Budget

Cashflow

Funding

PCO fees and Business Model

KEY CONSIDERATIONS

Bottom Line Target

•Minimum? Maximum? Mandatory?

Likely Attendance

•Conservative

Seed Funds

•Amount needed? Availability?

Tax regime

•Operating Rules

The past

•Registration fees & categories

•Sponsorship

The present

•Economic climate

•Fees for competing congresses

•Sponsorship guidelines

The destination

•Appeal

•Accessibility

Guidelines

•What is your client's vision?

•Does the client's resources match their vision?

Components

•Must include

•Nice to have

Suppliers' costs

•Start with estimates, replace with quotes

Contingency

Plan First

•Look at your project plan

•Count for every item

Be Realistic

•Use sensible figures that can be achieved

•Easier to spend than it is to save

Be accurate!

Income

Expenditure

Profit/Loss Calculation

Costs which are incurred regardless of the number of participants

Replace estimates with quotes

•Use your project plan as a check list

•Think of everything

•Review the leadup and congress 'on the day'

•Include a contingency which can be reduced over time as costs are confirmed

•Update and fine tune regularly

Accompanying Persons

Exhibition

Note: Exhibition variable cost is per m2 not per exhibitor

Delegates

•Catering, functions, field trips

•Social programmes

•Congress pack, name badge

•Credit card commission on registration fees

•PCO fee (if quoting per head)

Note: entitlements may vary according to registration type

Accompanying Persons

•Catering, functions

•Social programmes

•Name badge

•Gift

•Tours

•Credit card commission on a/person registration fees

•PCO fee (if quoting per head)

Exhibitors

•Booth costs

•Catering (if included)

•PCO fee (if quoting per m2)

Note: Exhibition variable cost is per m2 not per exhibitor

•Use quotes rather than estimates

•Include entitlements for complimentary registrations

•Check cost of dinner includes guests

•Once numbers are confirmed (eg catering) they become a fixed cost

•Registration fees

•Exhibition Revenue

•Government Assistance/Subvention

•Sponsorship

•Accompanying persons’ fees

•Other [Hybrid Meetings / Post-Event on-line Library etc]

Registraton fees

•Include all categories estimate number in each category

Sponsorship

•Be realistic –base it on research

Exhibition

•Do not expect 100% sales

•Make prices affordable

Other

•Include sales, eg social functions, workshops, field trips

Look at:

Non essential items, such as

•Decoration

•Excessive social events

•Committee expenses

•Contingencies

Greatest impact:

Look at variable costs –largest savings here

Note: do not cut programme items

Capture in one document:

•When you expect to receive income

•Timing of receipt of sponsor revenue

•Timing of receipt of exhibition sales

•When you expect to pay suppliers

•Determine the pressure points of when additional funding will be required in the lead-up

•Must link to budget

•Always double check calculations

•(ending cash must match profit)

•Include sales tax

•Accurate timing is everything

•Adjust the cashflowas you adjust the budget with firm figures rather than estimates

•Funding from the client

•Profit from the previous event in the series

•You can finance the event yourself

•Interest charged

•Free loan

•Bank Loan

•Government funding

•Key sponsor seed capital

•Beneficial sponsorship rates

What associations are looking for:

Relationship

•Trust

•Partnership

•Sharing Strategic Goals

•One point of contact

•Dedicated team

What associations are looking for:

Relationship

•Trust

•Partnership

•Sharing Strategic Goals

•One point of contact

•Dedicated team

And this extends into Finance and PCO fees

•Model including profit/risk sharing

•Sharing the financial risk

•Pre-financing congress activities, interest-free

•No additional service charges

•Fiscal advice (tax, local regulations etc)

Your price is your most important profit driver –it needs attention

•Document the value you bring to your client

•Show your differentiators: true customer orientation, staff skills, flexibility, innovation, knowledge, memorable experience, case studies

•Give your client intelligent options

•Benchmark yourself

•by the hour

•by fixed fee (consultancy, management)

•by the number of participants

•by the number of m² sold

•by the number of abstracts

•by a % of sponsorship

•by a % of budget

•by a % of profit

•by a % of exhibition income

•by a % of expenditure

•Remember to include every single detail as is contained within your project plan

•Do not exaggerate your revenue (sponsorship/delegate numbers) to make your budget work –be realistic

•Include a client's 'profit needs' as an expenditure item and then create a breakeven budget within which to work

•Expenditure

oFixed Costs

oVariable Costs