EARLY STAGE BUDGET

Once you’ve got the funding and understand your non-discretionary costs better you should re-budget with a more in-depth spreadsheet for your accountants to report against but for now these are the main categories. You probably want to run this budget out by 2-3 years – certainly up to the end of the Seed investment stage.

BUDGET SECTIONS

1/ Employment and Related

This is likely to be your largest cost centre. Split into individual employees and when they are likely to join. Have two sections, salary costs and total employment costs. Total employment adds NI, pension, travel and training costs.

2/ Selling, General and Admin (S,G & A)

These are your overheads. So, it might typically include facilities rent, administration support, insurance, patent and IP costs, legals, accounting and book-keeping, IT, HR and office consumables.

3/ Materials and Consumables

Bench consumables, small item capital equipment, maintenance and calibration, other laboratory costs (e.g. health and safety). These are just overall figures, don’t itemise this.

4/ Capital Expenditure (CAPEX)

These are the large items that are itemised in the budget. So maybe a spectrometer or manufacturing reactor. These are the items that will become fixed assets and depreciated in the management accounts.

5/ Subcontracting

External testing – so for example, if you want a university to run some advanced analysis - that would go in here.

6/ Consulting and Regulatory Support

These are external suppliers who will support your development. These are particularly important if you are in a complex regulatory environment.

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