Custom essays on Group Project: Budget Considerations

The budget of the project should meet the financial resources available to fund the project. At the same time, before defining the budget of the project, it is necessary to focus on the definition of the ultimate goals of the project and potential return on investments. What is meant here is the fact that the budget should be grounded on the adequate assessment of potential return on investments after the implementation of the project. On the other hand, it is necessary to take into consideration not only potential return on investments but also risks the implementation of the project can evoke, including the risk of the failure of the project. In this respect, it is important to balance potential return on investments and risks. In other words, the budget of the project should not exceed objectively defined returns on investments which the project can bring in case of its successful implementation. The budget should not involve excessive financial resources, especially if risks are high. At any rate, the project should avoid risks which can put under a threat its successful implementation. In such a situation, the budget should be developed on the ground of balanced financial resources needed for the implementation of the project with a high probability of return on investments.
Furthermore, to find the financial resources for the budget to implement the project, it is possible to use the existing financial resources available. Alternatively, it is possible to borrow money from a bank but this will need to return the borrowed money and interests. Finally, it is possible to create a partnership, where a partner can fund the project and gets a share in the revenues and ownership of the project.

References:
Sullivan, S. (2006). Economic Principles in Action. New York: Random House.