Cash Flow Planning for Beginners: A Step-by-Step Guide


TOTAL Financial Autonomy Within 5 YEARS

Cash Flow Planning for Beginners: A step-by-step Guide (2023)

Cash Flow Forecasting Model

Cash Flow Planning is KEY to running a successful business. 

This is how you determine how you’re going to pay your bills, hire someone or even have to fire someone. You have to have a good gauge of what’s coming in and what’s going out if you want your business to have a future.

Do you have a good grasp on your finances?

If not, don’t worry. In this article we’re going to break it down so you’ll have a clear understanding on cash flow planning and how to use it for your business. 

But wait, there’s more! 

We’re also going to show you how to get your hand on other people’s money to grow YOUR business, so stay tuned for that!

Here is everything you need to know about Cash Flow Planning

Let’s start with the basics:

What is Cash Flow Planning?

Cash flow planning gives a company a view at its incoming and outgoing cash to ensure it can meet it’s expenses. This includes cash flow from investing, operations, and financing activities.

Why is cash flow planning important?

Having a cash flow plan will make it that much easier to qualify for business financing, and predictably grow your bottom line. You can think of it as a budget for a business.

So let’s talk about how to get this. Here are 4 steps to effective cash flow budget planning:

  1. Establish your cashflow goals. Think about your business and where you want it to go. Then write down the steps you’ll have to take to get there. Does it require outsourcing more tasks so you can work on more strategic areas of your business? Does it require investing in more equipment or education? What will it take and cost to get you to the next level?
  2. How much money do you have coming in? Take a look at what’s coming in. You should have a full understanding of how much money is coming in every month. Even if some months are different than others, you should know what to expect. Look at trends from previous years but also think about the difference in what’s going on in the world (No one saw Covid coming).
  3. Calculate your business expenses – both short and long-term. These expenses might include operating expenses like salaries, rent, taxes, loan payments, equipment purchases, raw materials, business permits, etc. Subtract the money you expect to come in during the month by the money you plan on spending. This is how you calculate your cash flow plan.
  4. Know your number.  Now that you know how much you’ll have left it might not be enough to get to where you want your business to go, and that’s OKAY. 

This is where we want to show you how to get OTHER people to pay you to grow your business, and the way to do that is by getting Business Credit.

Business credit allows business owners to fund expenses they have and pay it back later as profits roll in. This allows the business to create flexibility with their finances, while you grow sustainable cash flow. 

With sustainable cash flow, this opens opportunities for bigger business credit lines, better credit terms, and better rates.

85% of businesses fail because they don’t have enough money. 

The GOOD news is that so many banks and lenders want to give to people but unfortunately so many small business owners have no idea where to go, what to do, or how to qualify. 

Business credit is not only good to help you fund your business, but even if you don’t need it right away, it’s still good to have as a safety net. If anything ever goes wrong, you can always use your business credit to keep your business running. 

You can even use business credit to pay yourself. Many small business owners do not pay themselves, and many don’t know that you can use business credit to get paid.

It’s hard to build your business if you don’t have any money. 

Business credit is fairly easy to get IF you can pay your bills on time. There are other factors to consider, but generally it can be easy to get. Even if you’re new in business or have been denied before. 

If you’re looking to obtain business credit, a great way to further educate yourself is by attending one of our most popular Master Classes on the topic.

In this Master Class you’ll learn

  • How to start, grow and leverage business credit without using your SSN

If you’re concerned about business credit and fear that you may not be able to manage it properly, this is the Master Class for you. 

We even cover what to do if you’re not making enough money to pay it back in time, or not making any money at all. We’re going to cover it all.

Click here to join us for this Business Credit Master Class.

Advantages and disadvantages of cash flow forecasting?

Some advantages of cashflow planning are to include the ability to balance costs, revenue and beneficial for businesses that are working to gain profits. 

Some disadvantages may include lack of flexibility. Some businesses without stable cash flow and growing expenses can find it hard to stick to a plan or forecast properly. 

This is the power of having business credit. You want to have a cash flow strategy if you want your business to grow. 

Now that you know how to calculate your cash flow planning and how to access business credit to grow your business, the sky is no longer the limit for you.

If you enjoyed this article, you’ll love the information we share with our members and subscribers about Mindset, Investing, Business and Personal Finance. Learn more ways to build your business credit and buy automated income streams, take our Financial Autonomy Quiz at, and identify your path to retire yourself in 5 years or less. 



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