Financial Planning for an Event Management

Event planning is a significant factor in business promotion nowadays. Promotional events are presently a requirement for marketing plan for organizations. Strategically planned events enable companies to have a mutual interaction with both the existing and the potential customers (Bikash, 2013). A business’ success or failure can be predetermined by the type of event it is sponsoring. Therefore, event planning is defined as the harmonization of all components of an event; involving budgeting and development of the program. To have a successful event, financial planning is critical during the event planning process. This paper will analyze the financial planning for a marketing event management.

Finance is a critical resource in event management. To conduct a successful event, finance provided need to be utilized wisely. Or else it can arise various risks at different stages of event management such as logistics, safety management and production scheduling (Bikash, 2013). Financial resource is highly regarded as the most significant on corporate events whereby they are characterized with a fixed budgeting and their main objective does not involve raising money by instead focusing in performing other organizational functions. A team of manager has to be selected to oversee and control the finance allocated to diverse event systems (Bikash, 2013). In the course of the event, money needs to be spent on only logistics, venue, staff members, insurance, site design, marketing and other relevant resources. Records should be kept for any kind of transaction undertaken in the course of the event since the shareholders and probable event sponsors may want to oversee it. Unforeseen costs in the event should not be neglected and unrecorded. Based on the financial circumstances, negotiations may be undertaken between event organizers and the event sponsors.

An event is not viewed as a business module and for that reasons their financial operations are not apprehended efficiently. In essence majority of events in the public sector are not run based on business management principles since it is believed that it is not mandatory to do so (Bikash, 2013). Therefore, every event needs to keep a constant check on its financial situations since it can be the criteria for failure. When managing an event, budget is the management tool helping in running diverse financial resources efficiently. It is also defined as a plan of estimated number of costs for the coordination of an event together with the revenue that will be raised. Financial planning is essential in budget forecasting for the event. It facilitates money allocation to different financial resources such as human resource, logistics which will contribute to the success of the event. Cash flow budgeting is a significant aspect of financial planning.

It gives details on the whole cash related events both pre and post activities. This assists event managers in tracking back and relocation of budget in necessitated areas (Bikash, 2013). Financial planning plays a vital role in determination of the achievement of the event. Suppose something goes wrong and extra money is required, a proper documented cash flow may just work out for the event organizers for the attraction of more sponsorship. Sponsorship is viewed as a common and significant public relations tool connecting companies directly with their target market thus fulfilling the company’s objective.

To sum up, financial planning is very significant in event management. Financial planning enables a company to budget for its events while making equitable and adequate allocation of money to run various activities of the event. For an event to be a success, financial planning is required.