Are you planning to organize an event and confused on how to plan for the budget? To make it easy for you, we have listed below a few simple steps that will help you while planning budget for your event.
Budget planning is the primary step for every event. If you make any wrong decisions while planning for the event it effects the overall event. Budget should be combination of fixed and variable costs all along the event. In case if there is any change in the event plan then their may also be a change in the event.
Before you plan your budget it is also suggested to talk to the client and ask him the requirement and needs of event. The plan must include all the below steps. After that you must review it and tell your opinions to the client so that both of you can come to an conclusion and finally the outcome will be successful. You must list out the basic categories for any kind of event, they are item, projected expenses, actual expenses and details. After that you must categorize the items as follows.
The steps you are considering while planning budget for the event must include the following:
- Your expenses must be anticipated i.e., you must make a list of all the costs that you think of your event from small to big at first.
- Later divide your list in to variable and fixed costs and categorize the costs according to each activity. Now prepare a separate section for expected income.
- Estimate the costs of each item in your prepared list. After confirming the cost enter the cost and reduce the contingency.
- Estimate your income and subtract it from actual happenings.
- Finally access the event budget and see whether your budget is over estimated. If so check the prepared list for chances to reduce costs or remove any item from the list.
- Summarize the projected expenses to share with the client so that there won’t be any problems later.
- Symmetrization of actual budget must also be done after the event has completed and see any extra expenses are added or removed from the list.
These are some of the major steps in budget planning that event manager should consider while organizing the event. This early budget planning avoids any problems that may arise after the event is finished. Finally prepare a report and communicate with your client clearly about the budget and the items you have chosen for the event.