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New Venture

Judy Crosby - DaVinci Experience

 


Workshop

Preparing a Cash Flow Projection Online Workshop

The cash flow statement measures the short-term viability of a company and shows wheather they can pay their bills.

The goal of this presentation is to show how to put together a cash flow projection step by step so that any entrepreneur can understand the process and can begin to do one on their own.

It is recommended that you take the on-line workshop first, then use the template to the left.

Be sure to download and print workshop materials before starting the session.

Register Now, no cost.

 

Cash Flow Projection

Use whole number only, no commas or $ signs. Make sure all fields have a number, or zero.

Estimated Start-Up Costs
Cash (working Capital) $Cash reserves needed to run business for first 3+ mos.
Beginning Inventory $Amount required to open business
Supplies $ Office, operating, cleaning, etc..
Building/space improvements $ Construction, decoration, .. (use contractor's estimates where possible)
Fixtures and Equipment $ Estimated costs (fixtures, office equipment)
Insurance $ Agency quotes (Liability, property & casualty, worker's compensation, ..)
Rent $ Down payment, security deposits
Equipment lease payments $ Rental estimates
Licenses and permits $ State, Federal, Professional
Professional fees $ Accountants, lawyers,
Advertising $ Promotion for opening your business
Signage $ Inside and outside
Utilities $Hookups, deposits, installation, etc.
Other $
Miscellaneous $ about 10% of total costs (automatically calculated)
TOTAL $
IF Totals are NaN (not a number) or do not calculate, please recheck all your budget amounts.
Estimated Monthly Expenses
Purchases $
Wages $
Services $
Supplies $
Insurance $
Rent $
Repairs $
Telephone $
Professional fees $
Advertising $
Utilities $
Travel $
Misc $
TOTAL $

When you are finished click Calculate, then click Download your Sample Cash Flow to save your draft Cash Flow in Excel Format. This spreadsheet will calculate over 12 months and is meant to be a starting point to understand what goes in and out of your business on a monthly basis.

Every business requires cash to get started and operate. Having a realistic budget to get started and developing a cash flow will be instrumental in forumlating your business plan. Use the form below to think through your startup costs and how your monthly expenses can influence your business operations. Pay close attention to Cash (Working Capital), as this amount is the reserve needed to run your business before you begin collecting sales. It is said that Cash flow is more important than profit. Without ready access to cash, your company can not operate.

Continuing with Anja's business: She would like to get started right, so she sat down and did an estimate for startup and what her monthly expenses would be. She had been saving for a while and had $500 in her savings to be used as working capital, so she created a new checking account for her business and moved her savings to her new checking.

On a monthly basis she needs material and supplies, and will want to do some advertising in a local paper. She will also want to track monthly travel, telephone and utility costs.

Terms

Positive Cash Flow - inflow exceeds outflow. A positive cash flow is a good sign of financial health.

Negative Cash Flow -outflow exceeds inflow. This can have multiple reason, but probably includes, too much or obsolete inventory, poor collections on what your customers owe you, or purchasing too many tools and/or equipment at one time. Negative cash flow is a serious problem for all business.

 

 

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