Budget
The money the customer can actually spend on solving the problem, and who controls it.
In plain words
Budget is the amount the customer is able and willing to spend on this problem. It is not the number they mention to sound serious. A real budget has a source. That is money set aside, a line in a plan, or an owner's agreement to spend.
The seller learns about budget on the discovery call, after the pain is clear. In a CRM it is a field on the deal card with an amount or a range. A short note says where the money comes from. It is one of the three basic qualification fields, next to need and timeline.
Worked example (invented numbers)
The customer can spend $5,000 this quarter, and the proposal is $8,000. Split it: a $5,000 first phase and a $3,000 second one.
How to use it
The head of sales checks the budget field on every deal before a proposal goes out. A proposal far above the known budget will likely stall. One far below it may leave money and scope on the table. Either way, the field tells the seller how to shape the offer.
Budget also changes the forecast. A deal without a confirmed budget is a hope, not a forecast line. Start with a simple rule and test it. Only deals with a known budget and a decision date count toward the forecast.
Budget is tied to three neighbors. The pain explains why the customer would spend at all. The decision maker is often the person who controls the money, so ask who approves the spend. The proposal is where budget turns into a price, a scope and payment terms.
Common mistakes
- Asking about budget in the first minute. It sounds like a filter, and the customer closes up. Ask about the pain first, then the timeline, then the budget.
- Accepting "we have a budget" without a number. Nobody can plan with that. Ask for a range: "Are we closer to one thousand or ten thousand dollars?"
- Ignoring who controls the money. A manager may have a need but no spending authority. Ask who signs off on spend of this size, and note the name.
- Closing a deal as lost because there is no budget today. Budgets appear next quarter or next year. Record when the next budget is planned and set a dated next step.
NEXT STEP · TOOL
By Friday, the head of sales filters the open deals at the proposal and decision stages. For each one, check the budget field: an amount or range, and the source of the money. Each seller fills the empty fields after a short call or message to the customer. Move deals with no budget answer out of the forecast until the field is filled.
Six areas of the job on one map, with a self-assessment and a plan for your first month.