How do I determine the budget for my corporate event?
31/10/2024
Organising a corporate event can be quite a challenge.
It is not only practical and logistical challenges that need to be considered.
The financial aspect is also very important.
If you do not know what resources you have at your disposal, it is almost impossible to start organising your corporate event.
1. How do I determine my budget?
Every company draws up an annual financial plan. This is where budgets are allocated for things such as marketing, sponsorship and events.
Percentages are often used instead of fixed amounts to determine the budget for events.
The amount that can be made available depends on the profitability and size of the company.
In a favourable economic year, a larger budget will be available compared to an unfavourable economic year.
2. What numbers are we expecting?
A larger company has more employees to spread the costs across.
The ‘fixed’ costs such as room hire, entertainment, etc. do not change and are not dependent on the number of attendees.
It is therefore important that economies of scale are taken into account.
Distributing €1,000 among 50 people has a greater impact on the price per person than distributing the same €1,000 among 250 people.
When searching for a location, it is therefore important to consider the price per person rather than the total cost.
This gives you a better idea of what this will do for your budget and ensures that it does not come at the expense of your budget for animation or catering, for example.
3. What do we want to achieve with our event?
The size of the budget naturally also depends on the occasion.
When there is an anniversary to celebrate, it is often acceptable to spend a little more and make it a bigger affair.
When it comes to team-building activities, a more limited budget will be available.
The budget also depends on the frequency with which the events are organised.
If there is one major event per year, this will require a more substantial budget than if several smaller events are organised.
4. Where and when?
It is important that you explore all options in order to get the most out of your budget.
An event that lasts a few hours or is spread over an entire day is, of course, also important when determining your budget.
For companies, January, June, September and December are often the most popular months for organising events, staff parties, team building, open days, New Year’s receptions, Christmas parties, etc.
But these are also very busy months for event suppliers.
If we look at the low season: February, March and April, then financially it may not be so bad.
In terms of dates, this will offer more options, but suppliers also offer discounts or cheaper rates to fill their low season.
5. How are we going to entertain everyone?
Entertainment can quickly become quite costly.
The resident DJ is certainly capable of providing excellent entertainment and making the party a success.
They are also generally the most affordable option.
When we consider live bands or keynote speakers, we are already in a different price range.
But for a truly grand celebration, we quickly turn to celebrities and well-known groups.
Of course, they come with a hefty price tag.
From the outset, it is important to know which direction you want to take with the music. This allows you to ‘reserve’ a realistic amount in your budget to spend on this.
6. Which catering option will you choose?
Of course, a large part of the cost depends on the culinary experience you offer.
The type of catering also has a significant influence on the atmosphere that is created and is therefore not an insignificant factor.
The range of drinks available at the bar is also important.
Do we stick to an agreed selection or can cocktails also be served?
The catering offer and arrangements also have a significant impact on costs.
7. Experiences and expectations
If this is not the first time you or your company has organised an event, look to the past.
Talk to people and ask them about their experiences.
Did you pull out all the stops to organise the event, or was it actually the event with the smallest budget that was the most successful?
Base your decision on existing opinions, learn from previous editions, and get started.
Organising an event for a company will always be difficult. But with these tips for determining your budget, we hope that you will make this edition a great one too.
Are you curious about what we can achieve with your budget?
