Why It’s Important To Know Your Budget For A Digital Project

31 Jul 2023

Allocating a budget for a digital project is an essential part of setting your business up for success. When you have a specific amount of money set aside, you can set concrete goals and map out what you want to achieve in the world of digital, whether that be with a marketing strategy or a new website.

Let’s be real, starting a digital project without a budget is like trying to start a car without fuel. To get things started and set all processes in motion, deciding how much money you can spend is crucial. 

At first, setting a budget might seem intimidating but once you have one in place you’ll realise how much it irons out the rest of your plan.

So, whether you’re interested in having a new website design and developed, or are keen to set your business up with a tailored marketing strategy, having a budget in mind is key.

Why a digital project budget is important 

Here are the reasons why having a digital project budget is so important. 

It’s an essential step to securing project funding

If you require funding for your digital project, deciding on a budget will inform the relevant stakeholder how much money is needed to get the project underway and when it is needed. 

It will help overall with cost control 

By having an estimated budget, you will be able to measure how much the project is actually going to cost compared to the budget you originally set for it. This will help you to avoid burning costs unnecessarily or without even realising.

Setting a budget for your digital project will also help you better understand how the project is going to progress and if any tweaks in cost are required. 

It will improve financial viability

Discussing and calculating a budget internally with resource constraints in mind will improve the overall success of your company and the digital project itself. 

How to create a basic project budget

Creating a budget depends on a wide range of factors. However, we’ve put together a short list of considerations you can make that will help with budget planning. 

Break down your digital project

In order to get an idea of how much you want to or can feasibly spend, it’s important to break your digital project down into tasks and milestones. Working with a tasklist will give a clear indication of what you want to accomplish which will help with project cost management. 

Estimate the cost of each item on your tasklist 

Estimating what each item on your list might cost could be difficult if planning a digital project is new to you. However, setting realistic estimates rather than optimistic ones can at least prepare you somewhat for calculating an overall budget. 

Add everything together

Once you have all your tasks and their estimated costs mapped out, this step is easy. Simply add everything together and you will have an approximate budget for your project. 

Get approval 

If you are required to get approval on the project budget from a director or manager, it’s best to do that before anything gets underway! 

If you are interested in kickstarting a new website project, or are keen to get a strategic marketing plan in place for your business, we can help! Get in touch with the HushBots.