Final answer:
The number one source of funding for an entertainment event should be the producer's own resources or angel investors who provide capital for a stake in the venture. A well-planned budget that accounts for all expenses is essential. Investors need a clear revenue strategy to ensure a return on investment and profitability.
Step-by-step explanation:
The number one source of funding for an entertainment event should ideally come from the event producer's own resources, which may include personal savings or assets used as collateral for loans. This self-funding strategy aligns with the initial financing approaches taken by many small business owners. Additionally, angel investors are a pertinent source, as they provide capital for a stake in the venture, especially at its early stages. Raising money through personal channels or angel investors allows for a level of control and equity in the project, making it a desirable initial financing route before exploring other external funding options.
Upon securing the funds, it is crucial for the producer to create and adhere to a comprehensive budget. This budget should cover all expected expenses, including rights acquisition, set and costume production, publicity, technical equipment, rehearsal space rental, theatre rental, and compensation for all involved personnel. Effective financial management ensures the viability and success of the entertainment event, and also forms the foundation for presenting a credible proposition to potential investors.
Investors will be particularly focused on understanding how they will see a return on their investment. Therefore, the event's revenue strategy, including ticket sales, merchandise, and potential sponsorships, must be clearly defined to attract and secure additional investment. The ability to demonstrate a logical path towards profitability can make or break investor interest.