Sarah Fejfar 0:00
And so I want you to sit in what it would feel like if you know you could do events and do them profitably. I get goosebumps just thinking about it. Because with a profitable event, you also elevate your brand's positioning in the marketplace? And finally have that answer to the question about how you're going to scale. Right. And so, if that's the goal, using events to scale and doing them profitably, then let's get to the starting line, shall we? If you want a profitable event, the starting line is breaking even. And so to help you get there, there are three important steps that you have to take. We're gonna go through them today. Are you excited to have some fun with the numbers? I'm excited. Yes, quirky. You can describe me as that. But I do really get excited about the money stuff. Because with careful attention, you can land where you want to land.
Sarah Fejfar 1:06
Inquiring minds want to know, how are entrepreneurs like us daring bravely to build a stage ditch the sweat pants and step up to the mic? How do we create our own transformative events? So we can get our message out into the world in a bigger way if it's not only profitable, but it's actually something we can be proud of? That's the question. And the answers are inside this podcast. My name is Sarah Fejfar. Welcome to Greenroom Central.
Sarah Fejfar 1:39
Hey, it's Sarah, I have an invitation for you right now. You can join entrepreneurs from across the globe who share a passion for hosting their own events become part of the community that inspires and cheers you on over at greenroom central.com.
Sarah Fejfar 1:56
I want you to imagine what it's gonna feel like to lead your very own profitable live event, one that you feel confident and competent to lead year after year. It's it feels like something that's scalable. It feels like something that's repeatable. It's allows you to go deeper with your community, then you can digitally in your online programs, courses memberships, it's exciting stuff, you get to see firsthand standing in front of the room of your raving fans get to see firsthand the impact of your service, it's going to be an experience that causes you to fall in love with what you do all over again. And it's profitable. That's the the word we're underlining here today is profitability. And so I want you to sit in what it would feel like if you know you could do events and do them profitably. Are you goosebumps just thinking about it? Because with a profitable event, you also elevate your brand's positioning in the marketplace? And finally have that answer to the question about how you're going to scale. Right. And so if that's the goal, using events to scale and doing them profitably, then let's get to the starting line, shall we? If you want a profitable event, the starting line is breaking even.
Sarah Fejfar 3:26
And so to help you get there, there are three important steps that you have to take. We're gonna go through them today. And here's what's awesome. Once you have all of the details, which I'm going to share with you, right now, you're going to find that they're pretty easy steps to take. Alright, write this down step one, price your event. Step two, monetize your event. And step three, find your break even point. And before you say, Sarah, I don't even know what that means. Don't worry, I'm gonna walk you through it. Because today, we are planning to win, not expecting to fail. Money is a hot button issue for me. And I want to see you succeed in this area. And so it's just going to take some strategic leadership on your part kind of help guide your team to make note of what they need to make note of track what they need to track. Spend save in certain areas, it's all totally doable. But and once you see what I'm going to teach you here today, you're going to be able to go tell your team give them the marching orders so that they can ensure that your vision turns out profitably and I want that for you
Sarah Fejfar 5:00
So let's dive into step one. Price your event, the way I like to step into pricing and event is to start with the list of expense categories in front of me, I like to have a guy that can pretty much covers any scenario I can throw at it. It's basically like having a questionnaire. And once you've checked off all the boxes, you know that you're good to go. And me personally, I use the same list every single event, because the cool thing is, when you use the same categories in the same order, every single event that you do, it makes it super easy to compare, event over event are you tracking with me, so that I go down the list one by one, and I get estimates for each expense category. That's where budgeting starts for an event. It really is as simple as that. And so I'm going to list off the expense categories that I think you need. If you want a print printed guide of this, just go to Sarah fejfar.com/profitable. And it'll be it'll be there for you in writing. If you don't have a notebook handy, but if you do, I'm gonna list them all off here, you can, you can jot them down.
Sarah Fejfar 6:16
So before I give them to you, um, I'm going to share that I'm going to give them to you in two buckets. First is fixed expenses. So those are expenses that stay the same regardless of how many guests you add, it's kind of like, for example, your house, you have either a mortgage or rent, it's gonna stay the same. Every month, no matter how many people you have come over for a party, right? But food changes, if one month you don't have any guests, it's just you and your family groceries, gonna be pretty much the same month over month. But if the next month you throw a huge party for 50 of your closest family and friends in your grocery bill is gonna feel a wee bit higher, right. And that's the same with your event, you're going to have fixed expenses that are going to be the stay the same regardless of how many guests you add, maybe they'll flex a little bit but they won't have that one to one variability that's a COA associated with with variable expenses, which will change based on your guest count. And by that I mean each incremental guest that you add is equal to an additional expense. And I think you're going to love having your expenses divided into these two blocks fixed and variable. Because when we get to figuring out your break even point, it's going to be super valuable to have them separate.
