When it comes to planning a memorable corporate event, entertainment is often a key element that can leave a lasting impact on attendees. However, budgeting for event entertainment can be a complex and challenging task, with many potential pitfalls along the way. Improper budgeting can lead to disappointment, missed opportunities, and even financial strain on your event. Use these tips as a guide to creating an event to remember.
Understanding the True Cost of Entertainment when Creating an Event Budget
One of the first steps in effective budgeting is clearly understanding all the costs associated with your desired entertainment. While artist fees and performance costs are often the most obvious expenses, several other factors must be considered.
As Nicole Bernardi from Innovative Entertainment points out, “In addition to the talent fee, there’s travel costs, technical costs, green room and catering costs. […] And then there’s venue-related costs that they might add on for certain talent needs, from power to rigging to union labor.”
Some additional expenses to keep in mind include:
- Travel and accommodations for the artists and their team
- Technical requirements such as sound, lighting, and staging
- Insurance and legal fees
- Taxes and visas for international events
Conducting thorough research and due diligence on all potential costs is essential to ensuring an accurate budget. This applies to in-person events as well as virtual events. Partnering with experienced professionals like Innovative Entertainment can help you identify and plan for these expenses more effectively.
Pitfall #1: Underestimating the Corporate Event Budget (Create a budget allocation)
One common mistake event planners make is underestimating the amount of money needed to secure the desired entertainment, which is why having a detailed budget plan is crucial. Insufficient funding can lead to limited talent options and compromise the quality and impact of an event. You want to know your event costs in the beginning of the process.
Jamie Snively from Innovative Entertainment shares a real-world example:
We once worked with a client whose heart was set on a specific celebrity performer, but their budget didn’t align with that vision. This is a common scenario – many times, clients come to us with expectations that exceed their budgets. However, this is where our expertise in event management truly shines. We collaborated closely with the client to explore creative alternatives that would still capture the essence of what they wanted to achieve, using our event management skills to ensure a seamless process.
Through this process, we discovered a lesser-known but incredibly talented act that fit perfectly within their budget. The result? An event that not only met but exceeded expectations. The performance was a showstopper, delivering that coveted ‘wow’ factor and leaving the audience thoroughly impressed.
This experience perfectly illustrates our commitment to finding impactful solutions, regardless of budget constraints. Our job is to help clients uncover options that fit their financial parameters and create memorable, high-impact experiences. In the end, it’s not about settling for less – it’s about uncovering hidden gems that can make an event truly special, often through meticulous event management.
You want to set a realistic budget based on your goals and expectations to avoid this pitfall.
Research the going rates for the type of entertainment you’re interested in and factor in all associated costs and event expenses. If your budget is limited, consider alternative options or explore ways to maximize the impact of your available funds.
Pitfall #2: Overspending on Headline Entertainment
On the flip side, some event planners may be tempted to allocate too much of their budget towards headline talent, leaving insufficient funds for other essential aspects of the event. While it’s important to prioritize entertainment, it’s equally important to strike a balance and include a portion of your budget for other event elements such as venue, décor, catering, and production. Think of your total event budget.
Nicole Bernardi advises, “It’s about finding that sweet spot where you’re getting the most bang for your buck without sacrificing the overall quality of the event. Sometimes, booking a slightly less expensive act and allocating those savings towards other areas can actually lead to a more well-rounded and impactful experience for attendees.”
Some strategies for maximizing value and impact within your budget include:
- Negotiating with talent agencies and managers to secure the best rates
- Exploring alternative and emerging artists who may offer similar quality at a lower price point
- Leveraging your network and partnerships to access exclusive deals or package options
By being strategic and flexible in your approach and thinking about how each item will affect your budget, you can ensure you’re getting the most value out of your entertainment budget without compromising other important aspects of your event.
Pitfall #3: Failing to Plan for Contingencies (even the best events have challenges!
No matter how carefully you plan your event, unexpected challenges can arise at any moment. When it comes to corporate event planning, this could mean anything from last-minute travel changes to technical malfunctions or even artist cancellations. Failing to budget for these contingencies can leave you scrambling to find solutions and potentially facing additional costs.
As Jamie Snively notes, “We once had a situation where our headline performer got sick just hours before the event. We quickly found a replacement act and arranged their travel and accommodations, following a detailed event plan to avoid any disruptions. Thankfully, we had a contingency fund built into the budget, which allowed us to cover these unexpected expenses without having to make cuts elsewhere.”
