Events rarely fail because of a bad idea. More often the money ran out, a contractor did not show up or it rained and there was no plan B. Here are three dull but important things: the budget, the contract and the risks.
How to draw up an event budget
A budget is easiest to build by line item, even if some amounts are still rough:
- Venue. Rent, deposit, load-in and load-out days
- Food and drinks. Banquet, buffet, coffee breaks, water for the crew
- Programme. Host, performers, show numbers, DJ
- Equipment. Sound, light, screens, stage, whatever the venue lacks
- Decor. Decoration, print, signage, photo zone
- Staff. Coordinators, security, hosts, medics
- Logistics. Transfers, accommodation, equipment delivery
- Content. Photo, video, streaming
- Agency fee, if you work through an agency
- Contingency. 10–15% for the unexpected
For a concert or festival add artist fees, hospitality riders, ticketing, sales marketing and approvals. So the honest answer to how much a concert or festival costs is the sum of these lines, and the headliner’s fee often exceeds everything else. How concert money works, in the article on the concert promoter.
Where budgets usually swell
- Equipment rented even though the venue has something similar
- Night or weekend setup at higher rates
- Last-minute changes: new decor, one more performer
- An “other” line with no breakdown
An event organisation contract
With an agency or contractor, put this in writing:
- Scope. What exactly the contractor does: an estimate or technical brief as an annex
- Dates and place. Date, working hours, setup time
- Price and payment. Deposit, final payment, what changes the price
- Postponement and cancellation. What happens to the deposit if the client postpones or the contractor cancels
- Liability. Who is responsible for subcontractors, venue damage, safety
- Acceptance. A signed statement, photos and video, a report
- Rights to materials. Who may use photos and video and where
Legal wording is best left to a lawyer. The organiser’s job is to make sure every arrangement from the emails ends up in the contract or an annex.
The main risks and how to reduce them
- Weather. A roof over the stage, a backup hall, a spare date. Numbers that depend on wind and rain (drones, fireworks) are better duplicated
- Low turnout. A venue sized to real demand, early sales, registration with confirmation
- A contractor failing. Backup contacts, a refundable deposit, a run-through the day before
- Technical failure. A spare microphone and laptop, a USB stick with tracks, a sound engineer on site
- Delays. 10–15 minutes of slack in the timing, a block chosen in advance to cut
- Safety. Security, medics, an evacuation plan, approvals for mass events
A low-risk number
The fewer dependencies a number has, the lower the risk. Our light show needs no equipment, setup, internet or good weather: guests scan a QR code, and their phone flashlights flash to the music on a signal from the venue speakers. The host, DJ or sound engineer launches it.
The price is clear in advance: from 10,000 ₽ per event for up to 100 guests, and for large halls and stadiums it depends on the number of viewers. For example, a show for 5,000 viewers costs 120,000 ₽. Calculator and comparison with wristbands and drones on the pricing page.
FAQ
How big a contingency? 10–15% of the budget. For a first event of its kind, closer to 15%.
How much does a BTL activation at an event cost? It depends on the mechanic and audience size. A staffed promo stand is priced by the day, a show with an on-phone promo by the number of viewers. What BTL is, in BTL and native advertising.
Preparation steps in the article on event organisation, choosing an agency in party organisation services.