Why is it important to have a cash flow projection when starting a small business?
930378
Firstly, so that the business owner has an idea of what to expect so he can judge whether the business stands a chance of success and so that he can monitor events once it starts trading and compare them to what was expected in the cash flow.\n\nAnd secondly, so that lenders and providers of capital can be convinced that the business represents a good investment
303850
Bookkeeping is very important in a small-scale business for tracking cash flow and profit and loss. It does not have to be complex and could in most cases be done on one ledger. Without the information of turnover and expense the business owner would have an unclear view of the true value of the business.
144835
Small busiensses tend to run out of cash fast.  So you really want to keep track of your cash flow.  Also look at if you have too much A/R.  Will you be able to pay your A/P.  How long does it take for your inventory to turn.  If you run out of cash, where can you get credit.  Good accounting can help you keep an eye on these issues to mange your business.
312020
Financing a business has many options. However, before you reach this stage it is a good practise to draw up a business plan, to ascertain that you are talking of something feasible. It will give you an idea what kind of capital you require, what overdraft facilities you will need. With this information, if you approach any major bank they will make a risk assessment of your proposal and tell you how much/how little you can borrow.
800162
Investing in a business that you love can effect your judgment as to the quality of the investment (believe me I know). Your better off going for your first house and getting a real asset on your sheet.
1045691
very - it enables you to raise money by showing finance companies what you want to do with what they lend you.\n\nThe other major use of a business plan (what we in Britain call a Corporate Plan) is so that you can measure how you are doing compared to what you thought you should be doing.   If figures are not matching up, why not?   Are sales down?   Are outgoings much higher than expected?   Why?   \n\nA business plan helps you to spot any problems when they are molehills and not when they become mountains.\n\nPeople who think they are not useful tend to run companies into the ground - or not have a business at all!
411271
Similar, but not necessarily so. As a sole proprietor, you can still create a balance sheet of your business. Even the self-employed separate business from personal expenses. \n\nYour net-worth will include the "value" of your business; however your balance sheet would be strictly business. Suppose you wanted to sell your sole-proprietorship (and it had some value someone would purchase), You would not provide a prospective buyer your net worth - you would provide a balance sheet, income statement, etc...
266047
No. Your own money would be the best. With your own money, you can pace yourself, and less pressure if the business does not work. There is greater risk if you take on loans, and more pressure.\n\nTake for example for a business whose startup capital is $50K. If this is financed from your own money and you lose out, then you are out of $50K. But if this is a loan, you will be out of $50K + interest and your collateral is at jeopardy. \n\nIt depends on your business objectives, your level and tolerance for risks, and how fast (or how slow) you want to push your business.\n\nBut if you have to go get a loan, always go for the cheapest (lowest interest rate and better terms). Shop around before signing on the dotted line
963302
Extra sections are good, but I suggest you focus on providing more ooomph to your business plan by finetuning the basics. \n\nAccording to the book “The ABC's of Writing Winning Business Plans: How to Prepare a Business Plan That Others Will Want to Read -- and Invest In” http://www.amazon.com/exec/obidos/ASIN/0446694150/powerhomebizguid by Garrett Sutton, below are some tips to make a winning business plan that can get funding:\n\n- Money follows management. Investors look first at the people involved in the company. If you are just starting out and don’t have relevant experience, investors expect to see that you have an experienced team of advisors and employees helping you in the business. \n\n- Make sure you “sell” the one reason your business will become profitable. \n\n- State clearly the strategies you will employ to get the word out about your business. Your business plan must show how you will leverage the Internet, public relations, viral marketing, and other strategies to attract customers. \n\n- Present realistic estimates of the time, energy and costs of building a successful business. Do not underestimate or overestimate revenues. While investors know your numbers are simply guesses, they want to see that your numbers are within the “range of reality.” Be careful of your financial statements: this is one area where you can easily lose credibility if presented poorly. \n\n- Benchmark similar companies to show that you’ve done your homework and researched the market. \n\n- Your Executive Summary is your calling card. If it is not a winner, investors may not even read your entire plan. Emphasize your own as well as your team’s track record in the Executive Summary. \n\n- Before sending your business plan to lenders and investors, send it out first to a few in order to get feedback. You’d want to correct your plan if someone tells you that you’re way off mark, rather than have a potential investor tell it to you and lose the chance to get the funding you need.
501630
With commercial properties, it is more of how much the property makes, not you.\n\nIf the property has good cash flow, it is easier to get the loan.
429125
If your a successful entrepenuer, sure, why not. It can be stressful and running a small business alone can be alot of work. As long as you don't overwork yourself and don't take it all too seriously. It's great to be responsible for your own destiny and not have a boss.
412703
yes. u need to have surity. also have a business plan...let it be realistic.i mean both in terms of time and resources. show the bank why is it worth investuing in your proposed business...when is that businees going to reach BEP and how r u going to do it...
1121899
If you are talking about saving money to START a small business, the answer is to keep the money you are saving seperate from your personal spendable income. If you have an existing business, get an american express business card, and you'll earn cash back at the end of the year for everything you purchase for your business.
292704
depends on your accounting standards.  If the gain is unrealized and you keep your books on a cost basis -- you don't account for it.  The only time that you would account for it would be if you were going to sell your business and you wanted to illustrate a pro-forma Balance Sheet based on market price/value of your assets.  If you were doing that then you would increase the value of your assets and your capital accounts.
1056735
Begin with an business plan with an 3 to 5 year projection that covers your forseeable expenses of total operation cost of your desired business for example wages, rent or lease of property, insurance ,legal fees, advertisment cost , etc and it helps to either have some prior experience or education but sort after an mentor who can be a spiritual / business guide for you because you can expect some bumpy roads ahead!
835282
Hello,\n\nThe answer to your question is VERY dependant upon "the kind" of business you intend to start. For example if you are starting a bookkeeping & accountancy business then your requirments might be fairly straight forwards such as a moden good specification PC with Sage or some other form of accounting software.\n\n**If your business was say graphics & image making or website designing then of course you might need a high specification workstation with a top end priced graphics card, for high pixel quality.\n\n**If you were starting an IT networking & management company you might want several powerful servers.\n\n**Please DONT get too hung up on the IT kit or computer you might need when starting off. Thats just NOT as important as knowing your CORE business skills, who your competitors are, what will be your stratergy for marketing your product or service. IT is only a VERY small part of running a successful business.\n\nIR
759821
Its good to to think that you'd start small, from risk perspective, experience and learning. Its different from thinking big. Starting a business may need the following steps\n1 Idea of business, concepts... scribble on a paper or something, take notes, research it from the net, go to market\n2. If the idea still sounds good, time to do a business plan. Write a plan. Net has good formats and guidance. This will further require lot of research on the market, product etc, implementation schedules...whole lot of things\n3. Biz plan includes the financial estimates, revenues, capital requirements. \n4. Time to arrange for funds. Equity, debt, venture funds\n5. Physical implementation start.\n\n4 and 5 will mostly be simulteneous activities. No one will give you money unless you have started working the business. \n\nBest wishes