Business English Vocabulary · Lesson 11

Sound Professional When Discussing Budgets

From allocating resources to keeping a lid on costs: the phrases senior professionals use to plan budgets, discuss spending and explain cutbacks – clear, precise and easy for everyone to understand.

ARead: planning the budget

Read the text. Pay attention to the phrases in bold – you will need them in exercise B.

Why setting a budget is harder than it looks

Few managers enjoy setting budgets. Deciding how much money each team can spend over the next twelve months means making difficult choices, and someone always ends up disappointed.

The first problem is that it is difficult to acquire or obtain the money and resources you need. There is never quite enough to go around, so every department has to compete for its share.

The second problem is that ambitious plans often turn out not to be feasible. An idea may look excellent on paper, but if the company cannot realistically afford it, it simply is not viable. Part of setting a budget is finding out which plans can actually work.

Then comes the hardest part: allocating resources. Leaders have to decide how much money, time and how many people each project receives. Those decisions should align with the company’s strategic objectives – in other words, the money should go where the strategy says it matters most.

At the same time, it is dangerous to focus everything on a single objective. A company that invests its entire budget in one product or one market is putting all its eggs in one basket: if that one area fails, there is nothing to fall back on.

Finally, a good budget leaves room for the unexpected. A project that suddenly needs far more money, time or staff than planned can put a strain on resources, leaving other teams without what they need to do their jobs.

BKey words from the text

Based on the context of the text, choose the phrase that matches each definition. Then complete the example sentence. You may need to change the form of the phrase.

To decide how much money, time and how many people each project or team receives

“Once we know our priorities for next year, we can more effectively.”
To risk everything by depending on one single plan, product or market

“Selling to only one big client is risky. We shouldn’t .”
To get something, especially money, resources or approval (often with some effort)

“It took us six months to funding for the new warehouse.”
To decide how much money a team or project can spend over a period of time

“Before we hire the agency, we need to for the whole campaign.”
To use so much money, time or staff that it becomes difficult for the rest of the organisation

“Taking on three new clients at once would our resources.”
Possible and realistic to do; able to work or succeed

“With only two developers, launching the app by March just isn’t .”
To fit with or support a plan, goal or strategy

“Every new project should our five-year strategy.”

CRead: controlling spending

Now read the email from a finance director. The phrases in bold are for exercise D.

From: Martin Hale, Finance DirectorTo: All department headsSubject: Spending for the rest of the year

Dear all,

As you know, sales in the third quarter were lower than forecast, so we are now working under tight budget constraints: there is simply less money available than we planned for.

Several departments have already exceeded their budgets for the year, which means they have spent more than they were given. For the next three months, it is essential that every team stays within its budget. If you expect to go over, please tell me before it happens, not after.

To help with this, I am asking every department to keep a lid on costs – please don’t let spending rise above its current level. In particular, I would like everyone to cut down on travel and external consultants, and to use video calls wherever possible.

Some areas need firmer action. Marketing spending has grown much faster than planned, so we now need to rein it in and bring it back under control. The board has also agreed to make cutbacks in two areas: the office refurbishment is postponed, and we will not be renewing three software licences.

The good news is that we still have our contingency budget – the money we set aside at the start of the year for unexpected costs. It will be used only for genuine emergencies.

Thank you for your support. If we are careful now, we will start next year in a much stronger position.

Best regards,
Martin

DKey words from the email

Based on the email, choose the phrase that matches each definition. Then complete the example sentence. You may need to change the form of the phrase.

To spend more money than you were given

“The project its budget by almost €40,000.”
To stop costs or spending from rising above their current level

“We need to costs until the new contract is signed.”
Money set aside in advance to pay for unexpected costs

“Luckily, the repairs were covered by our .”
To bring spending that has grown too much back under control

“After two years of rapid hiring, the company is now trying to its costs.”
Limits on how much money is available

“Due to , we can only hire one new developer this year.”
To reduce the amount of a particular thing that you use or spend money on

“We’ve business travel since we started using video calls.”
To spend no more money than you were given

“The event was a success, and we managed to the budget.”
To make official reductions in spending, often across a company or department

“If sales don’t improve, the board will have to next year.”

