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BUDGETING FOR THE COST OF THE EVENT





 

The cost elements for an event can usually be grouped into four main categories:

1. Operational/production—personnel, security, licenses/permits, construction,

contractors/consultants, insurance, administrative support, and so forth.

2. Venue/site rental—flat fee, percentage of ticket sales, or percentage of ticket

sales against a minimum flat rental.

3. Promotion—flyers, banners, public relations, and other forms of advertising.

4. Talent—the costs to obtain the performers or participants.

As an integral step in preparing the bid, the promoter/manager must identify all the major areas of expected cost as they fit into his/her vision of how the event will be developed and staged. It is important to remember that costs will be incurred before any significant revenues start flowing and that cash flow must be considered in developing both the financial plan and budget.

 

 

6.6. Complete the sentences with words from the box.

 

  cash flow; money; is staging, following, costs, king, capital, the event, 10 percent down, accept  

 

RECOGNIZING THE IMPORTANCE OF CASH FLOW

 

1. The adequate budgeting of … … is going to be critical in determining whether the event is financially successful or not. 2. How much … does the promoter have up-front for advertising, promotion, advance payments, and other fees? 3. Take the … scenario. 4. A promoter … … a week-long fair at a local park. 5. His … will include talent, insurance, venue fencing, security, promotion, publicity, and marketing. 6. Here one thing is obvious—cash flow is … for an event because there must always be sufficient cash on hand to promote the event. 7. To solve this problem, the promoter needs to negotiate as many back-end payments (after the event is over) as possible or obtain additional … . 8. Can the venue payment be put off until the end of… … ? 9. If not, will … … … suffice? 10. Will the artists … the minimum down with a guarantee of a certified check the night the event closes?



 

6.7. Insert articles if necessary.

HOW TO HANDLE GOVERNMENT BUREAUCRACY

 

1. With … layers of bureaucracy frequently encountered in government, it behooves promoters/managers to develop … list of who controls … venues (e.g., is it … private or public promoter?). 2. Which … agencies are involved? 3. … public sector is going to be involved regardless of whether … venue is privately or publicly owned. 4. And when it comes to dealing with … government, the key to minimizing problems and misunderstandings is … adequate communication. 5. There must be … continual flow of information to every public organization that conceivably could be involved in … event.

 

 

6.8. Fill in the gaps with prepositions if necessary.

 

1. Public officials tend to be extremely sensitive …activities that are planned for their jurisdictions as they are a direct reflection … their judgment, clout, and so on. 2. If, for instance, a promoter is bringing an event to a venue … a community, the councilperson or local politician who represents that area must hear … it first! 3. Promoters should make every effort to see the local politician … person and explain the event and its benefits … the community. 4. The politician or his staff should be consulted … an ongoing basis. 5. Political figures do not like surprises and if the venue or date is being changed, they should know … it. 6. Failure to communicate is the prime cause … delays … issuing permits and licenses.

 

6.9. Ask questions to the words in italic.

1. Early communication with these agencies makes all the difference when it comes to granting permits in a timely manner. 2. Obviously, in the case of the Super Bowl, agencies are going to make the path extremely smooth because the event has the backing of every political and public figure in the area. 3. Things will get done, and quickly!



 

6.10. Make the sentences below negative.

 

1. But, when it comes to smaller events that will not attract wide notoriety or an abundance of political support, promoters should do their home­work and get opinions from commissions and departments long before final plans are drawn. 2. Asking people for their help and opinions not only generates input, but it helps develop rapport between the public agency and private promoter. 3. Everyone is flattered when they are asked for their opinion, and if those in an agency feel their suggestions were seriously considered and utilized by the promoter, the agency may grant faster approvals and permits.

 

 

6.11. Open the brackets and use the verbs in a proper Tense and Voice form.

 

1. The marketing plan drafted by a promoter usually (to dictate) what kind of crowd

the event will draw. 2. (To do) your research to ensure a manageable crowd. 3. The most vulnerable and expensive insurance area for events (to be) liability, especially when it (to come) to potential alcohol-related incidents. 4. There (to be) numerous ways to cut these costs. (To use) them. (To remember), the venue's location (can, to impact) insurance costs. 5. Before staging any event, it (to be) advisable for promoters to check competing events. 6. Scaling tickets (to require) careful analysis of the market and the event. 7. (To determine) the elasticity of the ticket price. 8. Avoiding computerized ticket operations (to enable) promoters to control tickets, but channels of distribution (to minimize).

 

 

6.12. Translate the following into English.

ВЫБОР МЕСТА ПРОВЕДЕНИЯ МЕРОПРИЯТИЯ

 

Выбор места проведения мероприятия является не просто выбор арены,

где можно собрать большое количество людей. Менеджеры должны учитывать удобность и расположение. Если последний из перечисленных факторов влияет на страховую стоимость, то на посещаемость влияют оба. В некоторых городах такие центры по проведению крупных мероприятий стали отжившими, вышедшими из употребления, так как население переехало в другие районы и, следовательно, потребители стали редки. Промоутеры/менеджеры должны обязательно разузнать все о сооружении и осведомиться об его истории.



· Проводилось ли когда-либо здесь мероприятие подобное тому, которое он/она собираются провести здесь?

· Если так, то как оно прошло?

· Если прошло плохо, то почему?

· Расположены ли близко какие-либо торговые точки?

· Если нет, то как далеко приходиться ездить?

· Есть ли готовая парковка?

· Приемлема ли цена?

 

6.13. Act out the conversation.

SETTING UP BASIC OPERATIONS

- What should be done to produce both aprofitable and well-managed event?

- You should follow some principles for the staging of your event, in order to prepare both a profitable and well-managed event.

- What about security?

- There are at least two levels of security that impact the running of an event. Use

them!

- How to deal with a crowd at the arena?

- The marketing plan drafted by a promoter usually dictates what kind of crowd the event will draw. Do your research to ensure a manageable crowd!

- What is the most vulnerable and expensive area for events?

- The most vulnerable and expensive insurance area for events is liability, especially when it comes to potential alcohol-related incidents. There are numerous ways to cut these costs. Use them!

- What impact insurance cost?

- Remember, the venue's location can impact insurance costs.

- Must promoters check competing events?

- Before staging any event, it is advisable for promoters to check competing events.

- What kind of ticketing police should be here?

- Scaling tickets requires careful analysis of the market and the event. Determine

the elasticity of the ticket price. Avoiding computerized ticket operations

enables promoters to control tickets, but channels of distribution are minimized.

Promoter ticket control is desirable when there are multi-venues involved.

- How should the multi-venue events be considered?

- With multi-venue events, each venue should become a mini-event with separate

management and accounting procedures.

- What is the role of technology?

- Technology's prime role at events is that of facilitating communication. Use it!

 

6.14. Retell the text “Dealing with a Public Sector”.

 

 

VII. Text IV.

 

 








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