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Small Business Cash Needs

Simple Alliance, Kenya Limited

Money is indisputably an important input element in any successful entity, be it a business or a different unit. The presence of adequate business working capital could make the difference between success and failure of your small business.

Business Cash Needs

So as to function properly, your business needs money. This principle applies to all businesses, regardless of their age. Your new business is however more dependent on uninterrupted flow of cash. This is because of several reasons, namely:

  • Absence of Links with important business partners 
  • Possible lack of adequate reserve cash

Inexistence of Associations with Crucial Partners 

At its formative stages, your start up business has not yet established ties with business partners. These business associates could lend help when a cash crunch hits your business. Usually, you need some time before your partners can develop trust in you. Key business partners include:

  • Potential creditors 
  • Possible financiers

Likely Absence of Sufficient Backup Cash

At the beginning phase, you are not likely to have substantial cash for handling emergencies. This means that cash flow interruptions are likely to seriously hamper your business operations. An accurate and detailed cash flow projection for three months would thus do you great good.  

Personal Cash Needs

Like your start up business, you have personal needs whose satisfaction requires money.  You need to develop a forecast for your individual monetary requirements for about three months. This projection will enable you to adequately plan for such personal requirements. You will thus avoid utilising business cash to take care of personal needs.    

An Efficient Aid

Efficiency is a highly sought phenomenon by us all. To input efficiency into your ninety-day cash needs projection, we have created a worksheet for your use. The worksheet is in the attached MS Word file.

Cash Needs Worksheet

The attached worksheet will help you to undertake a number of important accounting functions. Your computations will cover a ninety-day time period. It will facilitate you to:

  • Calculate the money you will require to begin your start up business   
  • Calculate your personal cash needs 


The cash needs worksheet is divided into three major components, each helping you to calculate a different set of cash needs. Accordingly, the worksheet has:

  • First section
  • Second section
  • Third section   
Part I

This section helps you to calculate the amount of money you will need to plan your business up to the time you open the venture.

Part II

Using this part, you compute the level of cash you require to operate your business for the initial three months.

Part III

The third section helps you to calculate your personal cash needs during the period you are running your business.    

Your Role

So as to use the attached cash needs worksheet, you need to download it and save in on your computer.  

Benefits of the Cash Needs Worksheet

Using the attached three-month cash needs worksheet confers a number of benefits onto you. Some important advantages include:

  • Pre-prepared cash needs descriptions
  • Option to customise

Already Included Cash Needs Descriptions

The worksheet allows you to simply fill in the figures as it already has majority of the common cash needs descriptions.  

Customisable Design

If you need to slot in additional categories, you can quickly modify the worksheet to suit your needs and requirements.


90 Day Cash Needs  

While launching you starts up business, you will incur a number of expenses. Before opening up your business, you incur certain costs. After opening your business, you also incur some expenses. Besides these costs, your personal needs require money. For smooth operations, you need to evaluate your business’ cash needs. You need to project and plan for these cash needs. The attached cash needs worksheet helps you estimate your start up business’ preoperational expenses, running expenses as well as your personal cash requirements. This way, you will effectively manage your small business cash.

Copyright (C) 2016, Simple Alliance Kenya Limited

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