ESay it better

Each sentence below is correct, but it sounds simple. Rewrite it using a phrase from this lesson, then compare your version with the model answer.

“We spent more money than we were given.”

Use: exceed

Show model answer
“We exceeded the budget.” or “We exceeded our budget by 10%.”
“We need to spend less money on travel.”

Use: cut down on

Show model answer
“We need to cut down on travel.”
“This plan is too expensive for us. It won’t work.”

Use: feasible or viable

Show model answer
“With our current budget, this plan simply isn’t feasible.” or “…isn’t viable.”
“We shouldn’t put all our money into one market.”

Use: eggs

Show model answer
“We shouldn’t put all our eggs in one basket.”
“Spending has gone out of control. We need to stop it.”

Use: rein in

Show model answer
“Spending has grown too quickly. We need to rein it in.” or “We need to rein in spending.”
“Let’s keep some extra money in case something goes wrong.”

Use: contingency

Show model answer
“Let’s set aside a contingency budget, just in case.”

FKey words in a new context

Three managers are planning next year’s budget. Complete the meeting with the phrases from the box. You may need to change the form of some of the verbs.

Word box

budget constraints
allocate resources
feasible
exceed
stay within
cut down on
align with
put all your eggs in one basket
put a strain on
keep a lid on
contingency budget
rein in

AnnaCEOLet’s get started. As you all know, we’re working with tight next year, so we need to very carefully.

JonasMarketing DirectorI understand. But our plan to launch in three new countries is only if marketing gets at least the same budget as this year.

ClaireFinance DirectorThe problem is that marketing its budget by 15% this year. Before we give you more, I need to know that you can it.

JonasThat’s fair. We could trade fairs – they’re expensive, and they don’t bring us many leads.

AnnaGood. And whatever we spend should our main goal for next year, which is growth in Germany.

ClaireThen, honestly, I wouldn’t launch in all three countries at once. If everything depends on those launches, we’re . And three launches at the same time would the whole team.

AnnaAgreed. Let’s focus on Germany first and everything else – no new hires until the summer.

ClaireI’d also like to keep a of about 5%, in case something unexpected happens.

JonasMakes sense. And if our costs start rising again, I’ll spending straight away.

Use it well

Three things professionals often get wrong when they talk about budgets.

Feasible or viable?

Feasible means it can be done with the time, money and people you have.

Is a March launch feasible?

Viable also means it will work long-term, especially financially.

Is this a viable business model?

Lid, rein or cut?

Keep a lid on – stop it rising.

Rein in – it has already risen too much; bring it back under control.

Cut down on – reduce one particular thing.

Keep a lid on costs, rein in marketing spending, cut down on travel.

Budget without “the”

These common phrases don’t need an article:

We’re over budget. We finished on budget. We stayed within budget.

With exceed, use an article or a possessive: exceed the budget, exceed our budget.

Glossary

All the phrases from this lesson.

Planning the budget

to set a budgetto decide how much money a team or project can spend over a period of time
to acquire / to obtainto get something, especially money, resources or approval
feasible / viablepossible and realistic to do; able to work or succeed
to allocate resourcesto decide how much money, time and how many people each project receives
to align withto fit with or support a plan, goal or strategy
to put all your eggs in one basketto risk everything by depending on one single plan, product or market
to put a strain on resourcesto use so much money, time or staff that it causes problems elsewhere

Controlling spending

budget constraintslimits on how much money is available
to exceed the budgetto spend more money than you were given
to stay within the budgetto spend no more money than you were given
a contingency budgetmoney set aside in advance for unexpected costs
to keep a lid onto stop costs or spending from rising
to cut down onto reduce the amount of a particular thing you use or spend money on
to make cutbacksto make official reductions in spending
to rein into bring spending that has grown too much back under control