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Establishing Budget
In order to estimate necessary and suitable costs prior to start-up, you must work out an establishing budget.How big the establishing costs get depends on what kind of company you want to start.
Small investment
If you want to start a consultancy firm working in human resource development
you might only need a telephone, a computer and an education/skills in human
resource. You probably have the education/skills and if you start the business
from home, the only expenses you need to start is a PC and a telephone. The
start will then be rather inexpensive.
Large investment
On the other hand if you want to start a production making electronic devices
your establishing budget will be high. Before you can start selling your
electronic devices you need a production building, machinery, packing
facilities, skilled staff, a stock of electric components, office equipment and…….
This may cost millions.
What expenses do you meet
Below you find some of the most usual expenses when starting a business.
Delete the ones you do not encounter in your new company.Remember: The less
expenses the better. All expenses have to be paid from the profit in your new
business.
Premises
- Rent
- Deposit for purchase of premises or business
- Deposit (e.g. 3 months rent)
- Goodwill - payment to the former owner for his work at the premises
- Furnishing and renovation
Production equipment
- Machinery
- Tools
- Other things
Shop fittings
- Cash register
- Counter
- Other things
Office fittings
- Furniture ( desk, swivel chair, shelves etc.)
- Computer (printer, network)
- Telephone
- Fax machine
- Copying machine
- Other things:
Purchase before start
- Raw materials/semi manufactured
- Manufactured goods (stock)
- Stationery
Other things:
- Car
- Deposit
- Other acquisition costs
Counsellors
- Lawyer
- Accountant
- Other
Marketing
- Writing paper, business cards
- Brochures
- Advertisement
- Signposting
- Opening reception
- Other things
Other expenses
- Application for a patent/registration
- Other things
Total costs is:
All the cost you get in the establishing budget will at a later stage be transferred to your operating budget. Bigger investments will be transferred to the company´s balance sheet.
The establishing budget is a snapshot of the cost you get before you can
start operating your company.
- Download a Establishing Budget from Shop & Downloadcenter
- Go to Operating Budget - an Explanation
- Calculate
your needed turnover and sales - easy online tool
| Visit bookshop and find free download | |||
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Copyright © 2009 Dynamic Business Plan 10-09-2010
Related answers:
 | Budgeting |
| Calculate your turnover and sale |
| Cash Flow Budget |
| Establishing Budget |
| Example of an Operating Budget |
| Operating Budget |
| Other Budgets |
| Three Important Budgets |
