Nudge provides Accounting and Tax Services to a very large number of Clients located across Australia in a range of industry segments/sectors for example : On-Line Retail, Construction, Financial, Hospitality, Media, Medical and Professional Services.
As part of our ongoing support for the Startup community, we blog (and vlog) every second month for Microsoft BizSpark as part of our #nudgemoments initiative. #nudgemoments is all about giving startups the opportunity to ask a finance question and get an answer that helps them grow their startup and make better business decisions.
What was the question for this month?
#Nudgemoments StartUp Question: I’m applying for R&D grants and investor funding and I’ve been asked to put together a budget. Where do I start?
A budget tells the story of your startup’s journey and uses numbers to do so. So what steps do you need to take to start a budget:
- Know your strategy. What are you aiming to achieve and how will you get there?
- What are the key drivers of your business? i.e. customer visits to your website, customer conversions, sales per customer. How will these drivers lead to sales and money coming into your business?
- What are the costs that lead to a sale? Each product you sell has a cost so what are your product costs? Also don’t forget to include operational costs such as rent and travel. Ensure that costs are reasonable and sustainable, especially when you start out and are operating on a shoestring. Remember that when you grow, you will also need to spend more dollars on marketing and advertising so budget that in.
You can read the next steps and more in my article here.