You have decided to start a new business based on an idea that you think has very strong potential. You do not have enough funds personally to invest, and your family and friends cannot provide you with sufficient funds to finance the start-up. You have therefore decided to seek external funding for your business idea.

You must write a report about your business idea with the purpose of securing funding for your business idea from potential investors. The report should follow the structure below.

My product is smart sunglasses.

word count should be 1000 words.

Cash Flow Forecast

• What is a cash flow forecast?
• What are the key benefits and disadvantages of a cash flow forecast?
• Identify the key cash inflows (money in) and cash outflows (money out) per year.
• Prepare a cash flow forecast for 4 years. Year 1 can be by month or full-year; years 2 to 4 must be on a full-year basis.
• Explain any changes in cash inflows and cash outflows over the period of 4 years. What are your estimates based on?
• Analyse the closing cash balances per year. Consider whether additional funding might be required in any of the years. If yes, what funding would you consider and why? Alternatively, you may consider how the surplus of cash should be managed.