Cash flow, projections and the figures a lender turns to first — the part of a plan that decides the answer.
4 articles
Cash, not profit, is what keeps a new business open. Practical ways to manage cash flow in the first year: forecasting it, getting paid faster, timing what you spend, setting tax aside and knowing your lowest point before you reach it.
Every free template shows you how to build a cash flow forecast. None of them tell you what happens when an assessor reads it. The four things they look at, in the order they look at them, and what to do when the forecast says no.
As a small business owner in the UK, one of the bigger decisions you will face is whether to employ a finance director. What an FD does, when you need one, and the cheaper alternatives for a smaller business.
A business is financially viable when it can cover its costs, make a profit and pay its bills as they fall due, now and for the foreseeable future. What that means in practice, how it differs from solvency, and how a business plan tests it.