To mitigate this risk, it is wise to build a contingency fund into every corporate event entertainment budget from the start. This fund should be separate from your primary budget and reserved for emergency situations. Event professionals recommend a general rule of thumb, which is allocating 10-20% of your entertainment budget towards contingencies.
In addition to financial preparations, it’s also important to have backup plans and alternative options in place. Work with your entertainment partner to identify potential substitute acts or have a plan B if your first or second choice turns the offer down or is no longer available. By being proactive and prepared in the event planning process, you can minimize the impact of unexpected challenges on your event.
Pitfall #4: Not Aligning Entertainment with Event Goals (Let’s Think Event ROI)
When selecting entertainment for your corporate event, choosing acts based on personal preferences or what’s currently trending can be tempting. However, failing to align your entertainment choices with your overall event goals and audience demographics can lead to a disconnected and ineffective experience. You want to ensure the event is successful.
Nicole Bernardi shares an example: “We once worked with a client who insisted on booking a heavy metal band for their corporate gala. While the band was talented, their style and energy didn’t match the sophisticated and elegant tone of the event. As a result, many attendees were completely disengaged, and the entertainment fell flat.”
To avoid this pitfall, it’s crucial to consider your event objectives and target audience when making entertainment decisions.
Ask yourself questions like:
- What is the purpose of this event and what message do we want to convey?
- Who will be attending and what are their preferences and expectations?
- How can our entertainment choices reinforce our brand identity and values?
Collaborating with stakeholders and entertainment experts ensures that your chosen acts align with your event goals and resonate with your audience. This strategic approach will lead to a more cohesive and impactful event experience.
Pitfall #5: Overlooking the Value of Professional Expertise of Event Planners
Planning corporate event entertainment can be daunting, especially if you’re not familiar with the industry. Navigating the process alone can lead to costly mistakes, missed opportunities, and unnecessary stress. That’s where the value of professional expertise comes in.
Partnering with experienced entertainment professionals, like the team at Innovative Entertainment, offers numerous benefits, including:
- Access to an extensive network of talent and industry connections
- Knowledge of current trends, emerging artists, and best practices
- Ability to secure the best deals and negotiate favorable contracts
- Guidance in avoiding common budgeting pitfalls and maximizing value
As Nicole Bernardi explains, “Our clients often come to us feeling overwhelmed and unsure of where to start. By leveraging our expertise and relationships, we’re able to help them identify the best options for their budget and event goals, while also saving them time and stress in the process.”
Real-world success stories demonstrate the impact of these partnerships. For example, Innovative Entertainment once worked with a client who had a limited budget but wanted to create a memorable and engaging experience for their attendees. By collaborating closely with the client and leveraging their industry connections, the Innovative Entertainment team was able to secure a unique and interactive entertainment package that included a celebrity DJ, live musicians, and immersive visual elements. The result was a standout event that exceeded the client’s expectations and left a lasting impression on attendees.
Time for a Successful Event
Budgeting for corporate event entertainment can be challenging, but by understanding common pitfalls and implementing strategic approaches, you can create a memorable and impactful experience while staying within your financial means.
Remember to:
- Understand the true costs of entertainment and conduct thorough research – budget ahead of time
- Create a realistic budget based on your goals and expectations, thinking of every aspect of budget planning
- Balance entertainment costs with other event priorities that are needed to make your event memorable
- Plan for contingencies and have backup options in place throughout your event to make your event a success
- Align entertainment choices with your event objectives and audience, keeping in mind a budget that covers your headliners
- Leverage the expertise of professional entertainment partners and event managers
- And importantly when planning a corporate event, consider the type/style of entertainment you want when selecting your venue.
By keeping these key principles in mind and collaborating with trusted industry experts, you can confidently approach the budgeting process and ensure that your corporate event entertainment leaves a lasting impression on your attendees. As the team at Innovative Entertainment reminds us, “The right entertainment can take your event from ordinary to extraordinary.
Professional planners are excellent at event budget management as they are familiar with every aspect of event planning, no matter the scale of the event.
With careful planning and strategic decision-making, you can create an unforgettable experience that your attendees will be talking about for years to come.”
