It’s a thrill to plan an event — especially one that ends up becoming a huge success. But with a venue, ticketing, catering and guest speakers to consider, keeping your event costs within budget can be easier said than done.
In this blog, we chat about how important it is to budget for your event and what makes an effective event budget. Plus, we offer tips on how to build a realistic budget.
The importance of budgeting
A reliable budget acts as your secret weapon. It keeps your vision afloat and your business wallet safe from surprises.
Why a reliable event budget is vital for success
So you've poured your heart (and a significant sum) into planning a great event. But then some unexpected costs pop up — to the point where you may even lose money. This is when a well planned budget can be the cornerstone of your event.
By creating a solid, dependable budget you can:
Make informed decisions — by knowing where your money should be allocated you’ll have a road map to a well budgeted event
Keep financial control — through setting clear spending limits for each part of your event and allowing transparency over that spending
Prioritise — analyse your event’s costs and allocate resources where they’re most needed, whether that’s towards the catering, wait staff or security
Avoid unnecessary stress — the last thing you’ll want to experience is panic over how your finances are going to hold up
Better plan for your next event — refining your budgeting strategy as you improve your ability to host events.
The impact of poor budgeting
Concerned piggy bank
A shaky budget can put the fun of your event at serious risk. However, if you’re aware of the potential pitfalls that can lead to poor budgeting, you’ll be able to plan your event with financial confidence.
A few pitfalls to watch out for include:
Failing to establish a spending limit — overspending can lead to financial stress, difficulty covering unexpected costs and debt
Cutting corners — taking shortcuts on key event elements like the venue, amenities and food can compromise the quality of what you’re offering, negatively impacting your guests’ experience
Negotiating ineffectively — without a clearly defined budget you may find it tricky dealing with the vendors you need at your event, eventually settling for higher costs
Leaving out some expenses — poor budget planning often fails to account for last minute costs, event permit fees or emergency scenarios
Ignoring results — you can’t accurately measure the financial performance and success of your event unless you’ve put the work into budgeting.
The success of any future events you plan to hold are partly reliant on knowing how your past events went, from a financial perspective. It’s crucial to look at your event cost breakdown — to know if your spending was efficient and if there are opportunities to reduce costs going forward.
"Plan to make a profit from your event, even if you're a non-profit — perhaps especially so! But put any profit towards your next event. The more costs you can cover without ticket sales, the better position you'll be in."
Mike — former Webstock organiser & Lil Regie Co-founder
The elements of an effective event budget
Your event budgeting needs to cover all of your expected expenses. One best practice for event budget management involves creating a detailed list of all your event costs — from major to lesser expenses.
Venue
When determining your budget allocation for a venue, the first thing you’ll likely look at is the base cost of hiring the space. Beyond that, you may have a variety of setup costs including equipment, furniture and even staging.
What comes up must come down so be sure to add breakdown costs, like packing away the stage and equipment, plus cleaning fees.
Consider breaking up the space
If your event involves a few spaces that can clearly be categorised, like main stage and foyer, think about whether it makes sense to budget within these subcategories.
Catering
Event catering
Meticulous planning, attention to detail and exceptional service are hugely important when it comes to successful event catering. But like other aspects of your event, the budget and your understanding of what you’ll get for your planned spend is the place to begin.
Catering can be budgeted for under:
Food — such as snacks and meals
Beverages — which could be non-alcoholic or include alcoholic drinks.
Sometimes the little things can make a big difference so keep this in mind when you plan your event’s catering.
"At our first Webstock conference, one of the most common pieces of feedback was, 'Wow! The free ice cream and coffee provided was wonderful!' Don't underestimate the unexpected delight of providing little treats."
Mike
Marketing
Digital marketing
A well-attended event is usually one that’s been well-marketed. Use the power of social media to your advantage or make use of targeted traditional marketing channels, to spread the word of your event.
Playing a crucial role in spreading the word about your upcoming events is a centralised platform that informs and engages with people — your website.
Developing your event website should be an aspect of your marketing that’s front and centre. It’s an immensely powerful tool for promoting your events, attracting attendees and maximising your impact and reach.
At the very least, break your marketing spend into:
Social — on your business’s main platforms where your target market is active, be that Facebook, Instagram, TikTok or LinkedIn
Advertising — focus this portion of your budget on what works for you, which could be print adverts, promotional stunts or web ads.
Depending on the size of your advertising budget, you may feel the need to break it down further into subcategories, such as print materials.
Insurance
To ensure you don’t run into any legal trouble with your event, insurance is an obvious inclusion. You may consider:
Event liability insurance — this is of absolute importance for most events as it protects you financially if someone at your event gets injured or some property gets damaged
Event cancellation insurance — protects your investment should the event have to be postponed or cancelled, perhaps due to a natural disaster or illness of a main speaker
Property insurance — covers loss or damage to your own equipment or the hired items for your event
Workers’ compensation insurance — necessary if you have paid staff working at your event, to protect against financial liability if a staff member gets injured on the job.
