Investment budget
Starting a business costs money. Some investments are necessary to get started, others might be better left for a while. In the investment budget you list the minimum you need to start your business.
Investment budget structure
The investment budget is divided into fixed assets and current assets:
Fixed assets
Assets that are present in your company for more than one year. For example, a computer, printer, inventory, company car, deposit or goodwill.
Current assets
Assets present in your company for less than one year are current assets. For example, stocks, receivables, pre-financing VAT and start-up and opening costs. Start-up and opening costs are costs you incur before you make sales, such as notary fees, your registration with the Chamber of Commerce, living expenses in the first period after starting up, market research, consultancy fees, business cards and 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 unforeseen costs.
Your financial plan
The investment budget is part of your financial plan and consists of 5 budgets. The other parts are as follows:
- Financing budget: how will my business be financed and on what terms?
- Operating budget: how much profit is expected over the next 3 years? What do the expected sales, purchases and expenses look like?
- Liquidity or cash flow budget: what happens in my bank account each month? Will I not get into a mess with my income and expenses?
- Personal expense budget: how much money do you need to live (well) on?
Questions relating to this article?
Please contact the Netherlands Chamber of Commerce Financing Desk, KVK