Venue MGT 1 Exam 1

Belmont University Venue MGT 1, Eric Holt

Amphitheater

open air, permanent stage, permanent/lawn seating, concerts/stage presentations

Arena/Coliseum

open floor area, permanent/portable seating, permanent/portable stage,sporting events, concerts, family shows

Auditorium

flat floor, stage at one end, balcony at one or both ends, small concerts, community events, religious meetings

Complex

two or more venue types, single management structure, based on venue type

conference center

state-of-the-art meeting rooms, may provide sleeping rooms, small-scale meeting and conferences

Convention/exhibition/trade show center

indoor venue, large exhibit areas, various sizes of meeting rooms, conventions, trade shows, consumer shows, banquets and receptions

Performing arts venue

permanent stage, permanent seating, sloped floor, concert, ballet, Broadway shows.

Special event venue

designed to accommodate a specific activity or event

Stadium

open-air or dome, fixed seats or bleachers surrounding a field, sporting events, concerts, civic events

Administration/management

management of day-to-day operations oversight of venue policies and procedures

Booking the venue

time and space

sales

advertising, sponsorship, space and time

marketing

marketing venue to the industry and marketing the event to the community

purpose of a ticket

manage and control admission while providing financial accountability

common ancillary revenue sources

food/beverage, merchandise, and parking

operation functions

general maintenance, housekeeping, engineering, HVAC, safety, production, utilities

event management goal

provide positive event experiences for guests and clients

nine core functions venue manager does

administration/management, finance, booking, marketing/ sales, ticketing, ancillary revenue sources, venue operations, event management, safety/ security

management by government department

-organized as a government department, budget approval form government entity, restricted by bureaucratic red tape, depends on other departments for services

management by authorities, commissions, and non-profits

-typically created by a government entity, enables venues to operate more businesslike, government body appoints members, alternate to private management.

management by academic institutions

-organized as an individual department within the institution, other university departments provide support, provide educational, training, and employee opportunities for students/staff.

management by private companies

-cost of private management may be offset by increased revenues/decreased expenses, rfp process to selection best option, negotiate fees with incentives, industry expertise and resources

advantages of public management

local control of fulfilling the mission, venue operations, revenues/ expenses, booking policies, sensitivity to local market expectations and conditions

advantages of private management

-fewer bureaucratic controls, may provide investment dollars to the venue, industry connections to drive event bookings

6 key skills of a venue manager

ability to negotiate, ethics, managerial leadership, team building abilities, entrepreneur instincts, ability to communicate.

ability to negotiate

-rental agreements, service contracts, maintenance supplies & landscaping, F&B services, talent contracts, labor agreements.

ethics

-fundamental principles of right and wrong, reputation for honesty, integrity, forthrightness, and consistency, IAVM code of ethics

managerial leadership

-strong IQ and strong EQ, extensive understanding of each managerial function, must be knowledgeable, flexible, and excellent motivators/leaders

team building abilities

-recognize importance of building a successful team, utilize the unique skill/abilities of individual employees, create a positive work atmosphere

entrepreneurial instincts

-seek opportunities to maximize venue resources to generate additional income, importance of creativity

ability to communicate

public, owners, tenants/users, venue staff, contractors, media, sponsors

financial department

monitoring, reports, forecasts all financial activities of the venue, detailed analysis of past performance to enhance future strategic planning.

finance director

oversees all venue business functions, gathers, interprets, and provides venue financial information, must be able to view the venue's finances through the eyes of the venue manager

operating budget

-anticipated annual operating revenues/expenses, identifies resources allocated to fund shortfalls, provides management with monthly reports and analysis of YTD revenues/expenses, considered a roadmap for venue management

4 stages of operating budget process

research and preparation, presentation, approval, execution

capital improvement budget

identifies projected major expenses, responsibility of venue manager and finance director

finance reports

Profit and Loss statement, balance sheet, and capital expenditures report

cost accounting

identifies and isolates every venue financial activity and determines associated costs

cost allocation

assignments of costs to one or more expense categories

cash management

cash-on-hand is a persistent concern -

-issues: embezzlement insurance, point-of-sale systems, security, cash audits, venue checking account, petty cash, investment of cash

PCI Compliance

Payment Card Industry, businesses that accept credit cards are responsible for proper management of the information acquired as a result of any transaction

Fixed assets management

track and account for tangible items acquired for use in venue operations, depreciation overtime.

accounts receivables

billing and collecting for products or services

accounts payable

balances owed to other for good, supplies, or services.

purchasing and procurement

venues spend significant amounts of money on purchasing goods and services, all purchases must be verified.

event contracts

between venue and event promoter, outlines financial responsibilities of each party, finance director's pre-event estimates are needed for negotiations.

all-in contract

flat rate includes rent and most other expenses

flat rent + expenses contract

flat rent is a set amount and most other event expenses are line items in the settlement

variable rent based on space used contract

may be based on square footage of exhibit space and/or meeting rooms used plus expenses

percentage of ticket sales contract

rent is determined based upon a percentage of ticket sales plus expenses

per person contract

rent is determined based upon a fixed amount per person in attendance plus expenses or just fixed amount per person

event settlements

process by which monies are divided between the promoter and venue based upon the event contract

audits

review of venue's finances, operations, management processes/practices

internal/ external

scheduled/ unscheduled