How to Plan Your Cash Flow and Working Capital Needs

Business Foundations Questionnaire - Cash Flow

Questionnaires in This Series:

1. Business Foundations Questionnaire - Cash Flow
2. Business Foundations Questionnaire – Internet Sales, PR, and Advertising
3. Business Foundations Questionnaire - Customer Service
4. Business Foundations Questionnaire – Manufacturing, Production & Distribution

Definition of Working Capital

Business Foundations Questionnaire - Cash Flow & Working Capital

Whether you are starting a business or just need to determine new ways to be competitive you need to begin by writing an outline for where to start (new businesses), what you are doing now, and what you want to do in the future (existing businesses). If your business is struggling, you also need to outline problem areas.

The following questions can serve as a foundational guide for developing your business plan, feasibility study, or business model to help you assess your working capital needs for your business.

Working Capital for Start-Ups

1. How much cash do you need to start your business and cover all its expenses for one year?

   • How to Write a Financial Feasibility Study
   • No Start-Up Costs Business Ideas for Women
   • Five Low-Cost Home Business Ideas

2. Where will you get your start-up cash? (Family, friends, personal funds, investors, loans, credit, grants, etc.)

   • How to Ask Family and Friends for Cash for Your Small Business
   • Funding Resources for Business Women

Working Capital for Existing Businesses

1. Do you have enough working capital now? If not, have you done a business assessment?

2. If you need to raise more working capital, is your business plan up-to-date? Will you put more of your own cash in or look for investors, loans, grants, lines of credit?

   • Small Business Administration Funding
   • Finding Small Business Funding
   • Working Capital Mistakes - What Not to Do
   • Struggling Business Problem #2 - Not Enough Working Capital
   • Aggressive Steps to Take to Increase Working Capital

3. Have you cut back on every possible expense to increase your working capital?

   • Struggling Business Problem #2: Not Enough Working Capital
   • Should You Downsize?

4. How much are setting aside, or do you plan to set aside, for reserves? (Reserves cover unexpected expenses, a cushion to cover planned expenses during slumps, are set aside for equipment purchases, and for working capital to grow or expand your business.)

   • Reserves & Proprietorship Reserves