To use this Simple Startup Budgeting Tem

Instructions-> File>Make a copy

The sample startup budget template is designed to help entrepreneurs have an easy starting point for buildin
The template will help you understand key budget categories, input assumptions, and see the results.

Startup Budgeting Template tab

1. Begin with Startup Budgeting Template tab first
There are four sections: Revenue, Headcount, Other expenses, Profit
View "Definition" column on far right for clarification on the budget line ite
2. Select desired time period (Month/Quarter/Year) in cell O3

3. Input all assumptions in blue

Note: Do not change black cells as they are calculations
Note: Ensure assumptions are input to correspond with selected time period
4. Add any verbiage in the "Comments" column (P) to explain any assumptions made
5. Iterate assumptions as necessary

Summary tab
1. View a simple summary of the startup budgeting template
Note: Do not change any fields on this tab as they are all linked to the temp

Simulation tab
1. Conduct a quick simulation to see how long it will take you to reach a desired ARR milesto
2. Input key assumptions in blue
3. View estimated time to achieve ARR milestone and estimated cash burn required

Each business is different, we know that! This is a simple template to get you on track.
Our Recommendations:
• Feel free to change the row line item categories to fit your needs. We recommend making t
• If an item is irrelevant, input zero.
• If you add or delete any rows, do so at your own risk.

Have feedback? Email [email protected]

 e Startup Budgeting Template click
File>Make a copy

n easy starting point for building a budget.

ons, and see the results.

unt, Other expenses, Profit

arification on the budget line item

ey are calculations
espond with selected time period (i.e. if you choose month, put assumptions in as monthly numbers)
n any assumptions made

as they are all linked to the template

to reach a desired ARR milestone

ted cash burn required

needs. We recommend making those row changes before populating any blue input.
Sample Startup Budgeting Template
Note: Change assumptions in blue

Month 1 Month 2
Revenue # customers (period start): 10 14
# new customers: 5 10
Customer churn %: 5% 5%
# customers (period end): 14 23
Annual contract value (ACV): $1,000 $1,000
ARR (Annual Recurring Revenue) $14,000 $23,000
Growth (period/period) 64%

Headcount Number of sales employees: 1 2

Avg. Sales salary+benefits per emp.: $10,000 $10,000
Ratio: New deals/sales rep 5.0 5.0

Number of marketing employees: 1 1

Avg. Marketing salary+benefits per emp.: $10,000 $10,000
Ratio: Customers/marketing rep 14.0 23.0

Number of product employees: 1 1

Avg. Product salary+benefits per emp.: $10,000 $10,000

Number of engineering employees: 2 2

Avg. Engineering salary+benefits per emp.: $10,000 $10,000

Number of operations employees: 1 1

Avg. Operations salary+benefits per emp.: $10,000 $10,000
Ratio: Customers/ops employee 10.0 14.0

Number of administrative employees: 1 1

Avg. Administrative salary+benefits per emp. $10,000 $10,000

Total headcount: 7 8
Ratio: Revenue/employee $2,000 $2,875
Total headcount costs $70,000 $80,000

Expenses Sales commissions (% of new sales) 10% 10%

 Subtotal: Sales commissions $500 $1,000

Product marketing $250 $250

Content $200 $200
Paid advertising $500 $500
Branding & Creative $300 $300
Events $500 $500
Subtotal: Marketing costs $1,750 $1,750

Servers & Web hosting $1,000 $1,000

Hardware $500 $500
Software $1,500 $1,500
Subtotal: IT costs $3,000 $3,000

Rent/Utilities $3,000 $3,000

Travel & Entertainment $500 $500
Banking/Payroll fees $500 $500
Legal $1,000 $1,000
Office supplies $100 $100
Insurance $100 $100
Other $100 $100
Subtotal: G&A costs $5,300 $5,300

Total other expenses $10,550 $11,050

Profit Operating Profit -$66,550 -$68,050

Operating margin -475% -296%

Taxes $0 $0
Interest $0 $0

Net income -$66,550 -$68,050

Net margin -475% -296%
umptions in blue

Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9

23 36 54 76 102 131 164
15 20 25 30 35 40 40
5% 5% 5% 5% 5% 5% 5%
36 54 76 102 131 164 195
$1,250 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
$45,000 $81,000 $114,000 $153,000 $196,500 $246,000 $292,500
96% 80% 41% 34% 28% 25% 19%

2 2 3 3 4 5 5
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
7.5 10.0 8.3 10.0 8.8 8.0 8.0

1 1 2 2 2 3 3
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
36.0 54.0 38.0 51.0 65.5 54.7 65.0

1 1 2 2 3 3 3
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

2 2 2 2 4 5 5
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

1 2 2 2 3 4 4
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
23.0 18.0 27.0 38.0 34.0 32.8 41.0

2 2 2 2 2 4 4
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

9 10 13 13 18 24 24
$5,000 $8,100 $8,769 $11,769 $10,917 $10,250 $12,188
$90,000 $100,000 $130,000 $130,000 $180,000 $240,000 $240,000

10% 10% 10% 10% 10% 10% 10%

 $1,875 $3,000 $3,750 $4,500 $5,250 $6,000 $6,000

$250 $250 $250 $250 $250 $250 $250

$200 $200 $200 $200 $200 $200 $200
$500 $500 $500 $500 $500 $500 $500
$300 $300 $300 $300 $300 $300 $300
$500 $500 $500 $500 $500 $500 $500
$1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750

$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

$500 $500 $500 $500 $500 $500 $500
$1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

