Financial Independence
for Every Human

Startup pulse

Budgeting Guide for Startups


February 7th, 2023 11:13

"A budget tells your money where to go instead of wondering where it went."


What is a Startup budget, and how Can it Help?

Running a successful startup requires having a budget. It's important to know where your money is going and how it will be put to use. You may prepare for the future and make the best financial decisions using a business budget model. 

Additionally, it will assist you in establishing realistic goals and ensuring that you are adhering to your budget. Startups must ensure that their funds are appropriately managed and continue to develop and prosper by using various budgeting techniques.

Why You Need a Budget for Your Startup?

1. You will make sound financial decisions for your business and allocate your money in the most efficient way.

2. Your hiring will be better.

3. You will be equipped to handle any unforeseen contingencies. 

4. You will make your startup an asset for landing hefty investments as you will have accurate financial statements to back your claims.

5. You can scale your business and avoid fundraising in the early stages.

6. You can estimate your break-even point.

7. You can identify extra cash and predict any shortfalls that may come.

Creating a Budget Plan and Sticking to it- 4 Easy Steps

Choose a Tool

Gone are the days of manual budgeting for businesses. Today, all companies use online tools like excel sheets or specialized applications to keep their finances up to date. Some of the tools to choose from are

1. Scoro- Allows you to forecast your spending and gives financial reports and analysis.

2. Centage- A comprehensive tool with all necessary features

3. Planguru- If you are looking for more straightforward software, try this Planguru 

4. Maxiplan- not only allows you to make a budget but also advises on how you can make it cost-effective

5. Coupa- gives you a real-time budget tracking facility 

List the Essential Cost Categories to Include in Your Startup Budget

Typically, the fundamental startup costs are one-time expenditures necessary to launch your firm. Depending on the type of business you are establishing, actual expenses might vary substantially; for most startups, they may comprise a combination of the following prices:

1. Costs for Registering a Business, Business Insurance, Bank Fees etc.

2. Equipment and Other Utilities

3. Computers and Website Maintenance

4. Stocks or Raw materials

5‍. Intellectual Property like Logo, Trademarks and Patent 

6. Payroll and Benefits for Employees

7. Rent, Lease, and Mortgage

8. Business Loans and Interest Payment

9. Professional and Consultancy fees such as accountant, marketing and legal

10. Daily Maintenance of Office Space and Administrative Costs

List Your Sources of Revenue and Make an Estimate

Any business draws revenues from three significant sources: sales, investments, and savings. It's best to create at least two sets of revenue predictions, one optimistic and one conservative, given the absence of prior sales data for your company.

Tally and Review your Expenses

The last step is to review your monthly expense projections and determine how much money you'll need to start. Go back and categorize each expense as necessary (must-haves) or optional (nice-to-haves). Choose which expenses you can go without, cut back on, or put off, starting with the discretionary ones.

Additional Tips to Ensure A Smoothly Working Budget

1. Make Room for Contingencies

2. Keep the Budget Flexible

3. Give Priority to Expenses

4. Don't Make it too Complicated

5. Check and Review your Budget Periodically

6. Consider making multiple budget drafts with varying considerations and eliminate issues and errors.

7. Keep in mind your future investment and fundraising plans

8. Set aside cash for paying taxes

9. Keep all your Receipts

10. Consider freelancers and independent contractors 

Conclusion: Start Planning and Monitoring Your Startup Budget Today!

The first line of defence for a small startup is an optimal budget. It's a flexible plan of action that enables you to adjust to developments and foresee cash shortages. Additionally, you already have an advantage over two-thirds of the competition if you make an effort to create a well-defined budget and employ financial computational methods.

Are you ready to freelance in UAE? Don't wait to take the first step!

Want to start freelancing in the UAE? Check out the website to know more:

Enjoy the benefits of a freelance license and visa, such as a Work Permit, Emirates ID, Residency, and Option to Sponsor Family.

Contact us today at or Call Now

Similar Content

Employment Visa Process for Expats and People of Determination in the UAE | Freelance2Freedom
Freelance2Freedom Team
Can I Get a Job on a Freelance Visa in the UAE?
Freelance2Freedom Team
Role of AI in Businesses and Startups
Freelance2Freedom Team
7 Reasons To Have A Secondary Income In 2022
Ways to Promote Your Freelance Graphic Design Business
Freelance2Freedom Team
Top Side Hustles in Dubai that Pay Well in 2022
Freelance2Freedom Team
How to Side Hustle as a Freelancer? 10 Things that You Can Do After 9-5
Freelance2Freedom Team
Tips to Create a Pitch Deck
Freelance2Freedom Team
How to Become a Graphic Designer With No Experience?
Freelance2Freedom Team
6 Tips to Effectively Grow Your LinkedIn Network as a Freelancer
Freelance2Freedom Team
Why Do You Need a Portfolio?
Freelance2Freedom Team
Time Management Strategies to Increase Efficiency in 2022
Freelance2Freedom Team
50 Online Business Ideas for Beginners
Freelance2Freedom Team
Social Media for Your Business: How Much of Your Business Journey Should You Share Online?
Freelance2Freedom Team
Tips to Restore a Work-life Balance
Freelance2Freedom Team
Steps to Identify Your Target Audience in Marketing Your Business
Freelance2Freedom Team
Investing Guide: How Should You Restructure Your Portfolio Away From Fixed-Income Securities When Real Rates Turn Negative?
Freelance2Freedom Team
Most in Demand Part-Time Jobs for Teenagers in UAE
Freelance2Freedom Team
What is a Solopreneur? How to Become One?
Freelance2Freedom Team
Ways to Earn Extra Income from the Comfort of Your Home
Freelance2Freedom Team
AdBlock detected
Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website