Budgeting for a Corporate Event
Once you receive the lump sum of money that you have been allotted to spend, it’s time to budget. What’s a budget, you ask? Well, you cannot spend all of that money for the event on a great venue! Having a distinct plan will help you stay organized and keep you from going over budget. The best tool that will keep you organized is a basic spreadsheet. However, don’t be afraid of a spreadsheet!! We have created a great guide to help you!
To begin your Excel spreadsheet, create several main headings. These headings should include: expenses, quantity, projected amount, actual amount, and total. The photo below will give you a a better example of what we mean by headings.
Next, lets focus on the ‘Expenses’ heading in particular. The expenses heading should be broken down into distinct categories and subcategories. Reference the example below.
Looking at the above example gives you a better idea of how to group your large expenses and break them into smaller, individual expenses. Taking detailed notes of all of your event necessities will not only help with planning, but also, will help with spending.
Once you develop categories that reference all of your expenses, begin researching! You need to investigate approximate costs for every item that you have under expenses. When finding a price that you are comfortable spending for a particular item, list the price within the ‘projected amount’ column.
Furthermore, total your researched estimates. The total provides a target area of whether you are around budget. But don’t just total everything as a whole! Also, total each category. This way you know where your money is going and can make changes in particular areas.
Remember this total has been estimated! With knowledge of the potential cost, you can modify your budget by eliminating or adding items.
Some unplanned expenses will come about throughout your planning. It’s important that you leave room for those unexpected expenses in each category of your list. A great happy medium is to estimate at least 10% above your estimated amount.
A comfortable projected cost lets you begin planning your event! Now you have an idea of how your money will be spent. However, continue to maintain your actual expenses and fill in the ‘Actual Amount’ column. Track your actual expenses as you go. This will give you a good idea of how the budget is being utilized.
“A penny saved is worth two pennies earned…after taxes.” – Randy Thurman