When you’re dealing with your personal budget, you only answer to yourself. But when you’re budgeting for an event, your decisions must hold up to a committee, school administrators, event managers, or others who have a stake in how the event goes. You’ll want your budget to be watertight, so you and everyone else knows exactly what you’re spending and why you’re doing it.
Consider Your Goals and Priorities
There are lots of reasons to throw an event. You may be celebrating a milestone, anniversary, or season. Or, raising money or awareness for a cause. Establish your goal early on so that you can make sure every decision you make is pushing you toward that goal.
You’ll also want to outline your budget priorities. You likely won’t be able to afford everything you want for your event, so what is most important? Are you willing to sacrifice on decor if the food is amazing? Or would you prefer to spend money on a fun activity at the cost of inviting fewer guests to attend? There are no right or wrong answers, but outlining your priorities before you dive into planning can help you focus spending on what’s most important.
Identify Your Starting Budget
Start by setting a base budget. This may be the budget your parents, school advisors, boss, or other leadership has given you – or one you determine yourself. If you’re not sure what your budget should be, research the typical cost for the type of event and use that as a baseline. Once you have an idea of where you’re starting, you can make decisions accordingly.
Set Aside Your Contingency Funds
Before you start dreaming of decorations, ballrooms, or balloons, take at least 10-15% of your budget and set it aside for contingencies. For example, maybe the food truck you hired breaks down on their way to you, or you learn last-minute that your guest speaker requires specific materials for their presentation. Make sure you have enough left over in your budget to handle the last-second and unexpected costs that are bound to come up.
Break Your Expenses into Categories
Rather than looking at everything you need to buy as one big pile, break expenses into categories and allocate your budget to those categories. Research and create an estimated total cost using realistic options in your area, and don’t forget to keep your priorities in mind!
Consider the Venue When Budgeting For an Event
Your venue will likely take the biggest portion of your budget. Estimate anywhere from 20% to 50%. Of course, it depends on what kind of venue you’re using and what that venue includes. If it’s just a bare room, it should be on the lower end. If the venue includes tables, chairs, staff, technology, and even catering, then it will likely be much higher.
Deciding on a venue also has a ripple effect for other decisions.
- If the venue is already beautifully decorated, you’ll need to purchase fewer additions.
- If the venue includes food, you won’t have to worry about that expense.
- The size of your venue determines the number of people who can attend. Be sure to consider not just standing space, but displays or booths, tables and chairs, a dance floor, or room for other specific activities.
If your budget is really tight, consider looking for a free or cheap venue that you can decorate to suit your needs. A school dance can still be a big success in the gym, and a birthday party can be just as fun in your living room.
Decor & Equipment
Consider your equipment necessities, particularly if your venue is an empty room. Will you need tables and chairs? Audio/visual or other equipment? If you’re looking to trim, consider whether you can get the same effect with equipment you already have. For example: can you use your TV’s speakers for music or the school’s chairs for seating?
Next, think about decorations. Ask yourself these questions:
- Does your theme or venue require large decor pieces or significant alterations?
- Will you customize any decor with certain logos or colors, or can it all be generic?
- Does your venue limit the type of decorations you can bring in or where you can put them? You wouldn’t want to buy a bunch of things that you won’t actually be allowed to use.
- Can you rent decor items, or will you need to purchase them?
Food
Your second-largest expense will likely surround food. If you’re providing a full dinner for every attendee, it will cost more than if you’re simply providing snacks or drinks. As you think about food, don’t forget to include a place for eating and serving, people to serve the food and clean it up, and all the essentials – placemats, linens, silverware, plates, cups, and more! Some caterers will include these items in their services, but some won’t! It’s important to make sure you know exactly what you’ll need to supply yourself.
Entertainment
What do you plan to do at your event? Will there be a DJ, band, performer, or other entertainment, or will guests entertain themselves by talking to one another? Choices for entertainment vary widely, and each comes with its own price tag.
Other Expenses
There are plenty of other expenses that may apply to your event, including tickets, invitations, and marketing costs, just to name a few. Are you providing favors or other gifts as thank you for those in attendance? Think about how people will hear about the event, how they’ll get there, where they’ll park, and more. Many of those items come with extra costs, and you’ll need to account for them.
Consider Your Estimates
Now that you have estimates for your event budget, it’s time to add the numbers up and see if they are realistic. Have you surpassed your initial budget, or do you still have wiggle room for changes?
If you’ve planned for too much spending, you have two options: increase your budget, or lower your expenses. If you want to increase your budget, you may need to get approval for more. If that isn’t an option, consider fundraising or raising ticket prices to get more money. If you go the route of lowering your expenses, think back on your goals and priorities. While you may love the original plan, think about what you actually need to reach those goals, not just what you want.
Income Sources
It can be overwhelming as you see your expenses build in preparation for your event. Don’t worry, there are things that can help you cover those expenses. Some events will come with built-in or relatively easy-to-access income sources that can help you fund your event. For example, you may be able to sell tickets or find sponsors who will help cover the costs of the event. Another option is adding a fundraiser. This could mean raffling or auctioning off prizes that members of the community bid on.
Some things you could consider offering as raffle prizes or auctioning off include:
- Sports tickets
- Gift baskets
- Tickets to the event
- Baked goods
- Custom t-shirts or other merchandise
Start Making Purchases, Track Your Spending, and Adjust
You can create the best plan in the world and still face unexpected issues that throw a wrench in it. Ideally, your contingency funds will cover the cost of any changes but, if not, you’ll need to be flexible.
As you make purchases, track each one and keep a running tally of where you are in relation to your plan. If you’re spending more than expected, stop and reevaluate before things go too far. And, of course, don’t forget to save your budgeting decisions, vendor contacts, and attendee lists for future events. You never know when you may need to host a similar event again in the future!
Budgeting for an event requires a lot of careful planning and consideration. But, once you’ve got the hang of it, you’ll be set for success.