Simple Start Up Budget Template for the Self-Employed

You’re done with the 9-5 grind – endless meetings, never-ending emails and feeling like you’re working hard but not building anything for yourself. It’s time to do something for yourself and take that leap into self employment.

When you have those moments of being fed up, it’s tempting to dive straight into setting up your business – randomly buying tools, signing up for subscriptions and courses. But are you just wasting money that you should be tucking away to help you quit your job?

By creating a simple start-up budget you can make smarter decisions and avoid that sinking feeling that you’ve blown your cash on things that ultimately don’t matter.

Let’s break it down and get you started on the right foot.

Why You Need a Simple Start-Up Budget

 Putting together a budget will save you time, stress, and a ton of money. Here’s why:

• Stop Overspending –  without a plan, it’s easy to blow cash on things you don’t actually need, a budget keeps you focused
• Prioritise What Matters – a somplie start-up budget will help you figure out what’s essential and what can wait
• Feel in Control – knowing where your money’s going gives you confidence and peace of mind.
• Stay on Track –  with a start-up budget, you can focus on your goals without financial surprises throwing you off

Simple Start-Up Budget Template for the Self-Employed

I’ve put together a start-up budget template that you can use – click this LINK and choose the option to ‘take a copy’ so that you have your own editable version.

How to Create a Simple Start-Up Budget, Step By Step

Step 1: Input Your Start Up Costs

Start with the ‘Start-Up Budget’ tab. In the ‘start-up costs section’ write down everything you expect you’ll need to buy to get set up.

Generally, these are going to be items that you absolutely cannot start self-employment without, that’s pretty much one-off purchases. For example, if you are planning to start an online business you may need a website..

As you do this, keep in mind that one of the biggest mistakes a new business can make is wasting money on things they don’t need. So dig deep and set your mind to frugal mode by only adding necessary things. You can always spend more money in the future and keeping things simple will reduce the overwhelm, especially if you are short on time.

For each item add a contingency.

A contingency is a plan for any unexpected or wrongly estimated costs – it’s a percentage wiggle room for any underestimations. Of course, your costs may come in lower than you predict, but it’s better to have a cushion rather than running out of money.

Step 2: Calculate Your Monthly Overheads

Any new business rarely starts selling at full capacity from day one – reaching full sales potential takes time and, even as work begins to come in, costs still need to be paid.

Include your overheads in your start-up budget for a certain period of time that way you’ll have some extra cash in the bank to pay your running costs and give yourself breathing space while you look for work.

Overheads are costs that have to be paid, regardless of how much you sell. That’s things like:

• Rent;
• Salaries;
• Insurance;
• Email subscriptions;
• Web hosting;
• Bank charges.

Again, add a contingency and the number of months you wish to include overheads in your start-up budget.

Step 3: Identify Your Total Start-Up Costs

The start-up budget template will automatically add up your total start-up costs and monthly running costs. That figure is the amount of money you’ll need to get your business started.

Depending on your business idea, you may find that your start-up budget shows you need some fairly significant up- front money to get off the ground. Common ways you can fund the start of your self-employment journey include:

• Personal loans
• Personal savings
• Loans from family members
• Credit cards
• Business loans
• Government back loans like Crowdfunding

I’m not a financial advisor but don’t borrow money or use personal savings until you have a robust business plan and are confident about making sales. If you are struggling to find the funds, look at ways to pare your costs right back and start your business for less money – you may need to get creative! You can invest more later on, at a time when you are sure self employment is right for you.

Step 4: Check Business Viability

Running a business is one thing, running a profitable one that pays you a salary, is another. Take a look at the business viability tab and add in an estimate for:

• Working hours per day
• Sick days each year – when you can’t work
• Holidays 
• Bank holidays
• Chargeable time – you’ll need to spend time doing your business admin, marketing etc