Financial Planning and Budgeting of Events

The importance of financial management and resource allocation for events cannot be understated. Events are an important part of cities’, regions’ and countries’ cultural make-up and represent more than simply entertainment for interested consumers. Given this importance it is imperative that their ability to operate on a regular and ongoing basis is supported by a strong financial awareness of their management teams. How will we price the event to ensure that our objectives are met? How can we ensure that the management team and staff stay on-time and on-budget? How can we determine if we are generating enough revenue from our event to cover costs, and how important is our cash-on-hand for our immediate survival. This chapter aims to provide event managers with a clear understanding of these finance-related questions. The topics presented in this chapter build on, and extend the scope of the concepts discussed in the previous chapter. More emphasis will be on the numerical aspects as illustrated in the examples used throughout this chapter.