25 Oct How to Write an Effective Budget Proposal
Budget proposals may define the operational budget for a department or company for a particular period, or they may act as a de facto sales pitch for a new project. Budget proposals are an essential part of doing business, yet many people struggle to write them. Effective budget proposals are well-organized, intensively researched, and concisely written. Use the following tips to get started.
Mission Statement
The first section of your budget proposal should clearly define what its purpose is. This doesn’t have to be overly lengthy. A few sentences will do. It may help to think like a reporter. Reporters must explain what, when, why, who, and where for every story. For example, you might write the following: “This project establishes, by the start of the next school year, an after-school program for children ages nine through 12 at XYZ Elementary School that offers homework help and enrichment activities.” You can then briefly explain how the benefits outweigh the costs and where the money will come from.
Direct Costs
Direct costs are any expenses that will be incurred for the prime purpose of creating the benefit given in the mission statement. For example, if you’re writing a budget proposal to build a new product for your company, the direct costs may include the costs of producing, marketing, and distributing the product. Think broadly when writing this section. You’ll also need to include the costs of any materials, equipment, research, communications, and travel expenses required to launch the project. Most budget proposals include indirect costs in a separate section. These costs include items like insurance and accounting expenses.
Anticipated Benefit
If the budget proposal is for a company, this section might instead be entitled “Anticipated Revenue.” The key to getting a budget proposal approved is to show that the benefit of the project outweighs the cost. If your anticipated benefit is lower than the cost, you may need to rethink your plan.
Once you’ve written an effective budget proposal, you can get it professionally printed at Reproductions, Inc. Our location in Tucson serves businesses both large and small with high-quality reproductions at affordable rates. If you have any questions, you can reach out to our friendly staff at (520) 622-7747.