Larger companies know how to budget their events more effectively. They usually get their budgets from previous events or will allocate a specific budget to produce the event. But let\u2019s face it\u2014sometimes, you may not know how much to budget for the event, and neither will the client. Here are some of the most common mistakes clients and corporate event planners make when creating a budget.<\/p>\n
1. Ignoring the Goals of the Event When setting the budget, be realistic and flexible. Event goals come first; the budget follows. <\/a><\/span>Click To Tweet<\/a><\/span><\/strong><\/p>\n 2. Trying to \u201cGuesstimate\u201d the Budget<\/strong><\/p>\n You may do a quick Google search for \u201ccost of typical awards dinner<\/a><\/strong>\u201d and go from there. This\u00a0is (really) not a good idea. Vendors\u2019 prices change almost daily, and no two budgets are created equal.<\/p>\n 3. Not Involving Everyone in the Budget Preparation. <\/strong><\/p>\n If there is someone besides your main contact at the client\u2019s company who wants a say (like the CFO or other executive), make sure those individuals are involved from the very beginning. Decisions made without the full picture or scope can lead to missed details or overlapping ideas which lead to confusion.<\/p>\n 4. Being Overly Optimistic About\u00a0Attendance or Demand <\/strong><\/p>\n This often leads to budgeting for too much food and too large a venue. Sit down with your clients and ask them to think through the guest list with precision. \u00a0More guest list tips here<\/a><\/p>\n 5. Overlooking Ancillary Costs<\/strong><\/p>\n Let’s face it, they\u00a0can really add up.\u00a0Always consider safety or security measures at the corporate event\u00a0and\u00a0even the cost of sales tax on items.<\/p>\n 6. Purchasing\u00a0Items Without\u00a0Prior Approval <\/strong><\/p>\n Are you sure your client will approve of the items your purchasing? Nobody likes unwanted surprises, especially when it comes to budgets. It’s also\u00a0costly when corporate event planners\u00a0forget to collect\u00a0receipts or invoices, so the money is unchecked with no paper trail. These are the wrong records to misplace or completely fail to collect in the first place.<\/p>\n I suggest you create a detailed list of all the items (food, beverage, entertainment, rentals, etc.) that you would like to have, and collect those costs by gathering bids. Add all of those items up, and then meet with your client to determine if you and the client can live with that number. If the client can\u2019t live with that amount, separate the need-to-have items from the nice-to-have items, and work from there. You are better off having a few nice things than many cheap things. Most of your budgetary requirements will present themselves during the pre-planning phase of the process.<\/p>\n Tell us in the comments below, what are other budget errors that corporate event planners need to avoid?<\/p>\n Learn how to avoid many event planning mistakes with a free digital copy of GOING LIVE: Insider Secrets To Corporate Event Production<\/a><\/p>\nHave you spent countless hours searching for an online corporate event planning course to help you learn the intricacies of planning a successful event?<\/h4>\n
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