What are some best practices for managing cash flow during the event planning process? (2024)

Key takeaways from this article

• Create a detailed budget:

  Building a comprehensive budget is essential. By researching and outlining all potential expenses, you create a realistic financial roadmap that guides your cash flow decisions and prepares you for unforeseen costs.

• Favorable vendor terms:

  Establishing trust with vendors through clear terms can lead to more favorable payment schedules and policies. This balance ensures cash flow flexibility while maintaining strong business relationships.

This summary is powered by AI and these experts

• Whitney Borden Event Manager @ CSI DMC | Corporate…
• Tejas Chhatrala LinkedIn's Top Voice ✨ Reveals the…

• Tejas Chhatrala LinkedIn's Top Voice ✨ Reveals the Secrets of Sales and Marketing Success

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  Personal Experience: When organizing a large-scale charity event, creating a detailed budget was paramount. I meticulously outlined all expenses, including venue costs, catering, entertainment, marketing, and logistics. To ensure accuracy, I researched costs thoroughly, considering different vendors and service providers. This helped in establishing a realistic budget that accounted for contingencies, enabling better cash flow management throughout the event planning process.

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• Zeyad Akram Event Industry Expert | Creating Opportunities and Enhancing Experiences

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  Based on Experience: Budgeting on phases is an effective way to control all finance aspects Preliminary phase: which briefly includes the expected expenses and Expected income 2nd Preliminary Phase: more accurate based on how the preparations running considering if there is any change in the expectations that will lead for any cutting expenses Actual phase should be ready at least one week before the event to find the critical solutions Post Event phase which should match the invoicing part Considering set level for each required payments , not all the expenses should be pre event payments you should consider how effectively you manage your criedt facilities with vendors

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• Lina Alves Founder at DIG-IN Portugal

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  In my experience as an business planner, achieving financial freedom before turning 50 is not just a dream—it's within reach. Put on your financial logic and dive into cash flow management. Let's explore 3 simple practices:01. Smart Budgeting:Master the art of budgeting. Align your budget with financial goals through detailed planning.02. Cash Flow Forecasting:Manage money wisely. Use cash flow forecasting to predict income and expenses, gaining foresight to navigate challenges. This financial tool ensures informed decisions for your path to financial freedom.03. Negotiation Skills:Negotiate deals, review contracts, and secure discounts fearlessly. Turn financial challenges into victories through negotiation.

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• Whitney Borden Event Manager @ CSI DMC | Corporate Event Operations Specialist

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  The best way to create a realistic budget is to start with previous spending. When organizing large-scale events with many budget line items - venue, food and beverage, entertainment, decor, travel, marketing - begin with previously spent amounts and break down a new budget based on the cost in that geographical area and expected attendance.If there is no data to begin with, you then start with the source - vendors. Retrieving vendor quotes will provide you with the most accurate record of your projections. That's just the bit to get you started. Once the budget is in place, know that it will change and mold during the planning process. Getting creative with the budget doesn't take away from the event's impact - good luck!

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• Jan Nicholson Owner/Manager at Experience Lakeland

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  Try to get a deposit so people are committed to the event. If we have already paid out real money for something we are very unlikely to cancel.

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• Whitney Borden Event Manager @ CSI DMC | Corporate Event Operations Specialist

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  It's most important to negotiate terms that favor both parties and strengthen the relationship. Working with vendors is about trust - trust that the client will pay and trust that the vendor will deliver their service as promised. As the vendor, providing pre-set terms regarding payment timelines, cancellation policies, grace periods, and deposits or advance payments through contracts is your best bet. Be honest and straightforward from the beginning. This ultimately allows you to find the balance that benefits all parties involved.

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• Tejas Chhatrala LinkedIn's Top Voice ✨ Reveals the Secrets of Sales and Marketing Success

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  Negotiating favorable terms with vendors and suppliers significantly impacted our cash flow. I proactively negotiated payment schedules, discounts for early payments, or extended payment deadlines. For instance, negotiating a staggered payment plan with the venue and catering companies allowed us to allocate funds more efficiently, minimizing upfront expenses and providing flexibility in managing cash flow leading up to the event.

