Running a Project on a Shoestring Budget
Posted by Brad EgelandThe post is made possible by the great people at Seavus, creators of online Project Management tools such as ProjectOffice.net, Project Viewer, and Project Planner. Please visit their site for more information.
If you’re working in a large corporation with a very professional PMO already in place and a handsome budget set for the project you’ve just acquired, then this article is probably not for you.
Budget management is always important, but it’s highly likely that the amenities you need to manage your project with the high-paying customer that has been lined up are already built into the overhead of the project. The flights to the customer site are built in by Sales during the negotiation process, as are some additional equipment that may be needed specific to your project and implementation.
However, if that is not the type of project you’re running, then please read on as you might find something interesting or helpful from this information. I’ve been working mostly remotely as an IT project manager for the past 3+ years. Sometimes that has involved running large multi-million dollar projects for deep-pocketed clients meaning the little things and extras on a project definitely aren’t an issue. No concerns with cutting back because certain things are expected and are built in to the overall price of the project.
On the flipside, if you’re an independent consultant – as I am – and you have a mix of customers, then you’re likely to have a few clients that do not have deep pockets. These clients watch every dime they spend and that means of course that everything you do can and will be subject to their scrutiny. It also means that you have to watch how you do business carefully because you’ve likely not been able to price the project with a comfortable profit margin. It’s more likely that your margin is small and if something goes wrong causing extra work – and it’s your fault – you could be doing much of the work for free!
Here are some specific things that I do to reduce costs, keep things greener in terms of resource usage, etc. and keep the customer’s expectations steady in terms of on-going project costs:
- Bill the client a fixed price every two weeks or every month. This is basically like a retainer and if I’m doing this, I bill the work up front. It’s too risky in this economic climate to bill after the fact. Only do that if you really want (or need) this particular customer and they won’t budge at all on the upfront billing issue. Most will budge or meet you halfway letting you bill at the beginning of a two-week period and then pay you one week into it.
- Use video conferencing and teleconferencing whenever possible. This way you can avoid costly travel for the project and for your client. You can get video conferencing setups free at places like DimDim (www.dimdim.com) and you can get free conference calls at Freeconferencecall.com.
- Use free over-the-web fax services. Faxzero (www.faxzero.com) allows you to send faxes for free and Faxdigits (www.faxdigits.com) gives you a number to receive faxes with – they then come to you as a pdf file and you retrieve them online.
- Use a free pdf document converter. There are an increasing number of free pdf converters available now. It use to be that you had to have an expensive version of Adobe Acrobat to convert files to pdf format. Now you can download software like PrimoPDF (www.primopdf.com) and CutePDF (www.cutepdf.com), among others. I’ve tried several of these and the quality so far has been good on every one that I’ve tried.
Summary
There are a lot of options available these days to make the small vendor or independent consultant look bigger and many of them are free. The key is to start looking now, test out your different options and chose the best one. You definitely want to look professional and be ready when the need is there, so don’t procrastinate.
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