budget:
- a plan of operations based on such an estimate
- an itemized allotment of funds, time, etc., for a given period.
Three times this week potential new clients sent their extensive wish lists and arm’s length details of the type of Web site they would like to have. They spend hours, days and in some cases months determining what they want for every detail and pixel of their new Web site’s visuals and functionality. But not one minute spent investigating the potential costs involved.
I am used to those who’ve not had an online business before not realizing how much what they perceive they want will cost. They haven’t been involved yet to get exposed to that information and nine out of ten times when they are, it’s reality check time. At the very least they should have a figure of what they are willing to spend or can afford.
But what surprises me, besides the fact they expect me to spend several hours dissecting their details point by point and offer my thoughts and suggestions for each at no charge, is that when asked for their budget amount I get one of two responses. “I don’t know…” or “Since I don’t know how much this will cost, how can I have a budget?”.
To not be able to offer any semblance of a budget makes my job very difficult and tells me you really have no idea of what doing business online involves. See, online you can do, have, implement, create anything you want — it all boils down to what your budget is. There are ways to accomplish some things less expensively, while other features are complex and take time to determine even what the bottom line cost will be. By asking for a budget, I get a clear view into what the new nentrepreneur believes their project should cost or what they can afford.
Budget information will most certainly effect the recommendations offered. Think about it… If you have a new site idea and you have a $10,000 budget, you’ll receive different recommendations compared to those with a budget of half that amount.
New online business owners cannot expect a consultant to take their time (and not charge) to give them online business plan details when they cannot even provide how much money they can or are willing to spend. Even with the unknown costs of customizations that all clients desire; they still should be able to put together a quasi-budget that reflects they have investigated the core costs of doing business online. This includes but is not limited to the basic costs above and beyond the site’s creation such as hosting, design, integration, domains and marketing costs.
If one is contemplating starting an online business, they should at the very least do enough due diligence as to the potential costs involved so they can create a starting budget to provide to those they approach to partner with. If one cannot do that; then they need to be prepared to hire a consultant to educate them and guide them in the right direction on all the variables that will be in play — and be required in their budget.
There is no such thing as no budget…
At your service,
Judith
