Events Financial Management Report: University Assignment

This report provides a critical analysis of financial management within the events industry, focusing on Oxygen Event Services Ltd. It examines market research for business expansion, alternative funding sources like venture capital and crowdfunding, and the main purposes of financial management, including budgeting, record-keeping, and cash flow management. The report also includes a detailed analysis of Cost-Volume-Profit (CVP) analysis to determine break-even points for event profitability, alongside recommendations for financing and pricing strategies. The report concludes with an overview of financial management in the events sector, covering the various factors involved in financial planning. This document, contributed by a student, is available on Desklib, a platform offering AI-based study tools and resources for students, including past papers and solved assignments.

Running head: EVENTS FINANCIAL MANAGEMENT
Events Financial Management
University Name
Student Name
Authors’ Note

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Table of Contents
Introduction................................................................................................................................2
Results of any market research about the commercial viability of similar events.....................3
Critical analysis of alternative sources of finance to fund the event..........................................3
Analysis of main purposes of financial management within events industry............................4
Critical analysis of CVP analysis...............................................................................................7
Recommendations......................................................................................................................9
Conclusion................................................................................................................................11
References:...............................................................................................................................12

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Introduction
The current critically analyses event management with special reference to the operations of
the firm Oxygen Event Services Ltd. This indicates towards application of particularly
project management of the firm to the process of creation as well as development of diverse
large scale events. The firm Oxygen Event Services Ltd is an expert in the field of technical
production, logistical management along with conceptual design. The company is a highly
creative corporation that has the intention to distribute cutting edge, innovative events
accounts across different disciplines in which the company specialises, particularly in the
section of corporate, private, logistics as well as design. Essentially, this study presents
analysis of financial aspects and financial management within the events segment with
emphasis on pertinent pricing stratagems, critical evaluation of CVP analysis illustrating the
capability to enumerate the total number of customers for break even. Moving further, this
study also presents suggestions of the most suitable sources of funds and pricing strategies of
the particular strategies. Thereafter, the current study presents a conclusive statement
regarding the probable outcomes of the proposed idea of expansion strategy of the business
by introduction of new product that means organizing different events across London
throughout the year.
Results of any market research about the commercial viability of similar events
Market Research can help in analysing whether the strategic decision of expansion of
business of Oxygen Event Services Ltd is feasible. Detailed research about the market can
help in dealing with a wide range of consumers and delves deep into the process of research
of new product as well as distribution mechanisms. The study at hand can undertake market
research for the purpose of defining the creative idea of expansion of business in London,
analysis of methods of collection of data along with needs (Moutinho and Vargas-Sanchez

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2018). In addition to this, conduction of market research can help in the process of enhancing
the branding of the firm by exploring awareness regarding the brand, competitive
comparisons along with characterization. In addition to this, the company intends to present
the best strategy for expansion of business by means of expansion of sales of the company in
the subsisting market. Essentially, the management of the company intends to undertake this
operation by means of simple and straightforward way by influencing an expansion of
existing customer research. However, by means of knowing the target customers in a better
manner, it is possible to reach the target market in a better way to a larger group consisting of
the same individuals. For the present case, the management of the firm might consider
expansion of business by incorporating the event of organizing sports events (Finkler et al.
2016). There are certain important facts that can be known regarding the events industry in
particularly the UK. Market research shows that this industry is worth around £42.3 billion,
attendees spend roughly £65 yearly for registration and around UK event agencies turnover is
over and above £ 3.5 billion. Again, there are more than 85 million event attendees
Critical analysis of alternative sources of finance to fund the event
Critical evaluation of alternative sources of funds that is looked-for for the event of expansion
of the business includes:
Working closely with the financiers:
Depending on the business size of the business along with scope of plans of expansion, it
might be feasible to select to look for venture capital funding, or working with a private or
else angel financiers to fund the process of business expansion. Financiers can be highly
advantageous to increasing business of Oxygen Event Services Ltd as they present insights as
well as experience regarding expansion plan of the business. Nevertheless, working with
financiers does not imply sacrificing equity in the business and the financier might possibly

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insist on different ways of undertaking tasks that do not necessarily march the plans (Balazs
et al. 2016).
Considering the crowdfunding:
As the company Oxygen Event Services Ltd has a loyal set of customers who get excited
regarding the plans for expansion of business, crowd funding for some projects or else all of
the projects for expansion through a platform can be considered.
Debt based process of funding:
Ultimately, there are several small businesses owners who select to finance their plans of
expansion by means of small loans for business either obtained from a conventional bank or
else from a substitute lender (Martin 2016). Management of the firm can consider the option
of debt based process of expansion funding.
Analysis of main purposes of financial management within events industry
Main purposes of financial management in the selected event management industry include
undertaking financial decision making, carrying out financial planning and financial control.
Administration of financial management within events industry has the need to make certain
that adequate financing is available at the appropriate time to satisfy the requirements of the
business. Essentially, at the core of financial planning of any event organized is the activity
of preparation of budget. This refers to a list of the money that will be received and the
money that will be spent (Bekaert and Hodrick 2017). In particular, this budget can be small
and simple or else large and complicated, depending on the specific event. The crucial thing
is to make sure earnings of the company from the event is higher than the money spent. This
can also imply the difference between firm’s success and failure.

