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1) Use a spreadsheet computer program if possible; easy to modify and no math errors!
2) Keep it simple; round to nearest dollar and use a minimum. I show anything that costs $20 or more.
3) Be conservative; over-estimate expenses and under-estimate income.
4) This is a living document and should be updated every day as your estimates become real numbers.
How does this help you?
1) It forces you to thoroughly research costs and schedules.
2) It's a plan! You may see, for example, that you will have to spend $2,000 in January, February, and March before you start getting sales in April. Can you bear it? If not, now is time to find out. Maybe it will work with a change in schedule.
By keeping an accurate cash flow you can see what's coming and prepare for it accordingly.
If you have a spreadsheet program on your computer, I invite you to download a free sample cash flow from my web site. RIGHT click on following link, then click either "Save Target As..." or "Save Link As..." http://www.TheStayAtHomeCEO.com/Downloads/bbb-cashflow-example.xls If you have trouble downloading, just drop me a note and I'll email it to you! (Mailto: CashFlow@DaveBalch.com) (It is in Microsoft Excel format, but most major spreadsheet programs should be able to convert it.) That will help you get started... good luck!
"Make More Money and Have More Fun" with your small business! Dave will show you how with his FREE newsletter, "Big Bucks in a Bathrobe" sent by e-mail. Visit http://www.TheStayAtHomeCEO.com to sign-up, for information on speaking services, or for copies of past articles and newsletters. Comments and/or questions are always welcome at 1-800-366-2347 or Dave@DaveBalch.com.