Event Management - Lecture 6

Principal Of Event Management
Event Financial Management

Lecture: 6
Review of Last Lesson
• What are five Ps of marketing?
• Internet Marketing
• Event promotional material design and print
• Celebrity in the event
• Event promotional tools
Event Budget
What is Event Budget:
• The event budget is a projection (forecast) of the income and expenditure that the event
will incur based on plans made and information gathered.
• The preparation of a budget is an essential part of event management.
• The goal of budget management is to control event costs within the approved budget
How to develop:
• This is achieved by identifying and costing all probable expenditures and by totaling all
expected revenues (income). By comparing expenditures and revenues, it then becomes
possible to forecast the financial outcome of the event.
• It should be expected that there will be numerous adjustments and refinements to the
budget throughout the whole project life-cycle. It is not possible to know every cost from
the start.
Event Budget - Sample
Event Budget - Sample
Budget Management
Steps in Budget Development:
1. Defining and preparing the budget
2. Executing the budget
3. Controlling the budget
4. Updating the budget
Step 1: Defining the budget sources and prepare the budget
• Resources requirement and resource estimates quantity and costs
• Event activity costs estimation
• Historical information
• Market conditions
• Estimation of budget income
Budget Management
In GENERAL, all event costs can be divided into three categories:
1. Human Resources: permanent staff, hired for the duration of the event.
2. Equipment and material resources: all tools needed for the event, from water
pumps to electrical generators, vehicles, office equipment, internet office space,
food and etc.
3. Other cost: cost of venue, marketing, special arrangements for events,
Step 2: Executing the budget: event expenses are being executed according to the
budget plan.
Budget Management
Step 3: Controlling the budget
Fraud could occur, if an employee had authority to make purchases, to record and
physically handle the goods, and to pay the bills. All purchases must be:
• Every purchase should be approved and usually a requisition form is used for this
purpose,
• Once goods are ordered or services provided check must be made that they meet
specifications before the bills are paid.
• Payment is approved.
• Incoming revenue is checked
• Revenue total are recorded correctly
• Debts are met
• Taxation requirements are met.
Budget Management
Step 4: Updating the budget
• Record all invoices that have been paid to date. The event manager needs to track
actual expenditures and all monetary commitments made to vendors or
consultants in the form of contracts or purchase orders.
• Compare the actual expenses with the estimated costs and find the variances.
• Enter all incomes into the system to calculate the total event income
• Compare the event actual income with the estimated income
Break Even Analysis
What is Break Event Point?
• The point where the costs incurred in an event will be equal to the revenues
earned from the event. In other words, it is the point at which the company neither
makes a profit nor suffers a loss.
Calculation of Break Event Point:
Total revenue: event total income
Fixed costs: all fixed costs required for an event
Variable costs: all variable costs required for an event
Total costs: fixed costs + variable costs + other possible costs
Break even point = Total revenue – total costs = 0
Break Event Point
Cash Flow for an Event
• Cash flow is the movement of money in and out of a company. Cash received
signifies inflows, and cash spent signifies outflows.
• An event team may spent a year planning an event during which period cost
will be incurred, all of which have to be paid long before there is an
opportunity to collect money. After having spent a year planning it is possible
that ticket will be sold at the venue and that all revenue will be collected on the
one day. This outcome is in contrast to an everyday business in which there is a
more even cash flow.
• Monthly expenses and projected revenue need to be entered into a spreadsheet
to establish Cash Flow Statement can best be managed.
Cash Flow Statement - Sample
Project Group List
• Group 1: Mahbubullah, Ahmad Shekib, Asad Ali, Ahmad Ferdows
• Group 2: Angila, Madina, Pari, Pairsa, Maryam, Basira
• Group 3: Khatira, Nargis, Farkhunda, Wranga, Zohra
• Group 4: Sohrab, Massoud, Mohammad Khalis, Ahmad Wali
• Group 5: Shahir, Saboor, Sayed Hussain, Samim, Basit
• Group 6: Mustafa Sultani, Mustafa, Khairulluh, Zamir
• Group 7: Abdullah, Mujiburhman, Naqibullah, Ali Mohammad,
Course Project – 10% of total marks
• Make a group of five students - Choose an event
• And writ your event report:
• Name of the event
• Category of the event
• Goal of the event
• Objectives of the event
• Event team making/ event committee (explain the team members’ names, positions, tasks/ responsibilities)
• Describe your orientation training for the event team members
• How you invent/ made the event idea
• Feasibility test your idea
• Feasibility test your event
• Event emergencies
• Event participants (explain which category of people are going to attend your event and their estimated number)
• Description of the event activities: describe each activity in details)
• Develop the event operational plan
• Cost and Calculate the event expenses
• Event income (only if there is any)
• Event sponsorship (explain how do you find your event sponsor)
• Others: as we study new topics please include them too

Event Management - Lecture 6

Uploaded by

Copyright:

Available Formats

Event Management - Lecture 6

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Event Management - Lecture 6

Uploaded by

Copyright:

Available Formats

Principal Of Event Management

Event Financial Management

You might also like