Event Budget

&
Timeline
MPU1092U4
CO-CURRICULUM
The Event Budget and
Timeline
An event manager works with two very important resources – money
and time.
The Event Budget
The Event Budget
• A budget is a numeric form that puts the event plan into action.

• The Event Manager has to learn how to put the Event Budget together
by understanding the various budgetary items and how to account for
revenues, expense and profit.
• A checklist for budget monitoring is also recommended.
The Event Budget
• A budget stems from funds that have been earmarked for the event or
simply how much the organiser intends to spend for an event.
• An understanding of the event objectives can also impact the budget.

• The event budget should be based on:

• How much was spent on previous or similar events
• Marketing projections (if any)
• Expected return on investment (if any)
• Type of financing used for the event
The Event Budget
• The budget has three (3) basic parts:
• Revenue – refers to the earnings from the event (money that comes in)
• Expenses – refers to payments made for goods and services used for the event
(money that goes out)
• Profit – represents a surplus, or what is left from the revenue after all the expenses
have been paid.

Revenue – Expense = Profit (Loss)

Understanding Event Expenses
• While going through the event plan, identify the expense in each
element of the plan.
• Then list all probable expenses and seek a good estimate for them.
• Expenses can be classified into:
• Fixed Costs – includes expenses incurred in the staging and management of an
event that are not likely to change as the number of attendees increases or
decreases.
• Variable Costs – includes expenses that vary depending on how many people
attend the event.

(Variable Cost per participant x the number of participants) + Fixed Costs = Total Cost
of Production
Sources of Revenue
• Events intended for profit or break-even events may consider the
following sources of revenue:
• Ticket sales or admission fees
• Registration Fees
• Donations
• Exhibit or exposition booth rental fees
• Collection from participants
• Sponsor from potential companies
• Contribution from university
• Sponsors from VIP
• Generated from activities/fundraising activity
Identifying Possible Sponsors
• Select sponsors whose products or brand image matches that of the
event.
• Check your network – among the people you know, who could help
you?
Benefits
• Media Mileage
• Inclusion in event merchandising materials
• Website ads
• On-premise merchandising during the event
• Promotional activities during the event
• Product/brand mentions or acknowledgements
• Access to participant’s information
• Competitive lock-out
Drafting the Event Budget
Determine the budget for your event, keeping in mind its financial
objectives

What you have vs. Costs

The Event
Timeline
The Event Timeline
• Time is one other resource that the Event Team has to make optimum use of.

• Always be conscious of how much time you have to plan and implement your
plan before the day of the event.
• Determine the activities that must be completed before the actual event, the
chronological sequence of these activities, and how much time is needed to
complete each task.
• The next step is to organize the work and allocate time for each, keeping in
mind the time available to plan the event.
• The timeline identifies what activities must be completed by a certain date.
Use this to check the team’s progress in putting the event together.
Exercise
A. Supposing you are organising an event, the following are the
calculated costs:
• Honorarium for Speaker = RM600 – Fixed costs
• Venue Rental = RM300 – Fixed costs
• Souvenir Items = RM20 per pax – Variable costs
• Food & Beverage = RM10 per pax – Variable costs
• Number of participants = 200

• How much should the event budget be? (Show the calculation)

• From the list above, do you think there is any other costs to pay?
• Setup cost – Fixed costs
• Cleaning cost – Fixed costs
• Deposit for venue rental – Fixed costs
• Decoration cost – Fixed costs
• Payment for staff labour – Fixed costs
• Travel expenses – Depends on situation
• Meal and accommodation – Variable costs
• Logistics cost – Depends on situation
• Emergency funds – Fixed costs
• Cost of extending the events – Depends on situation
• Event staff / Waiters – Depends on situation
 Items Total (RM)
• Honorarium for 600
Speaker
• Venue Rental 300
• Souvenir Items RM20 per pax x 200 4,000
RM10 per pax x 200 2,000
• Food & Beverage 6,900