How to plan for unexpected expenses

Ever wonder if a plan B is really necessary when planning your live event?  Short answer, yes.  In this post we'll talk about how to plan for unexpected expenses.

When planning a live event, you should really have a plan B.  You never know what could happen and it’s better if you’re equipped to handle it.  But you can only be equipped to better handle it if you plan well.  Planning isn’t just about hoping that everything goes off without a hitch, it’s also about preparing for if things don’t go off without a hitch.  I know it seems like a lot but anything can happen with live events.

So how do you plan for unexpected expenses?  There are three specific things you can do and we’ll get into them now.

The first is to create a reserve.  This works the same way as an emergency fund for your home, except it’s for your live event.  For your home you’re putting aside 3-6 months (as a start) worth of bill monies.  For your live event, look at it in terms of a percentage.  I would suggest putting aside up to 30-50% of the total budget.  So if your total budget is $1,000 put aside $300 - $500.  This is a good padding to ensure that if something goes wrong or an expense is incurred unexpectedly, you can take care of it.  If you don’t have the extra money for a 30-50% stash of your budget for unexpected expenses, at the very least, put aside the cost of your most expensive item.  Consider it a security deposit that you don’t have to wait to get back if it wasn’t used.

The second is to plan the possible solution to the unexpected expense.  I call this section of my workbook Never Saw That Coming.  The title is quite deceiving but the gist is that you should never have to say that.  In this section I guide organizers through making a plan B in the event that something happens whether it was due to their error or the vendor’s.  An example of this would be having a backup photographer on paper in case your photographer double booked and didn’t realize.  Or having a backup venue in case there was a freak accident and your venue burned down.  These can cause unexpected expenses and it’s worth thinking about and writing down what the alternative would be.  The same way outdoor events have rain dates, it’s the same preparedness you need to plan your live event.

The third is to decide if it’s something you need to add for your attendee experience.  While you’re planning, it’s a good idea to only include items that are essential to your attendee experience.  Planning with your attendees (and vision) in mind is crucial as it’ll keep your planning on track.  You may be wondering how it relates to unexpected expenses.  Well, if you’re super clear on the features that are key to your attendee experience for your event, you won’t need to worry about if you need this expense or not.  What you’ll be more concerned about is how you can get it at a more affordable rate or charge.  When you lack clarity around your event and attendees, you’re more susceptible to making decisions in the heat of the moment that don’t align with your attendees or event.

The more you nail down your event planning process, the more you can kick back and enjoy yourself when event day rolls around. Learn the ABCs of how to throw a successful live event when you download my FREE “Plan Your Profitable Live Event Roadmap” below.

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Planning your first live event can be so nerve-wracking with SO much to consider. When you download my FREE “Plan Your Profitable Live Event Roadmap,” you’ll learn everything you need to know to feel completely confident in executing your event.

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Live Event Roadmap

Planning your first live event can be so nerve-wracking with SO much to consider. When you download my FREE “Plan Your Profitable Live Event Roadmap,” you’ll learn everything you need to know to feel completely confident in executing your event.