This is one of the questions that have often cropped up while discussing the business plan with the sales team. My personal opinion to them, is to always include cash flow Balances/ProjectionsĀ  in the Business plan because it acts as an ingredient that helps project the fact that our business operates smoothly.

Also by a lot of people often mistakenly believe that a cash flow documents will show the profitability of a project. Although closely related, these cash flow and profitability are different. A cash flow statement lists cash inflows and cash outflows while the income statement lists income and expenses. A cash flow statement shows liquidity while an income statement shows profitability.

However if you believe that the business plan/Presentation is getting too lengthy and boring you can always cut that element with a one-liner stating your stability and your YOY (Year on Year) Financial profitability numbers and that should also do the trick for you.

If you want some perspective on how you or your company needs to enhance their Sales/Client Management Capabilities, please email me at This email address is being protected from spambots. You need JavaScript enabled to view it.


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