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• Rashi Arora

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  Negotiating favorable conditions with clients and vendors could indeedhave a big impact on cash flow management. It all comes down to striking a balance that benefits both sides. In these conversations, communication is essential, and being open and honest about your wants can result in mutually beneficial solutions. Aside from that, obtaining upfront profit and creating specific contracts are useful strategies for ensuring financial security.

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  See Also

  Seasonality: What It Means in Business and Economics, ExamplesHow to Avoid Seasonal Cash Flow Problems | The LCF Group6 ways to improve your cash flow in a seasonal business | Novuna Business Finance5 strategies to help you manage your company’s seasonal demand

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• Sabaa Tovar, MBA Founder-CEO of 818 REALTY, INC in FLORIDA RE Principal Broker ARB, SRS, Rebac, AHWD MBA Strategic Negotiations/ FIU Motivational SpeakerFounder-CEO The Key Of David, LLC Musician,Music Business, NARAS|LARAS

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  One thing I found helpful is taking into consideration vendors' requirements. Why? That can help you still get a better price for a 5-star vendor and negotiate so your client can get the best price for its event investment. My strategy, "Creation of a Win-Win Scenario"

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• Delaram Lashkari Public Relations Manager at AMP Marketing Agency

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  To effectively manage cash flow, it is crucial to negotiate favorable terms with vendors and clients, aiming to reduce upfront payments and extend payment periods. Requesting lower deposits, longer grace periods, and flexible cancellation policies can enhance your financial position.

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• Rob Phillips Marketing and communications strategist and ‘doer’. Driving brand growth and engagement. Most importantly…father, husband, footballer, musician, feminist, environmentalist, educator and writer of boring profiles.

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  Be prepared to evolve the budget as you go. Personally, I always try to set a realistic budget but still try to 'beat it' by negotiating better deals, implementing as much in-house as possible (rather than outsourcing) and removing things that might be nice to have, but ultimately won't deliver results. By keeping track of costs as you go, if something comes in higher than expected, you can adapt quicker; or at least communicate to stakeholders in case the total budget needs to be reviewed.

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• Tejas Chhatrala LinkedIn's Top Voice ✨ Reveals the Secrets of Sales and Marketing Success

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  Regularly monitoring and updating the cash flow was essential. I used dedicated software or spreadsheets to track income and expenses in real-time. By continuously updating financial records and comparing actual spending against the budget, I could identify potential cash flow gaps early. This proactive approach enabled timely adjustments to spending or revenue strategies, ensuring financial stability throughout the event planning process.

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  Hire an accountant and meet with him/her often. Numbers don't lie. You should always be objective and get emotions out of the way.

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• • Report contribution
  Consistently keeping a close eye on and revising the cash flow proved to be crucial. Utilize google spreadsheets to record expenses in real-time which keeps you aware of your spending limits and costings. This proactive method allows prompt adjustments to spending or revenue strategies, guaranteeing financial stability throughout the event planning process.

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• Jade Bryant Freelance Producer

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  Keeping tabs on the cash flow was key. I had my eyes glued to software or spreadsheets, tracking every buck coming in and going out. That real-time update helped spot any cash flow hiccups pronto. It was all about staying ahead, tweaking spending or revenue plans as needed to keep things steady while planning the event.

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• Tejas Chhatrala LinkedIn's Top Voice ✨ Reveals the Secrets of Sales and Marketing Success

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  To manage cash flow effectively, I implemented cost-cutting measures and revenue-boosting initiatives. For instance, renegotiating contracts for better rates, opting for cost-effective alternatives without compromising quality, or seeking additional sponsors and partnerships helped mitigate expenses and increase revenue streams. This proactive approach allowed us to maintain a healthy cash flow leading up to and during the event.

