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 Start-up flow chart: The 'cash flow forecast'.

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In detail:

Have you formulated a realistic cash flow forecast?

Completing a cashflow forecast has a similar effect as completing a business plan (in that it encourages you to get passed the 'initial concept' stage of your business start-up and, if it's done properly, leads you to estimate, to the best of your ability, real figures).

A cashflow forecast attempts to predict the timing of a business' income and expenditure. With this knowledge you will be prepared for any big outgoings that may occur e.g VAT, new plant and machinary required etc.

A business start-up's cashflow is inherently less easy to predict than that of an established business, because there is no track record to work on. It's not impossible, however, and should be done to the best of your ability.

If you are looking to attract finance for your start-up it is essential to complete this with extra special care. It will be used for the evaluation of your proposal.

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