We've talked about why the prom budget is so important and how to work it out, but where things get really tricky is when cash flow gets involved. Cash flow is all about when you have to pay a bill and whether the funds are available to do that. Sounds simple, but sometimes you need to book a supplier or buy something early on in the prom organising process – and if you don't have the cash to do that, it's suddenly a big problem.
Why cash flow can be tricky
The problem is that to have a chocolate fountain on the night, you will probably need to book a few months in advance. When you book, you will need to put down a deposit; a small percentage of the total hire cost that is non-refundable. Tickets won’t go on sale until a couple of months beforehand – so you won’t get any cash from them until well after the deposit money is needed. That is cash flow: making sure you have cash when you need it – sometimes before ticket money has come into the pot.
The solution is obviously to start fundraising as soon as possible. Then you can have ready cash available for deposits on products and services needed months before prom night.
Keep the prom budget flexible
Another thing to bear in mind is that your early budget is only a guide, and needs to stay flexible. You could always have a “would be nice to have” list of things you can afford if the fundraising goes really well. The “must-have” list allows you to prioritise, but it doesn’t have to be all you’re aiming for.
Don’t forget that the full invoice has to be paid at the end – so if you are considering something from the “would be nice to have” list, make sure there’s enough money in the pot to pay for the total cost of the items on the “must-have” list, not just the deposits.
A tiny reminder about prom finance housekeeping
Don't forget to keep every single bit of paper relating to deposits, invoices, receipts etc in one big box file looked after by one person (the prom committee treasurer if you have one) otherwise you'll have a huge headache at the end of it all.
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Our class did a bunch of fundraisers like selling deserts and washing cars. That got us about half of what we needed for our budget and then the student council did a charity date auction on Prom Date Depot to make up the other half. We were all surprised just how much it costs to have a prom.
Hi Justin, wow, that sounds like a lot of work you guys put in – inspirational stuff
It all adds up doesn't it? I'm curious; did you raise enough for everything you wanted, or did you have to reign in your wish list?
Thanks for stopping by!