Working for a small company results in an environment in which failure to plan or forecast budget demands can become catastrophic. Unexpected costs can result in project cancellation midway, resulting in wasted resources and no return.

I have been fortunate to not have any of the projects that I have been directly involved with cancelled. However, I can share the experience of my coworker who did go through this problem. My coworker was tasked with projecting the costs for sterilizing and testing a specific prototype/special order. The prototype was meant to be a means of acquiring a contract from a very large corporation that needed the product but did not have the means of producing it themselves. After determining the costs for sterilization and the appropriate biocompatibility and microbiology test, the project was underway. After the prototype was developed by R&D, it was sent out for sterilization and the other tests it needed. Once the reports came back, it was sent to the customer for final approval. Upon review of the results, the customer noted that a “small” change in the products intended usage instructions resulted in the need for additional biocompatibility testing. The additional testing ended up costing a significant amount that our company had to absorb. The results of the additional testing was not favorable when reported to the customer. This basically pushed the project back several steps into the R&D phase. Upon review of the project’s standing, it was determined that it was no longer feasible to proceed and it was cancelled.