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Cash flow forecast and break even for a cafe

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Cash Flow Forecast A Cash Flow Forecast is a prediction of how much cash will flow in and out of a business in a period of time, a cash flow problem is where a business have not got enough cash coming in, I need to know this information because it will help me to control my business and financial operations. I am going to take out a loan of �50000 from the bank, and as the interest rate went up to 5%, I will need to pay an interest of �2500 each month. Then the rest of the opening balance will be my own savings and some from my friends and family. My revenue is calculated by multiplying the average price and my estimated customer, which is 12.5 * 1500 and it is 18750. ...read more.


I have got a rent of �8000 a month, interest rate of �2500 each month, a food license on the first month of �1000 and the delivery cost of �300 each month. That leaves me with a closing balance of 60650. And a closing balance in the end of 12 months of 52100, so I have not predicted a cash flow problem here and I am making good progress. The predicted cash flow is falling for the first month and rising for the next to then fall again then rise and fall and rises until the end. Break Even Analysis I will need to calculate my break even point for a month because as my business will be small I will need to know when can I start to make a profit and I will have to set that as a target. ...read more.


Which leaves a contribution which is selling price - variable cost and it is �10 and the break even point which is fixed costs divided by contribution leaves 1176 which means I will need to serve 1176 customers to cover my costs. But my estimated customer will be 1500 so I will make a profit. 324 people more will come on top of my break even "customers" The figures may well be inaccurate because I have just asked 30 people out of the 3000 it is just 1% of the whole population in Ripponden, I estimated 3000 people are living in Ripponden, and in those 30 people I have asked more than half of them said they are going to come more than 2 times, so maybe 1500 people in the 3000 will come but I need 1176 customers to break even so I think it will be fairly easy. ?? ?? ?? ?? ...read more.

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