How to Handle:
“This is a next fiscal year initiative”
Budget cycles are real constraints, and fiscal year planning often determines when new initiatives can begin. This objection means the decision has been made to defer, but it also opens the door for strategic positioning for the upcoming year.
Why Prospects Say This
Companies plan budgets 3-6 months before new fiscal years. If your solution was not included in the current year's budget, it may genuinely need to wait. However, this is also an opportunity to influence next year's planning and be first in line when budgets open.
Best Responses
The Budget Planning Partner
“That makes sense—budget cycles are real. When does planning for next fiscal year typically start? I'd love to make sure you have everything you need to build a strong business case internally.”
Why It Works
Positions you as a partner in their planning process. Helping them build the internal case increases the likelihood of budget allocation.
Best For
Larger purchases that require formal budget allocation
The Pilot to Budget
“Understood. What if we started a small pilot before year-end? You'd have real data and results to include in your budget request. Hard to argue with proven ROI when asking for funding.”
Why It Works
A pilot generates evidence that strengthens their internal case. Real results are more compelling than projections.
Best For
Solutions that can demonstrate quick value
The Priority Question
“Fair enough. Quick question—is this initiative already in the pipeline for next year's budget, or does it still need to compete for funding? If it needs to compete, I can help you build the case.”
Why It Works
Distinguishes between 'already approved for next year' and 'hoping to get approved.' The latter requires more support from you.
Best For
Understanding where they are in the approval process
The Early Advantage
“I appreciate the transparency. Here's something to consider—companies that start evaluation now are ready to implement on day one of the new fiscal year. Those who wait often spend Q1 just evaluating. Would a head start be valuable?”
Why It Works
Frames early engagement as a competitive advantage. Being implementation-ready when budgets open means faster time to value.
Best For
Competitive markets where speed matters
The Current Year Funds
“Got it. Last question—is there any unallocated budget in the current fiscal year that could cover a pilot or initial engagement? Sometimes teams have funds that need to be used before year-end.”
Why It Works
Explores current year budget availability. Many departments have use-it-or-lose-it funds at year-end.
Best For
Late in the fiscal year when unspent budget may exist
Do's and Don'ts
Do This
- Learn their budget planning timeline and key milestones
- Offer to provide ROI data, case studies, and business case templates
- Explore whether a pilot could fit in current year budget
- Schedule touchpoints aligned with their budget planning cycle
- Connect with the budget owner, not just the end user
Don't Do This
- Disappear until next fiscal year and hope they remember you
- Assume the initiative is definitely funded for next year
- Ignore the opportunity to influence budget planning
- Wait until budgets are finalized—by then it's too late
- Underestimate how early budget planning starts in large organizations
Follow-up Questions to Ask
“When does your fiscal year start, and when does budget planning begin?”
“Is this initiative already in the proposed budget, or does it need approval?”
“Who owns the budget this would come from?”
“What data or proof points would strengthen the budget request?”
“Are there competing initiatives this would need to beat for funding?”
“Is there any current year budget that could cover a pilot phase?”
Industry-Specific Variations
“This needs to go into our annual technology budget”
“I understand—IT budgets are locked down. When do you typically submit technology requests for the next fiscal year? I want to make sure you have the business case and security documentation ready for that deadline.”
“We can't add anything until after the state budget is approved”
“State budget timelines are tricky. When does that typically get approved? In the meantime, would it help to have a compliance-ready proposal you can submit quickly once funding is confirmed?”
“This would need to be part of next year's Title I funding”
“Title I planning is a process. When do you typically submit your proposals? I can help put together documentation that aligns with funding requirements and demonstrates measurable outcomes.”
Pro Tips
- Budget planning often starts 4-6 months before the fiscal year. Mark key dates in your CRM and engage proactively when planning begins.
- Provide 'budget request templates' that prospects can customize. Making their internal selling easy increases your chances of getting funded.
- Connect with finance or procurement contacts who influence budget decisions. End users want your solution; finance needs to approve it.
- If the fiscal year is different from calendar year (July 1, October 1, etc.), adjust your outreach accordingly. Many companies have non-standard fiscal years.
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