Startup budget
Every year, thousands of new businesses start up in Denmark, which will hopefully create growth - and thus have a number of beneficial effects for the self-employed, employees and the local community.
When starting a new business, you need to create a budget, and in some cases multiple budgets. Here at Collectia, we recommend that you create a start-up budget.
A start-up budget is a budget that includes all items related to the start-up, establishment and operation of a newly established business. The start-up budget includes everything from purchasing machinery, renting equipment, buying or renting premises, salaries, etc.
Why create a startup budget?
You need a start-up budget to create an overview. Because the start-up budget helps to create an overview of the financial situation during what is perhaps the most important time in the company's existence: the start-up.
The start-up budget also provides a good overview of the financial status and liquidity needs in and around the start-up of the business - for example, whether the business needs a loan, overdraft or investment.
Another reason to create a start-up budget is that you will often be required to prepare a start-up budget if you approach a bank or other lender in connection with the start-up of your business.
What should be included in a startup budget?
Creating a startup budget can often be difficult, because what do the things you need cost? How much do you need? For example, do you need to spend money on accountants, lawyers or other advisors to set up your business?
If you have experience from other companies, this will often be a starting point - alternatively, it's important to research the market as much as possible before preparing the start-up budget.
There will often be many alternatives, and often your suppliers can help with credit, long payment terms and help advise you on essentials.
There's no one-size-fits-all approach to a good startup budget - it depends on the industry, company and much more.
Start-up budget template and example
We have created a start-up budget template that can serve as a basis and example.
The template is free to download - and we recommend that you insert the items in the budget that make sense for you - and remove the items you don't expect to use. This way you get a budget that is customized to you.
