For the love of the breed
TRULY
A valuable exercise to do when starting your own business or thinking of starting a business is to do a cash flow projection. I did one for class and it really puts things into perspective. If done realistically you may realize that you might have a great idea at hand that you could or should pursue, or maybe this wasn’t such a great idea at all. With mine the idea of a nonprofit pet rescue seems a lot more inviting than I thought there seems to be countless ways to generate revenue. Although I didn’t have any real numbers to base fundraising activities from so I used a small fundraiser and a large one.
Make sure you think of everything when preparing your projection sheet. Think of every and all expenses, and your intended sources of income for your business. For start-ups include your sources of financing and how much. On the other side list the payments to repay any loans and finance charges. This web can grow and grow. You may at this point want to think of more ways to generate income, everything helps. It’s a lot of work but there are templates available to do a lot of the calculations for you. As you add more numbers to your incomes and expenses you will see your profits come and go…better now than when it’s too late. You can incorporate and emergency expense, or even an unusually slow month. Make sure your numbers are realistic and you can get the idea of what your income or loss may be. Remember just because you see some great profits don’t go on a spending spree or give yourself a raise. You never know when life will happen. Whether it’s the sky falling or your roof, its best to be prepared with insurance, a back-up plan, and some cash. A great article about this can be found at https://www.americanexpress.com/us/small-business/openforum/articles/5-budgeting-ideas-for-every-small-business-owner-scott-allen/ Usual or unusual expenses read this http://junewalkeronline.com/info-advice-category/business-expenses-write-off-wrap-up/ There are cash flow templates on Microsoft Excel already formatted, just fill in with your figures and it will show you the money, or not! Good luck! And Happy planning!
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JennaJust a girl passionate about animals and hates discriminations of any kind! ArchivesCategories |