Part of project planning is knowing when to hold \’em and when to fold \’em, as a wise man once said. No matter how exciting or cool you might think a project is, some of them just don\’t become as profitable as you would like. It\’s important to set some boundaries and budget limits at the outset, so that you don\’t keep pouring money and effort into something that isn\’t going to go anywhere. Here are some things to think about at the outset of any project so that its costs don\’t spiral out of control.
What is the purpose of your project?
Most often, this will be a dollar amount. Maybe you want to earn $10,000 in a year from this project, or eventually 10K a month. Or it may be to reach a certain number of subscribers, capture the attention of a certain guru, or build your list to a certain number. All of these are good goals. The point is to determine exactly what you want to achieve up front, and let that guide you when you are debating where to spend your time and money. At every turn, ask yourself: Does this support my project\’s purpose? If the answer is no, then maybe you should try something else.
How much time will you devote?
Create a timeline for your project. Take it step-by-step. When do you want to be in the black ? Creating a profit? Quitting your day job? Make it realistic. Draw up a list of actions you will need to take to make each deadline and then get to work. And remember, just planning it out won\’t necessarily guarantee success, but it will certainly help, and at the very least it will serve as a reality check when your original goal was to make $10,000 by a given date and you haven\’t even broken even.
What is your budget?
If you don\’t create parameters and track spending from the start, how will you ever know if you\’re really making any money? \”Budget\” might be a dirty word for some, but you don\’t have to break it down into every component. If nothing else, make a decision before you start as to the ultimate amount you are willing to spend out-of-pocket. When you have worked on a project for months, it can be far too easy to continue to spend, believing that the next thing could be what will rocket you to the top. Setting up spending limits from the get-go helps keep you on track.
Don\’t count yourself out!
Your time is important and incredibly valuable. When thinking in terms of budgeting, don\’t forget to allocate an hourly wage for yourself. And never underestimate the value of outsourcing. Sure you could save $100 by programming something yourself instead of paying somebody to do it, but if it\’s not your specialty and takes you 20 hours to complete, are you really saving any money? Isn\’t spending that time with your family worth the $100?
Cut your losses.
Knowing when to cut your losses can save you time and money. If your timeline has run out and you are still spending countless hours and dollars on a project, it may be time to let it go and try something else. Creating project parameters will help keep your budget and your sanity in line, and ensure you are staged for success and not failure.