1 | How to present your startup budget

How to present
your startup
budget
Balancing full information with simplicity

BENDTSEN start og udvikling – www.janbendtsen.dk

2 | How to present your startup budget

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?
• What questions does it leave unanswered?

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.

BENDTSEN start og udvikling – www.janbendtsen.dk

3 | How to present your startup budget

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

BENDTSEN start og udvikling – www.janbendtsen.dk

4 | How to present your startup budget

Operating budget

Kr.

Turnover 1.200.000

Cost of goods sold -360.000

Contribution margin 840.000

Fixed costs

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

BENDTSEN start og udvikling – www.janbendtsen.dk

5 | How to present your startup budget

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

BENDTSEN start og udvikling – www.janbendtsen.dk

6 | How to present your startup budget

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

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7 | How to present your startup budget

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% -285.000 -360.000 -465.000
Contributin m aring 665.000 840.000 1.085.000

Shop turnover/day 4.000 5.000 6.000

BtB turnover/week 3.750 5.000 8.750

Wages
Scenario 1 Scenario Scenario
2 3

Wage -82.500 -110.000 -203.500

Other costs of staff 30,0% -24.750 -33.000 -61.050
Total costs of -107.250 -143.000 -264.550
staff

Hours/week 15 20 37

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8 | How to present your startup budget

Costs

Scenario 1 Scenario 2 Scenario 3

Prem ises
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 prem ises 195.500 215.500 242.000

Sales and m arketing

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

Adm inistration 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 adm inistration 32.750 34.300 36.350
costs

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

BENDTSEN start og udvikling – www.janbendtsen.dk