One strong foundation of a well-organized event is a foolproof budget proposal. In keeping up with the dynamics of the different aspects of an event, a budget proposal samples acts like a fence that encapsulates the vision and goals of the organizers. If you happen to be one of the key people who is tasked to create a budget proposal sample, then this article will be your helpful guide.
An event budget proposal is a formal request of approval for a projection of expenses for a certain event or activity held by a company. An essential part in managing an event proposal contains the predicted amount that the company will incur. The closer the cost forecast is to reality, the more efficient it will be in ensuring the event’s success.
Elements of a Good Event Budget Proposal
An event budget proposal comes in the form of a nifty spreadsheet most commonly with 5 columns. These columns correspond to each of the main elements of a budget proposal, which are the following:
1. Items: These are the different products and services that are needed for your event. In a budget proposal, the product or service is broken down into every single possible item denomination to get an accurate costing. For example, “beverages” in a budget proposal is further divided into the specific alcoholic and non-alcoholic brands.
2. Item Description: The description of the items are important to your boss or whoever approves your proposal will be able to gain additional insights to the products or services you will be availing, especially when that item is too technical or specialized for them to know. This is also an opportunity for you to express the importance of a certain item so that in the instance of cost-cutting, your boss will be able to determine which item is least important or not that relevant for the event.
3. Quantity: This pertains to the number of pieces of a product or the number of hours a service required for the event. Quantity greatly affects your budget, as a slight increase in the quantity can already cause a dramatic rise in your overall budget.
4. Estimated Cost: This is the ballpark figure of the items listed in your budget proposal. The goal of you as the event planner is to get your estimated cost as close as possible to the actual cost. Your total estimated cost will be the amount you are proposing for the event.
5. Actual Cost: The actual cost of the items are actually filled out after the event and are left blank on the submission of the budget proposal. Knowing about the actual cost is important for future instances where you get to set the budget again for the event. Additionally, actual costs can help you identify the trends in the prices of the items for a more accurate cost forecast in the future.
10+ Event Budget Proposal Templates
Event Budget Proposal Template
Free Budget Proposal Template
Event Budget Proposal Sample
Event Proposal and Budget Form Example
Event Budget Form Sample
Event Budget Planning Worksheet Sample
Event Budget Template
Event Budget Worksheet Sample
Event Production Budget Sample Form
Program Budget Proposal Template
Sample Event Budget Proposal
Steps to Make a Great Event Budget Proposal
1. Determine the items to be budgeted: Before making your budget proposal, do a little research about the event. Find out what the event is for and what the attendees are expecting from it. Once you figure this out, you will be able to identify which items will incur costs and which aspects need to be prioritized for the success of the event.
2. Create a budget spreadsheet: Using any spreadsheet software, create a column for each of the following designations: item, description, quantity, estimated cost, and actual cost. These are actually the elements of the event budget proposal that were discussed in the preceding section. Fill out the columns for items and their descriptions first using your rough list in the previous step. Group these items into broad categories and create multiple sections in your spreadsheet for each classification. This will make for an easy tracking for each of your items in your budget proposal so you can appropriate your expenses.
3. Come up with an estimated cost: Now that you have come up with a list of the items that need costing, it is time to move on to the main part of creating an event budget proposal: the budgeting. There are various ways to come up with an estimated cost, but most budget planners take the preceding year’s budget proposal as a basis and sometimes reach out to the vendors themselves for a general price. In coming up with an estimate, you need to consider the small expenditures that come along with availing the product or service like costs in travel, business marketing, taxes, and other fees.
4. Review and correct your proposal: Double-check the cost of the items and submit this for approval. Take note that the column for the actual cost is intentionally left blank for you will still fill this out after you hold the event. This means that the making of your budget proposal does not end after you submit it, rather, it continually evolves every time you learn something about the actual pricing.
Tips for a Great Event Budget Proposal
- Always set aside a budget for cost overages: No matter how meticulously planned your event budget proposal is, there will always be a number of unprecedented circumstances that will require you to shell out additional expenses. Heed the need to come up with emergency funding for the possible instances that will affect your planned budget.
- Consider looking for sponsors: To help reduce the costs for your event, sponsorship is one way to go. When searching for sponsors, start within the vicinity where the event will be held. Business owners are most likely to approve your request for sponsorship if it would entail a great advertising opportunity in their own community.
Types of Event Budget Proposals
There exists a number of types of event budget proposals that are determined according to how the budget planner came up with the proposed amount. Depending on the event that your organization is holding, your budget model must fit to the budget you are trying to come up with. To help you get started, the following are four of the most common types:
- Incremental Budget Proposal: This is an event budget proposal that has its final cost determined by basing each estimated cost from last year’s budget. It takes into account the possible rise of expenses due to inflation. Almost all events that are held regularly are planned using the incremental budgeting model.
- Zero-Based Budget Proposal: This is the type of budget proposals where each estimated cost must be thoroughly justified by the budget planner. The zero-based budget proposal is drafted for events that are held for the first time or when the organizer does not have any history in planning the particular event. Careful budgeting is observed since the organizers are dealing with uncharted territory, which explains the need for justification in the costing.
- Lump Sum Budget Proposal: This type of event budget proposal follows a general approach in budgeting where items are grouped in broad categories with their “lump sump” in a rounded off figure. Overall, it is drafted when the planner is not familiar with the typical costs of the products and services used in the event and thus needing a huge deal of allowances in the budget.
- Line Item Budget Proposal: A line item budget proposal also has a list of the general categories of the items that need spending. However, unlike in lump sum budget proposals where the listing stops there, line item budget proposals take it a step further by also indicating the specific items of each category. For example, if a lump sum budget proposal has only indicated “pool services” and then a figure of “$1,500,” then a line item budget proposal will indicate the denominations of the pool services such as lifeguard wage per hour, pool amenities, pool usage rate, etc. and then their respective actual prices down to the very last cent.
Event Budget Proposal FAQs
How much should I set aside as an emergency fund for my event budget?
Although there is no exact amount that you at least need to set aside for your emergency funds, it has been suggested by seasoned event planners that going over 5 to 25 percent of your expected expenses is the safest bet you could make. However, this is only applicable to a small and medium type of events, and the final decision of how much you will set aside solely relies on your judgment as to the planner.
What is the difference between “fixed cost” and “variable cost” in budgeting?
Fixed cost refers to those items in your event production that do not change its price regardless of the number of attendees of your event, like the venue rental and entertainment equipment fees. Meanwhile, variable costs are those items that vary its price depending on the number of attendees like food, registration fees, and invitation printing costs.
Getting the hang of budgeting does not happen after just holding one event. It takes a plenty of experience and a heightened sense of meticulousness before you become considerably adept with it. Remember, though, that the quality of your budget proposal is not gauged by how expensive or cheap your proposed amount is, rather, it is measured by how well you can optimize the cost while still able to hold an event boasting of grandiose.