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I need help with putting together a cashflow forecast

angies's picture
Asked By angies | Leeds

I don't even know what one of these is but my tutor says I will need one if I'm going to try and get a loan to start my hairdressing business - help!

Comments: 5's picture


17 November, 2011 - 19:10

You need a business plan first! The cashflow projection is a prediction of how the plan will translate to money in and out.

You should have a look at the free advice on KeyFund's website - templates for business plan and financial spreadsheets.

York University Centre for LifeLong Learning do a great course too - enterprise workshops very practical and good fun!

Good Luck

Leana's picture

Leana |  Leeds

21 November, 2011 - 10:56

I'm in the same boat. Need one for my business, but its so confusing and complicated.

Best advice I can give is do a month by month break down of all the fixed costs and all the income streams. Lots of templates available online, go for the one which is simple, as most are far too complicated and don't make sense?

Hope this helps.

IanS's picture


29 November, 2011 - 11:39

There are lots of examples on line. Basically they are about working out when you have to pay money out - and when you hope to get it in. Without one of these you aren't running a business, you're just playing games! A simple spreadsheet version is easy to set up. Initially you'll be asked to do one for the next 3 years! In practise (when actually running your business) I'd never bother forecasting in detail more than a few months ahead - things will change too much!

1975tshirt's picture

1975tshirt |  Ackworth

29 November, 2011 - 13:06

A cash flow forecast is your best guesswork; just a matter of listing what you expect to have to spend money on month by month and what you expect to receive and how much you expect to have left over. have templates for this, usually free.

If you are hoping to borrow to start your business you will find lenders read your forecasts in a cynical way, they have seen hundreds and none that have ever materialised. Don't be optimistic about income, especially in the early days. Don't indicate you will work for nothing, work out the least you need to live and enter that as your 'drawings' from your business, that is realistic for the first year.
Lenders have never wanted to loan you more for your business than you are able to put up yourself. If you need more than £10K they will want security (collatoral) or a guarantor.
Your tutor is right you should have a cashflow forecast but you need a lot more to get an affordable loan.

martinh's picture


29 November, 2011 - 14:11

A cashflow forcast is simply a way of recording what you think that your income and expenditure will be.
write down how much you think you will earn in a week and then take off what your expenses will be , do this every week for a year.The packs that you can pick up from banks about starting your business have simply templates that you could use.