How To Organize A Show Or A Live Music Event – The Budget

Three times in the last month I have been asked the question, “what do I need to do to organize a gig?” In reality, when this question is asked it might mean a few things: How do I find a Venue? How do I sort out the PA? How do I get an audiences? And so on.
But there is a stage before all of this: the budget. I would suggest that the moment you start thinking about organizing an event you should write a budget. This budget spreadsheet informs you of most things that you’ll need to consider and will additionally show you the risk, projected profit and the breakeven point. A sample spreadshhet is available to download from this address http://www.josaka.com/features/2005/Organize-A-Gig/Event-PandL.pdf
If the budget numbers don’t look like they are working perhaps the event is not the right thing to be running. If you don’t like the level of risk, perhaps you aren’t cut out to be a  promoter.
So the start point is a spreadsheet. This should include all expenses and all incomes. The key headings for expenses should include: artist cost, PA, lighting, Venue hire, marketing, box office expenses etc. The income is like ly to be largely ticket sales but don’t forget the opening  to add a sponsor to the event.
The spreadsheet will advocate you work out the breakeven point for the event i.e. how many tickets you need to sell to cover all expenses. Every sale beyond breakeven is of course profit (exluding any box office commision). The added bonus of creating an event spreadsheet is that advocates define all the key tasks to be performed.
The realisation of the forecasted numbers turning into actual figures suggests that all get togethers have got the deal they were looking for or agreed to. The sample speadsheet additionally illustrates that anybody at all else involved in the show is largely earning a fixed cost and accordingly the only individual taking a financial risk is the  promoter.
So if you are thinking of organizing a live event I coomed you to work on the numbers first. This will advocate ensure you deliver a great show and have control over the money.