11 . Arrange additional financing before it is needed ; for example , seek equity investment through increased memberships if Cash Flow will not safely cover payments .
12 . If necessary , sell unproductive assets and discontinue product lines with negative Cash Flow .
� The Benefits of a Cash Flow Forecast
Ensure participants are aware of these : 1 . Knowing the available budget
2 . Planning ahead for thesocial start up activities
3 . Seeing every planned action and transaction . That is , all cash movements in and out of the social start up
4 . Providing early warning indicators and serves as a guide to liquidity ( cash and assets ) 5 . Identifying all payments and receipts for a specified period
6 . Identifying the opening cash position and net cash position at any point . Please explain that the closing cash position will result from the opening cash position plus the net cash flow position for the period .
7 . Identifying responses to respective short or long term positions .
8 . Analysing the Cash Flow to identify some critical warning signs to address as quickly as possible . These include but are not limited to : a . Decreased profits despite increased sales b . Declining gross profit c . Consistent decreased Cash Flow d . Reduced market share e . Reduced or increased sales or memberships f . Increased interest payments which outweigh the increase in sales g . Increased overheads h . Not meeting sales forecast on Cash Flowforecast repeatedly
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