[WIP] Budget guide

README.md

@@ -8,7 +8,7 @@ This is the repository for any planning of the [Rust events team](https://github
 
 ## 💡 Guides
 
-- **Meetup Checklist:** [Here](https://github.com/rust-community/events-team/blob/master/standards/MEETUP_TALKS.md)
+- **Meetup Checklist:** [Here](https://github.com/rust-community/events-team/blob/master/guides/MEETUP_TALKS.md)
 
 
 # 🚀 Helping out

guides/CONFERENCE_BUDGETING.md

@@ -0,0 +1,105 @@
+# How to budget a conference
+
+A short guide to running a conference without the risk of going bankrupt and without spending personal money, independent of sponsors. The core rule is: money should make you happy, not miserable. Always aim for profit.
+
+Budgeting is the process with which you will solve some of most important questions:
+* How much money do I need?
+* What should tickets cost?
+* Who do I need to get offers from now
+* How do I make this feel _good_
+
+You will probably end up handling more money than you wage, but don't fear.
+
+## ASK!
+
+Seriously, don't feel guilty about not knowing how to handle money in this context. Fellow organisers have experience and usually help you.
+
+## Legal entity
+
+Try to create a legal entity which gives you limited liability. This can be a company or a form of association. It's best to have one just for the conference. That makes bookkeeping and understanding what's going on on your bank account easy.
+
+Check conferences in your area for their legal status.
+
+Don't try to rely on others peoples companies (it messes up _their_ budgeting), only do this as a last resort.
+
+## Tell me what you want, what you really, really want
+
+You can't have a budget without knowing what you want. The simple truth of budgeting is: things you haven't budgeted for will probably not appear in the final conference. Having them budgeted for probably makes them. So, get out the sharpies and the post its and get creative. Write down _everything_ that springs your mind, even your moonshots. Diversity, inclusion, accessibility, party plans, gimmicks, Speaker pay... yes, food and drinks belong on that list, also some money in your pocket while you run the conference. Oh, and don't forget the venue, you might want to have one. Every possible feature of a conference should be on this list.
+
+## Categorizing
+
+You now need to categorize all of these wants on two dimensions. First of all:
+
+* Necessary
+    * If everything goes wrong, this is our baseline that we are still comfortable running
+    * Necessities have no priorities, you can't go without them
+* Wanted
+    * If you have the cash, all this things get unlocked
+    * Prioritze wanted things
+* Nice-to-have
+    * Should you fall into a pot of goal, you pick from here
+
+This should be a sober analysis. Having all speakers fully paid is something that we all wish for. But having all speakers get travel _support_ (not in full) is far easier. You can always split: for example, for RustFest, guaranteed travel support of 400/800EUR (european/international) is necessity, full payment is one of the first "Wanted". This is a reachable sum! As another example: lunch might be necessary, but breakfast and dinner might be low-priority wanted. Be brutally realistic here, don't let your dreams run you over. This makes every success here enjoyable, every money event should be happy for you!
+
+Second, categorize by these categories:
+
+* Per capita cost
+    * This is a cost that is bound to the number of people attending
+* Fixed cost
+    * This is a cost that has to be paid once, but is independent of numbers
+
+An example for per capita cost is the cost of catering: a caterer usually charges you a certain amount per person, per meal. An example for fixed cost is the venue: you pay once for the room, whether it is used by 50 or 200 people.
+
+## Turning wants into a budget
+
+Make up a spreadsheet, seperated by these two cost groups. Put all your necessary thing in there. Put the wanted things in a second group. Attach their estimated cost to them if you know them. Per capita cost are multiplied by the number of tickets sold, fixed cost just are. Take some time to set it up so that you always have a running budget just by twiddling numbers. Get used to the dynamics. Literally bash in numbers so that you get a feeling what 1000$ means to you. Then, put income in the sheet (mostly tickets, sponsorships). Put in a field for free tickets (they cost you!), for opportunity attendees, staff and speakers!
+
+The following questions should answer themselves from the sheet:
+
+* How many tickets do I need to sell to turn slightly profitable?
+* Do I make a profit with every ticket sold?
+* How much sponsorship do I need to get all my wanted things?
+
+If you have blanks, e.g. you don't know what a ticket provider charges, what venues in your place cost or don't know the price for catering, now is the moment to start making calls.
+
+## Tickets
+
+Ticket sale is an art, finding their price is not. There's a strict rule: no subsidised tickets. Don't sell cheap tickets in the hope of finding a sponsor to fill gaps. Why? Easy: this means that the more tickets you sell, the more sponsors you need to find. That means that every ticket sale is stressful to you, as you need to find more sponsors. For example, if you sell tickets at 100$, but you spend 110$ per person for food, every 10 ticket sale actually _cost_ you 10$.
+
+Given the sheet you built above, find a price that makes you cover your fixed cost soon. Be very conservative. For a new conference, I usually aim for 50 people. Don't feel bad about charging people, most can pay it. Make sure you make a sizeable margin per ticket. If you feel like the ticket price is too high for the crowd you want to attend, get back to the drawing board and check if everything you marked as necessary really is.
+
+Once you found a good price, think about a couple of things:
+* What is a good price for a business ticket? (A more expensive ticket for people that attend on their companies budget)
+    * Double the base price is usually not bad
+* What is a good price for a rebated ticket? (Students tickets...)
+    * Half the base price is also a classic
+
+Business tickets are awesome, because they are basically the sale of a second ticket _without the per capita cost_.
+
+Also, find out what you ticket provider charges, it's usually around 7%. We can help you choose ticket providers.
+
+It's important that ticket sales cover a whole baseline event. It won't be fully up to what you wanted, but it's there. And your attendees paid for it, isn't that great?
+
+## Dealing with sponsors
+
+Selling to sponsors is much easier if you have something to sell. Probably, your things in your "wanted" list are much more interesting to talk to sponsors about then the necessities. Also, be very upfront about _you_ providing something to _them_. No need to beg.
+
+Just as the right framing: a recruiter costs half a year salary. Your conference costs less and chances of finding a hire are high. You are cheap, even if you charge 5k.
+
+## Dealing with happy money events
+
+You happens when you end up turning a profit? Don't spend it all!
+
+* Keep some around for unexpected happenings
+* Keep some around for another edition
+* Start saving for a disaster pool (see below)
+* Treat your team to a fancy and expensive dinner in the end
+    * They have poured free work into all of that
+
+## Disaster
+
+Sometimes, you find a company that is willing to support you in the event of a loss. That's basically insurance and - if the company agrees early - is worth at least the amount they want to cover in hard cash.
+
+If you plan for running a second edition, try to build a disaster pool for the next edition. Just keep money around that you never draw from.
+
+Should you run out of money, or even get close to it - don't fear and don't feel embarrassed. Don't delay and talk to other community members that you trust. Who? Everyone, especially other organisers. They often have a disaster pool of cash that they are willing to share with you.