Marilyn Moedinger@mwmoedinger
Reminder: "budget" and "cost" aren't the same thing.
In every meeting with a potential client, I ask them what their budget is.
9/10 times, custom home and small biz clients say "well I don't know what things cost, so I don't know what my budget is."
Wrong answer....unless you have unlimited funds!
You don't have to know anything about what stuff costs to set a budget, bc your budget is driven by factors that have nothing to do with what stuff costs.
If I walk into the grocery store, and I know my shopping budget for that trip is $100, that's the amount I have available to spend, regardless of what stuff costs. I'll likely have to make adjustments to my shopping list to make sure I'm still able to buy enough to eat - say, not buying one tin of caviar for $100 and blowing my whole budget.
Owners often feel sheepish that they don't know what construction costs, and it's a reason they're hesitant to tell me their budget.
I encourage them to forget about what stuff costs, and think about their financial situation...what works for them personally or for their business. What's a comfy number?
Then we talk thru the scope of the project - aka what they want to do. (Spoiler: everyone's scope exceeds their budget!!) My job is to coach them thru aligning their scope expectations with their budget.
It's OK to have scope and budget misaligned at first - that's what I'm there to help with! And, while the decisions can be hard, the concept isn't: if scope exceeds budget, then either decrease scope or increase budget.
In summary...back to the grocery store:
What a project "costs" is what the checkout lady at the grocery store tells you when she rings up the contents of your cart.
Your "budget" is the dollar amount you enter the store intending to spend.
The "scope" is all the stuff in your grocery cart that you're hoping to buy.
Working with good professionals who can speak openly, plainly, and honestly about these concepts is the surest way to a quality project that doesn't stretch you or disappoint you!
