Event Feasibility

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

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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 following template 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.

  • Download an event feasibility report template here.
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.

 

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.