When I began my career in event planning 23 years ago, managing budgets seemed a little overwhelming. It was never really covered in any of the event management classes I took and despite being one of the most important aspects of producing a successful event, budgeting seemed to be a bit of an industry secret.
More than 20 years later, I can tell you that building and managing an event budget is still one of the biggest parts of my job as a Calgary event planner. Many event expenses have increased in the past few years. At the same time, clients expect more from their events.
So how do you build a realistic corporate event budget?
Start With the Big Picture
Event budgets are fluid. We usually start with big-picture ideas that evolve as we move through the planning process. Not everything we initially explore makes it into the final event, and new priorities inevitably emerge.
I typically start with these key categories:
- Venue
- Food & Beverage
- Entertainment
- Décor,
- AV & Production
- Staffing | Risk Management
- Photography
- Registration & Technology
- Signage & Design
- Transportation
- Event Management Fees
- Contingency (this is often missed by many)
From there, we dig into the details.
A venue quote, for example, may not include security, cleaning, SOCAN, internet, power, equipment rentals or minimum spends. Entertainment can come with flights, hotels, transportation, per diems, technical requirements and artist riders.The initial quote is rarely the whole story.
Reality Check: Everything Costs More
Lately everything costs more year after year so don’t assume last year’s costs will carry over. We’ve seen substantial increases across virtually every category, from catering and venues to labour, rentals and technical production. This includes working with long time suppliers and partners. As someone who has produced events in both Calgary and Toronto, I can attest that production costs in Toronto are more than double
That doesn’t mean you can’t produce an incredible event. It means having realistic conversations about budget, priorities and expectations with your key stakeholders is very important. When building your budget its’s about knowing where to spend to maximize your attendees experience. We wrote this blog last year on creating memorable touches at your corporate holiday event on a budget.
Budgets Should be Fluid
Events are built on change and budgets should be fluid.
Guest counts increase. Your committee fell in love with a more expensive menu than you had budgeted for. Your boss wants a certain entertainer, or a host bar is how your company wants to show their appreciation (this is nearly impossible to estimate).
Something almost always changes. Building contingency into the budget gives us room to deal with the unexpected without creating an unpleasant surprise. And know that if you have an unexpected expense you may need to cut something to accommodate. You may have a hard bottom line but how you spend will likely change from when you build your first draft.
Know Which Costs Are Variable
Some event expenses simply can’t be confirmed until the event is over. Beverage consumption is a perfect example. Staffing hours, transportation (is everyone getting a taxi chit or an uber) overtime and last-minute event additions can also change. These should be clearly identified in the budget, so everyone understands what is confirmed and what remains an estimate. And don’t forget about taxes, service charges and gratuities.
A $100 menu price doesn’t necessarily cost $100. When you’re feeding 500 people, those additional percentages can have a significant impact.
When in Doubt Do Simple Math
Guest count drives a huge portion of your budget. Food, beverages, tables, chairs, linens, staffing, transportation, registration and even venue size can change as your numbers grow.
One of my favourite early reality checks is still incredibly simple:
Divide your total event budget by your number of guests.
A $50,000 budget for 500 guests gives you $100 per person.
Now consider that the $100 may need to cover the venue, food, beverages, entertainment, décor, AV, staffing, photography, signage, registration and event management.
Suddenly, $100 doesn’t seem like very much (and trust me for 500 guests it’s not).
It’s not a perfect budgeting tool, but it’s a great way to quickly determine whether expectations and budget are in the same ballpark.
Budget Is Really About Priorities
For one event, the goal might be to show appreciation and make employees feel valued. For another, it could be to celebrate an important milestone, recognize achievements or strengthen relationships with clients. A conference may be focused on education, connection and creating meaningful opportunities for attendees to engage with one another.
Once you understand what you want your guests to feel, experience or take away from the event, it becomes much easier to decide where your budget will have the greatest impact.
After more than two decades of producing events, this is probably the biggest lesson I’ve learned. There is no magic budget number. What matters is understanding your event objectives.
We’re happy to you determine why you’re spending it — and where those dollars will make the biggest impact. Because a great event isn’t about spending the most money. It’s about spending it in the right places.
Planning a corporate event in Calgary? Contact us at [email protected] to start the conversation.