When planning an event, the first thing you should do is plan your budget. Events always require a serious financial investment. Create a rough estimate of the costs of the event. Make sure you get your budget approved by any necessary higher-ups before you get too deep into the planning of your event.
Get preliminary estimates from potential suppliers early in the planning process. You can firm up these estimates after your preliminary budget is approves. Remember to err on the side of caution - if you are given a range of prices, use the higher estimates just in case.
Your preliminary budget should include the biggest costs for the event. These include:
- Venue rental
- Accommodation and transportation (if necessary)
- Food and drinks
- Invitations, place cards, and other printed materials
- Decorations, flowers
- Staff requirements
- Music
- Entertainment
- Photographer
- Sound and lighting requirements (if any)
- Power requirements (if any)
- Insurance (if required)
- Security (if required)
Make a complete list of all possible expenses. Highlight any "must have" items from that list. These must have items should be included in your preliminary budget. You should then contact possible suppliers to get ballpark estimates for these items.
Once you have your preliminary cost estimates, compare it to your overall budget. If your list of "must have" items costs more than your budget, you may have to re-think your event. If your preliminary cost estimates is lower than your budget, then you can begin to add in optional items.
After working through your budget, you should always seriously consider whether you can afford to hold the event or not. It is usually better to put off an event rather than go forward with a shoddy event on a low budget.
As you continue to plan your event, create a spreadsheet or list of your event's expenses. This will let you see what items have been included and keep you within your budget. It will also clearly show you how you are spending your money. You may choose to make different choices once you see how your costs compare. For example, you may decide to abandon the floral arrangements you selected in order to put the money saved towards a string quartet. Review this spreadsheet every day. You don't want to find out after your event that you were way over budget.
Because every event is different, there is no magic formula or cost sheet. Just walk through the event in your mind from start to finish, writing down as many details as you can. Go back and fill in the costs. Remember, always get written estimates and not verbal quotes. Again, you don't want any nasty surprises.
Also remember to factor in taxes and gratuities. These are often overlooked and can add up unexpectedly. Always ask, and never assume.
Specifically ask each supplier if there are any additional costs that will be added. Venues are notorious for adding unexpected charges for things like power or labor. Ask the venue to give you total estimates based on similar events they have hosted. Have your suppliers invoice you before the event, if possible.
As invoices arrive, do not pay anything until you compare the invoice with your budget. Question any differences. You may have to adjust your budget as you go or look for lower cost suppliers. If you don't keep your cost sheet updated, you may find yourself over budget. You will also be better equipped to make last minute decisions.
One last detail you need to include in your cost sheets is a list of payment dates. For each expense, you need to know when the supplier has to be paid. Make note of any deposits required and when they are due. You do not want to find out that you lost a key component of your event because you didn't send a deposit.
Finally, remember your goal is to stay within your budget while still creating a memorable and entertaining event.
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