How Indians need to rethink their event finances
Regardless of the type of event, having a clear fundraising strategy in place is essential to reduce unnecessary expenses, increase revenue streams, avoid inefficiencies and strengthen event management. Developing event fundraising strategies allows you to focus on the bigger picture without getting bogged down in the details.
In the inflated market and current economic conditions, saving must be a top priority. In addition, huge amounts of waste including plastic cutlery, flowers and discarded food are left over from the approximately 10 million weddings that take place in India every year. About 15 to 20% of food is wasted at weddings and social gatherings in India. This waste includes both physical waste and loss of investment in terms of money. Therefore, if a wedding or any other event is organized with waste reduction as one of its end goals, the finances can be significantly optimized.
Avoiding extravagant expenses and devising a financial strategy to make decent arrangements within the cost limits, track all expenses and manage them is a great way to keep the finances of the event under control. On the other hand, the lack of clarity in every transaction only leads to overspending.
Internet research and negotiation skills are basic techniques to help anyone manage their event finances. A more appropriate strategy is:
Determination of final objectives
A thorough understanding of the event’s financial and operational goals is a great way to optimize costs. Goals can be determined by analyzing past experiences, creating a plan accordingly, and determining the audience for the event.
Reasonable returns, worst-case scenarios, and other relevant projections should be considered when choosing end goals.
To ensure nothing slips through the cracks, it is important to stay in regular contact with key stakeholders and keep notes organized. And the most expensive quotes should be prioritized initially, so the other quotes are still there even if the original choice is suddenly ruled out. Additionally, a minimum of three quotes should be obtained when finalizing a contract to make the best comparable decision and negotiate.
Categorization of expenses
Categorizing major spending areas before planning will clarify which components might require a larger budget allocation. The representative cost of an event includes venue, decor, travel and accommodation, insurance, catering, expenses for gifts and activities, telephone and postage, stationery supplies, equipment rental , logistics, event tickets, staff salaries and contingencies.
Creating and tracking a budget
A day late and you’re a dollar short is an apt adage when it comes to budgeting for any event. The earlier you start, the more likely you are to benefit. Benefits associated with an early start include affordable quotes, a contractor of choice, good pre-event marketing, and more detailed plans.
A budget is advantageous because it allows you to operate within appropriate financial limits while making reservations. To create a budget, all potential sources of income and expenses must be identified, assessed, and tracked, from venue rental and event marketing to menu and sound system. Look at previous event budgets to determine cost-effective ways of doing things.
The budget should be flexible enough to absorb any last-minute changes or contingencies, whether it’s a revised estimate, unexpected weather conditions, a new delivery date, or updated ticketing. It is impossible to know all information about expenses or income in advance. Therefore, a provident fund must also be created.
To fix objectives
Significant events must take priority over extravagant events. Actions to achieve the end goal of optimizing finances may include –
- Templates to visualize event ideas and incorporate required changes without incurring costs. Use of virtual models to further facilitate cost optimization.
- Explore options such as banquet halls or hotel ballrooms, common areas, etc. instead of extravagant lawns and party grounds with high room costs
- Choose quality foods and less expensive dining options over menu diversity.
- Keep dates flexible to get places at low prices.
- Reusing setups, reducing food waste, using avoidances and resorting to zero waste weddings, as including sustainability goals in the contract can significantly reduce costs.
- Minimize event equipment to avoid additional costs.
Speak with a financial expert
Although a certain degree of forecasting ability is necessary to develop an event fundraising strategy, expertise and experience are more important than hunches in this process. Event planners and event management companies can provide this expertise through services such as professional accounting and budgeting software, digital marketing packages and event booking platforms.
The opinions expressed above are those of the author.
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