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What You Need to Understand About Creating a Business Project Budget

For large businesses, companies, and corporations, the way to business project budgeting is smooth and straightforward, thanks to the luxury of having a lot of resources at their disposal, including the best project managers and accountants, who in return are given the privilege to use software and programs that make the job a lot easier to fulfill. In a way, putting together a budget, for them, is something they do on a mundane basis. Sadly though, small businesses and their owners like you don’t enjoy the same luxury.

Even if you’re not as big as other companies and not as rich resources wise, it doesn’t mean you no longer are capable of carrying out a successful business project budgeting. If you’ve been asked by your sponsor or financier to come up with a budget proposal for a specific project, you can do that quite easily if you know where to begin. Now this article is all about that.

Here are the things you must do for you to create that basic project budget without any fancy tools or whatever:
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Come Up with a Task List
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It’s important to have a project task list before you begin. Well, it would be a lot more sufficient to have a work breakdown structure, but if the project task list you come up with is comprehensive enough to cover everything you need for a project, then you’re fine. The task list is something you don’t really have to sweat out in making since it basically contains the things, and we mean all things you must do, complete, or build before a business project will be finished. The key here is not really about organizing stuff, but more on making sure everything will be covered.

Estimating Components

The moment that list is created, the next step is for you to go over it and come up with a price estimate of each item you think is essential for the project to be carried out. Remember that in any type of business project, practically everything comes at a cost, including renting office spaces, buying food, hiring people, and others.

Add All Estimates

When you’re done with the itemization and assigning the cost estimate for each, the next step is to add together all the estimates. You can save a lot of time and confusion for this one if you use spreadsheet to organize things.

Incorporating Contingency

And while you probably feel like you’ve covered everything, it’s no secret that there is no such thing as a perfectly accurate business project budget, and this only means you need to prepare for contingency, too. A good business project budget always should include contingency because it is your go-to-guy whenever something goes wrong in the project or you made a crucial mistake that needs to be offset with additional funds.