Week 4: Post 1: Chapter 8

The budget is really one of the most essential parts of the proposal if you are involved in a project that is going to cost upwards of thousands of dollars. I think it should be the second thing that you do after you have a good handle of the methodology. In many respects, the methodology and budget will reveal if you are capable of carrying out the project. It will show you if you have the proper equipment, enough man-power to follow through, and have decided to use the funds properly.

The issue of indirect costs can be confusing. That is something that I am just beginning to get a handle on, even though I'm not even sure I understand it fully (yay Virginia's spreadsheets! =) The few times I have done budgets I have been fortunate enough to have templates in spreadsheets from which to work that automatically calculate the costs. It is amazing how many details you have to consider when you sit down to do a budget. If you do not think of it before you submit the proposal, you've missed your opportunity, so it is important to think long and hard before finalizing a budget.

Finally, not really discussed, is that some proposals may last a couple of years and you have to consider inflation rates in order to make sure that you budget enough. If you're not familiar with constructing budgets, I highly recommend you consult someone who is your first few attempts. They can be tricky and they are a very critical piece to the proposal.