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Control budget, keep meeting and
organization on track

A detailed budget may be crucial to an event’s success, but it may not be enough to forestall financial catastrophe if attendance drops unexpectedly, MaryAnne Bobrow, managing partner of Bobrow & Associates, told participants in a Monday afternoon session. The key is to think strategically, using cash flow projections, avoiding last-minute “budget busters,” and re-negotiating when necessary.

Bobrow advised participants to create a twelve-month cash flow spreadsheet to chart expected monthly income and expenses. When making projections, planners should have their contracts on hand, so they can note when fees and payments will be due. If an organization expects to receive fees months before event expenses go out, Bobrow said reliable short-term investment could be wise.

“Cash flow projections are not just a numbers game. They can be career-builders,” she said. “They can show people that you’re thinking of the company’s success and not just your little area.”

If attendance doesn’t meet expectations, adjust the budget immediately, and pay particular attention to rush orders, signage, on-site copies, and volunteers who can’t say no, all of which can derail cost projections. Bobrow said planners should be sure they understand all the provisions in their contracts, because incorrect assumptions on matters like attrition calculation could be costly. A good budget also contains contingency estimates and an expected profit line.

“You know how you’re trending in the months leading up to the conference,” Bobrow said. “If you know the budget is going south and you don’t have the attendees, go back to the hotel and see what you can re-negotiate.”

When a hotel she was working with refused to budge on food and beverage minimums Bobrow no longer needed, she worked with the national representative to recalculate sleeping rooms. The brand forgave close to $25,000 in room nights, and because of the meeting’s history, came back with concessions that equaled attrition costs, in exchange for booking a future conference.

“Budgeting is not about the numbers,” she said. “It’s about relationships. It’s about your ability to contribute to the organization’s success.”

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