Developing a Cash Flow Plan For Your Business

Does your business have a cash flow plan (business budget)? I have run several businesses since I was 12 years old, from watering lawns to network marketing, and real estate.

I succeeded when I had a cash flow plan. What is a cash flow plan? It’s your business budget. Most people find the word budget limiting. So I use the term cash flow plan which I learned from taking a Financial Peace University (FPU) class.

Even with a sound business plan, clear goals, and loads of ambition, I see new entrepreneurs fail at making a budget. Especially home business owners who don’t realize that even if it is an online business or affiliate marketing business a budget needs to be created.

Business Budget

A successful business runs on a budget. An owner knows the cost of running his business. He knows the recurring cost, how much it will cost to finance a purchase and the average monthly sales. Is there a need for expansion? Is there a need to add an independent contractor or employee? The numbers tell him where he is and where he needs to go.

It’s time for you to create your business budget. There are tons of personal finance books that can help you with your money. The best book I ever read was The Total Money Makeover, by Dave Ramsey. I also took his Financial Peace…