1. Cybersecurity

Cybersecurity is a growing issue as businesses transition to online platforms. Having sensitive information digitised creates vulnerabilities that hackers can exploit. In 2026, companies are investing in cybersecurity to ensure they remain accessible online and protected from cyberattacks. Startups are often more vulnerable to attacks than established businesses, as cybercriminals assume smaller companies have fewer resources to devote to security.

2. Supplies and space

In-person startups must purchase office space that accommodates all essential employees, as well as extra desks for new hires when the business grows. Choose a space that suits your needs but is also a comfortable place to work, as your employees will spend a significant amount of time there.

Having an appropriate amount of supplies is also essential. Common considerations include computers, monitors, desks, chairs, paper and whatever else you need. Some supplies need to be purchased on a regular basis, so set aside funds for future repurchases as well.

3. Legal

Lawyers aid in the creation of employee contracts and terms of service agreements. They also handle any debt incurred by your company and are instrumental in navigating the complexities of business formation, ensuring you choose the right legal structure from the start. Additionally, a skilled legal team will help protect your intellectual property, including trademarks and patents, which are often a startup’s most valuable assets. Paying for a good lawyer solidifies the foundation of the legal side of your business.

4. AI

AI is widely used across industries and is quickly becoming a core component of a modern business toolkit. One survey indicates that 25% of respondents have a budget allocated explicitly to AI. For startups, investing in AI is critical for everything from automating operational tasks and personalising marketing to generating predictive analytics for smarter decision-making. Budgeting for AI may include costs for specialised software subscriptions, data infrastructure, and hiring or training employees with AI expertise.

5. Taxes

Once your startup starts generating a profit, it will likely owe some taxes. This includes not only income tax but also payroll taxes for your employees and potentially sales tax, depending on your product or service. Working with a tax professional can help you identify potential deductions and credits, which can significantly reduce your overall tax burden. The government can revoke your business license or charge you extra funds for missing tax payments, so it is essential to budget for this expense. 

6. Financial management

Startups should have someone to handle their actual financial bookkeeping. Accountants can set aside the necessary funds to cover key expenses and plan for any future additional costs. Beyond simple bookkeeping, this role is vital for maintaining accurate financial records, which are essential for securing investor funding and making informed strategic decisions.

7. Insurance

Insurance is also crucial for a startup. This can range from general liability insurance to protect against accidents to errors and omissions insurance that covers potential mistakes in your professional services. It provides a safety net that protects your company from unforeseen events that would otherwise take a significant financial toll. Mistakes happen, especially as a startup, and insurance covers some of those additional expenses to keep your business running.

8. IT

An IT department is essential, especially in the digital world. IT can help fix technical issues with software or on the company website. They can also create a guidebook for technology use, like how to use AI ethically. IT also manages passwords for various accounts to maintain the startup’s access to important content and information.

9. Human resources

Another important department is human resources (HR). HR helps with the hiring process, recruiting, interviewing and training new employees. It also creates guidelines for proper workplace etiquette and resolves issues among coworkers. Startup employees usually have a lot on their plates at the beginning, and an HR team can keep them grounded.

10. Software

As technology becomes faster and smarter, the budget businesses allocate for software updates increases. In 2026, a predicted shift is expected from vibe coding to vibe engineering to accommodate the growing use of AI. Startups must possess the best software to provide the same care to their clients as large corporations. Regular software updates can also strengthen cybersecurity measures, as advanced software can close previously existing vulnerabilities.

11. Sales and marketing

One of the most important aspects of a startup is its brand marketing and sales management. Without good advertising, a company can collapse. Ads bring in business, so hiring experienced salespeople and marketing specialists, as well as buying space for advertisements outside, on websites or on social media platforms, helps bring awareness to your brand. If you do not have the funds for an in-house team, startups often hire marketing agencies to gain publicity. 

Budgeting for startup success

Financial planning and awareness of key costs are crucial to launching a successful startup. Both emerging trends and traditional expenses should be taken into account to set yourself up for a successful future as a brand. By proactively allocating funds to these key areas, founders can build a resilient financial foundation, turning potential obstacles into opportunities for growth and innovation.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.