How to Budget Your New Project

/

While it's common knowledge that a solid budget is a key to a project’s success, the details and steps of creating a useful project budget can be a little bit harder to grasp. Finding yourself staring at an empty spreadsheet and unsure of where to start in budgeting your new project? Read on for some steps and insight into creating a project budget that will ensure a positive outcome!

Using a Task List

Your first step should be getting a handle on your project’s task list or work breakdown. Ideally, you want to outline everything that needs to get done in order to complete the project. Write down everything that lies ahead regarding what you need to do, create, or complete for your project to succeed. Don’t worry so much about the order but be sure that you are including everything.

Estimate, Estimate, Estimate!!

Now that you have a detailed list of everything you’ll need in order to get this project done, the next step is to begin gathering and creating detailed estimates for all of these components. Cost estimating your project is among the most important steps you can take in creating a project budget. Not only do estimates provide a plan for how you should be using your resources, but they also provide milestones by segmenting your project into smaller to-dos and tasks, providing clarity for all those involved.

The key to a successful project cost estimate is to factor in every possible cost that will go into your project’s success. Be sure to consider:

  • Labor costs

  • Material costs

  • Travel costs

  • Potential workspace cost

  • Possible equipment costs

  • Administrative costs

  • Software costs where necessary

Managing Scope and Leveraging Past Experience

Ultimately, you need to be in complete ownership of your project from both a financial and vision-driven perspective and often that means visiting and re-visiting the overall scope of your project and leveraging any relevant past project management experience to keep costs manageable and ensure deadlines are met. When determining the scope of your project, remember that less is often more and be sure that you’re only devoting time and financial resources to components of your project that are absolutely critical to its success. Reflect on your past project budgeting experiences and implement practices that worked well for you, while avoiding those that were less effective.

It’s within your control to manage your project to completion. While any project’s success hinges on a sound budget, a detailed task list and extensive estimates will ensure that you get there!

Subscribe below to receive more business articles for tips, opportunities, and tools to help small business owners!