Event Feasibility

Assessing the viability of an event is an essential step in the event planning process.

An event feasibility study can help determine if an event is viable and is often done in conjunction with a SWOT (strengths, weaknesses, opportunities, and threats) analysis.

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What to cover in your feasibility study

Most comprehensive feasibility studies will include an assessment of the following areas:

  • Financial feasibility – is your event fiscally viable or not? Undertaking a cost-benefit analysis of the event helps you understand the economic benefits the event will drive.
  • Market feasibility – is there a market for your event? A market feasibility study evaluates how your event will perform in the market and typically includes market and competitor analysis.
  • Operational feasibility – does your organisation have the resources, skills, and competencies to plan and deliver the event? Consider staffing requirements, organisational structure, and legal requirements.
  • Technical feasibility – are you using appropriate technologies and do you have the equipment and know-how required to deliver your event? A technical feasibility study assesses if you have the right equipment, enough equipment, and the right technical knowledge to complete your event objectives.
  • Legal feasibility – does the proposed event comply with all relevant legal requirements and regulations including necessary permits, licenses, or certifications, and potential legal liabilities or risks?

Conducting an event feasibility study

The following process is a good place to start when undertaking your feasibility study:

  1. Preliminary analysis/initial assessment – conduct a high-level evaluation of the event.
  2. Evaluate financial feasibility – consider estimated costs and expected revenues and factor in break-even scenarios.
  3. Complete a market assessment – identify the demand in the market for the event.
  4. Technical and operational feasibility – consider what staffing and equipment requirements the event needs.
  5. Review points of vulnerability – review and analyse the data for any inconsistencies.
  6. Propose a decision – write a summary highlighting the main points of the proposed solution.

Structuring your event feasibility report

Most feasibility studies are structured in a similar way. The table below outlines the sections to consider when completing an event feasibility report.  This is a guideline only as there may be other items required depending on the type and nature of your event.

  1. Executive Summary
  • Event concept overview. i.e. elevator pitch, what is the event?
  • Describe the event’s overall viability.
  1. Background / Purpose
  • What is the purpose of the feasibility study?
  • What process was undertaken to determine the viability of the event?
  1. Initial Assessment
  • High level assessment of the key areas that are likely to determine if an event is feasible or not:
    • demand/market
    • suitable venue/location
    • deliverability
    • potential benefits
    • financials.
  1. Key Stakeholders
  • Who do you need to have on board before the event is viable?
  • Do you need industry or association commitment?
  • Consideration of local government (city/district councils), regional tourism organisation, media partners.
  • Who are your exhibitors and likely sponsors/funders?
  • Are any Government departments involved/imperative?
  • Do you need a delivery partner or promoter to enable the event?
  1. Market Demand
  • Consideration of the sector/industry that the event is based on. E.g. boats, equine.
  • What gap is this event filling/addressing?
  • Why do you see this as an attractive event proposition?
  • Are there any statistics/insights/figures that prove viability?
  1. Competitive Analysis
  • What other events are there of this nature and where are they held?
  • What time of year, frequency and duration of event?
  • What events are successful and have there been any events fail in this scope/area?
  1. Venue
  • What does the event need in order for it to occur?
  • Location (country/privacy vs. town/visibility).
  • Covered space vs. open space.
  • What exclusive arrangements are in place with the identified venues. i.e. caterers, technical provisions.
  • Does the venue have appropriate resource consents in place?
  1. Event Format
  • Consider the components of the event and how they link to each other: performances, exhibitions, competitions, symposium/education, demonstrations, food, entertainment.
  1. Event Timing
  • Time of year.
  • Time of the day.
  • Duration of the event (1 day, 2 days).
  • Weather dependency.
  • Is there a season that aligns better for the product/market (if exhibition)?
  • Consider other similar events on the calendar or other events happening in region.
  1. Deliverability
  • Who will run the event and what experience is needed?
  • Do you need to contract additional resources? i.e. race director, ticketing provider.
  1. Benefits
  • Economic benefits
  • Visitation
  • Promotion of the region
  • Media exposure
  • Showcasing the sector/market/region
  • Employment opportunities
  • What commercial benefits will your event provide?
  • What social wellbeing impacts will your event have?
  • What legacy will your event leave?
  1. Event Ownership and Underwriting
  • Who will own/run/manage the event?
  • Does the event need underwriting?
  1. Marketing, Communications, Promotions
  • What are the key marketing initiatives and promotions?
  • Who are your media partners?
  • What communication and marketing channels will you use?
  1. Event Details for Budget Purposes
  • Providing a budget with a good level of detail is an essential component of any feasibility study. It is necessary to have a detailed understanding of how the event will operate in order to develop a meaningful budget.
  • Budget considerations should include expected ticket costs and sales, attendance/registration numbers and other revenue sources, as well as the costs of human resources/personnel; insurance; temporary infrastructure (fencing, lighting, stages, etc); event elements such as exhibitions, food and entertainment; coordinating and looking after volunteers; venue; consents and permits; health and safety/first aid; IT infrastructure; traffic management; security; administration of ticket sales/registration; waste management; cleaning; PA/AV systems; marketing; prizes/gifts etc.
  1. Event Costs
  • List the event details identified above with expected costs (fixed costs and variable costs).
  • Explain the significant costs and considerations/variables you have included.
  1. Event Revenues
  • Exhibitor fees
  • Entry/ticket/registration fees
  • Commercial partners
  • Local government
  • Funding and grants
  • Sponsorships
  • Other revenue
  1. Budget/Financials
  • Predict likely ‘break-even’ points based on range of attendee and exhibitor scenarios.
  • Many elements of the budget will be variable and therefore scalable (i.e. they will scale up and down based on how exhibitor numbers or ticket sales are tracking).
  1. Legislative Compliance
  • Health and safety regulations
  • Resource Management Act
  • Crowded spaces strategy
  • Human resources
  1. Risk Analysis
  • Consider a risk probability table approach (1 = rare/unlikely through to 5 = almost certain) crossed with severity of impact (Low to Extreme).
  • Consider scenarios of failure to achieve a break-even number of ticket sales or exhibitor sales or failure to secure additional funding requirements or key stakeholders/partners/ sponsors etc.
  • Consider other forms of budget blowout.
  • How likely are weather interruptions?
  • Are there competing event(s)?
  • Cancellation.
  • Force majeure.
  1. Conclusion
  • What is the viability of the event based on the feasibility study conducted?

