How can you determine the financial goals of your event?

The one thing that really helps with the success of any event is working with the key stakeholders to create the event strategy at the beginning of the event planning process. Having a good, detailed event strategy is key to creating meaningful and purposeful events that can be produced within budget and deliver on key event goals and objectives. Understand who your target audience is, what are the expectations for the event, what does success look like, what are your KPIs etc. With a good strategy, stakeholders and event teams can be on the same page throughout the planning process, and it makes decision making and approvals move much faster.

I agree - financial goals of an event will depend on the purpose of the event; whether it’s an education based event or an entertainment based event. In my experience attendees are always more willing to pay a higher price for a networking event compared to an educational event.

Financial goals for the event should be set in the initial annual marketing strategy. Forecasting should be done as part of the full marketing strategy for the year, working backwards from an annual financial revenue target, split throughout the year into specific activations based on their assumed revenue opportunities which will contain a number of factors. Things change, and risk factors should be re-assessed as this could impact the revenue you expect. For example, adverse weather conditions meaning lower attendance at the event.

Negotiations are always important, but especially now due to rising costs. When we are producing events in different parts of the county/state/country or globally. It's good idea to keep an eye on event fees/charges by similar vendors and discuss their prices. Some locations may charge an arm and a leg for internet for example, whereas others may offer it free of charge or a reduced fee. Its good to share information so it gives vendors an opportunity to offer discounts or provide additional services that elevate the attendee experience. Once you know your financial goals and costs are finalizing, you may find you have additional budget to produce some 'surprise and delight' aspects that can uplevel the event in certain areas.

It is important right out of the gate to know if the event is intended to make money or to break even, or perhaps to be a service, aka loss leader, for its stakeholders. One of the first steps, particularly for a person new to planning a particular event, or for a first-time event, is to identify who those stakeholders are. It helps to write this out on a list so that no important constituency is overlooked.