Whe you decide to persue an idea, set up a
new site or create a new product, just how
much time do you invest in determining if it
your new venture is worth it?
Does anyone take the time to analyse the
cash flow implications?
Before investing in a domain name, hosting,
content creation or anything else, I always
set up a spreadsheet to work out the cash
It's not so much about determining how much
profit that a project might generate. It's very
much about working out how much cash will
be needed to fund a new project before it
Looking at it another way..
It helps me to answer the question.. "How much
cash am I putting at risk if this bombs?"
I've attached a very simple cash flow forecast
template to this post.
Simply enter your income and expenditure in the
appropriate cells and the spreadsheet should do
the rest. It's in .csv format so it should work in
Excel and OpenOffice.