Definitive Business Plan, Second Edition, The

Cash in the bank

Finally, your plan is approved. Your balance sheet has changed. The total of debt or equity has increased and cash at bank has been boosted by a similar amount. This cash will soon run down as you convert the new-found liquidity into fixed assets, inventory and operating costs. The challenge is to move it through your profit and loss account and back on to a growing balance sheet as cash or investments on the assets side and a matching increase in retained earnings on the other side. The business plan's job is not done yet. It is time to take a look at how you use the plan to run a successful business. You have to prove that your plan will work. Chapter 13 takes you through that process.