The b-word.
Such a formidable foe.
Look, a budget can be a barrier, but they don’t have to be.
If you take a minute to understand them, you’ll break through them more often.
Here are a few reframes on budgets that will help you do just that:
(this coming from someone who spent 11 years in strategic finance and budgeting — managing $100M+ budgets all the way to coaching individuals on financial literacy)
1. In most cases, your buyer wasn’t the only person who had a say in their budget. And they may not even be fluent in how it works. Which means it might be helpful to equip your buyer with the language you want them to use in internal budget conversations.
2. Budgets are built well before the year even starts. The bigger the organization, the earlier. They’re based on old information, often just a slightly edited version of last year, which means your job might simply to get onto the next budget (not force your way into this one).
3. The default setting for budget owners is to act as though their performance is partially based on how well they “stay within budget.” They’re not. They’re judged on what they produce. The budget exists to help them produce those outcomes. Remind them of that.
4. There are always multiple budgets. Operating budgets are default. They are the hardest to get onto, but once you’re in, you tend to stay for a bit. Special budgets (campaigns, one-time initiatives, investor-funded projects) are easier to access, but they disappear just as fast. Offer guidance as to how you are usually funded (see #1).
5. The further your buyer is from spending their own money, the more important it is to understand what this means for them personally. Despite “the budget” being the easiest reason to say ‘no’ to your services, just remember that even organizational dollars pass through human incentives.
If you understand how your buyer’s budget was created, when it was created, who influences it, and what it’s actually meant to accomplish, then you’ll land on far more of them.
Thank you for reading.
See you next week.
— Peter
P.S. If you do want to land on more budgets, then let’s talk.
