CHAPTER 9 BUDGETS

Financial management 1.Is the aim to make a profit? 2.How much will the event cost? 3.What are the revenue sources? 4.How many tickets must be sold to break even? 5.What is the cash flow situation? 6.What control systems are needs to avoid fraud? 7.How will legal taxation obligations be met?

Break-even point SIZE OF EVENT (AUDIENCE) fixed cost Variable cost PROFIT BREAK-EVEN POINT total cost total revenue REVENUE CAPACITY

INCOME STRATEGY entry tickets rental for stalls, stands and exhibitors merchandise sales (hats, CDs, etc.) licensing sale of programs sale of food and beverage sponsorship or grants parking fees

Planning, budgeting and reporting process. Event Planning Budget Expenditure $ Expenditure $ Income $ Income $ Cash Flow Analysis Profit and Loss Account Balance Sheet Event Evaluation Report

FIXED EXPENSES  Audio-visual equipment  Speakers  Insurance  Marketing and promotion  Meeting site/facility/venue  Personnel salaries  Entertainment  Transportation  Signs

VARIABLE EXPENSES  Accommodations  Additional site rental fees  Communications costs  Decorations  Food and beverage  Gifts  Invitations/registration forms/brochures  Labor charges  Lighting  Mailing  Marketing and promotion  Menus  Nametags/placards  Office supplies  Photography  Placards  Power charges  Promotional material  Rehearsal costs  Security  Shipping, handling, and drayage  Signs  Special effects  Staffing  Staging  Taxes  Transportation  Travel (to site inspection)  Wages for temporary staff

ADDITIONAL EXPENSES-OUTSIDE FACILITY  Alcohol sales/liquor permit  Catering  Cancellation fees  Glasses, dishes, silverware  Insurance-both you and contractors  Labor  Parking  Parking attendants  Permits  Power  Security  Signs  Staff-maintenance, electrician, engineers, stagehands  Staging equipment  Tables and chairs  Tablecloths/skirting  Tents  Themes and decorations  Toilets  Traffic control  Waste/trash removal

ADDITIONAL EXPENSES-OUTSIDE FACILITY  A-V set up  Baggage handling  Cleaning  Computer  Copying  Early departure  Easel rental  Electricians, maintenance, engineers  Energy surcharge  Extension cord  Fax sending and receiving  Gratuity  Hanging banners and signs  Health club  Hotel shuttle  Internal access  Meeting room setup  Meeting room key  Mini-bar usage  Minimum bartender  Loading dock access  Parking  Package delivery  Per-person minimum  Phone access  Resort  Room delivery  Safety-deposit box  Security  Storage  Taxes

Budgeting Here is a list of expenses to get you started. Some will be appropriate for your event and some expenses are not included here. Create your own list to suit your event. Activity/ItemsEstimate CostActual Costs Accommodations Activities – extracurricular Administrative overhead Advertising Audio/Visual equipment Awards Bartenders Communications – cell phones, pagers, radios, copiers, computer

Activity/ItemsEstimate CostActual Costs Entertainment Food and Beverage Freight and Shipping Furniture/electronic rentals Gifts for speakers, VIPs, volunteers Insurance Labor Charges Legal Services Lodging for speakers/VIPs Meeting Planner

Activity/ItemsEstimate CostActual Costs Personnel / Staffing Photographer / Photography Postage / Mailing Promotional Materials/Printing Public relations Registration Materials Registration service/Ticket service Security Set-up and take down Signage/Decorations

Activity/ItemsEstimate CostActual Costs Speakers / Faculty / Entertainers Staging and Lighting and Special Effects Supplies Tables and Chairs Taxes Technicians Transportation Travel for speakers/VIPs Venue – location Website design

The End