Risks – sometimes you take them and walk past through them while some other times they surprise the hell out of you. The event industry can be quite prone to risks. There has been a fair share of risky events that have gone to the market. But, then, there are certain measures one can take to slash an event’s risk quotient.
Here we list 10 ways to reduce risks at your next event; read on:
1. Follow a proper event management process:
Sometimes, you need to throw the unconventional out of the window to get rid of some problems. Yes, you heard it right, sometimes sticking to the tried-and-tested event management process is the best thing to do. Following this process ensures that you stay on track with your activities.
2. Include a contingency in your event budget:
Every event should include a contingency but that does not always happen. Often when agencies run an event check, they come across budgets that don’t include the crucial step of minimizing risk.
3. Operate a warning system:
If you are running a series of events, we highly recommend you use a simple traffic light system to highlight any potential risks. In simple terms, mark an event green once it passes break even, amber when you are on target with the revenue and red if you sense that revenue is going to be below expectation.
4. Don’t sign anything straight away:
Even if a venue has been chasing you relentlessly, you need not to sign up with them until you know the exact number of attendees. If the event is big enough, venues wait for you for months. It’s rare that you lose a provisional hold but of course, if you need that venue then you have to sign. Still, try to procure the venue at the best possible cost.
5. Maximize your income streams:
The biggest and most monstrous risk is losing money. For most event planners, revenue and risk are inversely proportional – higher the revenue, lower the risk. Be highly vigilant about your revenue stream. Try securing more sponsors, sell content during and after the event as well as try maximizing revenue from F&B and other expenses.
6. Stay on top of expenditure:
Highlight this with a bright red marker. Have a bulletproof budget and let it guide you. If you don’t go overboard with your expenses, you will reduce the risk of losing money.
7. Insure your events:
Another big hovering problem is what if the event doesn’t work…however, having insurance will help you reduce your risk profile.
8. Update your terms & conditions:
Most of us could be found guilty of forgetting to amend or update our terms & conditions. It is an easy one to miss, leading to some serious repercussions. If your attendees haven’t signed the T&C or they aren’t updated, you stand on extremely shaky ground.
9. Engage well with stakeholders:
It is shocking to see so many event organizers have absolute trust in all their suppliers and stakeholders without seeing them in action. The services the stakeholders offer are crucial to the business. Hence, organizers must know as much as possible about their suppliers and should have seen them in action before their event.
10. Look at crowdfunding as an option:
Probably the best way to control your event’s risk quotient is to crowdfund it. Crowdfunding has been a success several times. It is basically the ultimate market research. With a crowdfunding campaign, the organizer has the chance to ask their “potential” attendees to guarantee their attendance even before the event is organized or any money is spent on the event. What’s more? There are umpteen case studies to prove how effective this tool is.
To conclude, knowing how risky your event is, is an event essential. Make sure to follow the above tips to stay in the ‘green’ zone.