What is the first thing you do when you have a business idea? For me, it’s put together a cash flow projection. I want to make sure that the business idea I have will make money and be able to support itself within a year or two. I also put together a start-up budget to get an idea of what it would cost to get the business up and running.
So, what exactly is a cash flow projection? It’s surprisingly basic and straight-forward. It’s a spreadsheet that outlines your income, expenses, and bank account balance over a year (or several years). It helps show you how much money you will need as a reserve and how long it will take you to have a net annual income. Unfortunately, I can’t figure out how to upload a sample of mine on here, so if you’d like to get a sample (doesn’t have my actual numbers but is a template) then shoot me an email – kristen @ advancementcompany.com.
Photo Credit: Hyperboreal