Business cash flow planning

All new ventures, even existing businesses, require planning and monitoring. Planning can take the form of: annual budgets; three or five year business plans; market plans; or project plans. For planning to be successful it must be measurable and accountable. The plan should not be followed without question as circumstances will unfold that were either not allowed for or where unknown when the plan was developed. The business should be the focus of your efforts, not the plan itself.

A vital part of budgeting and planning is the cash flow forecast. In business, liquidity (cash) is essential for survival and success. If cash is short, opportunities cannot be developed and if cash is exhausted, even due to working capital or growth needs, a business can flounder. Many would be entrepreneurs with a good idea have fallen by the wayside due to either growing the business without sufficient cash resources or building overhead costs before the business could sustain them.

Other key elements (where KSG may need to bring outside expertise) include: being sure that there is a market for the product or products and that the price point is just right to encourage the right level of demand and yet make the profit you want as reward for your efforts and ideas; having a proper production process; and having the appropriate documentation, especially if franchising or patents are involved.