Need For and Sources Of Cash

This statement lays out how much cash the business will need to open its doors and to operate until it is profitable. Like all other financial statements this is a mix of known and anticipated costs. Most of this information will come from other parts of the business plan. It should include the following information.

Figure 9: Need For and Sources of Cash

Cash Needed

• Pre-Opening Inventory
• Pre-Opening Capital Equipment
• Supplies
• Property
• Renovations
• Pre-Opening Marketing
• Building/Other Deposits
• Other Pre-Opening Expenses
• Working Capital
• Contingency Funds
• Post-Opening Capital Equipment
• Post-Opening Inventory
• Post-Opening Marketing
• Other Post-Opening Expenses

  Total Cash Needed

Sources of Cash

• Savings
• Loans
• Other
  
  Total Cash Available
  
  
  © July 1998, 1st Revision June 1999, 2nd Revision February 2001