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• Katerina Korompli Managing Partner at Darling Dear Event Company

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  -Engage sponsors as valuable partners, not just contributors & secure commitments well in advance provides a stable financial foundation to plan and execute the event seamlessly.-Dynamic Cash Flow Forecasting allows proactive decision-making, anticipate highs and lows and maintain financial stability throughout the planning process.- Negotiate vendor payment terms aligned with your cash flow cycles. Reliable partnerships open avenues for extended credit terms, exclusive discounts, priority service & provide financial flexibility.-Early Registration Incentives (for paid events)with discounted rates or exclusive perks provides an early influx of funds and helps in better financial planning, allowing you to allocate resources effectively.

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• Jade Bryant Freelance Producer

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  See Also

  Business Cash Flow | Cash Flow Challenges in Seasonal Businesses
  Managing that cash flow meant getting savvy with cuts and boosts. I hustled to renegotiate contracts for sweeter rates, switched to budget-friendly options without sacrificing quality, and chased down more sponsors and partnerships. It was all about keeping that cash flow healthy before and during the event, playing the proactive card to the hilt.

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• Muhammad Izhar Ul Haq Khan man is helpless before the will of ALLAH. Proud Pakistani. M.com Finance, IUB, Entrepreneur, Fighter, Loving, Adventurous, Traveller, Loyal, foodie, Nature loving, Poetry, Realistic, Caring, Virtual services Business.

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  Reduce the fixed costs as much as possible by increasing the production. The increased production reduces the per unit fixed cost and hence allow us to achieve much revenue from that increased production.

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• Tsegaye Yeshiwas Publications and Knowledge Management Officer at IRC WASH

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  However, we don't have to cut the cost for the sake of cutting only. We have to be rational about the cost that we are going to cut. Sometimes cutting cost on the vital things might reduce our income.

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• • Report contribution
  Most clients want novelty for their events to get a larger magnitude of outreach. This often requires new concepts that are difficult to budget accurately. Here are 2 ways I mitigate this.First, sense check against how much people are willing to pay. Calculate how much a prototype/trial would be. Here you can get a sense if you should invest further to validate the final costing. If yes, do an actual prototype to better forecast how much the real deal would cost and layer on a now more logical buffer.Second, if great uncertainty remains, I would suggest including cost plus pricing clauses into the agreement. Clients would feel less shortchanged even if the cost goes up due to unforeseen circ*mstances.

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• Gabriel Muñoz Senior Trainer/Facilitator at Empowered Communication

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  We highly recommend ensuring that everyone who is assisting with the event is properly trained and prepared. This includes thorough practice sessions beforehand, as well as support during and after the event. It's also essential to have a helpful binder readily available, containing answers to the most frequently asked questions, key contacts, and detailed protocols and contingency plans.

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• (edited)

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  When it comes to "contingency plans", I could write a book from all types of events I've been involved in over the years, when load in starts, things never go exactly as planned. You have to be adaptable, and think contingently ahead.From a Live Events perspective, having a cross departmental contingency plan in place, (for both safety AND creative reasons) is a critical step in effective event management and leadership. "What if that talent doesn't show up?" ... "What if we loose that camera for any reason?"..."what happens if there's an emergency, where to people go, where are the exit signs!".Thinking about what could go wrong and the communication around that is crucial before, during and AFTER the production has loaded out.

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• Nia Hilson Brand Consultant | Visual Designer | Event Coordinator

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  Effective cash flow management involves anticipating unforeseen disruptions. I ensure preparedness by maintaining a contingency plan. This plan encompasses foreseeing potential issues like delays or emergencies. I do what I can to be underbudget at every possible turn. I then try to use that extra money to offer more. This proactive approach allows me to offer an AMAZING experience when everything goes right and a really good experience when it doesn't. I don't oversell and make sure that the aspects that 'blow your mind' are a surprise. It makes it more fun!

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• Jade Bryant Freelance Producer

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  When it comes to wowing clients with fresh ideas, budgeting can be a bit of a wild card. Here's how I tackle it:First off, I tap into what folks are willing to shell out. I crunch numbers on a trial run to gauge if it's worth going all in. If the signs point to 'yes,' I dive into an actual prototype to get a better grip on the real costs, adding a more sensible cushion to the budget.Secondly, if things are still up in the air, I suggest throwing in some cost-plus clauses in the deal. That way, if things unexpectedly balloon up, clients won't feel shortchanged—they're covered even if the costs spike due to surprises.

