as a start up it is vital to have a cash flow forcast in your business plan. firstly it shows potential investors a predicted version of how your business is going to start and expand and whether or not they feel they will get any return from their investment. also it can show you whether or not you are going to need more financial support in the first few months trading and then you could agree with your bank for a bigger overdraft limit.
however cash flows are only a prediction and cannot be 100% accurate which could lead you to believe you will have more sales in a certain month and ultimately not get those sales and put you in massive debts that you wernt prepared for
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