A startup budget serves as a road map for building any type of business. It helps entrepreneurs stay on track and keep their eyes on the ultimate goal. BDO has put together a template that will reinforces the startup’s progress and make sure it perseveres towards the end goal.
Why is a budget important
Calculating revenues, cost and investments in the present and future can be overwhelming. Planning what will be required for a big project is however ancient wisdom, and if it is done right it might end up shaping the strategy of the entire company. Creating a startup budget should be a dynamic process that fluctuates as much as the initial goal and company do. However, adjusting the budget is just as important as sticking to the original plan.
Running out of funds is one of the worst repercussions for an entrepreneur. Startup founders should balance both their budget and spending habits. The obvious consequence of failing to make a budget is the increased probability of running out of resources to meet your objective, like ending up with a half-built house. Use the budget to track your cash flow and adjust your budgets every quarter. Learn from the numbers.
Creating a detailed budget will force you to make decisions on what’s most important, and what’s not, in raising and spending money. Costs can get out of hand very quickly if you’re not adhering to a budget, which could leave you short on capital for opportunities (or costly problems) that may arise.
If you have any questions, please feel free to contact us at https://www.bdo.no/en-gb/industries/startups-and-growth-companies.
The documents in the Tools section are general templates, and cannot be seen as legal or business advice. The documents are provided for guidance only and should not be used to the exclusion of professional advice on the subject. Neither Danske Bank/ the Hub or the document provider are responsible for your use of the templates, including any loss you may incur by using the templates.
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