Investment budget
Published by:
Netherlands Chamber of Commerce, KVK
1 min read
Starting a business costs money. Some investments are necessary to get started, others might be better left for a while. Read what to include in your investment budget to determine the minimum you need to start your business.
Investment budget structure
The investment budget is divided into fixed assets and current assets:
Fixed assets
Fixed assets are items you use or need in your company for more than 1 year. For example:
- a computer
- a printer
- inventory
- a company car
- a deposit
- goodwill
Current assets
Current assets are items you use or need in your company for less than 1 year. For example:
- stocks
- receivables
- pre-financing VAT
- start-up and opening costs
Start-up and opening costs are costs you incur before you make any sales, for example:
- civil-law notary fees
- fee for registration with KVK
- living expenses in the first period after starting up
- market research
- consultancy fees
- business cards
- stationery
Tips for the investment budget
- Substantiate the amounts with quotations.
- Get quotes from several suppliers in order to make the right choice.
- Allow for unexpected costs.
Your financial plan
The investment budget is part of your financial plan which consists of 5 budgets. The other parts are as follows:
- Financing budget: In this budget you describe how you will finance your business and on what terms. Read how to draw up a Financing budget.
- Operating budget: This budget sets out how much profit you expect over the next 3 years. What do your expected sales, purchases, and expenses look like? Read how to draw up an operating budget.
- Liquidity or cash flow budget: Here you list the income and outgoings from your bank account each month. You can then see if you will have enough money each month to pay your bills. Read how to draw up a liquidity or cash flow budget.
- Personal expenses budget: In this budget you determine how much money you need to live on.