Chapter 12: Financial planning
- Objectives of financial planning
- Budgeting for events
- Fixed versus variable costs
- Event income
- Revenue terms explained
- Common event budget mistakes
- General guidelines for financial control
Objectives of financial planning
Financial planning is an important aspect of event management. This chapter will introduce financial planning, control, and budgetary issues.
Some budgeting software programmes allow the user to create customised templates, based on the needs of the client, the goals and objectives, and event-specific requirements. Templates can be created for different types of events, for example, workshops will have more budget items than a one-day seminar.
Conference budgets will be far more complicated, because the social programmes need to include décor, catering, equipment hire, and special effects.
Careful planning, monitoring, recording and control are necessary in handling the income and expenses of the event. The event budget should be in line with the event’s goals and objectives. A sensitivity analysis and break-even analysis, discussed later in this chapter, will form part of the budget to establish the financial feasibility of the event.