No matter what the project is, establishing a budget is an essential part of the planning process. An accurate budget will ensure that the project is finished successfully, help you get the funding necessary if you need a loan for the project, and will help keep spending on track. In many ways, the project budget is the lifeblood of any project. The tips below will help you to be more successful and accurate in establishing your project budget, but if you want to ensure a successful project, be sure to work with a project management professional.
Look at Past Projects
If you’ve attempted any similar projects in the past, you should look at your budget and spending on those projects to get a better idea of the costs. You can also pinpoint where you went wrong, where spending might be different this time around, and which expenses you might have been able to avoid. If this your first time attempting such a project, see if you can get data for projects complete by other businesses that are similar to yours.
Focus on Successes and Errors
Continuing in the same vein as the above, take the time to focus on the successes and mistakes of those past projects. Rather than just copying and pasting their numbers, look at the lessons learned from those projects. This can help you to have a clearer estimate on your new project budget, and give you some ideas on how to keep your budget under control in the event of unexpected changes.
Work with Experts
If you’re experienced at creating project budgets, tap into the knowledge and experience of those who know what they’re doing. Whether they’re employees who have worked on projects with previous employers, or outside consultants who are experts in project management, their knowledge can help you to keep your budget on track.
Check for Errors
Once you have a budget set, you need to double check it and make sure that it’s all been written out accurately. Double check that math, look for typos where extra zeros may have been added, and make sure everything is free of errors.
Be Prepared to Adapt
Your budget is a baseline for your project, a tool by which you measure the variance and progress for your project. However, you need to be able to re-baseline as changes occur.
Update It Frequently
Going along with that, it’s important that you stay on top of those changes to your baseline. As things shift and project progress, you (and the entire project team) should be making those changes as soon as they come up in the project.
Stay on Track
The reason for those frequent changes? They help you to quickly see when things are varying far more than planned so that you can plan, adjust, and adapt to stay on track. Make those adjustments right away, and you’ll get to the finish line while staying under your project budget.
For public sector project management that will keep you under budget and on schedule, contact the experts here at CARIAN Group today.