While it certainly isn’t necessary to be skilled at budgeting just to make an attempt at project management, anybody who wants to be a successful project manager benefits from having an inherent appreciation for how much an intelligent budgeting plan factors into the practicality of their project. The question of, “Do I have to be good at budgeting to be a project manager?” essentially translates to, “Do I have to give my project the best possible chance at actually succeeding?” No matter how well-designed and ambitious a project may be on paper, it simply cannot exist without the right kind of financial support to make its conduction feasible.
Even a financially blind project that appears to have decent momentum in its early stages usually won’t wind up amounting to much if it bleeds too much money to stay afloat down the line. Rather than becoming too preoccupied with the most ideal vision for the project in the planning stages, what is most important is ensuring that the right degree of budgeting finesse has been exercised.
The following are just a few of the highly important ways that project management budget planning factors into successful conduction of any project, no matter what category that project may be in.
Team Compensation And Accommodations
Even if the project’s team members are initially passionate about what a project may stand for, people can’t buy food and pay their bills with passion alone. If a project doesn’t have the right degree of conscious budgeting behind it, then there’s a serious risk of running out of the funds necessary to fairly compensate people who are investing their finite time and energy into a lost cause.
Competent project managers understand that effective budgeting in project management isn’t just pragmatic, but also ethical and empathetic. In addition to compensation, you may have to consider any accommodations that may need to be made for the best the welfare and convenience of those who are going to be extending a great deal of effort in order to facilitate the project.
In an outdoor event, for example, things such as refreshments, spare chairs, fresh water and protection from the elements are all essential things to budget for in the best interest of team members’ comfort and safety. No matter what the nature of the project may be, the welfare of team members should be supported by a fair degree of conscientiousness about how funds can be used to make their lives easier and their labors fairly rewarded.
Licensure And Rental Fees
In the event that a project happens to necessitate using public property or renting certain appliances, an effective project manager will make sure that they account for any fees that need to be paid for the time spent on public property and the temporary use of borrowed properties. Even if a project’s base price has been calculated in terms of the raw materials and amenities simply needed to set it up and carry it out, the budget will not be complete unless the necessary price of simply being legally stationed at the location of the event has been accounted for.
Balancing Time And Capital Investment With Potential Profit
Naturally, not every project can be guaranteed to turn out end as a success; however, through effective risk management, competent project managers will make sure to consider what degree of time and fund investment is a proportional fit with whatever stands to be gained from the project’s best case scenario. Accounting for the hours spent working and the capital invested into acquiring materials necessary to facilitate a project will ensure that it has the best chance of being carried out without winding up at a deficit due to improperly calculated expenses.
Related resource: Top 19 Bachelor’s Degree Programs in Project Management Online