ECE362 Principles of Design Project Budgeting Page 1

Development Grant = $$$ Product Development Product Idea Product Specifications Technical Model Stage 1 – Product Idea, Product Specifications, & Technical Model Stage 2 – Intellectual Property, Mkt Analysis & Business Models Intellectual Property Market Analysis Business Model Planning & Scheduling Test Plan Project Management Stage 3 – Scheduling & Planning, Test Plan, & Project Management Stage 4 – Budget, Social Impact, Person. & Proposal Completion Budget & Resources Social Impact Personnel Qualifications Development Grant = $$$ Page 2

Project Budgeting The purpose of a budget is to explain… “the personnel who will be expending effort on this project and what they will need to spend in order to accomplish the goals and objectives” Page 3

Project Budgeting Preparing a project budget is a very important task in writing a proposal. Costs must be reasonable; Costs must be allocable to the project; Costs must be given consistent treatment through application of generally accepted accounting principles; Page 4

Lemelson Budget List the equipment and other resources necessary for the project. Indicate whether your institution will provide access to these resources and, if not, other means you will use to access them. Page 5

Lemelson Budget Include a budget in tabular format (maximum grant award is $20,000). Eligible line items include: • Equipment Supplies • Travel • Technical services • Expenses related to performing patent searches, disclosures and applications, or creating marketing or business plans Page 6

Lemelson Budget Ineligible expenses include Overhead Faculty salaries Stipends totaling over $3,000 per person or $7,500 per project Publicity expenses Legal and other expenses of business formation and operation Page 7

Lemelson Budget The E-Team faculty advisor is responsible for tracking, directing, and reporting the disbursement of grant funds, and is the principal investigator of record. Page 8

Lemelson Budget Budget Narrative: Appears in appendix (due to 5 page limitation of proposal). Justifies the need for the costs of each item. Explains the method and the rationale used for estimating and calculating costs. Page 9

Lemelson RHIT (in kind) ITEM Patent Search Provisional Patent Application Professional Market Research Technical Advisor Non-expendable Equipment Prototype expendable supplies Office and Laboratory space Telephone services Computer services (machines and network) Invited seminar speakers Short courses, workshops Travel (Conference, trade show) Copying services Library and Databases Stipend (very restrictive limitations) Consultants (very restrictive limitations) Page 10

Assignments INDIVIDUAL ASSIGNMENT – Chapters 4 & 7 of “Teamwork and Project Management,” Smith Tuesday, January 20 TEAM ASSIGNMENT – Obtain Faculty Technical Advisor, Thursday, January 22 TEAM ASSIGNMENT – 1st Draft Project Budget, Friday, January 23 TEAM ASSIGNMENT – Team Personnel Statement Page 11