complete your capital spending plan, youll know how much money you need to open your doors. The next step is to estimate how much additional money youll need to survive the first lean months.     The basic process well use to make a Cash Flow Forecast is to start with the monthly profit (or loss) figures you developed in your Profit and Loss Forecast in Youll then make adjustments each month to the monthly profits to account for the time differences in collecting and spending money.     Take out the two blank Cash Flow Forecast forms from Appendix 4 and follow the step-by-step instructions that follow. Youll be completing a forecast for the first two years of your business. Complete every line for each of the 24 months before going on to the next line.     NoteNote for computer users: If youre using a computer spreadsheet, use the Cash Flow Forecast form as a guide. Make sure that the column and row headings are the same.     1.Profit/(Loss). To begin, take out the Profit and Loss Forecast you completed in and copy the monthly profit/(loss) from line 6 onto the first line of the Cash Flow Forecast form. The profits or losses you show have already taken into account the normal expenses of running a business like rent, wages and salaries and so forth. You wont have to worry about those costs in this forecast.     WarningIf any of your figures are losses, place brackets around them. Otherwise, your entire Cash Flow Forecast will be seriously inaccurate.     2.Credit Sales. Skip ahead to line 4 if you dont plan to sell merchandise or services on credit. If you sell merchandise or services on credit, the customer receives the goods or services right away. Even though you incur costs, you dont get paid right away. Credit sales create bills people owe you; they are called your "accounts receivable" because you will receive the money soon. (When you buy goods on credit, you create bills you owe others. These are called your "accounts payable" because you will pay them soon.)     Most businesses that sell to other businesses should plan for some sales on credit. Most businesses that sell only or primarily to retail consumers can plan to sell mostly for cash, including checks and credit cards.     NoteCredit card note: For purposes of this discussion, sales on credit cards are the same as cash sales, except for the processing fees the bank charges you. If you use an electronic terminal, the money is credited to your bank account right away, and if you use a paper imprinter, the money is deposited to your account in a few days.     It takes more money to start and run your business if you offer credit to your customers than it would if you received cash for every sale. Heres how to figure out how much cash youll need. First, estimate what portion of your total sales will be for credit. For example, if you think that about one-third of your sales will be for credit, that means that about 33% of your monthly sales dollars will not be collected in the month in which the sale is made. Make a note of that percentage now on the Cash Flow Forecast form in the heading for line 2.     Look at the Profit and Loss Forecast you completed. Multiply each months Sales Revenue dollars (line 1 of the Profit and Loss Forecast) by the credit percentage that you forecast for your business. Then enter each of those monthly figures on line 2 of your Cash Flow Forecast.