Cashflow Projection
To create a sustainable business, we first have to develop a cashflow projection to forecast the the revenue and overhead costing that the business will operate. I had to create a first year projection, to see if the business would be profitable or at a loss by the end of the year. I seriously hope it is not the latter. Anyways, in doing this exercise, I get to experiment with the pricing, VAT pricing, and do all of the overheads that a business will encounter.
Its quite interesting and I would say that the cashflow file actually really helps to shape the business further for the business proposal, as things you would not have thought about like insurance, business registration, computer equipment etc.
Below is the list of costings that I feel would be affected by my business, and it would greatly show how my business would be performing throughout the year. I think the best way of generating revenue is to have as many projects as possible, but still be realistic in the sense of the scale of projects. Therefore, having the multi-tier packages from small to large scale projects does help to scatter the revenue gained throughout the year while not overworking the staff.