Читать книгу Start & Run an Event-Planning Business - Mardi Foster-Walker - Страница 56

Understanding cash flow is an absolute necessity for the new business owner. Along with loans and your personal investment, the cash flow into your business is created by the number of events you are paid to produce. The amount of cash your business will earn will depend on the number of events you produce and the income generated by producing those events.

In chapter 5, we discuss setting a price for your events and services. The cash flow out of your business is linked to the costs of producing your events and the expenses of running your business. Naturally, as a viable business, your objective should be to bring in more cash than goes out. To plan and monitor that process you need to develop a cash flow forecast. This forecast requires that you take into account fixed expenses and overhead, marketing costs, and start-up costs. You also need to forecast revenues. The next sections look at these elements in turn.