I believe budget cut would affect all the phases of the project. When you are initiating it if you require $10,000 in order to develop and assemble the final product but you only have $6,000 for the project then the product can’t be finalized. On the same way you also have to pay the salary to the team. When you measure the risks, if you come up with a couple of risks that require the purchase of additional things in order to make sure that the product works correctly then that is also additional money to the original $6,000. My point is that money is key when doing a project, in order to gain money, you also need to invest it. Since the company I used to work for was a small business, we knew the budget capabilities of the company and we forced to discard the projects that required more money than what we had. It is painful to say but you need to be aware of every aspect before doing a project, one major aspect is the financial one.

Let me know what you think!

Sincerely,
Roberto Pineda.