The importance of insurance
Event insurance can act as your safety net. It’ll safeguard you and your business against unexpected costs, should your event run into an issue.
Permits
Getting the right permit to run your event may also have to be part of your budget — most commonly from your local city or district council.
Other possible authorities include:
The Department of Conservation (DOC) — if you need to hold your event on a conservation reserve
Government agencies — like the Ministry of Health or the police.
Determine what is absolutely essential
Identify your event’s must-haves and nice-to-haves. Apportion the majority of your budget to your absolute must-haves — then, get creative and cost-effective with alternatives to cater for your nice-to-haves.
Technology
Event tech
Technology could include a number of items to ensure your event presentation is slick and streamlined. You may need to include costs for microphones, projectors, screens and lighting.
Also allow for computer and equipment technician fees if needed.
"Hire professionals for your audio visuals if you can. Don't skimp on costs here. Your presentation is the showcase of your event — and people will remember if it goes badly."
Mike
Speakers
Your event may call for guest speakers or even a master of ceremonies. Alternatively, entertainers or performers may be needed over the course of a multiday event.
Decide what you’re prepared to pay these talented people to help elevate your event — and whether that includes paying for their travel, meals or accommodation. Once you know what you’re happy paying (and getting in return) you can target speakers in that particular price range.
"If people are paying to attend your event, then you should be paying your speakers. Plan to cover their travel and accommodation. And whatever you do, don’t make your speakers buy tickets to your event — yes, that does happen."
Mike
Staffing
Event staff
You may need to have different types of staff which, for the most part, could be divided into:
Event staff — on site for tasks like guest management, welcoming and registration
Security staff — depending on the size of your event, they might be needed near the stage, on the door or by the bar
Catering staff — roaming waiters, bartenders and kitchen staff may be required.
Printing
Run through all of the printed materials your event is going to need, like name badges, directions, programmes and menus. These are going to cost, so include the estimated number of each in your budget.
Signage may also be necessary to help promote your event — or to help guests find the venue.
Branded event merchandise
Miscellaneous
It’s wise to have contingency planning for events — and that includes unexpected expenses in your budget. Set an amount aside for any unforeseen expenses that may take place while you’re planning or executing your event, such as:
Extra event staff at late notice
Last minute equipment hire.
Be SMART
To help guide your event budgeting, first ensure that you’ve defined the goals of the event. Whether you’re aiming for brand awareness or community building or something else, use SMART to help you prioritise your business’s spending.
Break SMART down so you can utilise it for budgeting.
Specific — rather than simply stating generate more leads, write down get 50 qualified leads through registering for this event
Measurable — you need a measure to quantify your goals, like a specific number of engagements on social media or visits to your website within 24 hours of your event
Achievable — it’s important to be realistic and set goals that are achievable and match the size and lifecycle stage of your business
Relevant — do your event goals support the long term objectives of your business and your marketing strategy
Time bound — set a timeframe for your event goals, like book ten event attendees for a follow up chat or attain 200 new subscribers within one week of your event.
Tips for building a realistic budget
Happy piggy bank
Walking the tightrope of event budgeting demands a delicate balance of foresight and practicality. Doing it well will be one of the keys to holding a successful event — along with the confidence to plan future ones.
To create a realistic budget that’s achievable, ensure you:
Set out clear objectives — define the purpose, target audience and goals of your event so you can allocate your budget in a way that aligns with your desired outcomes
Research all your potential expenses — gather any historical data for reference points and look at current market rates with quotes from venues, vendors and service providers
Prioritise spending — first identify the essential elements to make your event a success and fully fund them, then assign your remaining spend to secondary items which enhance your guests’ experience but aren’t critical
Have some flexibility — be prepared to tweak your event budget throughout the planning process as attendance numbers change or vendor pricing increases or an unexpected expense appears
Track your expenses in real time — keeping diligent records of every transaction, to track your actual expenses against those budgeted for, will help reduce or reallocate costs if necessary.
Take surprises out of the equation
It’s likely that a few unexpected expenses will emerge during the planning or executing of your event — particularly if your business is new to this scene. Prepare for that possibility by allocating around ten to 20 percent of your total event budget towards unexpected costs.
At Lil Regie, we have a wealth of experience and accumulated expertise with event ticketing. We can help your event booking process run smoothly, so you can stay on track with your budget finances — and ultimately create a memorable experience for your guests.
Budgeting is a crucial part of running a successful event. By creating a reliable and effective budget, you’ll maximise your chances of hosting an event that finishes in the black.
Lil Regie Team
Our passionate and experienced team loves to share insights on how to set up and execute exceptional events.
Lil Regie Team
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