How to budget for your company so you can grow forever
As the name suggests, draw-down budgeting is when you have a set number and then each initiative takes budget dollars away. You can do this in order of priority or in a first-come, first-served basis.
How to budget using draw-down budgeting
Identify how much you have to spend, either on a whole-company basis or a departmental basis.
Choose whether budget draw down will be done by priority or by first-come, first-served.
If it’s by priority, decide on a prioritization framework and communicate it out to leadership. If you’re doing it on first-come, first-served basis, then communicate when leaders can start making budget requests (note: this is not the recommended approach).
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