Stock up Next calculate what you will need to pay for stock or material, and when, again based on your sales projections. Start the sweep. Now comes the fun bit. Add up the first month s outgoings and subtract them from receipts. Repeat this process for each month.
Warning signs are continuing deficits and a negative cash position.
Judge your income. Planning your sales levels requires market research and past experience. Err on the side of caution. Sales will also depend on your marketing efforts, staff levels and production capacity. These all involve cash outlay before any income comes in.