How can you create a flexible budget for unexpected expenses during a corporate event?

Determine the budget: Define the overall budget for the event, break it down into categories such as location, catering, technology, marketing, etc. Estimate costs: Determine the estimated costs for each category. Get quotes from service providers and suppliers to have realistic figures. Prioritize: Identify the most important aspects of the event and prioritize spending accordingly. Focus on areas that will have the biggest impact.

Once the client has approved the budget, I divide it into major areas: online, set design, hospitality, food and beverages, speakers (if any), venue rental, staff, giveaways and extras. Each of these areas is broken down into the various items needed for the production. This way I know exactly where the budget is, the areas with the greatest allocation. From there, we start selecting suppliers and, throughout the day, this budget is adjusted, but without exceeding the total amount. In Brazil, we have projects incentivized by law, in which case budget control doesn't have much flexibility and any changes must be notified before being put into practice.

Start by being realistic about your budget and audience. List all information, create categories, and create a timeline. This will help you figure out what your options are and how to proceed.

Plan for reserves: Allow for contingencies by including a buffer zone in the budget for unexpected expenses. Realistic forecasting: Ensure that your financial planning is based on realistic assumptions and that all relevant costs are taken into account.

You can use contingency funds in case of unexpected costs, losses, or changes. If you plan ahead, or rather have a buffer, you'll avoid having some mishap that drains your funds later.

When you're starting out in events, I find google sheets the most convenient as anyone can update it and you can see it in real time. There are a lot of P&L templates out there that you can use!

Expense monitoring: Implement a system to monitor expenses on an ongoing basis. Keep an eye on expenses to ensure they stay within budget. Create reports: Create regular financial reports to maintain a clear overview of the event's financial situation and make informed decisions.

Keep track of everything you spend during an event, and also know what your team is doing. For change orders, spreadsheets and documentation are essential.

Check contracts carefully: Review all contracts with service providers thoroughly and make sure all costs are clearly defined to avoid surprises.

Negotiation techniques must be used, not only to arrive at the desirable value, but we can also gain in services. For example: I hire a simple valet service and negotiate an extra contingent to look after only the VIPs, at no extra cost. Look at all contracts very carefully, always submit them to the legal department and align certain clauses internally to protect the end result and also to align them with your purpose. For example: proper disposal of waste for recycling at no extra cost to the organizer. Remember that any negotiation has to be good for all sides, it's the suppliers who make your event happen!

Having a clear and positive relationship with my vendors and sponsors was important to me when I ran events. Though it was difficult at times, I wanted to make sure they didn't feel there were any surprises, and I wanted them to see where their money went and what we did so they would work with me again in the future.

Events require flexibility and constant adaptation, whether due to problems along the way, changes in ideas or to make it even more attractive. That's why it's important to have flexibility in the budget for all areas and, if possible, between areas. For example: we managed to get a great deal on set design and saved $, we can allocate it to another area or simply include some new action, bringing the WOW moment to the event.

Ongoing adjustments: Stay flexible and adjust financial planning as needed based on actual expenses and income during the planning process.

Make sure you are ready for the unexpected when you are running an event, from sponsor drop-outs to venue closures. I had to switch vendors last minute but because I had great relationships, I was able to adapt and keep my current sponsors satisfied.