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Far too frequently, inadequate planning can derail a promising start-up. Failing to take account of the financial demands that must be met in order to allow you to grow from a small operator into a fully-fledged events manager is a common problem.
A small-scale function might require you to manage only a few stakeholders, such as buyers and suppliers. The out-of-pocket costs are easily taken care of and, as long as your client’s expectations are met, you can rightly consider your event a success.
Growing your business
Once you extend your scope and begin taking on larger events, though, the task of balancing the cost and complexity of staging an event with its financial implications assumes a much more daunting aspect.
In addition to a rapidly growing list of suppliers, you might find yourself in partnership with several other organisers who are all scrambling for their share of the profit.
There may also be sponsors to consider, who will need to be factored in to your planning.
When faced with such a disparate grouping of participants, it’s easy to get caught unprepared.
Stay on the ball
Whether it’s the result of a failure to integrate yourself into the larger network of operators, or simply a matter of mismanaging your own logistical responsibilities, the message is clear: either run your events management company as a business or risk losing everything.
In most other industries, the failure to perform is a source of concern, but it seldom means that the business is in immediate danger. The end, when it comes, is the result of consistent underperformance and its demise is predictable.
The same cannot be said of the hospitality industry in general and events management in particular. Since so much relies on perfect execution, even a small glitch has the potential to wreak havoc.
A single badly run event may well result in a loss of faith from which you or your company may not recover.
So, while a big-ticket affair may be the talk of the town for months to come, your involvement on an operational level should always be seamless.
Let's talk money
The most critical factor in smooth event management is to ensure that you are able to meet your financial responsibilities consistently and without incurring costs further down the line that will impact on your ability to deliver the highest level of service.
As a result, your suppliers will view you as a preferred customer and you will find that your job will be greatly simplified. But, in order to achieve this success, you will have to acquire the necessary business acumen and learn not to leave things to chance.
First familiarise yourself with the basics of financial planning. Learn to manage your cash flow by implementing a budget plan, taking account of your running costs and income.
Calculate what you need to earn in order to ensure that every event you host will turn a profit. This will mean taking a longer view of things and leaving out the guesswork. It will also mean trimming your expenses.
By applying your event management skills creatively to your budget, you will still be able to offer an outstanding experience for your clients. At the same time, your business will be able to grow and improve with every event you stage and your reputation will never come in to question.
You will find that you will be better positioned to negotiate fees and discounts with your bank, your suppliers and your clients if you can demonstrate that your business is being run efficiently.
Considering the downside risks, can you afford not to educate yourself in sound financial planning? Register for the University of Cape Town Events Management short course and learn about managing your finances. For more information contact Tamsin on 021 447 7565 or tamsin@getsmarter.co.za. Alternatively, visit www.GetSmarter.co.za.
Follow GetSmart on Twitter (getting_smarter) and on Facebook.
Follow Women24 on Twitter.
A small-scale function might require you to manage only a few stakeholders, such as buyers and suppliers. The out-of-pocket costs are easily taken care of and, as long as your client’s expectations are met, you can rightly consider your event a success.
Growing your business
Once you extend your scope and begin taking on larger events, though, the task of balancing the cost and complexity of staging an event with its financial implications assumes a much more daunting aspect.
In addition to a rapidly growing list of suppliers, you might find yourself in partnership with several other organisers who are all scrambling for their share of the profit.
There may also be sponsors to consider, who will need to be factored in to your planning.
When faced with such a disparate grouping of participants, it’s easy to get caught unprepared.
Stay on the ball
Whether it’s the result of a failure to integrate yourself into the larger network of operators, or simply a matter of mismanaging your own logistical responsibilities, the message is clear: either run your events management company as a business or risk losing everything.
In most other industries, the failure to perform is a source of concern, but it seldom means that the business is in immediate danger. The end, when it comes, is the result of consistent underperformance and its demise is predictable.
The same cannot be said of the hospitality industry in general and events management in particular. Since so much relies on perfect execution, even a small glitch has the potential to wreak havoc.
A single badly run event may well result in a loss of faith from which you or your company may not recover.
So, while a big-ticket affair may be the talk of the town for months to come, your involvement on an operational level should always be seamless.
Let's talk money
The most critical factor in smooth event management is to ensure that you are able to meet your financial responsibilities consistently and without incurring costs further down the line that will impact on your ability to deliver the highest level of service.
As a result, your suppliers will view you as a preferred customer and you will find that your job will be greatly simplified. But, in order to achieve this success, you will have to acquire the necessary business acumen and learn not to leave things to chance.
First familiarise yourself with the basics of financial planning. Learn to manage your cash flow by implementing a budget plan, taking account of your running costs and income.
Calculate what you need to earn in order to ensure that every event you host will turn a profit. This will mean taking a longer view of things and leaving out the guesswork. It will also mean trimming your expenses.
By applying your event management skills creatively to your budget, you will still be able to offer an outstanding experience for your clients. At the same time, your business will be able to grow and improve with every event you stage and your reputation will never come in to question.
You will find that you will be better positioned to negotiate fees and discounts with your bank, your suppliers and your clients if you can demonstrate that your business is being run efficiently.
Considering the downside risks, can you afford not to educate yourself in sound financial planning? Register for the University of Cape Town Events Management short course and learn about managing your finances. For more information contact Tamsin on 021 447 7565 or tamsin@getsmarter.co.za. Alternatively, visit www.GetSmarter.co.za.
Follow GetSmart on Twitter (getting_smarter) and on Facebook.
Follow Women24 on Twitter.
