanding the various budgetary items and how to account for revenues, expense and profit.

• A checklist for budget monitoring is also recommended.

The Event Budget• A budget stems from funds that have been earmarked for the event or

simply how much the host (client) intends to spend for an event.

• An understanding of the event objectives can also impact the budget.

• The event budget should be based on:• How much was spent on previous or similar events• Marketing projections• Expected return on investment (ROI)• Type of financing used for the event (borrowed funds, prepayment, existing funds)• And expected financial recovery

The Event Budget• The budget has three (3) basic parts:• Revenue – refers to the earnings from the event (money that comes in)• Expenses – refers to payments made for goods and services used for the event

(money that goes out)• Profit – represents a surplus, or what is left from the revenue after all the expenses

have been paid.

Revenue – Expense = Profit (Loss)

Understanding Event Expenses• While going through the event plan, identify the expense in each

element of the plan.

• Then list all probable expenses and seek a good estimate for them.

• Expenses can be classified into:• Fixed Costs – includes expenses incurred in the staging and management of an event

that are not likely to change as the number of attendees increases or decreases.• Variable Costs – includes expenses that vary depending on how many people attend

the event.

(Variable Cost per participant x the number of participants) + Fixed Costs = Total Cost of Production

Sources of Revenue• Events intended for profit or break-even events may consider the

following sources of revenue:• Ticket sales or admission fees• Registration Fees• Donations and Grants• Gifts in kind• Sponsorship and advertising fees• Exhibit or exposition booth rental fees• Concession sales• Merchandise sales• Supplier discounts

Setting Ticket Prices, Admission or Registration Fees

• Ticket Price/Admission/Registration Fee = Variable Cost per Attendee + cost of event promotion per attendee + share of fixed cost per attendee + a targeted profit percentage per ticket price + applicable sales taxes

Variable Cost Percentage• Of the ticket price, what

percentage will actual variable cost account for?

• What percentage will cover fixed costs?

Sponsorship and Advertising Revenue• Sponsors and event partners provide incremental revenue.

• Sponsors are an additional source of funds in exchange for promotional mileage, or advertising exposure.

Identifying Possible Sponsors• Select sponsors whose products or brand image matches that of the

event.

• Check your network – among the people you know, who could help you?

Benefits• Media Mileage

• Inclusion in event merchandising materials

• Website ads

• On-premise merchandising during the event

• Promotional activities during the event

• Product/brand mentions or acknowledgements

• Access to participant’s information

• Competitive lock-out

Determining “Values” for the benefits• Radio or TV airtime

• Print ad space

• Poster space

• On-site merchandising

Define Sponsorship Packages• Presentor

• Major Sponsor

• Minor Sponsor

Sponsorship Contracts• After getting the sponsors to agree, have the sponsorship contract

signed and make a timetable for deliverables.

• Make sure you deliver on all your promises.

Donations and Grants• For fund-raising events, consider soliciting donations from individuals

and non-corporate givers.

• Identify individuals and parties who have close affinity with or a deep interest in the event and its target audience or the beneficiaries.

• Unlike corporate sponsors, these donors do not usually need much advertising and merchandising mileage.

Gifts in Kind• Some expenses may be covered through sponsorships or gifts in kind• Food for preparatory meetings, rehearsals, and during the event• Costumes for performers or uniforms for event security• Accommodations for event staff, performers and guests• Transportation of equipment, staff and participants• Printing of event collaterals• Awards and trophies for competitions or to commend event volunteers• Giveaways which will help enhance the ev

Other Sources of Revenue• Exhibit or booth rental fees

• Concession fees

• Merchandise sales

• Supplier discounts

Drafting the Event Budget• Determine the budget for your event, keeping in mind its financial

objectives• Hosted Events: Revenues < Expenses• Revenue-Generating Events: Revenue > Expenses• Break-Event Events: Revenue=Expenses

Hosted Events

Revenue-generating Events

Break-even Events

The Event Timeline

The Event Timeline• Time is one other resource that the Event Team has to make optimum use of.

• Always be conscious of how much time you have to plan and implement your plan before the day of the event.

• Determine the activities that must be completed before the actual event, the chronological sequence of these activities, and how much time is needed to complete each task.

• The next step is to organize the work and allocate time for each, keeping in mind the time available to plan the event.

• The timeline identifies what activities must be completed by a certain date. Use this to check the team’s progress in putting the event together.

Gantt Chart

ExerciseA. Supposing you are organizing a hosted event, and given the following details compute for what is asked:• Honorarium for Speaker = PHP 5,000.00• Venue Rental = PHP 3,000.00• Souvenir Items = PHP 50.00 per pax• Snacks = PHP 75.00 per pax• Number of participants = 100

• How much should the event budget be? (Show computations)

ExerciseB. Supposing you are organizing a revenue-generating event, and given the following details compute for what is asked:• Honorarium for Speaker = PHP 5,000.00• Venue Rental = PHP 3,000.00• Souvenir Items = PHP 50.00 per pax• Snacks = PHP 75.00 per pax• Number of participants = 100• Target profit = PHP 3,000.00

• How much should the registration fee per participant be?

ExerciseC. Supposing you are organizing a break-even event, and given the following details compute for the amount:• Honorarium for Speaker = PHP 5,000.00• Venue Rental = PHP 3,000.00• Souvenir Items = PHP 50.00 per pax• Snacks = PHP 75.00 per pax• Sponsorship = PHP 2,000.00• Registration Fee = PHP 100.00

• How many participants are needed to break-even?