break the project into specific stages of work and tasks

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This budgeting method is based on knowledge, experience and support from people who have already dealt with similar projects. Although experts are involved in project evaluation, even they can make mistakes, and their estimates are not always accurate.

Bottom-up method
Using the Bottom-Up method, the project budget must be formed for each task. Then the costs for all tasks are added up to get the total project budget.

To estimate the project budget, it is important:

Make a list of tasks. First, you need to decompose : Calculate costs. Once you uk phone number list have described all the tasks, calculate how much money will be needed for each of them. This may require conducting research and collecting data: supplier prices, rates for services or materials, cost of specialists, etc. Different parts of the project may require different amounts of funding.
Add up all the costs. Once all the costs have been estimated, they are added up to get the total budget for the project.
The advantage of the method is that it allows you to foresee details in advance and obtain precise figures. The approach is especially useful for managing complex projects that consist of a large number of tasks and data.

Top-Down Method
Top-down is a method in which a total budget amount is established and then allocated to various expense items.

How to do it:

Set a total budget. We need to calculate the total limit we can spend on the project. Usually the amount depends on how much funding the project has received or how much money is willing to invest in it.
Allocate funds. Next, you need to understand what major cost categories are needed to successfully complete the project. At this stage of the work, you can determine how much money will go to development, marketing, materials, etc.
Make adjustments if necessary. As the project develops, if we see that some categories require more funds than expected, the budget can be adjusted.
The method allows you to quickly establish categories of expenses. However, in this case, the project budget may be less accurate, since the method does not always take into account the details that are important for the completion of the project.