by AngelaCharles

Created on: June 30, 2009

How to create a basic event budget

For many people, just the word budget makes them cringe, but a budget is critical in planning any event. Creating a budget doesn't have to be as cumbersome as many think. By following these simple steps, it can be as simple as 1, 2, 3.

Using the basic, who, what, when, where and why strategy, write down the purpose of your event. For instance, in my event, BGC (who) is hosting a Haunted Trail (what) on Halloween (when) at the Lunda Park (where) as a public awareness and fundraising event (why). Many people dismiss the why, but in budget planning this is vital. Determining whether your event is to promote your business or organization, if it is to raise monies or to provide a service to your community will help you decide how much money you will be spending. It can be more then one, but clearly prioritizing your reasoning for your event is necessary in clearly determining your budget. The priorities in my event go as follows: To promote BGC To raise funds To provide youth, ages 11+ a safe and recreational activity on Halloween

Next, write up the expense portion of your budget. Using a simple format that includes the basic staples of your event such as food, beverages, advertising, entertainment, rental of facilities, etc. determine an approximate budget for your event. You can create a simple budget using an excel spreadsheet. Remember, this is just an estimate of what you think you may spend. You won't have the exact dollar amounts until after the event is finalized. I have found that it is best to budget high to insure that you have enough funds allocated for your event.

Finally, write up the income portion of your budget. If your event involves ticket sales, attendance fees, or any other income line you will need to calculate approximately what your income will be. Include these amounts in your expense budget. This will help you determine if your event has the potential to be profitable. Many ideas start out wonderfully, but once you put them down on paper it is easy to see that the event will cost too much. If your event is a fundraiser, obviously the income should exceed the expenses. If it is more of a public relations event then it is possible your expenses will exceed your budget.

As your event planning develops you will see what an important piece of the puzzle your budget is. It will give you clear guidelines on how much money you can spend on your event and how much money you could potentially profit.

After your event is final, be sure to assess how your actual income and expenses measured up to your budget. This is especially important if you plan on repeating your event each year.

Using these steps you will find that budgeting doesn't have to be as difficult as you thought. It truly can be as easy as 1, 2, 3.

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