Making Your Budget Work For You5 Comments
Sometimes it’s easy to let your budget run away and soon the costs start mounting up, and before you know it, you’ll have to reach a 200% capacity to see any sort of return.
So how do you keep your budget and costs down, whilst still putting on a great show?
On many occasions I’ve had to put my hand in my own pocket because the income that I predicted to make, never came.
When I was having to go to the cash point or ATM at 1am because I didn’t have enough cash put aside for the acts to pay, I knew it was time to make a change
Thats when I decided to make a budget for all of my events.
A budget enables me to allocate certain costs to aspects of the event or promotion, and works on the basis that I know I won’t overspend in areas, but if I do, I can move the budget around.
Like I think I say in all my blog posts, everyone is different and you will have to find your own method of what works best for you.
Perhaps me showing you how I developed my budget, that will then in turn give you some ideas and a template for you to start your own.
The first thing we should work out when creating our budget is what are we looking to get out of the event or promotion.
Do we want to get a nice return in terms of money? Is it more about marketing and promoting?
In this example we’ll pretend that it’s all about making a nice return.
We have the venue in mind and we know how much they charge for hire. First cost right there.
We find out the capacity of the venue and the average they charge their admission at other shows.
From this you can work out your maximum return available, and then this gives you a nice big figure..
Of course, it wouldn’t be worth your while to just break even, so you then must determine how much you’d like to make from the event.
Minus that and you have your wonderful, finger licking budget.
So thats a simple method to total your budget, but to divide it up is most likely to be the bit that catches you, and will take you and your experience to work out.
The way my budget is divided does depend on a number of factors, such as my knowledge of the area, the areas knowledge of my promotions, the acts I have in mind for the venue, and how much I want to spend before it starts getting ridiculous… Plus a whole lot of other things.
Saying that, it usually works out, on a average, two thirds talent, one quarter marketing and the remainder as contingency.
These sectors can then be filtered down more and more, until you run out of cash and have spread yourself too thinly.
Do this and before you know, because you have a structure, you’re promotions will develop a consistency that gives the impression of a professionally run outfit.
It’s not where you start, but where you finish… So make sure you learn from your previous promotions, and put everything that you have gained into making the next event even more of a success.