$500 $500 $500 $500 $500 $500 $500
$500 $500 $500 $500 $500 $500 $500
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
$100 $100 $100 $100 $100 $100 $100
$100 $100 $100 $100 $100 $100 $100
$100 $100 $100 $100 $100 $100 $100
$5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300

$11,925 $13,050 $13,800 $14,550 $15,300 $16,050 $16,050

-$56,925 -$32,050 -$29,800 $8,450 $1,200 -$10,050 $36,450

-127% -40% -26% 6% 1% -4% 12%

$0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0

-$56,925 -$32,050 -$29,800 $8,450 $1,200 -$10,050 $36,450

-127% -40% -26% 6% 1% -4% 12%
 Select time period: Month

Month 10 Month 11 Month 12

195 225 253
40 40 40
5% 5% 5%
225 253 280
$1,500 $1,500 $1,500
$337,500 $379,500 $420,000
15% 12% 11%

5 6 6
$10,000 $10,000 $10,000
8.0 6.7 6.7

3 3 4
$10,000 $10,000 $10,000
75.0 84.3 70.0

3 4 4
$10,000 $10,000 $10,000

6 6 6
$10,000 $10,000 $10,000

4 5 5
$10,000 $10,000 $10,000
48.8 45.0 50.6

4 5 5
$10,000 $10,000 $10,000

25 29 30
$13,500 $13,086 $14,000
$250,000 $290,000 $300,000

10% 10% 10%

$6,000 $6,000 $6,000

$250 $250 $250

$200 $200 $200
$500 $500 $500
$300 $300 $300
$500 $500 $500
$1,750 $1,750 $1,750

$1,000 $1,000 $1,000

$500 $500 $500
$1,500 $1,500 $1,500
$3,000 $3,000 $3,000

$3,000 $3,000 $3,000

$500 $500 $500
$500 $500 $500
$1,000 $1,000 $1,000
$100 $100 $100
$100 $100 $100
$100 $100 $100
$5,300 $5,300 $5,300

$16,050 $16,050 $16,050

$71,450 $73,450 $103,950

21% 19% 25%

$0 $0 $0
$0 $0 $0

$71,450 $73,450 $103,950

21% 19% 25%
Comments
 Definition
How many customers you have at start of period
How many new customers you add in period
What % of current customers churn in period
How many customers you have at end of period
Avg. annual contract value (ACV) of existing customers
Formula: # customers * ACV
Formula: (current period/previous period)-1

Base salary + bonus (no commissions)

Includes professional services, customer success/support

Includes CEO, founder, finance, HR, legal, etc.

Formula: count # of employees from above

Formula: sum of all (# employees * avg. salary/benefits) from above

% commissions paid out to sales reps on each new deal

Competitive analysis, testing, research, etc.
White papers, case studies, blogs, podcasts, etc.
Online/offline ad purchases, lead generation, etc.
Logos, swag, branding efforts, public relations, etc.
Tradeshows, webinars, etc.

CMS, Application hosting (i.e. AWS), Database, etc.

Computers, monitors, etc.
MS Office, HR/Finance/Productivity/Etc. software, etc.

Office space
Flights, hotels, meals, etc.
AR/AP, Banking, Payroll, etc.
Documents, consulting fees, etc.
Paper, pens, decorations, etc.
Business and personal
Misc.

Formula - sum of all expense line items

Formula: revenue - headcount costs - expenses

If applicable
If applicable

Formula: operating profit - taxes - interest

Simple Startup Budgeting Template - Summary

Month 1 Month 2 Month 3

# customers (period end): 14 23 36
ARR (Annual Recurring Revenue) $14,000 $23,000 $45,000
ARR growth (period/period) 64% 96%
Total headcount costs $70,000 $80,000 $90,000
Total other expenses $10,550 $11,050 $11,925
Operating Profit -$66,550 -$68,050 -$56,925
Operating margin -475% -296% -127%

500000

400000

300000

200000

100000

0
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Mon

-100000
 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
54 76 102 131 164 195
$81,000 $114,000 $153,000 $196,500 $246,000 $292,500
80% 41% 34% 28% 25% 19%
$100,000 $130,000 $130,000 $180,000 $240,000 $240,000
$13,050 $13,800 $14,550 $15,300 $16,050 $16,050
-$32,050 -$29,800 $8,450 $1,200 -$10,050 $36,450
-40% -26% 6% 1% -4% 12%

ARR (Annual Recurring Revenue)

Operating Profit

Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

 Month 10 Month 11 Month 12
225 253 280
$337,500 $379,500 $420,000
15% 12% 11%
$250,000 $290,000 $300,000
$16,050 $16,050 $16,050
$71,450 $73,450 $103,950
21% 19% 25%

(Annual Recurring Revenue)

ating Profit
For chart
ARR (Annual RecuOperating Profit
Month 1 $14,000 -$66,550
Month 2 $23,000 -$68,050
Month 3 $45,000 -$56,925
Month 4 $81,000 -$32,050
Month 5 $114,000 -$29,800
Month 6 $153,000 $8,450
Month 7 $196,500 $1,200
Month 8 $246,000 -$10,050
Month 9 $292,500 $36,450
Month 10 $337,500 $71,450
Month 11 $379,500 $73,450
Month 12 $420,000 $103,950
ARR (Annual Recurring Revenue) Milestone Simulation

Desired ARR milestone

Milestone ARR target: $1,000,000

Key assumptions
Start # customers: 20
# new customers added per month: 25
Annual contract value (ACV): $2,500
Annual customer churn: 15%
Net monthly cash burn rate: $25,000

Estimated time to reach ARR milestone

Time to milestone (months): 18
Time to milestone (year): 1.50
Cash needed to milestone: $450,000