And while I may be a tad biased—as someone who specializes in this area—I promise these insights are grounded in experience and focused on what’s best for your business.

DO: Set Specific, Impactful Learning Goals

Why: Pinpointing the most essential skills can help ensure you’re not just spending on training but investing in future growth. Don't spend on professional development just because you think you're supposed to be spending on it—intention is critical.
How: Identify skills that will make the most difference in your team’s day-to-day productivity. Think about sales close rates, customer experience, time management, or project management—areas that directly affect your bottom line.

DON’T: Spread Your Budget Too Thin

Pitfall: Trying to tackle too many skills or training programs at once can dilute the impact of each.
Solution: Focus on high-priority areas, and leave room for follow-up or advanced training in the future. Concentrate your resources on a few high-impact skills for a more measurable return.

DO: Allocate a Percentage of Payroll or Revenue for Development

Why: Setting aside a consistent percentage makes it easier to budget without affecting other operations. (A common approach is budgeting 1-5% of total payroll.)
How: Consider splitting your professional development budget to cover both your own growth and that of your team, so everyone benefits. This can be a 50-50 split or another ratio that fits your priorities.

DON’T: Rely Only on Formal Training Programs

Pitfall: Formal courses can be great, but they aren’t the only solution (or the best ROI in many cases).
Solution: Balance high-impact programs with less costly resources like webinars, books, and even internal, peer-led workshops. Free or low-cost options can help fill gaps without breaking the bank.

DO: Tap into Low-Cost and Free Resources

Why: Small businesses don’t always need big budgets to see big gains.
How: Make the most of accessible resources like online webinars, workshops, and internal book clubs. These tools can provide targeted training and be valuable complements to paid programs.

DON’T: Underestimate the Power of Peer Learning

Pitfall: Relying only on outside trainers can be costly and miss out on high-value internal knowledge.
Solution: Encourage staff-led “lunch and learns” or peer mentorships, where team members share their own skills and experiences. This can build both confidence and camaraderie without additional cost.

DO: Think Long-Term with Your Development Goals

Why: Professional development is a powerful tool for employee retention, especially for small businesses that compete with larger firms.
How: Integrate development goals into your long-term planning to ensure that training aligns with both individual growth and the company’s direction. This approach makes professional development feel like a valuable benefit rather than a one-off event.

DON’T: Forget About Your Own Growth

Pitfall: Many small business owners focus only on their staff’s development, neglecting their own.
Solution: Invest in your own individual growth—whether that’s through courses, books, or coaching. A personalized coach (a service we might just happen to provide) can help you grow alongside your team, keeping your leadership skills sharp and adaptable.

Whether you’re working with a shoestring budget or a bit more wiggle room, these do's and don'ts can help turn professional development from an expense into a value-adding investment. And remember, we're always here if you need a little guidance along the way.

Here's to your continued growth! 🍻

The Do’s and Don’ts of Budgeting for Professional Development