Financial Budgets

When preparing a business plan for a start up company you need to assess your initial budget and then an ongoing budget.

Initial Start Up Budget

Professional fees (accountant, legal, surveyors, etc)

Personnel costs (do you need to employ people to set the business up)

Property Costs (rent, rates/taxes, service charge, insurance, etc)

Utilities

Equipment

Licences (particularly if you are considering franchising)

Insurance

Initial product costs

This will then turn into an Operating Budget, once you are ready to open your doors and start trading. Some of the headings will be the same whilst others will change over time, as you employ more people, for example.

Operating Budget

In addition to the items under the start up budget, consider:

Tax

Marketing/advertising costs

Loan repayments

Repairs and maintenance

Ongoing product / shipping costs

Travel expenses

Office running costs

By breaking each item down and including an entry for all your likely costs, you can create a realistic picture of what your business is going to cost to run on a month by month basis.

With this information you can start to prepare your income projections.

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