How Event Planners Can Secure Funding for Growth

“Don’t wait for extraordinary opportunities. Seize common occasions and make them great.” – Orison Swett Marden.

This timeless quote says it is all about event planning. Behind the scenes, securing the right funding can determine whether this is going to be a small-time affair or a spectacular one that really makes an occasion worthwhile. Whatever the occasion may be, small-time community festival planning or large-scale corporate conference planning, adequate financing is the key to success. But most event planners can tell you it is not that easy.

The UK has many financing options; however, determining which one to consider first proves somewhat challenging. In this guide, we shall explore a few of the most productive ways of acquiring the capital needed to help your event thrive and expand.

Sponsorships: Aligning Interests for Mutual Gain

Sponsorship is one of the most widely practised and effective fundraising methods event planners use. Most sponsorship campaigns simply extend an invitation to businesses and organisations who have some interest in your event’s theme or audience and offer them visibility and/or engagement opportunities in exchange for some degree of financial support.

Sponsorship packages might run from logo placement to speaking opportunities to get VIP-treated events. The point is that a company would be able to simply show clear value associated with the sponsorships in terms of the visibility of its brand and engagement with the desired audience. For example, a tech firm can sponsor a conference technology event and leverage an audience already interested in its products.

Pro Tip: Customise your sponsorship proposal to fit each prospective sponsor’s objectives. Explain to them how your event will generate a high ROI for their investment. Flexible packages can be opened up to businesses of any size, and even the smaller ones are now able to participate.

Exploring Government Grants and Subsidies

The UK government provides several grants and subsidies which help in business development. Most of such funds are non-repayable and thus appeal to business planners looking to expand the event planning business without having a debt burden.

For instance, research grants, such as the Innovate UK Smart Grants, aim to support innovative ideas. Again, the Business Growth Fund provides equity funding to SMEs. The main advantage of these grants is that they are not to be repaid; they usually require certain conditions, and their application processes are competitive and challenging.

Examples of Government Grants:

Action Step: Periodically check government sites such as GOV.UK or Business Finance Support Finder for grants applicable to your business.

Leveraging Crowdfunding Platforms

Crowdfunding has emerged as a powerful means of capital raising. You can use platforms like Kickstarter, Indiegogo, and Crowdcube to showcase your event idea in front of a large audience. Develop an attractive campaign that contains proper narration, catchy visuals, and a robust marketing campaign for potential backers.

Crowdfunding, in particular, is perfect for niche or community-oriented events. For example, a local food festival may find success through crowdfunding, with the community seeking its success.

Engaging Angel Investors

Angel investors are wealthy people investing in your business with an expectation of getting equity in return. They can be helpful if you seek funding where more than monetary support is required. Many angel investors bring industry expertise and networks that will help grow the business.

Another source for securing angel investors is networking events and pitch competitions or platforms such as the  UK Business Angels Association (UKBAA). Venture capital firms seek business ideas with high growth potential; therefore, as much as possible, they have an attractive pitch that clearly depicts a market opportunity.

Securing Venture Capital

These firms invest money into small businesses and startups, where they have equity in those businesses. They tend to want companies with high growth prospects. Getting VC funding may be highly competitive and challenging, but with other than the financial sums, it is one of the most significant sources of support.

Prepare an in-depth pitch deck explaining the business model, the size of the market opportunity, and the strategy for growth. Choose the names of some relevant VC firms that have invested in the event industry or related sectors in the past.

Revenue-Generating Activities

Ticket Sales

Ticket sales are probably one of the easiest sources of money for your event. Offer early bird discounts and group rates to motivate a number of people to book tickets. Your pricing should reflect the value of the experience you are giving, and you could use something like Eventbrite to track sales and monitor attendees.

Merchandise Sales

Selling merchandised items related to the event, such as T-shirts or other branded items, can alone generate additional revenue. It can also be utilised as a way to promote your event. Customers who buy and wear your product become walking advertisements for your brand.

Fundraising Events

Hosting smaller fundraisers, like dinner gatherings, auctions, or benefit concerts, along the way to your major event can make more money and build more suspense. You also have an opportunity to connect in more intimate settings with people you might want to have as sponsors or partners.

Advertising Revenue

In other words, sell ad space in your event program, on your website, or in the venue to assist in raising your funds. Provide different packages at different levels of exposure, such as banner ads, social media shoutouts, or sponsored content.

Partnerships and In-Kind Donations

Being in partnership with other organisations or businesses can be mutually beneficial. For instance, a venue could offer the space for a reduced rate or in return for marketing exposure. Similarly, catering services might offer discounted packages in exchange for branding opportunities.

In-Kind Donations

In-kind donations can also be found through local businesses or contacts within your industry. These may include catering services, printing operations, or equipment rental. In-kind donations enable you to reduce your overhead expenses and focus the cash reserves on other parts of the event.

Exploring Loans and Financial Products

Microloans

Microloans that are generally given out through non-profit organisations or community lenders are another option for small businesses that require only a little capital. For instance, the Prince’s Trust offers microloans for young entrepreneurs operating in the UK. Microloans allow young people to get as much funding as is available for their business startup to date.

Revenue-Based Financing

Revenue-based financing is the process of receiving funds in exchange for a percentage of revenue earned in the future. It is very effective, especially for those with erratic revenue business models, such as a performing facility. Repayments are tied to performance, so performance becomes tied to capital raised. An example of this is the Revenue-Based Loan offering provided by Nucleus.

Conclusion: Choose the Right Funding Path

Securing funding can be a daunting task if you are an event planner, but there are many diverse options that might just be the one for you. Model your approach to your business needs and specific goals, as well as the size of the event and your growth aspirations.

We understand the special nature of event planning at Nucleus. From a business loan to revenue-based financing, our flexible funding options will help grow your business and make your vision come alive. Get in touch with us today and take the first step toward a more prosperous future.