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How to Do Cash Flow Projections (Bonus Templates)

16 April 2020

‘Blindspots’ in business life are very dangerous.

I am sharing a simple ‘Business Cashflow Projections’ template which is proving to be very useful for our clients to preempt issues in these times.

The current pandemic has led many businesses to ask more questions regarding their cash flow. Common questions include;

  • How do I best manage my cash flow? 
  • What kind of support do I need from Governments or lending agencies? 
  • How do I know what the worst case scenario is and how do I prepare for it?

To answer these questions it is important to review what your current cash flow is looking like and what kind of deficit or surplus you may be heading towards.

Using this easy format often implemented by our clients will help you do exactly that, ensuring you do not have any blindspots.

This simple ‘Business Cashflow Projections’ template, which is proving to be very useful for our clients, helps to preempt issues in these times.

Unlike the usual 13 week cash flow projection, this example focuses on a 12 month projection plan. This allows for an easier analysis of the best loan to take out.

The Template

Download the cash flow template here. You can change this template to suit the individual requirements of your business.

The opening page of the cash flow template contains a dashboard which is split into the various weeks over a 12 month period.

Each week you should enter the document, updating both your bank balance and cash in cash out sheets based in the realtime information you have along with some educated assumptions.

This will then provide you with your closing balance over the next few weeks. 

Whilst this template is for a 12 month period, it is possible to reduce it to 13 weeks which is sufficient for most businesses.

The graph will then update and show you the ongoing trend of your cash flow. This will help you to identify when you are likely to experience deficit and peak deficit.

You can then review the graph and determine the maximum level of loan you would require.

Making Assumptions

When carrying out any cash flow projection it is essential to make assumptions. It is important to look at your current and future projects and determine when and how cash flow will be affected. 

It is also essential to remain conservative when making such assumptions and predictions.

Going to the second take of the template will allow you to enter the various cash flow in and cash flow out, along with capital expenditure. Entering this will then pull the information straight into the dashboard.

This will allow you to identify any huge dips, meaning you can try and speed up your cash in and delay your cash out to provide a more level projection.

Start Planning

Hopefully this video and template will help you to better manage your business’ cash flow projection, but if you would like to discuss it further, please feel free to get in touch.

Download the cash flow template here.

Also, if you are putting together your CBILS application, you may find this sample business plan useful – and it might even be helpful for other institutional/private investors: click here to download the Business Plan.

Please feel free to adapt it for your internal use and also share it with your network.

If you would like to hear more about this please feel free to get in touch.

Get in touch

We are looking to invest in good businesses.

If you would like to have an obligation free discussion about selling your business, please email shweta@growthidea.co.uk. You can find more about our investment criterion on https://growthidea.co.uk/private-equity.

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