Now that the holidays are over and we start into a fresh new year, it’s time to think about budgeting. I know, it’s such an ugly word, fraught with anxiety and loathing, but it needn’t be so. If we approach budgeting logically and it can be effective and not scary at all. In the case of budgeting for the coming year, the first thing we should do is not to budget, but to plan. While these processes are closely related, they are not one and the same. Planning amounts to sorting out what things we would like to see happen, and budgeting amounts to sorting out how we’ll allocate available funds to make those things happen. And while the only tenable course of action might require an expenditure, we can sometimes get it done without spending money, which can make more money available for other needs, or allow us to hang on to some money, accruing a fund that will be used in the future. Let’s dig into this process and get it figured out.
The Plan
For our purposes here, let’s define planning as simply determining what we hope to accomplish — what we want to see happen. One important part of that is gathering factual information about the status quo. Here’s a practical example: to ascertain whether our current complement of wireless gear is sufficient, functional, and as future-proof as is necessary to accomplish our goals for the year ahead, take inventory and make that determination. How many transmitters and receivers do we have? Do they all function properly? Will they be enough for what we plan to do? Hopefully, the church maintains an inventory database that is constantly updated in real time — if a new device is acquired, it’s added to the database — if a device fails on a permanent basis, it’s removed from the database. It’s very important that this information is current and factual.
Here’s an example of the alternative: the lead worship pastor asks to purchase a new pair of 12-inch pole-mounted speakers for the children’s ministry, having been told by the children’s tech volunteers that the drivers in the existing speakers are blown and sound horrible. In reality, the speakers are fine — turns out that the inexperienced volunteers were overdriving the speakers at the input stage and causing them to distort. This sort of thing could result in an unnecessary cash expenditure. The bottom line? All planning must be based on factual information. Similarly, making plans based on unfounded conjecture is a bad idea. Let’s say that our tech director says he has a great relationship with a guy who works for a mic manufacturer and believes he can get the new wireless handhelds we need at a 20% discount. But in mid-December, the manufacturer lays off some employees, including our tech director’s friend, and the 20% discount is no longer in play. We need to base our budgeting decisions on known facts, not speculation.
The Next Step
Once we’ve completed planning what we want to accomplish, it’s time to move on. We have assessed what we have and whether it will continue to contribute to our goals, so now we know what we need to acquire. At this stage it’s a good idea to start prioritizing. This is another phase in which we’ll want to have good, solid information about what’s actually necessary. We need to determine with specificity what kind of new tech will be necessary, look at available options and conclude what gear to budget for. The big question here is “will this new stuff sufficiently accomplish what we expect and help us accomplish our goals?” This can be a critical moment at which we may be tempted to “cheap out” and save a few dollars by budgeting for the bargain brand. And there are certain items for which this is probably okay — particularly gear that tends to be a bit more “disposable” — not intended for function over the long-term. But when budgeting for items to serve us for years to come, we’re probably better off spending more to acquire gear that lasts longer than the cheaper stuff. As the old adage states, it’s better to “buy nice to avoid buying twice.”
Also, be aware of our susceptibility to marketing. Sometimes the notion of “buying nice” can result in overspending. Slick marketing can persuade us to buy high-end (high-dollar) stuff that has bells and whistles that we’ll never even use. The trick here is to find the exact right product that does exactly what we need — nothing more and nothing less — and get the best possible price on it that we can. There’s a lot of marketing these days that tells us that “this new product will take you to the next level!” By approaching our decision-making in a sober, rational way, we can get exactly what we need and not a flashy product with features that will go unused. On a similar note, the marketing wizards out there are aware that those in charge of budgeting and purchasing sometimes take their cues from their colleagues. We see (and are reminded by marketers) that “all the churches are using this amazing product!” so we conclude that if we are to be on par with all the other worship and tech teams out there, we simply must spend the extra money to get this popular thing. It’s preferable to dispassionately assess what we need and acquire just that, and not be enticed into overspending by decision-making based more on emotion than logic.
Before a final budget is approved, it’s important to prioritize our expenditures. It’s human nature to cast our initial focus on the big, flashy (and usually expensive) stuff we think we need, and relegate the less prominent stuff to the bottom of the list. The big dividing line in the middle of our list should be based on the notion of whether the expenditure is “negotiable” or “non-negotiable.” If our front of house console is on its last legs and could fail at any moment, the acquisition of a new one should be “non-negotiable.” On the other end of the spectrum, a suggestion may be made that “it sure would be nice to have those brand new top-quality wireless handheld mics,” while in fact the current mics will continue to get the job done for the next 12 months. This would be filed under “negotiable.” Dying gear should rise to the top of the list for replacement, and serviceable gear that could be better but is still functional should be a lower priority. On a similar note, every item on the list should be categorized as either a “need” or a “want.” Unfortunately, “wants” rise higher on the priority list than they should be due to emotional decision-making. The folks in charge of budgeting can make the mistake of deciding what they want and building the budget around that, rather than rationally determining what they need and moving the important stuff to the top of the list. Non-negotiable needs should always land much higher on the list than negotiable wants.
Outside the Box
It’s also important to think outside the box a bit. Again — we tend to be drawn to the prominent technology that we see front-and-center every week, but there may be ailing gear somewhere in a back room that is important to our goals. For instance, that older computer we repurposed to mix the live stream may be headed for the scrap heap in the next six months — we shouldn’t ignore it just because it’s not visible in the main sanctuary. Be mindful of the life cycles of our various bits of gear — an assessment that can be done more easily by maintaining a constantly-updated inventory that includes an actual-versus-expected service life for each piece. On a similar note, put a little money aside for the unexpected: a speaker blowout or a Sunday morning coffee spilled into a laptop, for instance. We need to be prepared to act quickly to keep the show on the road. With rational, methodical planning, the budgeting process becomes a little easier and more effective, and that will make everyone happier.
John McJunkin is the chief engineer and staff producer in the studio at Grand Canyon University.
