Create a Cash Flow Forecast for Your Small Business by Following These Simple Steps

  1. Download a cash flow forecast template here: BizLaunch Free Tools
  2. Develop a monthly sales forecast – look at your historical numbers and take your planned marketing activity over the next 12 months into consideration
  3. Estimate your cost of sales – look at historical percentages and any changes that may affect your costs
  4. Determine what portion of your sales you project will be cash, 30, 60 or more days. Look at what’s taken place over the last 12 months and any steps you plan to take to improve the collection of your receivables
  5. Include any other sources of cash inflow: owner’s loans, bank loans, sale of assets etc
  6. Estimate your projected operating expenses based on the last 12 month’s actual expenses and any new expenses you may incur. Some expenses may even come down take this into consideration
  7. If you plan to buy any new assets or incur any capital expenditure, include this.
  8. Include any extraordinary payments or loans
  9. Insert your opening bank balance and the template will do the rest
  10. If you still have questions email:

Important: Keep your cash flow forecast up-to-date and look for money long before you need it


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s