Don’t let your budget run away from you!
Let’s face it…..budgets are time consuming, repetitive and dull. They are not exactly the most exciting aspect of planning an event and none of us looks forward to doing it…..but if you do, please come and do mine!
They are, however, arguably the most important aspect throughout the planning process. They can make or break the event. The budget acts as a forecast of the event finances. It shows where you stand financially at any time during the planning process and allows you to make decisions during this. Budgets also provide you with the control and accountability of all event revenue / expenses. Most importantly, whether or not your budget was successful will have an impact on whether the client holds the event again!
Throughout the whole budgeting process you need to have one word constantly buzzing round…contingency! The golden rule is 10% on top of everything. Finding out you have gone above budget after an event will never result in a happy client!
Don’t forget – remember to…..
- Overestimate expenditure and underestimate income
- Never take a verbal quote
- Negotiation! You don’t know if you don’t ask. Could save money to be used else where.
- Keep updating your budget. Date and number the changes made.
- As invoices come in, make sure nothing is paid until they are reviewed.
- Review each supplier’s payment terms as you do not want them to pull out due to missing a payment deadline.
- Always send your client the latest budget and get confirmation they have read it.
- Highlight to your team how much they have to spend
- Ensure you have enough guarantee/spend on your credit card
- Do you need a float / cash on site?
- Have a safe place for all receipts/ any invoices received on site
- Remember travel costs, and accommodation for delegates / suppliers / staff.
- Cost in delivery charges, always clarify delivery details
- Administration costs! The little things add up.
- Check everything, and then check again. Human error is a common mistake.
- Lack of research into suppliers can increase expenditure when unnecessary
- Negotiate a contract with a small upfront deposit and payment after the event. Suppliers may let you down so never pay full upfront. Obtain a full description of the product or service, and the quantities required.
- Consider imposing penalties if the product or service delivered is not as described or agreed to.
- Remember to calculate for taxes or any extra charges. Be aware of hidden costs.
Maximillion organises indoor team building events in Edinburgh, Scotland and across the UK. If you would like additional information, please call us on 0845 901 1422 or complete an on-line enquiry form. To be notified of any new team building activities, please sign up to the Maximillion newsletter.