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> Education Resources > FAQs > Starting an Embroidery Business > My Finance Company asked for monthly cash flow projections

My Finance Company asked for monthly cash flow projections. How do I do this?
Cash Flow projections are used to compare the anticipated monthly revenues versus the anticipated monthly operational costs in order to determine what it costs to run your business. It is common for new businesses to operate with a negative cash flow, meaning that it costs more to run the business than it is bringing in. However, as your sales increase, you should eventually see a positive cash flow.

Cash Flow projections are very important, as they help the new Business Owner understand what it costs to be in business. In addition, it creates a basis for setting prices and sales goals. By examining the figures on a monthly basis, the Entrepreneur can make adjustments in business practices in order to increase profit margins, while reducing expenses.

To download our instructions for calculating Monthly Cash Flow or visit our RESOURCE LIBRARY, located in the Support section of the website.