Finally, an Easy Way to Project Cash Flow and the Sustainability of Your Business!

Finally, an Easy Way to Project Cash Flow and the Sustainability of Your Business!

How many times have you been asked for cash flow projections only to throw something together based on what you think the banker or CPA needs? One time is too many!

If you’re ready to see the future of your business, verify that it’s sustainable, this article is a must read!

While most business owners see cash flow as a daunting process it doesn’t have to be. As a matter of fact, it can be very exciting to see the financial future of your business! Projecting cash flow allows you to see the financial picture, allows you to create a budget, and arrange your ebbs and flows of cash in order to sustain a profitable business. Sounds more exciting now doesn’t it?

Here are a few simple steps to successfully projecting cash flow.

  1. Create an easy to use template. Something as simple as excel can be a very useful tool for projecting. You will need tabs/pages for the following. You may also download a cash flow projection sheet if you’re not the expert in excel.

    1. Cash In (All of your revenue broken into weekly columns)
      1. This will be a weekly forecast of all expected income
        1. Columns
          1. Sources of income such as retail sales
        2. Rows
          1. The week ending date for 3 consecutive months
        3. Cash Out (All of your expenses broken into weekly columns)
          1. This will be a weekly forecast of all expenses
            1. Columns
              1. Sources of expenses such as rent
            2. Rows
              1. The week ending date for 3 consecutive months
            3. Cash Flow Summary (This is the page that calculates a combination of your cash in and cash out tabs.)
              1. Columns
                1. Beginning Cash
                2. Cash In
                3. Cash Out
                4. Available Credit
                5. Available Cash
              2. Rows
                1. Corresponding weeks
  • Let excel do the calculating for you.
    1. Sum each column on the cash in and cash out pages
    2. Connect the corresponding total to the cash flow summary columns
  1. List all of your reoccurring expenses with monthly amounts and due dates. Such as…

    1. Rent
    2. Insurance
    3. Payroll
    4. Marketing
    5. Professional Fees
    6. Dues
    7. Subscriptions
    8. Auto Expense
    9. Loan payments
    10. Owners Draw
  2. List all of your expected revenue with expected amounts and dates of receipts. This can usually be easily found in your accounts receivables.

  3. Enter the data into your template weekly. For example, if your rent is due on the first of every month, enter the total rent due in the first week of every month on your template. In the same manner, enter all of your expenses on their corresponding due dates. Likewise, enter all of your projected income on the dates you expect to receive them.

Viola! You’ve successfully projected cash flow and the sustainability of your business. Well, for the next 90 days. You must continue the process every 90 days. Review, update and manage your cash flow on a weekly basis. Schedule recurring time weekly to do this.  Do you want to take the fast track? Email me at for a complimentary cash flow projection workbook!

Are You Tired of Always Playing Catch Up with Your Business Finances? Stop Juggling and Start Projecting Cash-Flow Today!

Yes, cash is important. However, cash-flow is imperative! Do you find yourself always playing catch up financially? Do you seem to have more than enough cash some weeks and not nearly enough others? Are you constantly juggling your financial resources? But somehow you always seem to manage or just make it through? You’re not alone. And that can stop today!

Cash is important but cash flow is vital to the sustainability of your business!

Would you consider a business that generated $150,000.00 in revenue, had expenses of $134,000.00 (including owners draw), with an 11% profit margin and net income of approximately $16,000.00 over a 90 day period to be a financially sound and successful business? Did you answer yes? You may be right. However, you may be very wrong. Many businesses fail, not because of cash, but because of cash flow.

This business while generating $150,000.00 in cash over 90 days, did not project cash-flow and ultimately almost closed it’s doors several times within the 90 days. Thankfully, the owners had family and friends that believed in their business and provided loans to fund the cash gaps. Otherwise, the show would have been over within 3 short months.

Let me give you a very high-level brief example.

Business A generates 2,500,000.00 per year. There expenses total 2,000,000.00 per year. Half a million dollars in profit sounds great. Doesn’t it? Think again. Let’s look at Business A again from a cash-flow perspective.

Business A Generates $280,333.00 per month, every month for 12 months ($2,500,000.00 in Gross Revenue). $2,000,000.00 of the expenses are paid by September 30th of each year. By September 30th the business has only generated $1,875,000.00. As a result, this company could be out of business by September. This is an extreme example. Most businesses have income and expenses throughout the entire year. However, break this into a weekly cash-flow scenario and we could end up with the same result.

You must project cash-flow for the health AND SUSTAINABILITY of your business. Sure, you can balance your accounts. You can calculate what income and expenses you have each month. You can review your P&L and Balance Sheet. But the bottom line is when cash comes in vs when cash goes out can make or break a company very quickly. You must project it weekly. Too often businesses project monthly. That’s not good enough. Let me show you why.

The example below is a prime example of the power of cash-flow, not cash.

This business generated $150,000.00 in cash over a 90 day period. Their expenses were only $134,000.00 for that same 90 day period of time. Again, if we were looking big picture the business looks profitable. However, look at cash flow on a weekly basis and the business probably won’t succeed. This business has such swings in cash flow that it’s sustainability without a line of credit or another form of working capital, or a means to manage their cash flow, is little to none. That’s the difference in balancing your books and projecting cash-flow.

Reviewing your balance sheet or P&L will give you a snapshot of the health of your business. However, it will not give the insight to the sustainability of your business!

If you want a sustainable, healthy, and profitable business projecting cash-flow is a must!

So, project, adjust, and project again. Then wash, rinse, and repeat! Understand the financial health AND sustainability of your business! Are you ready to start projecting but aren’t sure how? Get our free 90- Day Cash-Flow Projection Workbook by emailing me at!

cash flow pic



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