How can you determine which expenses are essential for your conference budget?

1 Define your goals and objectives

Before you start allocating your budget, you need to have a clear vision of what you want to achieve with your conference. What are the main themes, messages, and outcomes you want to deliver to your audience? How do you want them to feel, think, and act after attending your event? How will you measure the success of your conference? These questions will help you identify the essential elements of your conference that align with your goals and objectives, and avoid spending money on unnecessary or irrelevant items.

2 Estimate your income and expenses

The next step is to estimate how much money you expect to earn and spend for your conference. Your income sources may include ticket sales, sponsorships, grants, donations, or other revenue streams. Your expenses may include venue rental, catering, speakers, marketing, technology, transportation, staff, insurance, or other costs. You can use a spreadsheet or a software tool to create a realistic and detailed budget that tracks your income and expenses. You should also include a contingency fund for unexpected or emergency situations.

3 Categorize your expenses

Once you have a draft of your budget, you can categorize your expenses into three groups: fixed, variable, and discretionary. Fixed expenses are the ones that you have to pay regardless of the number of attendees or the length of the event, such as venue rental, speakers, or insurance. Variable expenses are the ones that depend on the number of attendees or the length of the event, such as catering, materials, or transportation. Discretionary expenses are the ones that are optional or flexible, such as entertainment, giveaways, or decorations.

4 Evaluate your expenses

After you have categorized your expenses, you can evaluate them based on their impact, value, and necessity for your conference. You can use a simple matrix to rank your expenses from high to low according to these criteria. For example, a high-impact expense is one that contributes significantly to your goals and objectives, such as a keynote speaker or a marketing campaign. A low-impact expense is one that has little or no effect on your goals and objectives, such as a fancy coffee machine or a branded pen. A high-value expense is one that offers a good return on investment, such as a sponsorship deal or a grant. A low-value expense is one that costs more than it generates, such as a lavish lunch or a costly app. A necessary expense is one that is required by law, contract, or policy, such as insurance or taxes. An unnecessary expense is one that is not required by law, contract, or policy, such as a live band or a photo booth.

5 Optimize your expenses

The final step is to optimize your expenses by reducing, eliminating, or finding alternatives for the ones that are low-impact, low-value, or unnecessary. You can also look for ways to increase your income by raising your ticket prices, attracting more sponsors, or applying for grants. You can also negotiate with your vendors, partners, or speakers to get better deals, discounts, or in-kind contributions. You can also leverage your network, community, or volunteers to get support, advice, or referrals. By optimizing your expenses, you can create a more efficient and effective conference budget that meets your needs and expectations.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?