In 5 Easy Steps, Plan a Budget for a Proposal (+ Example)

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This guest article is by Edoardo Binda Zane. We begin with 5 steps to create a proposal budget. Then Edoardo gives you a fictional example of how it would look once it is complete.

Step 1: Create a Gantt chart
Step 2: Add Person Days Per Company
Step 3: Estimate Labour Costs
Step 4: Add subcontracting and travel costs
Step 5: Bring it All Together
Budget Overview for Example Proposal
Employee costs
Subcontracting
Travel Budget
Other costs
Timing

Example of Hourly Rate CalculationHourly Rate Calculation

A proposal budget is similar in structure to a project budget but has a different goal.
A project budget is intended to guide you through the project phases. It can be modified and adapted to the events of the project (within limits).
Instead, a proposal budget aims to convince the evaluator who reads your proposal that your plan is well-understood and that you are worthy to be granted funding.
While it is true that the budget you create in the proposal phase should be well-constructed and everything goes according plan, you will use it as your project budget. However, for the purposes this article, let us just focus on the proposal phase.
This article provides all the information you need to create a budget for your project.
How do you convince an evaluator to accept your idea?
First, you must clearly explain your project and the process in your proposal’s narrative. This is crucial for presenting to management.
You must also provide a solid justification of the costs you will incur for each phase. You need to provide not only a solid justification but also a synthetic one.
In a nutshell, the evaluator must be able read a one to two-page document and feel confident enough to give you the PS600k that you require. This article will explain how you can do this.
Step 1: Create a Gantt chart
Gantt charts are both loved and hated. However, it is undisputed that Gantt charts provide the best overview of a project’s entirety.
If you want to convince the evaluator, plot each work package and task on Gantt charts and give him or her a clear picture of when it will occur. This will show them that you have carefully thought about each part.
Gantt charts are a vital document for every project. However, you don’t have to fill out every detail of them at this stage.
Step 2: Add Person Days Per Company
This is the core point. To accurately estimate costs, you must first estimate how much work each activity will require.
You must also estimate the number of people who will be doing the work. I don’t mean “who” (name and surname), but rather what type of person or job will be involved in each task.
Is it developers? Are marketers it? Are researchers it? Each person has a different hourly wage and a different work pace.
Your person-days should be planned accordingly. You will need to separate your estimates per company if you are part of a consortium. Almira was allocated 656 person-days to work package 1.
Edoardo has more examples in Writing Proposals: A Handbook of what Makes Your Project Right for Funding Step 3. Estimate Labour Costs
Once you know the project duration and the number of person-days, or hours required for each task, it is time to calculate the cost of their work.
Simply multiply the hourly rate or daily rate for each employee in the company by the number of days/hours they will work.
You can also use a weighted average if you wish. If you don’t know how to calculate the daily rate, I have included a quick how-to at the end.
Almir is the subject of the following example.

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