{"id":31408,"date":"2018-05-10T13:03:29","date_gmt":"2018-05-10T12:03:29","guid":{"rendered":"https:\/\/phorest-ob-staging.com\/?p=31408"},"modified":"2024-09-04T09:21:11","modified_gmt":"2024-09-04T09:21:11","slug":"salon-cash-flow-projections","status":"publish","type":"post","link":"https:\/\/www.phorest.com\/au\/blog\/salon-cash-flow-projections\/","title":{"rendered":"What Are Salon Cash Flow Projections & How Can They Help?"},"content":{"rendered":"\n

Salon cash flow predictions. They\u2019re a bit like having a crystal ball: they help you to look into the future and predict if or when you could run out of cash – or even better, have loads of money<\/em>! For example, imagine it takes four months longer than had planned for you to break even in the salon you’ve just opened. What effect will that have on your cash several months from now? Cash flow is cash in and out; it\u2019s different from your profit and loss. So what can it tell you about your salon and how do you put such a prediction together?<\/span><\/p>\n\n\n\n\n\n\n\n

What Can Salon Cash Flow Projections Tell You?<\/h2>\n\n\n\n

By definition, a cash flow forecast is “an estimate of the amount of money you expect to flow in and out of your business and includes all your projected income and expenses. A forecast usually covers the next 12 months. However, it can also cover a short-term period such as a week or month.”<\/em><\/strong><\/p>\n\n\n\n

Regardless of the business, there’s always a risk of owing more than what you can pay in a month. Financial planning and cash flow predictions help you make sure you have enough funds to support the salon. The ultimate goal is, of course, to have more incoming than outgoing cash in a month.<\/p>\n\n\n\n

Let’s go back to that example of the salon you would have just had opened. When you started the planning, you might have been sitting with a good amount in the bank. Then your VAT bill hit, so did your tax bill and to finish you off, you had to cover the costs of a repair you didn\u2019t expect. If you have the heads up that this was might have happened, you could have planned for it, yeah?<\/span><\/p>\n\n\n\n

That’s what salon cash flow projections are for. To give you the heads up, so you can perhaps put a new promotion on, sell more gift vouchers or arrange an overdraft from the bank (which truth be told is always<\/b> easier to do when you don\u2019t need it)! Because trust me, your salon’s profitability won’t protect you from business failure; good cash flow projections will.<\/span><\/p>\n\n\n\n

Incoming Cash (examples)<\/h3>\n\n\n\n