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Ok, you make a spreadsheet with a column per time unit - say weeks.

Now you start with one you have of net cash, and for every week this is increased by e.g. sales, decreased by payments expected to be made. Traveling, advertising, payment of wages requires funds to be in place, and if your cash flow predict that you cannot satisfy those payment, you have to sit down with the bank and ask for a line of credit to be exposed/increased - you cannot run out of cash before your good idea earns money from sales.

So, making these predictions accurate and sober is essential to operating the business. If you do not get the credit, you have to cancel the traveling and maybe change marketing to less expensive media. I use a pile of sheets, with payroll, VAT and inventory / stock - you do not need all, but determine the critical payments and receivables - and use ball park figures and common sense for the rest.

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