Sarah Fejfar 7:48
Alright, so fixed expenses. This is stuff like this is the time when you're gonna get out your notebook and pen Okay. Fixed expenses are things like audio visual, creative services, decor and rentals, entertainment, event insurance, gifts, gratuities, guest speakers, internet marketing, office supplies, photography, a pop up shop power, production, rigging, security, shipping and receiving space rental staff expenses, videography. And just I always like to throw in a miscellaneous fixed category for the random stuff that changes every single event. Like maybe you want to ride in on a steer, well, the rental of said steer, and handler is gonna be a fixed expense, doesn't matter if you ride in on that steer in front of 100 people or 1000 people, the cost is the same.
Sarah Fejfar 8:54
Alright, so now let's go over to variable expenses, air travel, food and beverage gifts, ground transportation, printing, registration materials, sleeping rooms, and miscellaneous variable. So that's variable, and that's fixed your action step, write this down is to go through the list that we just went through and assign a number to each category. And by by you, I mean, assign it to somebody on your team, okay, I want somebody on your team responsible for the money stuff, and to be checking back in with you, at least at minimum, weekly, with an update of exactly where you stand in all these categories. Okay. So it's okay if the number is zero in one of these categories, but at least give each category some thought your first first go around the first time that you do this for an event. It's going to take a lot of online searches, a lot of emailing vendors, a lot of calling around to friends or vendors to get quotes but you Once you have a number of views from each for each category, you're going to get a sense of relief. Because you now have that information you have, and you now have awareness. And it's such a beautiful thing. Yes, for awareness. And also, please be proud of yourself. And like put this in the wind category for the week, and be so glad that you did it. The icing on the cake is that after you do this exercise for one event, it will be like riding a bike every event after that, and it'll be so much easier and quicker. So just rip the rip the band aid off, do it the one time, it'll be hard. It'll take time. But it'll pay off because every time after that, you'll just be so much better. And at your estimates, you'll be so much faster at creating it.
Sarah Fejfar 11:00
Alright, so I want to give you a couple tips about pricing things. Okay, allow your mind to wander a little bit on the budget implications of what you're attempting to do. And want you to make sure you capture all the costs associated with all those great ideas that you have for your event. Okay, second, I want you to bid everything out for your first event. And then going forward, you only have to bid out the items where you're not yet in love with your vendor or your supplier. Third, I want you to be aware and account for fees because they add up things like taxes, things like service fees. It's just it's something that you need to be aware of, and keep track of, because they can get high. So those are what you I want you to keep track of is pricing tips, as you're pricing out all of those categories. So now we're going to move into monetizing your event step two. So when you're aware of your expenses, which is what we just didn't step one, you'll be able to be in a really great place to know how much revenue you need to bring in in order to break even, and how much revenue you need to bring in to get to your ideal point beyond breakeven. Because let's be real here. We can call it revenue or monetization or underwriting or call it whatever you will someone's gonna need to write the checks for this beautiful idea that you have to host your own event. And so who or what is it? Is it your business is it takes a ticket sales, it's a sponsorship sponsorships? Is it anticipated in event sales.
Sarah Fejfar 12:46
So I've got a bunch of options for you for monetizing your event.
Sarah Fejfar 12:52
Again, I'm gonna go through them here, you can write them down, or just go to Sarah fejfar.com/profitable. And you can grab a copy of the guide that has a list this list on it. All right, I'm going to list them for you in order because I think there are things that you can do to make money before, during and after your event. And I want you to make this list. I want you to circle the ones that feel right to you. And then together in step three, we're gonna do the math to figure out your breakeven point. And you're gonna love this. Do not stop here because the the money stuff brings up chest tightening or anxiety, because I promise you, it's just a lack of awareness. And once we get through this exercise, you're gonna feel this wave of competence and excitement because you're doing it before. You've got ticket sales, VIP sales, live stream sales, and joint venture partnerships. All of those are options for monetizing before your event. I know there's plenty more, but that'll get you started. During your event, swag sales making offers, joint venture partner offers exhibitors and sponsors. And then after your event, you can make offers you can have your sales team, call your guests, you can sell recording packages, you can feel confident that your event probably built some relationships that are going to pay off down the road. There's going to be strategic byproducts that you just can't even account for now. But they're going to happen, right because you're going to make this amazing experience. It's going to build tons of goodwill and know like and trust between you and your guests and your brand. So that's just a list to get you started to get the juices flowing. I know you and your team are going to be able to brainstorm together and come up with so many more and make sure you're only doing the ones that feel true to you and your brand. Okay? That's super important here. Don't just add in a monetization strategy because you saw somebody else doing it, it needs to feel like it's a fit in your business with the strategy that you already have in play for the year, okay.
