By Compass Wealth Partners. An Oshawa Financial Advisor
You have an idea for a spectacular event that you absolutely must put into practice. Obviously, the first question to which you will have to find an answer is: where will you find the funds to make it come true? There are different strategies to apply when it comes to how to finance an event and in this post we will explain the main options.
How to finance an event: the options
It is the most obvious option. If your event lends itself to being able to charge participants an entrance ticket, the best thing to do is to put the tickets on sale as soon as possible, and create a pricing strategy that starts from the reduced “early bird” price and gradually increases prices as the date of the event approaches. In this way you can quickly attract a first set of participants, and have the first funds available to start organizing the event. having already sold tickets also shows the potential of the event’s success and increases your chances of accessing other sources of funding.
Types of tickets
You can also have a combination of free and paid tickets (especially if your event contains related sub-events), and in this way you can give participants a “taste” of the event with free activities, which will make them more likely to want to pay for the most important ones. Another thing you can do is have a free donation as a price for entry (each participant pays an amount of your choice). This mode is more characteristic for charity events, but it can also work for other types of events.
Did you know that if you use Metooo as a digital platform for your event, you can set various types of tickets (free, paid with different fixed prices, and free donation tickets), even for the same event? In addition, the ticket fees are the lowest on the market , and your funds are available immediately, at the time the payment is made by the buyer.
The sponsorshipit is a very common option to finance an event, and the way it works is this: the event offers visibility to the sponsor in exchange for the funds made available. This visibility can take various forms: name associations (the event takes the name of the sponsor), exclusivity of sales of the sponsor’s brand products during the event, branding of all marketing materials of the event with the sponsor’s logo , mentions of the sponsor in all advertisements, etc. Before approaching potential sponsors, you should be able to demonstrate that your event has the potential to attract not only large audiences but also relevant to the sponsor’s brand. Ideally, you have already sold tickets, and you can present an event program and marketing plan to the sponsors.
Sale of exhibition spaces
Your event does not necessarily have to be a fair or a market to have exhibitors . In this case, sales of exhibition spaces are a considerable part of your collection. Exhibitors can be catering suppliers, or a cocktail bar, or sellers of other products related to the event.
Crowdfunding can also be a low-risk trial of collecting the initial amount you need to start the event organization process. You can ask the backers to buy tickets in advance. If for any reason the event does not materialize at the end, their money will be repaid.
The marketing budget
If you are organizing the event on behalf of a company, and the event is part of the marketing plan, you have probably already allocated a budget for its realization when the plan was created. The marketing budget should at least partially cover the costs of the event. If you intend to get sponsorships or investments for the event, being able to show potential lenders that you’re already willing to cover some of the risks will increase the chances of getting the funds.
Getting a bank loan for the event itself is an unlikely option, but if you are organizing the event on behalf of your company, and the company has a proven financial strength, a general corporate bank loan is an alternative. to consider.
You may think this option does not belong to this list. However, in the end, among the things you need money for in organizing the event there are often physical products. You can team up with other companies / brands that could offer products for the event, in exchange for products or services that you could offer to them. In this case, companies become partners. For example, the catering company can become a partner in exchange for advertising space.