Planning is the key to avoiding mistakes that can blow your budget. But if you avoid these common errors, you will be able to produce an event you will love at a price you and your clients can afford.
Anyone who has ever managed an event where the financial objective is to break even at a minimum, understands that there are hundreds of critical decisions that are made along the way that will determine the financial outcomes and the potential ROI for those hosting the event.
Event managers working with corporate, government or association clients have common issues that can push budgets into the red and many of these issues come down to a culmination of decisions that add to their bottom-line price.
To prevent those in our industry from getting caught out along the event management process, we have enlisted the help of our award-winning team of event management experts to advise on the pitfalls to avoid. Together, we have collated the following list of eight budget blowers. Avoiding these challenges during the lifespan of the event will save you and your clientele money.
1. Not allowing for contingency funds.
Realistic budget planning is critical. Not factoring in a contingency amount into the event budget can drain funds if unexpected issues come up, which seasoned event planners will say – they commonly do! Typically an event budget may include: venue booking fees, payments to speakers, entertainment and other 3rd parties, printing costs for marketing collateral, running orders and other paper elements, additional equipment such as AV, projectors and staging sets, decorative and theming elements for example, table decorations, promotional and marketing costs, catering, event insurance and event technology.
Experienced event managers will determine the size and scale of the event and allow a contingency expense line item in the budget usually between 10-15% of the total event budget. Any number of things can go wrong such as medical bills, broken equipment, speaker cancellations and more, so a contingency is essential in covering any costs that may arise without warning.
2. Overzealous outsourcing.
Outsourcing too many elements of the event management process that could be completed in-house e.g. special events, satchel packing, design, registration, speaker management and other elements of the overall production adds cost and minimises your event profit margin. When your event is under development and the scope begins to shift and grow, there is the temptation to outsource key planning elements to a third party. Unless this is completely necessary due to time restraints, it may be necessary for the core team to coordinate these offsite or additional elements to maximise profit.
3. Not implementing a procurement policy when sourcing products and services for the first time.
Having preferred suppliers relationships in place that reward loyalty is important as the financial benefits that come from bringing your repeat custom are clear, but what if you are appointing a supplier for the first time? How will your tender process uncover the best supplier that will be able to deliver on your event objectives? Do they have sufficient experience to avoid costly errors that may be incurred if problems arise? An inexperienced supplier may offer a cheaper quote upfront but cause delays and issues down that track that cause budgetary blow outs.
A key strategy to avoid this is by undertaking due diligence on your client’s behalf and by setting up a procurement process that will help you determine the top 3 providers of event equipment or services and then narrowing the list down through face to face interviewing, reference checking and reviewing designs in response to your brief upfront. Remember decisions such as these should not always be made on price.
4. Failing to successfully secure the host organisation’s seed funding or some sponsorship money to fund the event prior to planning commencement.
In this chicken-egg scenario much of the planning cannot occur without sufficient funding which may arrive in various forms but usually via seed funding from the host organisation or sponsorship dollars secured prior to the event management planning stage. How do you know what elements of the event you can begin to plan? Even the basic event requirements such as the venue that can be booked and so on, without at least some seed funding to kick start the project will prove difficult.
Don’t risk too much of your cash flow carrying a fledgling event – at the very least get an indication of the event’s track record from previous years to help you determine the best course of action. Some funding to begin marketing the event to visitors, sponsors, exhibitors, strategic partners and the like will go a long way to potentially securing further funding that will float the event until the full impact of registrations is known.
5. Over catering
In the science and art form of event planning, there is an understanding from the statistics there will always be some margin of non-attendance. In fact some research has shown that planners can under order by up to 10% to accurately cater for events. No-shows and people who are simply not hungry are always a factor to consider here.
6. Beginning any of the design process before finalising your marketing objectives.
Consider your marketing objectives before your leap into the design process.
Tips to avoid wasting time and money on re-designing event materials may include:
– Providing incomplete, rough input to a design team usually results in multiple queries, delays and redesigns. Event planners need to understand that they can still edit along the way, but the fewer changes you have, the more money you can spend on other elements of the event rather than on the design costs.
– Another tip is before meeting with the designers, ensure you have given your internal stakeholders the opportunity to have their say. This will help you develop a clear and detailed brief that is less likely to change over the design process.
– Finally, continue your internal discussions until everyone signs off on the same brief and in turn the final design.
7. Forgetting to take out an event insurance policy can be costly.
Event insurance is a must for any professional event manager. There are simply too many things out of our control that could go wrong regardless of the best risk assessment conducted. Some insurers such as Aon, specifically offer event insurance so it is best to do your research and factor the cost of the policy into your event budget.
8. Not keeping track of the finances.
Even though you may be on the go, it’s important to estimate realistic average costs plus keep good records of your actual event finances and these days mobile apps can make this process easier. Here is one that you may like to consider and we recommend testing it out before you start:
– Account Tracker: This app has received 5 star reviews from a significant amount of customers in the Apple iTunes store to warrant your attention. The app features expense management, account tracking, multi-currency support, bill reminders plus your can export reports and budgets to CSV and PDF files.
