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We’re looking at our lean business planning is about strategy, tactics, concrete specifics including milestones, metrics, tasks and schedule, and essential numbers to run a business, all of which lead to managing cash flow. That’s the sales forecast, the spending forecast and the cash flow.
What I did is I learned the art of a pro forma and the value of a pro forma which basically is a forecast. If you don’t know what your cash flow forecast is, you don’t really understand your capital needs. Most of the time the small business owners aren’t business experts and definitely not financial experts.
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