How to budget for my project?

Some reflections for you who are in the starting blocks of a new digitalization project.

Everyone wants the best solution at the lowest cost. But fundamentally, there is always a limitation one must consider: the budget.

As project managers, we assist our clients in budgeting for the project together. Since the budget often needs to be set before the project starts, we see great value when our customers ask us a supplier to collaborate from an early stage to set a realistic budget together. Here we offer some valuable tips and takeaways

Be transparent

Maintain an open communication with all stakeholders to avoid misunderstandings that can affect the budget. We aim to reduce the gap between clients, management, and suppliers. When everyone is heading in the same direction, there is no 'us and them'. We all have a common goal. Third party communication often leads to unnecessary misunderstandings and awkward overhead communication. If management has opinions - involve them in the project!

Design takes precedence over budget

Investing in a design phase before budgeting for the rest is a very good idea. Simply treat the design as a preliminary stage to the upcoming project. During this phase, it is important to be clear with the design team and involve developers to discuss complexity before the project starts. In the design phase, the project's scope, also known as the scope, is defined together with the team. The design dictates how much development will be required in the next phase.

1 x design = 3 x development

We usually explain that it often takes at least three times as much time for development as it does for design. Coding simply takes longer. When a developer brings a design to life, the technical aspects of the UI (user interface) must be connected to any systems, meet various scenarios, and then be tested and quality assured.

Request a resource plan

Ask us to make a resource estimate. Together we will carefully calculate the human resources required to carry out the project over time. If you want a product launched within 6 months - secure the team until then and we will help prioritize what is most important to include during that time.

Set clear goals

Define clear and realistic goals for the project to avoid uncertainty in the budget. Set a target for a first release together with the team. If we believe it takes 3 months to launch an MVP (Minimum Viable Product) - budget for it based on the resource plan.
A digital solution will always need further development, maintenance, and enhancement. It's up to you to set the milestones and decide when they should be achieved.

Define scope

Determine and document the project's scope to avoid so-called scope creep, which can lead to cost increases. We do this in so-called sprint planning sessions together. What fits in the schedule will be accommodated. Everything else must be deprioritized.

Be flexible

Have a certain flexibility in the budget to be able to adapt to changing circumstances and needs.

Identify and evaluate potential risks that may affect the project's budget, and include a buffer for unforeseen events.

Budget for maintenance

We often say that a digital product is never finished. A digital project enters various phases. Once a product is launched, it may enter a quieter phase, but maintenance, support, and operations need to be accounted for in the budget.

Evaluate and follow up

Follow up and evaluate the project's progress and costs regularly together with the project manager.

By carefully planning and managing these factors, you can increase the chances of your project staying within budget and delivering the expected results.

Get help from us

We know that the most challenging part of the project as a whole falls on you. As a client, it's tough to argue for and get your budget approved internally. We at Future Memories want to tear down the barriers and be your client support. We understand you as a product owner, and help you shape the project based on the conditions that exist, preferably in conjunction with the project's kickoff. That's when we usually see fantastic results. 🚀