A cost management template for event planners - who have controlling the expense of every penny in mind
As one of our interviewees (a seasoned event chef) once said about their cost management,
"Everything from travelling expenses to cleaning costs makes a difference to my bottom line."
Having any bottom line to speak of within the event hire business is a matter of keen fiscal prudence.
Without having a diligent head for your facts and figures, you can very quickly find yourself in a state of budgetary creep, which eats into your much-anticipated profit. This can cause great disappointment.
Where this occurs repeatedly, the cumulative effect on your business could be financial destitution. This adverse result is an entirely avoidable outcome with the right approach to managing costs within your business model.
Ever been told by staff or colleagues that your are not charging enough for your hire services?
Profit or loss as the story goes comes down to your financial modelling.
Projections are a useful means of estimating your financial position in business, but 'actuals' in practice can be wildly different to what you had on paper, if your detail is amiss.
Making sloppy assumptions, or lazily glossing over costs in your financial management can leave you light in the pocket and this over time can adversely impact your ability to deliver quality service levels to customers and pay your staff wages on time.
So, where do we start getting a handle on your cost management?
Templates are great way to keep things consistent.
Excel is a highly malleable software management tool for tasks like financial templating, and a license is usually inclusive in your PC or laptop hardware package.
Excel can of course handle all of the number crunching calculations (as to be expected by a spreadsheet software), but also is able to handle visual formatting with excel-lence, making for easy reading of your final report.
We have designed a suite of financial management templates using Excel which we have made available for download via this blog for your business use and benefit.
The following is a short instructional video on how to use our event planner cost management Excel template:
(For further information on how you too can download this template, feel free to subscribe to our membership...)
Here is a quick breakdown of the content of the video for your digest:
1. Basis of estimate: the cost elements within this management matrix are defined as 'basis of estimate', labelled [A], [B], [C] and onwards in sequence. This presentation of the cost element as a basis of estimate declares the way by which the cost calculations are derived. This grants transparency and room for accurate future review of costs, where closer scrutiny, or challenging the method used have an evidenced baseline as reference.
2. Cost ID: identifying the origin of the cost in terms of... project it belongs to, date of input, corresponding WBS (work breakdown structure) element and funding source...all grants a water tight audit trail and managerial rationale upon which validity is built.
3. WBS Description: this is referring to the work breakdown structure where you separate out to the finest detail every project-based task and activity in order to have the most fine handling and control of the variables within your project. Cost of course is such a detail which you will not want to let slip, underpinned by operational activities. Referencing the WBS description here is a reminder of the factors which will affect the resulting basis of your cost estimate.
4. Cost Description: further detail is given here as to how this cost element behaves and the root conditions by which this estimate will be derived. Time frames, increments and any other relevant facts will be disclosed here.
5. A Breakdown Of Cost: each cost item is identified here in list format along with the corresponding amount and category to which it can be grouped together.
6. Total Cost: the final box is what it says, it holds the total sum of all cost constituents in the associated list above (auto-calculated, of course!)
Ready to download our custom-built, Event Planner Cost Management Template in Excel?
Subscribe to Selmore membership and for an annual fee - we give unlimited access to all our available templates and digital resources on download.
Categorised in: A Guide To Event Business Management
This post was written by selmore