Quickie: Cash Flow Analysis Has Officially Begun!

Cash Flow The Easy Way For whatever reason, the single biggest hurdle for this entire enterprise for me – after getting over the fear thing which I've mentioned several times before – is starting the cash flow analysis. I think the reasons I've been dreading delving into cash flow analysis in earnest is because a) I've never done one before and there's a lot to learn. It's not rocket science, but there's a lot of analysis that goes into doing it right and b) I'm a bit anxious about what it's going to tell me. Cash flow is probably the single most important part of a business' financial health. No cash flow = no business. For a business plan, standard practice is to provide a first 12 months statement and a 3 or 5 year statement.

It officially started today. I'm rocking and rolling with it. I'm guessing the first draft will be complete by this time next week. From there I'll revisit it occasionally to clean it up and verify that everything is accurate as possible. After the cash flow statements I'll quickly move on to the profit and loss statement, break even analysis, and balance sheet. From there comes the written portions of the business plan, things like marketing plan, bio, introduction, competition analysis, etc.

Here we go.