CHAPTER 15 expenses. Use your cash flow forecast to show the banker how and when your company will be able to repay the loan. "IA good cash forecast] shows the banker that you oures: Based on Jobn Grossman, know exactly where the peaks and valleys are and what your cash needs are," says one banker highly irregular sales pattern in general? boot." New York Times, July 18, 2012, hr a-tourist-dependant-business-decides-to Business Aims to Survive the Off-Season Make the Most of the Slow Season,"N 1. What impact do highly seasonal sales have on a small com Rich Mintzer, "Running a Seasonal Busin ration viving a Seasonal Business." Entreprenea startingabusiness/businessideas/arnicle i pany's cash flow? 2. What other advice can you offer owners of seasonal busi- easonal Blesineus c nesses about coping with the effects of their companies managementloperationslarticle 175954h Typically, a small business owner should prepare a projected monthly cash budget for least one year and quarterly estimates one or two years beyond that. To be effective, a cash bud get must cover all seasonal sales fluctuations. The more variable a company's sales pattern, th orter its planning horizon should be. For example, a firm whose sales fluctuate widely over relatively short time frame might require a weekly cash budget rather than a monthly one. Th ey to managing cash flow successfully is to monitor not only the amount of cash flowing int at and out of a company but also the timing of those cash flows. o visualize a company's cash position. Creating a written cash plan is not an excessively time auss to fail. One financial consultant describes "a client who won't be able to mak Regardless of the time frame selected, a cash budget must be in writing for an entreprene ming task and can help the owner avoid unexpected cash shortages, a sit oll for him-but banks don't like to