Starting a project with a proper budget is one of the best ways to be able to manage the budget. Here are five tips for creating a solid budget:
- Develop a deep understanding of project requirements: Know what the stakeholders really need and want so your budget is stronger. Don't forget to do a WBS with the team too.
- Work from the effort, not duration: Task level of effort is a better gauge of resource expense. Duration, which will take into account overhead time, may needlessly increase (or decrease) the budget.
- Include all costs: Make sure you understand all the fees (e.g., shipping, usage), taxes, and any other charges you will encounter. For longer-term projects, consider price increases and inflation in general.
- No surprises: Be sure to include a reasonable amount for contingency and management reserves, so risks do not throw you completely off course later.
- Use multiple approaches and get buy-in: Looking at the budget from different perspectives will help you validate you have a well-developed budget. Asking for buy-in from key stakeholders will get you valuable feedback for adjustments.
Subscribe for Our Project Management Resources, Best Practices, and Tips
Confirm your subscription to receive an email with immediate download access to Project Manager's Resources, a valuable list of books and web sites.
Get the latest tips and updates sent directly to your inbox monthly.
We hate SPAM. We will never sell your information, for any reason.