How to Develop Your Complete Training Budget
One of the most important—and yet most basic—questions when planning a training program is “How much will this training program cost?” While preparing a budget seems like a simple enough exercise, there are a number of considerations while assembling a list of expenses.
Does your budget only include the costs of tangible invoicable items, or do you include the full cost of the program, such as indirect costs? This may depend on your company’s accounting system. You may also need to decide whether your budget is an overall anticipated spend or if it’s broken out as a per-student cost.
- Travel: Travel is more than just the cost of a plane ticket or gas reimbursement. Be sure to include hotels, food, tolls, and any other incidentals your learners may encounter.
- Venue: If you need to rent space for your training, include this as well. Be sure to get a comprehensive quote from the venue so you aren’t surprised by extras, such as internet service or set-up.
- Food: Whether you are providing breakfast, lunch or snacks for your attendees, be sure to include these in your overall costs. If you’re ordering catering, be sure to get in writing exactly what will be delivered, so you know exactly how much food you can expect.
- Technology: Include any hardware or software that may need to be purchased or rented. Also include any additional charges for dedicated bandwidth, virtual training services or audio-visual support.
- Printing & Content: Do you have any course content that you need to purchase? Or have you included the costs for the production and delivery of your own course material?
- Marketing Materials: Have you included any costs associated with materials or services to market your training? This is especially important when training as a profit center, to maximize your reach.
- Other Services: Be sure to include any additional services, such as instructors or instructional designers, and their fees as well.
- Staffing: Your staff’s time is an expense in itself. Be sure to account for salaries for instructors or your training department staff.
- Productivity: Determine loss-of-productivity costs that participants sustain while they are away at training or your staff sustains while administering the program.
If your training program is a profit center, you will need to include the anticipated income in your budget or utilize the above expenses to assist in setting the price of the training.
If this was helpful to you in identifying the full scope and cost of your training program, MicroTek has produced a full eBook—The Complete Training Program Planning Guide. With sections ranging from the strategy of a program, such as forming goals and objectives and focusing on the business impact, to the logistics, such as course content, venue selection, technology and scheduling, this guide is full of useful information to help you maximize your training program—and it doesn’t cost a dime.
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