amp,#39,Not,Hard,Sounds,Are,yo DIY It's Not as Hard as it Sounds
When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in
Are you on the road to success with your business? Are yousure??? One of the best tools to find out where you'regoing is a cash flow; have you done one yet? If not, youshould. Keep reading; it's not that complicated!A cash flow may sound intimidating but it doesn't have tobe. It is a way to see out how much money you'll bespending and how much money you'll be receiving, and when.You'll see when your expenses will exceed your income andvice versa; it is a plan!A simple cash flow is just a chart with rows and columns.Label the columns "January", "February", etc. Down the sideshow each item of income and expense. Then place the amountof that income or expense in the column for the month thatthe money will actually be received or spent. The idea isto see how much cash is flowing in and out for each month.(Remember to show expenses as negative numbers and income aspositive numbers.)For example, you plan to set up your office in January, get amailing list, order inventory, design brochures in February, anddo a mailing in March. Make separate lines for each expense:computer, furniture, fax, etc. If you finance anything, show thepayment(s) for each month they are paid. Now marketing expenses:printing, envelopes, postage, etc. You may order inventory inJanuary, charge it in February, and pay it in March; put thepayment in the March column. Get the idea? If the mailing isgoing out in March, you may expect some sales in April. Estimatethem and put the income into the April column. Total each columnto see what the net cash flow is for that month.For example, January, February, and March will have expenses andno income (negative cash flow). April will have expenses andincome; if income is more than expenses, congratulations! Youhave positive cash flow!Some tips. 1) Use a spreadsheet computer program if possible; easy to modify and no math errors! 2) Keep it simple; round to the nearest dollar and use a minimum. I show anything that costs $20 or more. 3) Be conservative; over-estimate expenses and under-estimate income. 4) This is a living document and should be updated every day as your estimates become real numbers.How does this help you? 1) It forces you to thoroughly research costs and schedules. 2) It's a plan! You may see, for example, that you will have to spend $2,000 in January, February, and March before you start getting sales in April. Can you bear it? If not, now is the time to find out. Maybe it will work with a change in schedule.By keeping an accurate cash flow you can see what's coming andprepare for it accordingly.If you have a spreadsheet program on your computer, I inviteyou to download a free sample cash flow from my web site.RIGHT click on the following link, then click either "SaveTarget As..." or "Save Link As..."http://www.TheStayAtHomeCEO.com/Downloads/bbb-cashflow-example.xlsIf you have trouble downloading, just drop me a note andI'll email it to you! (Mailto: [email protected]) (Itis in Microsoft Excel format, but most major spreadsheetprograms should be able to convert it.) That will help youget started... good luck! Article Tags: Cash Flow, January February
amp,#39,Not,Hard,Sounds,Are,yo