New PI diaries: Taking Stock and Figuring Out Lab Finances

It’s now been 13 months since I started my lab, marking the end of my ‘New PI Diaries’ series here on the Node. The journey has so far been both overwhelming and rewarding, and I’ve enjoyed the chance to reflect and share my experiences in this blog. Overall, it’s been a lot—but mostly a good lot. My time gets split between a lot more responsibilities and I have less time to be in the lab. Both mentoring and teaching now take up much more time than during my postdoc, but luckily, I already know I enjoy both.

However, one aspect that was almost completely new to me was managing lab finances. In this blog, I want to share some examples of situations I encountered and the lessons I learned, along with a few key takeaways. To provide some context, my Independent Junior Group Leader position comes with support that includes a PhD student position, a technician, a yearly consumables budget, and some startup funds. Comparing lab resources across universities and countries is difficult. For instance, my startup budget is considerably smaller than those typically offered at US universities but potentially bigger than that available at other institutes or universities. However, I also benefit from funded positions and an equipped lab. In addition, many larger pieces of equipment and facilities are shared within the institute and can be used free of charge or at a low rate, reducing my need to purchase new equipment.

But let’s talk people first. In addition to support from the ZMBP, I was able to secure an Emmy Noether grant from the DFG. This grant covers my salary for six years, along with funding four years of two PhD students and a postdoc, allowing for steady growth and stability in the coming years. However, I quickly ran into an unexpected issue: the PhD student position from the University is paid a lower salary compared to the positions provided by the DFG. Different enough to feel unfair but unfortunately it is common. Similarly, PhD positions in different disciplines get compensated at different rates. Now, I cannot change decisions of the University or the state of Baden-Württemberg, but I figured there must be a workaround.  Once I started asking around, I learned that people have come up with a variety of solutions. Talking with fellow group leaders and our Head of Central Services I learned that we could reassign the unused % of the technician position together with some flexible lab budget to equalize the PhD salaries. So, it’s important not to hesitate in discussing challenges; I certainly wasn’t the first to face this problem, and people had already identified potential solutions.

Apart from people, we’re spending money on consumables and equipment. The ZMBP account, which includes a startup and a yearly budget, allows me flexibility in spending. Additionally, last year I received one time support from a collaborative project. This account had its own constraints, while flexible, the funds must be used within two months, adding some pressure. Finally, the Emmy Noether provides consumables funding, albeit with more limited flexibility since it is there to support the group and project and any equipment should be provided by the University. As a result, I got a crash course into which account to use for what purchase. In short: for me it’s best to save the ZMBP account for computer and equipment purchases as those cannot be made from all other accounts.

Most of the necessary equipment was actually already there, but I found several items that could significantly make our lab’s work easier and more efficient. Before purchasing these I first spent some time looking around, checking what is available already, what our need really is, and what options we have for financing the things we need.  And although I still don’t have a precise overview of our total finances, we’re in a fortunate position where I don’t have to stress excessively about money. I do feel it’s important for everyone in the lab to know the price of some of our reagents and equipment. Investing in reagents, such as 2x mixes for genotyping and colony PCR, is worth the costs right now for the time they save as long as people are aware of their cost. We’re in a good position, but I want to avoid wasting funds that could be better spent elsewhere to make our days easier. Eventually using lab funds we purchased two new stereomicroscopes to dissect Arabidopsis embryos, additional pipettes, and computers. Each piece of equipment or expensive kit is an investment that I think will pay off and that we can afford in our current situation. However, I remain careful as, well, I lack experience, and you never know what’s up ahead.

Here are my early-stage financial takeaways:

• People are expensive. Value the positions you have and hire carefully. In addition, sometimes spending more on consumables and equipment is worth the time saved for your team.
• Keep track of your accounts. Understand what’s in each account, what you can spend it on, and where your money is going. Is it what you expected?
• Use your funds. Once you have a clear overview, consider what tools could make lab operations smoother. I initially waited to determine which investments would be beneficial for everyone in the lab but then decided to make some investments.

And my personal goals:

• Have a more complete overview of the lab finances. I have a rough idea of what we’re spending and what’s available but I still have a long way to go. Luckily I have plenty of people to ask for advice.
• Get experience. While enthusiasm is important, it doesn’t replace experience. I’m learning a lot and I already feel a lot more confident in making these decisions.

While the lab’s immediate future is secure, I also need to plan for what comes next. To be honest, at this point, anytime I feel like I’m in control of things I realize I just have been forgetting or ignoring something important. I guess that’s life. In general, I think I should spend more time thinking of grants. Next year will be my final opportunity to apply for the ERC Starting Grant, so my focus will be on that. Additionally, in a few years, I’ll need to start searching for a professor position, as my ZMBP Junior Group Leader position and Emmy Noether funding will end in about five years, and securing a professorship in Germany can take some time.

Wish me luck!

First investment: new stereomicroscope for doing embryo dissection and the beautiful images it takes of GUS-stained seedlings.

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