Project Budgets in Technology Development Fund Applications
With the deadline for the Technology Development Fund (Tækniþróunarsjóður) is only a week away we decided to address a couple of things regarding the Project Budget (kostnaður verkáætlunar) that many of you ask us about every TDF season.
Before we begin, we want to point out to first-time applicants to the TDF that you need to fill out a Project Budget and Project Plan in the electronic application that you submit along with the Project Description and Calculations spreadsheet - Útreikningar (the latter not mandatory for the Sproti grant). We’ve seen countless entrepreneurs make the mistake of preparing the documents but leaving the electronic application down to the last minute and panicking when they see that they need to fill out a detailed Project Budget that correlates with the Project Plan. So make sure to prepare these in advance.
Now, the Project Budget is meant for this project with a clearly defined beginning and end (1-2) years, clearly defined objectives, milestones, and deliverables. You can’t put everything you want in the budget. For example, for the Vöxtur grant, you can only have 20% of the total budget for marketing expenses, and these expenses can’t include advertising or POS. More on this in chapter 2.6. of the TDF Guidelines.
Sproti, Vöxtur, and Sprettur projects can take up to two years and the Marketing Grants are for one year only. So make sure your Project Budget and Project Plan are adjusted to that timeline.
Now, read carefully.
The Project Budget is not to be confused with the Operations (Rekstur) in the Calculations spreadsheet (Útreikningar). Again, the Project Budget is for THIS SPECIFIC PROJECT (NOT the whole operations) while the Operations (Rekstur) is for the whole operations related to the specific product/service you’re developing. This is very important because if you get lucky and get the grant, the fund will base the contract on the budget set forth in the electronic application and you are not allowed to go 25% below the project scope, including the project budget, once you start executing the project. If you go below the 25% the fund reserves the right to re-evaluate their support to your project.
We hope this helps you wrap your head around the difference between the Project Budget and the Calculation Spreadsheet (Útreikningar). Make sure to check out the freebies we’ve created to make life easier for you, including the TDF Checklist and 10 Common Mistakes when Writing Grants (both are in Icelandic, but we’re working on getting them translated - stay tuned).
We are also going to launch a TDF Bundle in the Spring of 2019 which will include an FAQ sheet, examples of Domestic Value calculations, and more. If you want to be the first to learn about this new product, be sure to join the P&P Community (see below).
Bon courage in the final stretch!