Calculating the break-even point

  1. Define your costs – identify and categorise all the costs associated with the event (fixed and variable). Fixed costs may include venue hire, permits and the PA/AV system, while variable costs might include those that change depending on attendance numbers, such as personnel requirements and waste management costs.
  2. Calculate your revenue – how much money do you expect to generate from the event, from ticket sales and other sources of revenue such as sponsorship, merchandise, or grants? Multiply your ticket price by the number of tickets expected to sell. You can use different scenarios to project your revenue based on different ticket prices and attendance rates.
  3. Apply the formula
    1. Break-even point = Fixed costs / (Revenue per attendee – Variable cost per attendee).
    2. Revenue per attendee is the ticket price, and variable cost per attendee is the total variable cost divided by the number of attendees.
    3. The break-even point is the number of attendees that makes your revenue equal to your costs.
    4. If you sell more tickets than the break-even point, you will make a profit. If you sell less tickets than the break-even point, you will incur a loss.
  4. Adjust your variables to optimise your budget and achieve your goals – update the ticket price, the number of attendees, the fixed costs, and the variable costs to find the best combination that suits your event. E.g. Increase your ticket price to lower your break-even point or reduce your fixed costs by negotiating with vendors.

SWOT analysis

In strategic planning, a SWOT analysis is a decision-making technique that identifies the strengths, weaknesses, opportunities, and threats for an organisation or project. A SWOT analysis assesses internal and external factors, as well as current and future considerations.

 

Helpful

To achieving the objective

Harmful

To achieving the objective

Internal

Strengths

Weaknesses

External

Opportunities

Threats

Developing your event concept

If the event is deemed viable and you want to pursue the event concept, you should undertake detailed strategic, business and event delivery plans to determine how the event will be managed and run. Learn more about Strategic Planning.

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Have you considered?
  • Who will undertake the event feasibility study? Even if you aren’t conducting the feasibility study yourself, you will still be required to provide insight and information.
  • Have you thought about all possible scenarios? When analysing the event budget/financials, it is a good idea to include a range of scenarios for attendee and exhibitor numbers.
  • Have you completed a SWOT analysis to identify the strengths, weaknesses, opportunities and threats in relation to your event? This can assist you in determining its overall viability.