Why is planning a budget before time important in project management?

Planning budget is the most important initiative when you are managing a project. IBM business report revealed that only 40% of projects meet the predicted budget (IBM). This affects the project development lifecycle. Planning the budget is a complex task that requires a specific skill set depending on a number of project participants.  More so, it was discovered in a Liquid planner study that assessing the budget is one of the most difficult tasks.

If you exceed the budget, staggering complications can occur which revolve around different elements including equipment, software,  consultation, and human resource. More so, many professionals are of the view that budgeting is one of the main roadblocks which can affect the progress of the project.

Solution

• Deconstruct different requirements of the project into tasks.
• Now, calculate the cost of these devised tasks.
• The cost of the team resources and individual cost should meet each other.
• Make sure to use a proper project management tool that can help you calculate the cost of the project along the way.