Presenting your startup budget

1 | How to present your startup budget

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How to present your startup budget

Balancing full information with simplicity



This e-book includes a real-life example of a startup budget for a small retail store

and shows how the budget was presented in the business plan.

However, there is not just one right way to present a budget in a business plan, at this

example does not claim to be the one and only way to do it – or even to be the right

way.

Instead it is intended as an example for discussion:

Does the presentation include the information you need? Or is something

missing?

Is it simple and easy to read and understand? Or is it packed with too many

details blurring the big picture?

What does it tell you about the business?

And what are the questions it raises?

A typical structure for a budget presentation in a business plan could be:

Establishing budget

Operating budget

Cash flow budget

Funding budget

Sensitivity analysis

Notes and specifications

Budget assumptions

This presentation is much in line with this structure.



Budget example

The budget material in this part is example of a budget in a small specialized retail

store with normal shop sales and some business-to-business sales.

The budgets below are as they were presented in the business plan.

Establishing budget

Establishing costs Kr.

Deposit, rent 45.000

Interior decoration and repair 175.000

Equipment 150.000

Furniture 50.000

Stock 25.000

Chashier and card payment 25.000

Establishing costs 470.000



Operating budget

Kr.

Turnover

1.200.000

Cost of goods sold

-360.000

Contribution margin

840.000

Wages

-143.000

Premises

-215.500

Sales and marketing

-35.500

Administration costs

-34.300

Total fixed costs

-428.300

Earnings before depreciation

411.700

Depreciation

-100.000

Earnings before interest

311.700

Interest

-35.000

Net profit

276.700



Funding budget

Capital need

Kr.

Establishing costs

470.000

Operating capital 85.000

Total capital need

555.000

Suggested funding

Equipment supplier credit

30.000

Supplier credit

25.000

Cash credit 500.000

Total funding 555.000



Sensitivity analysis

Scenario 1 Scenario 2 Scenario 3

Turnover 950.000 1.200.000 1.550.000

Cost of goods sold -285.000 -360.000 -465.000

Contribution margin 665.000 840.000 1.085

Wages -107.250 -143.000 -264.550

Premises -195.500 -215.500 -242.000

Sales and marketing -29.000 -35.500 -43.000

Administration costs -32.750 -34.300 -36.350

Total fixed costs

-649.500 -788.300 -1.050.900

Earnings before depreciation 300.500 411.700 499.100

Depreciation -95.000 -100.000 -105.000

Earnings before interest 205.500 311.700 394.100

Interest -35.000 -35.000 -35.000

Net profit

170.500 276.700 359.100



Notes

Contribution margin

% Scenario 1 Scenario 2 Scenario 3

Turnover, shop 800.000 1.000.000 1.200.000

Turnover, B-to-B 150.000 200.000 350.000

Total turnover 950.000 1.200.000 1.550.000

Cost of goods sold 30,0% -285.000 -360.000 -465.000

Contributin maring 665.000 840.000 1.085.000

Shop turnover/day 4.000 5.000 6.000

B-to-B turnover/week 3.750 5.000 8.750

Wages


Wage -82.500 -110.000 -203.500

Other costs of staff 30,0% -24.750 -33.000 -61.050

Total costs of staff -107.250 -143.000 -264.550

Hours/week 15 20 37



Costs


Premises

Rent 165.000 180.000 200.000

Heating 12.000 13.500 15.000

Electricity 12.500 15.000 17.500

Common costs 3.000 3.000 3.000

Maintenance 1.500 2.500 5.000

Burglary insurance 1.500 1.500 1.500

Total cost of premises 195.500 215.500 242.000

Sales and marketing

Advertising and promotion 25.000 30.000 35.000

Gifts and flowers 500 500 500

Transport 3.500 5.000 7.500

Total sales costs 29.000 35.500 43.000

Administration costs

Freight and postage 250 300 350

Book keeping assistance 15.000 15.000 15.000

Phone 4.000 5.000 6.500

Subscription 1.500 1.500 1.500

Insurance 10.000 10.000 10.000

Office costs 2.000 2.500 3.000

Total administration costs 32.750 34.300 36.350

Depreciation

Equipment and interior 90.000 90.000 90.000

Minor assets 5.000 10.000 15.000

Total depreciation 95.000 100.000 105.000

Presenting your startup budget

Business

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