How B2B Startups Deal with Committed Budgets


Your pitch went well, the stakeholders were convinced and the company would love to buy, but unfortunately, the budgets are all committed for the year.

Maybe the economic buyer (the person making the final buy decision) rejected the transaction or maybe there’s a freeze on expenditures. Does that mean game over?

The solution

Do your due diligence. Make sure this is really a problem of budget availability — sometimes prospects lie.

Problems with committed budgets typically have more to do with timing than money. As far as problems go, having prospects that want to buy, but have their hands tied is a pretty good problem to have.

Help the economic buyer think through ways to displace budgets:

Can another department pay for the solution? Can it come out of the operating budget (OpEx)? Are there business grants that can be leveraged to pay for the solution? Can the solution be heavily discounted the first year on a three-year deal?

Get creative. If budgets can’t be moved, understand when they will be prepared to move them, keep the discussion going and wait until the next window of opportunity.

Stay top of mind; you want to be the first thing they buy next year.


⚡⚡ Enjoyed this content? I go into way more detail on this subject in Lean B2B. It covers the ins and outs of finding traction in the market for B2B products. Check it out »


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