How should you manage new project funds?

Published By zooboole

While this might sound strange for me to discuss it with you, it's a common case to see that we've spent projects funds at the wrong moment. And the direct consequences of such misbehavior is that the project is always affected and inflicted.

Remember, the client's money isn't actually his/her money, it's their project money or funds. Since every single job is a project, you need those funds along to be able to support and conduct it until the end.

It's thus advisable to spend that money at the end of the project. But, if you miss that what happens?

Usually, the first issue to occur is discouragement. Projects funds are there to motivate us to work hard. Look at it this way: that money is like a man seating on a lazy horse and holding great fresh leaves by its nose. The horse trying to fetch the leaves would have to move forward, and so on. Once the man reaches his destination, he would now drop the leaves for the horse to enjoy it;

When you spend that money at once, you start feeling discouraged to continue. By then, it would be like you work for nothing. This feeling can become a big threat to the project.

Make sure you use the least required to execute the job. If you know you might need the funds, one of the best options is to take a certain percentage of the price before starting. Then you take the remaining at the end. There are many ways to come to an agreement with clients in these cases.

Another issue which usually occurs is that most developers are full of personal projects. What they often lack is fund to start. What happens when such person enters in touch with a bulk amount, he starts to invest back in those projects. And, who talks about investing, talks of paper works, errands in town, meetings, phone calls, etc. This can distract from client's job.

You remain in that routine until you have nothing at hand again to execute the client's project. You end up on the same stage of feeling: it seems you are making the work for the client for free.

A good execution of a project passes by a good management of the funds and good timing of the tasks. In whatever situation you find yourself, you should avoid spending the money before engaging in the work.