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The budget for the proposed event of sports event for expansion of the business can take in
the following:
- Earned Income that includes sales of ticket, various concessions (including fees received
from the stallholders and many others), sales of sports merchandise from counters
-Unearned earning that comprises of grants, different donations as well as sponsorships for
the sports events among many others (Zietlow et al. 2018)
However, the budgeted expend might comprise of the following:
- Salaries as well as wages
-Costs of programs
-Costs of marketing
-Costs of administration
-Costs incurred for site
Financial management include developing a document as event is organized in detail so that
the costs incurred by the company become distinct. Earlier suppositions on fees might
perhaps change after obtaining various quotes (Petty et al. 2015). Therefore, it is necessary to
update the budget on a regular basis, as it will reflect when it is important to spend less and
raise more income.
Record keeping for proper financial management
It is important maintain clear and appropriate records of every expenditure and income. A
proficient accountant having understanding regarding basic book-keeping can carry out this
job. In itself, for organizing the event, there is a need to establish a “Chart of Accounts”, a

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ledger and specifically issue invoices as well as receipts (Attig et al. 2016). In essence, after
conduction of the event there is need to keep account for everything spent to those concerned
individuals who invested money to uphold the event.
Before the event
It is important to keep revising the prepared budget. Also, it is important to take account of
the money received due to the company as income. The finance managers can plan the flow
of cash and know when money is coming in and going out so that there is always adequate
cash at hand to disburse the bills. In addition to this, there is also a need to maintain a
schedule for payment and maintain a note of all the disbursements that the company will be
making every day close to the event (Masterman 2014). Furthermore, it is also important to
plan the way the company will manage financial transactions during the event. There might
be necessity for tills as well as cash floats for issuing change.
During the event
The company can make certain that all the disbursements that fall due roughly near or else
during the events get organized well in advance. In case if the company is receiving cash
during conduction of the event for any specific reason, then it is important to have a plan to
maintain safety. Additionally, it is also important to make certain that none has the need to
transport huge amounts of cash and allow cash to build up (Jones and Jones 2014).
After the event
Having handled all the receipts and disbursements all the bills, there is a need to have a clear
and distinct record of all transactions. Management of the firm can maintain list of all actual
income as well as expenditures and comparison can also be carried out with budgeted
earnings and expenditures (Plante et al. 2017). Essentially, there might be need to deliver

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correct pronouncements of income as well as expenditure to individuals else wise
organizations that have delivered funds for supporting the new event.
Critical analysis of CVP analysis
Illustration of event financial budget
Forecasting the financial result of a specific
In this case the event budget is necessarily a projection of both income as well as expenditure
that the event will acquire founded on specific plans and particular information amassed. In
essence, the voluntary administrator of the firm has the accountability to organize a sporting
event (a new event that the firm will be conducting for business expansion). Essentially, this
event calls for the need of expends in the following areas:
Particulars Amount ($)
Hire of venue 400
Cost of advertising and costs of promotion 300
Presentation of trophies 200
Cost borne for telephone, stationary products
and postal
100
Total Fixed Cost Incurred by the firm 1000
Essentially, it can be hereby mentioned that the fixed cost of $1000 refers to the total amount
that the company will spend irrespective of the total number of people that will turn up to the
specific event. Thus, these amounts can be referred to as the fixed costs. However, at the
event, there will essentially be other costs that will depend upon the total number of people
who will participate in the event. As such, these costs include the following:

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Particulars Amount ($)
Each one of the competitors will accept
Food as well as drink 10
Caps 5
Variable Cost for every provider 15
In essence, these costs can be indicated as the variable costs as the cost shall differ with the
total number of event’s competitors. In this case, the voluntary administrator might become
worried regarding the total number of competitors that are required to break even in case if
competition price of $20 for every participant. In this case, it is required to enumerate the
minimum number of participants that is required so that the selected event does not incur
loss. Fundamentally, the term break even implies that all even costs can be covered by
different incomes of the event (Aicher et al. 2015). As such, these issues can be considered to
be a daily concern for business although it is not an intricate one. In order to resolve this kind
of concern it is obligatory to distinguish between fixed as well as variable costs. Essentially,
the solution below presents the enumeration for the break even.
Particulars Amount ($)
Entry fee for competitors 20
(-)Variable cost incurred for every competitor 15
Contribution (of each and every competitor)
for the fixed costs
5
Fixed Cost 1000
(÷)Contribution 5

