Budgeting The Money

Now that you have assessed your project and developed a Project Scope, you are ready for another step in Project Management.  All managers must prepare and work with budgets when doing a project; therefore, it is crucial that you learn how to estimate and research costs that will be important to accomplishing your tasks.

Establishing a budget is an important step in project management.  By preparing  a budget ,you, or  the people that you are working with, will have an idea of what the project will cost.  This is very important when it comes to obtaining funding for a project or funding the project yourself.  It also may become the factor that determines if your project is worth doing as you have planned.   Once again we can return to the mind map that we began in our assessment phase and determine a cost for the technology that we are interested in acquiring.  In this diagram it shows the cost of the current technology as well and will help in making a determination if the project is affordable.

My current and future home technology.

Providing this information will give you monetary direction for you project.

Other items that should be included in your budget would be the cost of people that would need to work with you to install any new technology.

A Word of Warning!! When preparing a budget for a project make sure that you include EVERYTHING that it takes to get the project operational.  Not including these costs can be detrimental to a project’s success.  Nothing is more frustrating to you or your organization than to get involved in a project and find out that there are costs that were not included  and will be needed to finish.   No one likes to pay more money than they were told at the beginning of a project:

Watch the video below to give you a new perspective on what can happen to a budget.

You have now assessed the project, developed a project scope, and created a budget for your project.  Now what should you do? It is time to organize  and determine the workflow.

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