Learn How to Make a Budget for an Event: Tips and Tricks Included

Money. From ideation to execution, all steps of event planning require money. How to make a budget for an event sits at the core of event planning.

However, there’s no perfect recipe for it. Budget planning for events is something you learn as you go.

Years of event planning experience bring you the kind of budgeting lessons you actually need.
It is influenced by your contacts, your area of practice, and also some mishaps.

We have collected the experiences of many to come up with a budget guideline to help you kickstart your budget.

A. Step-by-step guide on how to make a budget an event

1. Know your event

You won’t know what your expenses will be if you don’t know what your event is asking for. Have long conversations with your client to know each and every detail. Jot down everything they want to include in the event.

2. Don’t skip research if you’re a newcomer

Your client is not an event planner. You’ll need to figure out some costs that don’t come up naturally in conversations. Things like transportation and electricity costs are often missed.

So, if you’ve just started out, attend similar events and talk to event planners who’ve organized such events. Research the event type well so you don’t miss a thing while including expense items in the budget.

3. List everything you need

Now that you’ve researched so much and know most of the expense items, start categorizing them. Some broad categories can be Food, Sponsorships, Logistics, Staff, Rentals, and Marketing. You can find the full breakdown of the categories in section B.

4. Delegate tasks

Event planning is not a one-man job. You need as many hands-on board as possible. This is where categorization will help. It helps you delegate each category to your event planning team. This will increase your efficiency manifold.

5. Contact vendors

Now that you have a list of items, start reaching out to vendors and ask for quotations. You don’t have to seal the deal just yet. But use this chance to learn more about current market prices. Try to ask for referrals too for reliable sources.

6. Time for sponsorships

If you’re not using event sponsorships as a revenue source, you’re really missing out. It’s a misconception that only large-scale franchised events can call for sponsorships.

There are many local, small, and homegrown brands that actively look for visibility. For example, you can have a local alcohol or drink brand at a wedding.

Get inspired by this sponsorship strategy followed by a food fest to get some inspiration:

Send out lucrative sponsorship letters to prospective brands. Make sure you mention everything that you have to offer.

Be open to having some companies that offer your sponsorship in cash, kind, or a mix of both.

7. How to make a budget spreadsheet for an event

When you’re creating your budget spreadsheet, you will need three columns. The projected budget column should contain amounts that you think it’ll cost and can afford.

The real budget should include the amounts that you agreed upon with your vendors.

Then, add your profit margin and discuss it with your clients.

8. Create a timeline and strategy

Your budget should not lack strategy. You need a clear plan of when, where, and how you’ll be making all the purchases. Create a timeline of when the expenses need to be paid with deadlines and installments.

9. Keep updating the budget sheet

Do not treat your budget as a static sheet. It should keep evolving throughout the event. You need to look out for cost-cutting opportunities and also leave room for extra spending. Keep logging all the expenses you make to avoid exceeding your projected budget.

Now that you have a clear plan, let’s move on to exploring the key categories that every event budget needs.

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B. How to create categories when you make a budget for an event

1. Venue

This will include the following:

• Venue space and rent

• Charges for parking space (if applicable)

• Services provided by the venue

• Decoration

2. Food

This will include the menu items, caterer’s fee, cutlery, and servers if required.

3. Electronics

This is a broad category including all electronics at the venue: fan, AC, and lights. It could also include decorative items that run on electricity or any equipment needed to cook or keep food hot.

Don’t forget the stage setup with all the screens, mics, and A/V systems.

4. Security system and personnel

You’ll need to pay for all the security guards, cameras, alarms, x-ray machines, batons, etc.

5. Staff

You need to take into account each person who will be getting wages from you. From management employees to sweepers, make a list of everyone and add their wages to the budget.

6. Marketing for the event

You will need to spend on banners, social media marketing, event listing, and tickets. This step is necessary to get a good turnout these days.

7. Travel and accommodation (if applicable)

If you have guests or vendors traveling, include their travel or airfare in the budget. You will also have to accommodate them, so look for affordable and convenient hotels. Include the entire cost of hosting them in the event budget.

