Next, plot out how much cash you expect to come in each week either from clients, unemployment or other places. Communicate with your clients so you can reasonably predict how much and when that cash will come in.
Completing this exercise you will not only give you a clear picture of your cash position for the coming weeks, it will also enable you to recognize potential money shortages so that you can take action today, such as applying for government funding.
Now that you have set up cash in and cash out by week, you can forecast what weeks you will run out of cash.
You’re now prepared to make decisions on what you will do to make up that shortfall.
You can either fund it with a grant, line of credit or business loan.