Once you know how many people are to be invited to your reception, you need to start looking at booking a venue with the same capacity.
Use your common sense as far as this is concerned. Don't book a huge place just to keep up with the Joneses when you know you'll be having fewer people in attendance. A scattered crowd is no fun. On the other hand, don't try to squeeze a large crowd like a can of sardines into a smaller ground. Your venue needs to be pleasantly filled but comfortable.
Also, try booking a venue where you will get your money's worth. There are always the ultra-posh places where you'll pay X-amount for only the use of the area and extra for decoration, lighting, seating, catering etc. That jacks up your expenditure considerably. On the other hand, a lot of places offer lighting, decoration and seating all inclusive in the booking cost. Some venues can only be booked if you plan to avail of their in-house catering services, like sports clubs, banquet halls etc. So make thorough inquiries before you finalise your booking.
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