CASH FLOW PROJECTIONS

Projected Cash Flows

The projected cash flows for your business plan will demonstrate your ability to maintain a positive cash balance through the start-up phase of your business.

Every period of a cash flow projection should begin with an initial cash position and conclude with a ending cash position. Beyond that, cash flow projections may be structured in a variety of different ways.

One of the most common methods for structuring is to break it up into three sections:
   - Cash flow from operations
   - Cash flow from investment
   - Cash flow from financing activities

Cash Flow from Operations
Cash flow from operation means money coming in or going out from your normal business operations.

Cash Flow from Investment
Cash flow from investment means money coming in our going out from investment activities.

Cash flow from financing activities
Cash flow from financing activities means money coming in our going out from financing activities, such as the sale of equity to outside investors, taking out a bank loan, etc.

Sample Cash Flows

Below are two examples of cashflows and underlying assumptions, in Microsoft Excel format:
   Sample Cash Flow Projection Using a Revenue, Variable Cost, Fixed Cost Structure
   Sample Cash Flow Projection Using an Operations, Investments, Financing Structure

If You Remember Anything, Remember This...

Everything you find here is designed to help you write a better business plan. Take what you like, ignore what you do not. The most important thing to remember is that there is no single "right way" to write a business plan.