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F. Naz
F. Naz, B.Com
Category: Single Problem
Satisfied Customers: 5773
Experience:  Have completed B.Com and CA Finalist
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I’m hoping to open my own plant shop business I’m currently

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I’m hoping to open my own plant shop business I’m currently working on a business plan, and am having problems with how to work out cash flow. I have no previous sales to go on, as the business hasn’t started yet, and each product will be priced differently (and there will be a lot of them). Any advice on the best way to do this would be great.
Okay will update you in 24 hours, thanks.
Below is your answer kindly read it and let me know whethet it helped you or notTwo items to be calculated total receipts/ inflow and total outflows/ payments. Ypu have to list diwn all types of plant to be sold out you may estimate it in different ways. One you may ask the plant shop of your type or you may find the demand in the market for each type of plant and determine your market share. If suppose total demand during the year for plant A is 20000 units and your share is 10% ( expected) means your total sales of plant A will be 20099*10%= 2000. And if market price Is $3 each unit, therefore total sales in dollar will be 2000*3= $6000. Determine like this for plant B, C, D & so on. Suppose total sales from all plants are $100000 and all on cash basis, total receipts/ inflows will be $100000. Now determine cash expense only do not include depreciation. The cash expenses will be the purchase cost of all plants, utilities, rent, salaries and travelling expenses, all expenses should be related to business, no personal expenses should be included, if total of all expenses is $80000 and all is paid on cash basis, the total payments/ outflows are also$80000. Therefore total receipts $100000 - total payments $80000 = $20000 surplus cash balance.Note :- If you find my information helpful then kindly rate it or accept it so i can get credits for my efforts, thanks.
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Customer: replied 1 year ago.
That’s great, thank you very much for your help.