Page 266 - merged.pdf

CHAPTER 8 MASTERING YOUR MONEY

Planning Ahead: Forecasting & Budgeting

Besides using your
company’s three report
cards to assess its
performance, there are
also powerful tools to
help you set targets
and plan ahead. All
successful business
owners draw up a 6-
12 month projected
profit & loss and cash flow statement to help them in planning.

Let me give you an example of how you can do this. Let’s
assume that you are in the process of starting up your Fashion
Retail business and need to do some projections in order
to plan the startup capital required as well as your cash
flow needs.

Projected Profit & Loss Statement (6-Months)
Using a spreadsheet software like Microsoft Excel, you can
do a 6-month projected Profit & Loss Statement as follows.

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 257