The Rea Report Spring 2015 | Page 5

Value of Your Business this is part two of a six-part series about how you can know what your business is worth and how you can ultimately grow its current value. Cash Flow-Based Budgeting Once you have a grasp on your cash flow, you’ll be able to create a better budget. Your budget should be a forward-looking projection based on your revenue, gross margins, overhead costs and working capital, which includes accounts receivable and inventory. Most owners assemble their