Securing Budget
Securing Budget involves the strategic process of preparing and presenting a financial proposal to secure funding for the development and scaling of a product within an organisation.
Purpose
The purpose of securing budget is to ensure adequate financial resources are allocated for the product's development, enabling it to meet its objectives and deliver value.
- Resource Allocation: Ensures the product has the necessary resources for development.
- Strategic Planning: Helps in aligning the product development with the organisation's strategic goals.
- Financial Oversight: Encourages careful financial planning and management.
Context
Industry Context
Software products can deliver outsized returns, however the development process can be capital intensive. Securing budget is essential to ensure that the product can be developed and scaled effectively. It also ensures that people are doing sufficient due diligence before committing resources.
ZeroBlockers Context
ZeroBlockers aligns with the concept of 3 horizons for products.
Horizon 3 is for brand new products that the company believes will deliver on the long-term strategy. These products require upfront funding as they will not be able to deliver a return until they are developed and launched.
Horizon 2 products are those that are in the growth phase. Not every product graduates from Horizon 3 to Horizon 2. These products are expected to deliver a return on investment in the medium term. Securing budget for these products is about ensuring that they have the resources to scale and grow.
Horizon 1 products are those that are already delivering a return on investment. These products are self-sufficient and do not require additional funding.
Methods
| Method | Description | Benefits |
|---|---|---|
| Writing a Product Proposal | Creating a detailed proposal highlighting the problem, cause, proposal, tenets, benefits of solution, alternatives and FAQs. | Facilitates informed decision-making by management; supports strategic investment. |
| Requesting Product Funding | Presenting the product proposal to stakeholders or a funding committee to secure financial resources. | Ensures alignment between product development and organisational resources; secures necessary funding. |
| Becoming Self-Sufficient | Guiding the product through the development cycle to achieve financial and operational self-sufficiency. | Reduces dependency on external funding; contributes to the overall health and profitability of the organisation. |
Anti-patterns
- Overpromising: Setting unrealistic expectations in the budget proposal, which can lead to future shortfalls and credibility issues.
- Underbudgeting: Failing to request sufficient funds to adequately cover all necessary development stages.
