"Zero-based budgeting" involves building an exhibiting budget from scratch, without being able to rely on figures from a previous fiscal or calendar year.
Regardless of whether you're an experienced exhibitor or an exhibiting novice, creating a budget can be a very overwhelming and time-consuming process. Sure, there are things like the cost of your trade show display to consider, but you also have to factor in other expenses, such as marketing, travel, and show-related fees.
So, how do you begin? The best way to begin is to think about your objectives for a particular show. Are you trying to capture new sales leads? Increase awareness of your brand? Gather feedback from your customers?
Once you've determined your goals for a show, then you'll need to assign values to those goals. To value a goal, you'll want to determine how often a prospect becomes your customer once they reach that goal. Are you confused yet?
Okay, here's an example. Let's say your goal is to capture new sales leads. Your sales team closes 15% of the new sales leads generated from trade shows. If the average profit from each of your customers' transactions is $200, then the value of that goal would be $30 (i.e. 15% of $200).
Now that you've assigned a value to your goal, how do you figure out your budget for that goal? Let's say you're aiming for 300 new sales leads. Take the number of targets (300) and multiply it by the value you've assigned to your goal ($30). This will give you your budget for that goal ($9,000).
Then, to determine the overall budget for your event, take the budgets you've set for each of your goals, your travel expenses, marketing costs, etc., and add them all up. There you have it!
EXHIBITOR Magazine recently published a great budgeting article, called "How to Calculate Your Costs." This article is a great resource for any exhibitor, loaded with all kinds of budgeting strategies, tips, and cost formulas. Click on the link to view the article.
Displayit's team of experienced exhibit consultants is also ready to help you be successful at your next event. We'll work with you to find the perfect display that's suited for YOUR budget. Contact us to get started.