Cash Flow
Explanation
The Cash Flow Statement will show the amount of cash you have available at any given time during your business plan. If a negative cash balance occurs you will have to examine your revenue and expense projections. To address the negative cash balance you will have to increase revenues, decrease expenses or arrange to get cash through a loan or capital investment.
Cash flow is projected for each month of the first year, for each quarter of the second year and annually for the remaining years.
Factors to consider:
Cash receipts (sales, loans, etc.)
Cash distributions
If you are using business plan software, the cash flow statement is generated automatically from the data you provided for your income statement. Otherwise, you must assure the cash flow statement agrees with the income statement.
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