Drafting a Research Budget

When you're the first or only researcher in your organization, or part of a small research team, one of your biggest challenges isn't just conducting great research—it's securing the budget to make it happen. Unlike larger organizations where budget discussions happen at the executive level with more resources available, smaller teams must fight for every dollar and make strategic trade-offs.

This reality reflects a fundamental economic principle: the blanket is always too short. You can cover your head or your feet, but never both. This mindset is essential when approaching research budgeting in resource-constrained environments.

The Three Pillars of Research Budgeting

Building an effective research budget requires careful consideration of three key categories:

1. Researcher Salaries

The largest expense in your research budget is often the researchers themselves. However, whether you need to include salaries in your research budget depends on your organization's financial structure. Some companies account for salaries under OPEX or payroll, while others require inclusion in the departmental budget.

Even if not required, staying aware of salary costs helps you understand the total investment your company makes in research. This knowledge becomes valuable when planning for additional hires or justifying headcount increases. If you work with freelancers or contractors, include these costs as well—whether calculated per project or annually.

2. Incentives: Your Non-Negotiable Priority

If there's one budget category you must fight for above all others, it's participant incentives. The logic is simple: no incentives means no participants, no participants means no research, and no research means no insights.

Incentives don't always mean cash payments. Depending on your industry—particularly in B2B or regulated sectors—you might offer non-monetary incentives like extended pro plan access, company merchandise, or other valuable perks. Regardless of the format, assign monetary values to these incentives and include them in your budget calculations.

To calculate your incentive needs:

• Average projects per year × Average participants per project × Average incentive cost

• Add 10-15% buffer for unexpected research needs

• Consider the mix of participant types (managers might require $100-200/hour, while survey participants might receive $2-5)

3. Research Tools: Strategic Investments

Research tools span multiple categories: recruitment and participant management, unmoderated usability testing, analysis software, research repositories, workshop facilitation tools, and session recording platforms.

With limited budgets, strategic tool selection becomes crucial. Start by listing all tools you'd want in an ideal world, then prioritize based on current pain points that tools can solve immediately.

Smart Strategies for Tool Selection

Focus on Impact

Rather than building a comprehensive toolkit from day one, identify the most impactful tools for your current situation. For example, if you want designers to conduct more usability testing, prioritize an unmoderated testing tool over a facilitation platform.

Leverage Existing Organizational Tools

Before purchasing new software, examine what's already available across your organization. If marketing uses an email automation tool, you might secure a seat for participant management. If your design team has Figma, consider FigJam for workshops instead of purchasing Miro separately.

This approach maximizes your budget efficiency while building on existing organizational infrastructure.

The Long-Term Perspective

Remember that research budgeting isn't just about surviving your first year—it's about building momentum. As research becomes more embedded in your organization's decision-making process, you create a virtuous cycle. More research leads to better decisions, which increases buy-in, which unlocks additional budget and headcount.

Key Takeaways

Building a research budget requires strategic thinking and tough prioritization decisions:

1. Understand your organizational structure for salary inclusion

2. Prioritize incentives above all else—they're the foundation of your research practice

3. Choose tools strategically based on immediate impact and existing infrastructure

4. Plan for growth while being realistic about current constraints

5. Fight for what matters most and be prepared to make trade-offs

The goal isn't to create the perfect budget on your first try—even experienced researchers struggle with this. Instead, focus on building a foundation that enables quality research while positioning your practice for future growth.

When resources are tight, every dollar must count. By following these principles and maintaining focus on your core mission—generating valuable insights through quality research—you'll build a sustainable budget that serves both your immediate needs and long-term goals.