It is vital to establish a budget for your event before hosting it. This way, you’ll know the money you have available to spend and how much you can allocate toward various aspects of planning an event.
If you are charged with determining the budget for an event hosted by yourself or your company, here are some things to keep in mind when setting a budget.
Determining the Budget for an Event
“I need a budget for my next event” – if you’ve ever thought or said those words before, then congratulations! You’re on the right path to planning professional events. But bear in mind there’s still a lot of work to be done if you’re to put together a successful event.
So how do you determine your budget for an event? Here’s the process in six easy-to-follow steps:
Determine Event Location
First things first, where is your event going to be held? If it’s being hosted at another location, then ask them about their availability and pricing. Make sure that you visit the place beforehand to get a feel of the overall ambiance.
It’ll also be easier to determine what amenities are needed to charge separately for each related service (like tables) or have hidden costs not mentioned on their website.
Set the Type of Event You Want to Host
For simplicity’s sake, you can divide events into three main categories: Corporate (Business), Social (Private/Personal), and Community (Non-profit).
Corporate Events: These are scheduled to help promote a business’s brand image and product(s) or service(s), such as annual shareholder dinners, product launches, and expositions. They also include weddings between companies that want to merge or tie the knot with another company.
Social Events: This refers to individuals, families, and small friends organized for fun and entertainment. It can range from birthday parties, anniversaries, bar mitzvahs, etc.
Community Events: These are organized by clubs, non-profit organizations (NPOs), and religious groups to benefit specific communities, such as charity balls, fundraisers, blood donation drives, etc.
Determine Event Dimensions
To better understand what kind of event to plan, ask yourself these questions:
– What is your event all about?
– How much do you need for event marketing?
– How many people do you expect to attend?
– What venue size are you limited to, given your budget constraints?
– And how long do you want the event to last?
The more data points you have at hand, the better you can make an informed budget estimate. Also, remember that larger events require more labor and equipment – so factor those in as well.
Estimate Number of People
A rough guest count can also help you determine your target event budget. This can be gathered from:
– Previous similar events.
– Social media engagement and data analytics (if the event is well-known).
– Number of people who RSVPed for the event, etc.
Determine Event Decor
That’s right – how are you going to dress up your event? Is it a casual backyard barbecue, or will it be an elegant dinner party? What kind of décor are you planning on using?
These questions should give you an idea of what decorations are needed throughout the venue and what items need to be purchased in addition to renting out the space itself. Also, keep in mind that larger venues require more equipment since there is more area to cover.
Set Your Budget
Now that you’ve gathered all the data points needed to determine your event budget, it’s time to set your desired amount.
Don’t forget: If you’re planning on inviting international guests, make sure their gifts are in accordance with the local customs. Don’t go overboard when giving out invites (about 20%) because some people will be too busy or won’t even bother RSVPing.
How Much Does an Event Planner Cost?
Now that we’ve covered how much an event costs, let’s talk about who pays for it. Well, there’s good news and bad news here. The bad news is that most events are planned by professionals like event planners or wedding coordinators, both of which come with a price tag.
The good news is that you don’t necessarily need to pay for an event planner. There are ways to save by working with friends and family who have the time and willingness to help, typically called DIY (Do It Yourself).
However, these individuals must be skilled in specialties like photography, catering, events management, etc. Or else the result will probably end up something terrible. But if you want your event to be successful, you might not want to try the Do-It-Yourself approach after all!
Years of Experience
So how much does an event planner cost? This has more to do with their years of experience than anything else because it takes some time before they can hone their skills and gain the expertise required to succeed. Whether they’re handling a wedding or a corporate event, years of practice and experience will affect their price.
Type of Event
Of course, if you want an event planner that specializes in your industry, then there’s a higher likelihood that they’ll be able to help since it would require less learning on their part.
If you don’t care much about what industry they’re from, go for someone with the overall experience. This will give them enough exposure to different events and organizational structures, making them better suited to handle yours.
As mentioned above, if the person planning your event is experienced in the same industry as you are, then they’ll be more qualified to assist. This is because the planning process is different for each industry.
For example, some event planners are familiar with the needs of an advertising agency, while others are keener on technology companies. Whichever category you fall into will help determine who you hire.
Relationships with Vendors
To make sure your event goes off without a hitch, it’s best to hire someone who can work well with your vendors. This helps ensure that everyone is on the same page and there won’t be any miscommunication or misunderstandings along the way, which could have negative consequences.
So before hiring a planner, please take note of whether they’ve worked with your preferred vendors before.
The event planner you choose will also need to be available on the specified date for your event. Not only that, but they’ll have to be readily contactable as well, so you can ask them any questions or concerns throughout the process without losing too much time.
Most likely, you’ll have a significant role in planning your event as well, which means having someone who is both qualified and accessible is a must if you want everything to go smoothly.
Last but not least, don’t forget to check for references! This way, you know what other clients thought of their services, giving you an idea of how it might be like working with them.
If they already had a long list of satisfied clients, they probably did a good job, so chances are you’ll have a positive experience.
So, after all that, how much does an event planner cost? The answer depends on many factors, which can vary from one person to the next. If you want someone with more experience and industry knowledge, then there’s a good chance it will be more expensive.
However, if your event is smaller in scale and size, you might be able to get away with paying less for someone who doesn’t necessarily specialize in events but has some level of experience. In the end, it comes down to what you need from them and how much they’re willing to charge.