The goals and objectives of the meeting have been set. The timeline has been agreed upon. The next major task is to develop the event budget. The budget will form the framework within which your decision making will be contained. It will need to include all fixed and variable costs and must be managed closely over the life of the event.

Developing a budget does take a lot of work and will not be finished in one session. The budget is something that you need to keep checking and updating as you develop your event, to make sure there are no hidden or post-event surprises.

What Should You Include?

Making a list of every anticipated cost (and revenue item) is essential when developing a budget. Look at all aspects of your meeting from the time the delegates leave home until they arrive back on their own doorstep. Think of everything in-between such as transport, accommodation, the venue, audio visual, catering, gifts and handouts, presenters, speakers and entertainers. Divide the list into fixed and variable costs, with a separate section for revenue channels (for example, if you are charging an entry fee.)

Getting the Best Price

Once you have a list you can add estimated costs for each item. To achieve the best results for your budget, items with high dollar value should be sent to several suppliers to be quoted on - don’t be afraid to use your negotiation skills!  When you receive a quote make sure the supplier has included every possible cost, it is much easier to take something out of a budget then to add it in. You don’t want any nasty surprises.

Making Money from Your Event

Once you know the sum total of your expenses it is time to look at your revenue streams. Depending on what your financial objectives are for the meeting, you may need to look at making money from registration fees, sponsorships, tickets sales or in kind donations. If you are organising an internal meeting and have been given a budget allocation, you won’t need to focus on the revenue side of the budget.

Different Kinds of Costs

It is important to know what costs are fixed and what are variable, especially if the aim is to make a profit from the event for event organizer. Fixed costs will stay the same regardless of how many people attend the meeting, while variable costs will change with the number of delegates. You will need to find the 'break-even' point to calculate what the registration fee or ticket price should be for your meeting.

The Final Word

If possible use a spreadsheet to list all your budget items and costs. This will make changing and updating the budget much easier.

After each conversation with a supplier, make sure you update the budget.  It is easy to lose sight of the budget when in the midst of organising presenters, entertainers and catering.