Product Budget

A product budget is a financial document outlining the estimated costs associated with developing, launching, and maintaining a software product. It serves as a financial roadmap for the product, guiding resource allocation and tracking expenditures throughout the product lifecycle.

Purpose

The purpose of the product budget is to align the spending with the strategic goals and priorities of the product and to provide constraints that facilitate decision-making on resource allocation and adjustments throughout the product lifecycle.

Anti-patterns

• Over-Optimistic Estimating: Underestimating costs to fit within a desired budget rather than based on realistic projections.
• Ignoring Historical Data: Not using past data to inform current budget estimations.
• Siloed Budgeting: Creating the budget in isolation without input from key stakeholders such as marketing, development, or operations teams.