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Total Number of Competitors that is required
is
1000/5=200
Therefore, the solution is 200 competitors in this case of sports event. The formula that can
be considered for enumerating break even analysis can be presented as below:
Break Even Point= Fixed Cost/ (Price-Variable Costs)
Recommendations
Proposed sources of finance for organizing the event of sports include the following:
- Crowd funding: The advent of crowdfunding platforms such as Kickstarter has necessarily
made examining the appetite for several new events easier, permitting organisers to try out
several ideas before risking cash. The company can also deliver details as regards great,
novel event, establish fundraising target and ask various aspirant attendees to assure
purchasing a ticket in case if the event occurs (Taylor et al. 2015). Thus, it is a risk free
investment for the particular attendees and for the organiser who does not need to stake their
own funds. However, even though the entire process is simple, luring purchasers of ticket is
not essentially easy.
-Angel Investors: Angel investors can be considered to be wealthy individuals or group of
individual seeking for several new opportunities (Langdon and Marsden-Heathcote 2018)
-Savings/ Internal Budget for marketing: This is also an important source of finance that
the management of the company can utilise for the proposed strategy of expansion of
business. Essentially, this refers to the own resources of the corporation. Management of the

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firm can analyse the total amount of cash that can be allotted by the company for the
proposed project.
-Bank Loan: Management of the firm can avail bank loans and can borrow against certain
existing asset for financing the new project of expansion of business.
-Sales of advance ticket: Utilizing a platform for ticketing can help the company in starting
the process of selling tickets for the sports events in advance that it intends to organise.
Essentially, this can help the company in receiving a specific proportion of payments for
advance sales of tickets, supplying with crucial flow of cash to arrive at the project off the
ground (Greenwell et al. 2014).
-Sponsorship: Corporate sponsorship can be considered to be an effectual way to finance
new components of the new event, and is used by majority of events. Nevertheless, sponsors
normally come on board after the selected event has got off the drawing board. In essence,
sponsors might want to understand the number of individuals who will attend the event
(Jones and Jones 2014). This will possibly be necessary to acquire some financing before
approaching sponsors.
-Use of barter: There is also in-kind system of financing. For instance, a specific magazine
company that is arranging a reader event can necessarily offer a catering corporation free
print advertising in exchange for proving food and beverages. Alternatively, it is possible to
deliver partners the opportunity to play a crucial role at the specific event itself (Schwarz et
al. 2015). This is a system that the management of the firm can utilize.
Recommendations for development of pricing strategies of the company for proposed
business expansion include the following:

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- The strategic decision of setting the price of the tickets for the proposed sports events can be
considered to be very dynamic. There are chiefly three important ways of setting the price of
sports tickets namely season tickets, individual tickets price set by the firm (Chadwick et al.
2017). The management of the firm can take into consideration the Seasonal aspects. For
seasonal tickets, the price can be set at a high level. Again, management can take into account
individual tickets that are presented for sale by league after particularly season tickets.
Essentially, face value assigned to a specific ticket can be based in the sale price of individual
ticket that is set before the season and is typically the same for different games.
Conclusion
The above study helps in gaining clear understanding regarding primary purposes of financial
management in the area of events management. The study at hand however presents an
analysis and importance of financial management for the proposed expansion of business
(organization of sports event). In addition to this, this study also aids in understanding
different creative ways of resolving issues by means of quantitative as well as qualitative data
relevant to the specific study. Furthermore, this current study at hand also helps in
ascertainment of specific methods for enumeration of break even, overall profitability as well
as cost of capital. Moving further, the study also explains in detail proposed sources of
finance for events management and particularly specific sources of financing for sports event
organization. Again, this study also presents evaluation of main purposes of financial
management within events industry, critical evaluation of CVP and indicating ability to
enumerate number of customers to break-even.

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Tourism Texts. Cabi.
Finkler, S.A., Smith, D.L., Calabrese, T.D. and Purtell, R.M., 2016. Financial management
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Balazs, A.G., Liu-Barker, X.C., Foiles, D.L., Thomas, M.P.I. and Lee, R.E., Intuit Inc,
2016. Methods, systems, and articles of manufacture for implementing adaptive levels of
assurance in a financial management system. U.S. Patent 9,444,824.
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University Press.
Zietlow, J., Hankin, J.A., Seidner, A. and O'Brien, T., 2018. Financial management for
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2015. Financial management: Principles and applications. Pearson Higher Education AU.
Attig, N., Boubakri, N., El Ghoul, S. and Guedhami, O., 2016. The global financial crisis,
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Jones, M.L. and Jones, M., 2014. Sustainable event management: A practical guide.
Routledge.

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Plante, J., Kasavaraju, R., Mauro, G. and Nickerson, A., SmartDrive Systems Inc,
2017. Vehicle exception event management systems. U.S. Patent 9,738,156.
Aicher, T.J., Paule-Koba, A.L. and Newland, B., 2015. Sport facility and event management.
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strategic human resource management perspective. Routledge.
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