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• Alisha Phillips Building Partnerships, Sponsorship Acquisition, Sales and Fundraising Consultant. True Marketing and Sales is about the Experience as much as the product.

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  Not just accounting advice but also fundraising and technology advice!!! Use the tools that are available! Data tracking, record keeping and planning your revenue streams with effective timelines is vastly different than 25 years ago when the tools were more manual. Consult experts in a variety of areas!

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• Jade Bryant Freelance Producer

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  It's not just about crunching numbers anymore; it's also about pulling in funds and leveraging tech to the max. Today's tools make data tracking, record-keeping, and plotting revenue paths a breeze compared to the old-school manual ways from way back.My go-to? I tap into those tech tools like there's no tomorrow! They help me stay on top of data, keep those records squeaky clean, and plan out revenue flows with precision.And hey, it's not just me—I bring in the experts, too! Consulting with a bunch of pros across different fields has been a game-changer. Their insights and expertise? Priceless!

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• HECTOR VARGAS ESPECIALISTA EN TURISMO EVENTOS Y FORMACIÓN PROFESIONAL

  (edited)

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  Una de las principales estrategias para la gestión de flujos es creando una muy buena Propuesta de Patrocinantes, con varias opciones, haciendo la exposición en la captación con el análisis de resultados de un estudio de mercado, mostrando el alcance de la marca en el target de los participantes del evento al que se esta proponiendo que sea patrocinante. de esta manera el evento según la captación de los Patrocinantes, estaría cubierto casi siempre en un 100% en la fase de Post evento.

  Translated

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• Tsegaye Yeshiwas Publications and Knowledge Management Officer at IRC WASH

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  Additionally, getting a short course on accounting or project management might give us the capacity to improve our cash flow management.

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• (edited)

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  Some best practices for managing cash flow during the event planning process is to create incentives such as free social media promotion and win-win situations for all parties involved to reduce costs. And just like any project manager would reocommend, break down your timeframe and budget into stages to make sure you have a reserve at the end for any unforseen circ*mstances.

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• Emma Alderton Suffolk Supply Chain Engagement Lead at Suffolk Chamber of Commerce

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  One thing that could be achievable and will help ease your bottom line is payments in kind.Find that social media manager that wants to attend your event - for a couple of comp tickets they could handle your advertising.Promote another business through your channels and to your audience and you will find suppliers are more willing to provide additional services on a comp basis.But remember, people buy from people. Ensure that you aren't approaching complete strangers asking for freebies, make sure you have the relationship backing that means neither party feels out of pocket.

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• Tanya Hayles digital strategist. public speaker. podcast host. event planner nerd. non-profit founder. black momconnector. big dreamer. good copy + branding make me happy.

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  Everything starts with the budget, but the most important way to keep track of cash flow is your event timetable. Knowing when the venue (using them as it’s the biggest expense) is going to expect its last payment before you can cancel (and get a refund if applicable) is more important than the event date. Being tied into an event you can’t afford is a terrible feeling. Working backwards from that date in regard to how many sponsors you need will keep you stay on track.

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• • Report contribution
  Create a detailed budget to track all expenses and income. Negotiate early with vendors for better rates and payment terms. Arrange staggered payments to ease cash flow. Monitor expenses regularly to avoid budget overruns. Maintain a contingency fund for unexpected costs. Generate early cash flow through advance ticket sales. Establish clear payment terms with clients, including deposits. Diversify revenue streams with sponsorships and merchandise sales. Utilize financial management software for real-time tracking. Conduct regular cash flow analysis to anticipate future financial needs.

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• Omar Zamora-Viera Assistant Director of Finance - Rosewood Miramar Beach

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  If you are part of a large organization, do not forget to include other teams in discussing the event. They may bring up costs or risks you may be blind to by not being exposed to them.

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