8. Event planning technology

You can reduce recurring expenses a lot by investing in event technology. This could be as simple as having a screen to put up event posters instead of traditional flex banners. 

Another leading event technology in the market is the Ticket Generator. It can automate the entire ticketing process in a safe manner. You won’t have to invest in an additional ticket scanner. You can simply scan using your smartphone.

9. Legal expenses

You need a lot of licenses and permits for an event. While you can do most of it yourself when you have ample experience, you may still need legal help. Some licenses and permits also cost big, so enquire about their prices and add them to the budget.

10. Health services

If you’re hosting large-scale events, just having a first aid box won’t cut it. Invest in healthcare professionals and an ambulance on-site. There are many agencies that provide such help to events.

11. Event insurance

Don’t forget to invest in insurance. Things can go wrong fast in events, and this might save you from bankruptcy!

12. Special guests

Do you have performers, celebrities, or any kind of entertainers at your event? Then know their charges from their agency.

13. Furniture

When you know the number of guests, get an estimate of the tables and chairs needed. See if any extra furniture is required for your type of event. For example, engagement events may call for a designer couch for the couple as well.

14. Transportation

You’ll have to include the cost of transporting equipment and even people at times. Include the fuel or transport costs for that.

15. Customized items

If your clients have special requests for designer banners or decor, include a total cost for them too.

16. Your time

For the budget you’re going to present to your client, don’t skip your own charges. Your time, efforts, and expertise should also come at a cost.

With these categories in place, let’s explore how to handle obstacles that might disrupt your budget.

C. How to overcome hurdles when you make a budget for an event

1. Plan B

We suggest you never plan an event without a Plan B. If things don’t go as planned, you must have enough money in your budget for alternate actions. 

We recommend saving 15-30% of your total budget as a contingency. Whatever isn’t spent gets added to your profit or refunded to the client.

2. Reduce staff wherever possible

A lot of experiences state that a smaller team is more efficient. When everyone is on their toes, things get done faster. When too many people get the same job, they often hope the other person does it first. This is the bystander effect in group psychology. Here, everyone hopes someone else will do it, and nothing gets done.

So, strike a balance to avoid being understaffed or overstaffed. You’ll save money and get a lot done quicker.

3. Have flexible vendors

Your clients will love you if you’re a flexible event planner. But you must also find flexible vendors who can deal with last-minute changes. This includes last-minute date changes, mishaps, and shortages.

4. Invest in Advertisement

There’s no point in spending big on an event if nobody attends. With so many options vying for people’s attention, you need to make your event rise above the noise. 

Start by shaping a clear marketing strategy—one that outlines your goals, target audience, and key promotional channels. Then, craft compelling messages that speak to your attendees’ interests. 

Be consistent and creative in your outreach, whether online or offline, and track your results to see what works best. Smart spending on ads and publicity can make all the difference between empty seats and a packed house.

5. Use technology to make your life easier

Did you know you can get a lot of quick fixes using AI tools these days? It’s like Feviquick but for event planning. They can help you with a last-minute search for hotels within your budget or even offer ideas for boosting attendance as your event draws near. 

The possibilities with AI are endless. Explore different AI tools that can simplify your event planning tasks and keep your process smooth.

Once you’re set to tackle these hurdles, you’ll want to secure proper payment. Let’s find out how.

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D. How to get paid?

In a context like India, it’s tough to get full payment upfront. To deal with this, you need to take the legal route and draft a solid contract. You can take 70% of the payment 3-4 months before the event and the rest 2-3 weeks before the event. 

Have a clause for late fees, and try to minimize your burdens of unforeseen situations in your contract. Sadly, a promise or word of mouth is not enough in this industry. You need the papers, so invest in a good lawyer and CA.

E. Conclusion

Now, you know how to make a budget for an event, and you also have lots of tips on the same. But, we’d still like to say that no two events are the same, even if you host the same event every year. 

New costs and challenges will come up each time, and you will have to make room for them in your budget. You will also need to keep up with the event trends so you’re not caught by surprise each year.

Visit Ticket Generator to handle all your event ticketing needs. It's a one-stop solution designed to simplify online event ticketing and help you manage your tickets with ease.