3 Reasons Why You Need a Cash Flow Statement

So you're planning a new business and wondering, why a Cash Flow Statement? If you want to know why you need to spend time detailing a cash flow plan, (even if you don't intend to ask for money) you want to read further.

Here's three reasons to ditch the stubbornness and impatience, and plan for cash:

• Figure out how your business will bring in money each month. All of those estimations in your head will only leave you "scatter-brained" so stop it now. This is important because as time goes by, you will start to learn your "down" and "up" months and it will help you find supplemental services and/or products. Seeing a "snapshot" of your cash gives you a better mental picture and helps you plan better.
• Know how much you can possibly get in vs. how much you will pay out. You want to have a realistic conversation with yourself about your money. A cash flow statement is what helps you to avoid negative business accounts. This statement is what helps you to avoid getting that office or equipment until you've found some business or funding to cover your expenses. This statement is what helps you pay your rent on time. 
• You want to know when you can transition. For some, transition means leaving the full-time job to tackle full-time business. For others, transition means getting the first employee. For most, transition means having your business give you a regular paycheck.

So how do you project cash flow when you don't have enough cash coming in yet?

Blog Award-Tag You're It!

Thanks to my twitter friend, @JamaraWilson, for giving me a blog award this week. A special Start-up BizTalk Kudos goes to Jamara. I recently became her twitter friend and immediately subscribed to her blog, His Majesty's Favorite, through Google Reader. I plan on getting acquainted with her blog this week because I like her writing style and the interesting mix of subject matter.

Well, once you get this award, you're supposed to first talk about 10 Things that Make You Happy, then choose 10 of your Favorite Bloggers.  Make sure to thank the person who gave you this award, then pass on the information to the bloggers you awarded. 

So. here goes my list...

Get Creative and Get Paid

Start-up businesses are finding interesting ways to keep money coming and it's time for you to think creative. For instance, I read about a couple in Palo Alto who started a business and used their wedding to raise money for their start-up.  Instead of a wedding registry, they used a start-up registry.  Their registry looked a a little like this:

1. Feed an outsourced engineer: $150
2. Hour with a lawyer: $385
3. Rent a friend's garage: $250

They allegedly raised money, had videos on their website, and invited venture capitalists through this creative effort.

Here's a few ways you could get paid creatively:

From Reading to Writing to Speaking; Create your Business "First"

Since age five, I've been an avid reader. At least this is what my mom tells me. I remember graduating at the top of my class from kindergarten and being given a book of fairy tales from the teachers. This is my only vivid memory of kindergarten (well except for the time I got my finger chopped off by another kid while playing with the metal gate but that's a long story).

My friends had no idea how to even begin reading the book that was given to me, but I loved it. Apparently, my kindergarten teachers had given up on trying to get me to "nap" because I would always curl up with a book while everyone else slept. Thinking back, I always ponder, where did I get the books from?

Well if you are a reader, you naturally appreciate writing because you love words on paper. I've learned how to write after appreciating the brilliance of telling stories and giving information through words. Now I'm beginning to see a trend that goes like this; from reading, to writing, to speaking.