Forum Group Events (FGE) has been awarded twice over by Meetings and Events Australia (MEA) at last night’s gala function in Melbourne. The events marketing and management organisation overcame strong competition to take home the national accolades for ‘Meetings & Events Management Organisation (less than 8 employees)’ and ‘Corporate Social Responsibility’.
2016 marks Forum Group Events’ 20th anniversary of delivering business events. To add to an eventful year in which the team has already delivered almost 200 events over the past 12 months, Lauren Hayward, General Manager, FGE, was thrilled to accept the MEA accolades recognising the company’s outstanding provision of services to the Australian conference, meetings and events industry.
Leanne Constantino, Managing Director, Forum Group Events, said the announcements were welcome recognition of the dedication of Forum Group Event’s team based in Sydney and Melbourne.
“The Forum Group Events team is extremely delighted to receive these MEA awards at national level. Our team takes pride in providing our loyal clients memorable events that connect, educate and inspire their delegations. Our focus remains on delivering innovative events marketing and execution solutions whilst providing outstanding customer service. We could not have achieved these accolades without the dedication from our entire team.” said Constantino.
The Meetings & Events Management Organisation (less than 8 employees) category reviewed the impact and efficacy of smaller event management companies over the previous year. The category was judged on a number of criteria, including business planning and management, marketing strategy, resource management, financial performance, contribution to the industry as well as the overall uniqueness of the company.
Forum Group Events was awarded the Corporate Social Responsibility award in recognition of the company’s policies and practices that actively consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, stakeholders and the environment.
ABOUT FORUM GROUP EVENTS
Trusted by global Fortune 500 companies for over 20 years, Forum Group Events is a multi award-winning integrated events marketing and management organisation.
Forum Group Events has a national network alliance of innovative professionals that strive to deliver world-class events. We create end-to-end marketing experiences that connect, educate and inspire whilst driving business results for a diverse range of clients.
Our integrated campaign approach offers a complete solution to meet event and marketing objectives. The FGE team excels at event strategy, event management, event promotion, audience acquisition and extending the life of an event whilst always maximizing ROI.
For further information visit www.forumgroupevents.com.au
Forum Group Events
Tel: 02 9212 6125
Technology is advancing at a rapid speed…The question for event planners / event management companies, is how can we incorporate this new technology into our events to remain at the forefront of innovation and create the ultimate delegate experience?
Forum Group Events attended the Event Show hosted by Meetings and Events Australia last week to find the answer to this question from three industry experts. Led by Toby Travanner, we heard insights from Evan Daley from Two Bulls, Manjula Dissanayake from Emojot and Stefan Perner from Virtual Reality Ventures on the following event technologies:
Photo credit: emojot.com
Real time emotive feedback – Introducing EmSense – a neuroscience company with headsets that can actually read individual’s emotional responses by measuring brainwave cognition on a moment by moment basis. As an event planner, the idea of knowing exactly how your audience is feeling is of course appealing, however the idea of having everyone in the audience donning these devices seems a little farfetched (at least for now anyways). The substitute? Emojot – A software sensor that tracks real time delegate feedback. Rather than waiting for delegate feedback after a session, the emojot digital platform allows delegates to tap on their screen what emotion they are feeling throughout a presentation. This enables the presenters and planners to see what content is resonating with their audience in real time.
Virtual reality – Imagine being able to transport your delegates to an entirely different world? Virtual Reality Ventures are doing just that by enabling delegates to interact with computer-generated simulations of 3D environments. (For more info on how virtual reality works check out this video). By incorporating this into events, you can create a memorable experience for attendees whilst also allowing them to experience a product, service or destination. Instead of talking to delegates about your new store they can actually be transported there! You may have also heard some buzz around Oculus Rift (which Facebook purchased for a modest $2 billion) or another substitute? Google cardboard.
Photo credit: twobulls.com
Augmented reality – Combining virtual reality with the physical world…this can really take attendee engagement to a new level. Real-world event environments can be augmented by computer-generated sensory input such as sound, video or graphics. Some examples of how Two Bulls are incorporating this into events? Dynamic lighting and presentations controlled by hand gestures alone, gamification (where holding up physical devices generates computer images and interaction) and virtual collateral (scan the code with your phone and witness a computer generated image appear before your eyes). Check out this augmented reality demo.
Interested in hearing more about how you can incorporate these new technologies into your next event? Contact Forum Group Events on +612 9212 6125 or email firstname.lastname@example.org.
Forum Group Events have been recognised as one of the top 5 event management companies in Australia in the Spice Magazine Hot 100 for 2015.
We would like to thank our valued clients and event partners for taking the time to vote for us.
If you would like more information on how Forum Group Events can assist you with your event management requirements, please call us on (02) 9212 6125 or email email@example.com.
Alternatively, why not check out our latest white paper ‘What’s Hot in Events for 2015’.
Don’t you hate it when you attend an event and get a gift bag full of brochures, coupons, and nothing else? I know we can’t always organise giveaways with a total value of $5,000 like the Oscars, but surely gift bags can offer something worthwhile. Ted Kruckel from Bizbash provided us the with these ‘Dos and Don’ts of Gift bags’ that we can sum up in the following points:
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