Sarah Fejfar 15:25
Now, before we move on to finding your breakeven point, I have a few monetization tips. All right, there's gonna be three of them. First, I want you to get your marketing, right. Be intentional about your pre event marketing campaign, put as much time and energy into it as you would a product launch. Second, I want you to plan for more revenue to come in, then you need cover yourself, it's as simple as that. Third, I want you to create multiple revenue streams, you'll be wise to plan to bring in money in multiple ways to cover yourself. Alright, are you excited? Is this feeling like something that you can do? Alright, excellent.
Sarah Fejfar 16:12
So step three, I want you to find your breakeven point. So we're going to do some math together to figure out where your breakeven point is. Because once you have that breakeven point, you're gonna be so well positioned to move the money making levers, so that you can make a profit on your Live, Virtual in person or hybrid event. How does that sound? Are you excited to have some fun with the numbers? I'm excited. Yes, quirky. You can describe me as that. But I do really get excited about the money stuff. Because with careful attention, you can land where you want to land.
Sarah Fejfar 16:55
Okay, let's dive in. There's two ways that you can calculate your breakeven point, the first helps you arrive at the number of guests that you need to break even. And then the second helps you arrive at the registration fee, or the ticket price that you need to break even. So all of this math is written out for you. If you don't already have the guide, just go to Sarah fejfar.com/profitable, or take notes is a talk here. So let's dive into number one, you're gonna need this is this is where you need to figure out the number of guests to break even. So this is option one, you're going to need three things, you're gonna need your fixed costs, you're going to need your total variable cost per guest. And you're going to need the registration fee or the ticket price. So you're going to take your fixed costs, you're going to divide it by your registration revenue. And you get the number of guests that you need to break even pretty easy and simple, right.
Sarah Fejfar 17:55
So now let's move to the second option, that's where you forgot then the registration fee that you need to charge to break even. And so use this model, if you prefer to break even or make money strictly on the ticket price of your event alone. Okay, so again, you're going to need three things, you're going to need your fixed costs, you're going to need the variable cost per guest. And then you're gonna need the number of guests that you're confident will attend. And then you just take your fixed costs, and you add your variable costs. And you divide that number by the number of guests, and you get the ticket price that you need to charge to break even. It's crazy simple, right? I really want you to see how creating a profitable event is possible for your business. I want you to play with the numbers, I want you to come up with a few scenarios where you're breaking even or even making money, I want you to feel out what feels right for your business and for your community. You could adjust the guest count, you could raise your Lord lower the registration fee, you can play with adding sponsorships or even reducing fixed expenses. The options are endless. That's what I want you to know. But know that you have a lot of dials that you can turn, it's just this is information. It shouldn't make your test tighten. information helps us make decisions.
Sarah Fejfar 19:32
And now you know how you're going to be able to make them. So before we wrap up, I have a few breakeven tips for you. There's three of them, write these down. First, do the work. Do the work to find the expense and the revenue model that is best for you and your business. But whatever you do, second thing is I want you to be realistic. wishing and hoping and burying your head in the sand will not stop Review in this exercise. And then third, if you're feeling like you want to sell a higher priced event, then build the content and the marketing to support that price. Build the marketing to communicate the value of the event. But know that you can also start small at a 12 person retreat for a few $100 Or shoot, you can probably even swing up in the front door of your own home for even less money. Right. I hope this helped you today.
Sarah Fejfar 20:34
I hope this conversation about money didn't get you anxious, it got you excited. Know that you can always pop into my DMs with a question on Instagram or you can pop into linchpin nation, it's there for you 24/7 as a place for you to drop questions in to support others were also on the same journey, just go to linchpin, nation.com and it's a free community you can join. And I'm always in there getting answers for you. And cheering you on. Make it an outstanding event. Make it a problem. You got this.
Sarah Fejfar 21:15
Thank you for listening to this episode of the Green Room central podcast. If you love this episode, about events and money, then please take a screenshot on your phone and post it to Instagram. Be sure to tag Sarah Fejfar Hook me and let me know why you liked it. And what you'd like to hear or who you'd like to hear from in the future that helped me know what to pray for you.
Sarah Fejfar 21:36
Also, if scaling your business using events sounds like something you want to tackle in 2022 and you need a coach. Let's connect to see if one on one coaching is for you. Just go to greenroom central.com You and I can work together one on one throughout the course of the year and dive deep into the inner workings of your events and business. You'll receive mentorship, personalized feedback and customized guidance to define your goals and achieve your next level of success. Go to green room central.com right now to apply. On average, I spend about an hour a day reading every month of every year.
Sarah Fejfar 22:13
If you love learning on the go as much as I do go to greenroom central.com to get a free audiobook and a free 30 day trial of Audible, my AUDIO BOOK platform of choice and a sponsor agreements. You grab a copy of one of my favorites, high performance habits by Brendon Burchard. Perhaps give that one a try.
Sarah Fejfar 22:35
I appreciate your commitment to leveling up in learning the mindset and strategy of live events. Keep going, keep learning. If you want more, head over to premium central.com For show notes and all the links from today's episode.