Before you begin making your budget, here are a couple of pieces of information to carefully consider.
First, you’ll need an idea of how many guests you should be expecting.
This can be a rough estimate until your RSVPs come back in and you know a more accurate count.
Be careful though, sometimes plans change and more (or less) guests can make it the day-of than RSVPed. Your professional party planner can help you account for this common issue, having additional resources on hand in case you need them.
Once you have a rough idea of your guest count, you can calculate the size venue you’ll need, how much food and beverages as well as seating, entertainment, and staff to manage the crowd. As a reminder, the timeline you allot to planning your event will also be a factor. Waiting until the last minute can be costly, so start well ahead of time.
Finally, you’ll need to consider:
- Some venues might require you to bring in lighting – make sure you check with the venue coordinator for more detailed information on what’s included and what’s not.
- Depending on the venue and the kind of things you’ll be including (alcohol, special entertainment, like hanging acrobats), you might need to secure specific permits. Make sure you include a line item to include the cost of permits if necessary.
- Make sure that the correct tax is factored into each line item cost, as well as the total cost. For Southern California, tax is higher than in some, less populated areas.
- Utilities like water and power can get expensive for some events. Make sure you over-estimate the cost for these resources, especially if you’re providing utility-heavy activities (water park, light show, etc.). An event planner will have specific details about the cost of utilities for specific event items. If you’re working with a professional, ask them for more detailed information.
The Step-by-Step Guide
For the purpose of this sample exercise, values are approximated.
Step 1: Open Microsoft Excel or Word (or any program that lets you create a chart with rows and columns). We recommend using Excel so that you can add values with ease.
Step 2: Begin by listing the categories of things you’ll need on the X axis, starting with Row 1:
Step 3: Add your essential event items in the A column. Carefully consider every single thing you will need to pay for. Include items even if you are not sure – it’s better to take note just in case something needs to be added later on. You can always remove items later:
Step 4: Add detailed descriptions of each line item, along with the amount needed for each. Make sure you have all known guests accounted for.
Note: Your budget may contain more or less categories, depending on your event needs.
Step 5: Add your estimated cost for each item. We recommend 10%-15% of emergency funding padding – you never know when you might have an extra guest (or 10)!
Calculate the total using the AutoSum function. For more tips on how to use Excel, including the AutoSum function, click here.
Congratulations! You’ve successfully learned how to budget for a corporate event. Even if your resources are limited, or you’re just not sure which items will end up in the final production of your event, completing a line item budget is a great way to see where your money goes so that you can plan accordingly to the best of your knowledge. It’s also a great tool to rely on for future events. Take the time to complete a budget, and prepare for event planning success.
Did this resource help? If you’re interested in working with an event planner who can handle managing event budgets without any hassle, contact one of our event planners today. Savvy budgeting starts with a solid foundation – we’re here to make sure you get it right the first time.
Share this post