What belongs in a startup budget?

The direct answer

Capital to arrange = pre-opening payments + operating cash reserve + undrawn works/equipment contingency. An equipment quote covers only part of that budget. Put each payment on a timeline and describe the operating format before comparing totals.

This is the method used by the pilot. A premises inspection, contractor scope, paid roster and observed sales plan are still needed before using it as a site-specific budget.

1. List what must be paid before opening

• Premises works, installation, signage and making the site usable.
• Equipment, delivery, commissioning and systems.
• Refundable deposits, pre-opening rent and prepaid licenses or premiums.
• Opening inventory and supplies.
• Paid recruitment, preparation, training and launch work.

Keep deposits and opening stock distinct from expenses. They consume cash but have different later accounting treatment. Record each payment once; do not charge the same stock again when tracing working capital.

2. Follow the operating cash gap

Forecast receipts and payments month by month with an explicit sales ramp and a full paid team. Operating cash reserve = chosen cash floor + deepest cumulative operating cash deficit over the stated horizon. The pilot uses 60 months.

Undrawn contingency is additional available cash. It is not an expense or depreciable asset until spent. A reserve can finance continuing losses; that does not establish a viable operating plan.

3. Check the budget before using it

This checklist stays in the current page. It is not submitted or saved by the site.

4. Trace an actual planning case

Inspect Austin Restaurant opening payments and reserves →. The amounts are calculated from a mixture of published inputs and assumptions. They are not a contractor estimate or an approved opening budget.

Change the assumptions → and inspect the cash schedule. The schedule downloads in your browser; its settings do not transfer to a purchased workbook.

Check sales as well as capital

Read the operating break-even thresholds → and separate profit from cash →. Definitions and exclusions are in the methodology →.