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Template: 13-week liquidity planning

 Liquidity planning for startups: everything you need to know

Reliable liquidity planning forms the basis for ensuring a company's solvency. The aim of the analysis is to identify possible liquidity bottlenecks at an early stage and to be able to react accordingly. In practice, rolling, detailed liquidity planning over a period of 13 weeks has proven to be a useful tool for identifying potential insolvency at an early stage. This period is generally easy to plan and allows an adequate response time in the event of impending liquidity bottlenecks.

For planning purposes, you can use our comprehensive 13-week liquidity planning template.

What is liquidity planning?

In short, liquidity planning is the process of forecasting how much cash your business will need to meet its obligations. This includes things like payroll, rent, and other operating expenses. Liquidity planning is important because it gives you a clear picture of your company's short-term cash needs. This, in turn, helps you avoid nasty surprises.

Further stages of liquidity planning

When it comes to liquidity planning for startups, there are three different time horizons that can be considered: short-term, mid-term and long-term.

Short-term liquidity planning refers to the cash flow projection for the next 12 months. This is important to ensure that the startup has enough cash to cover operating costs and other short-term liabilities.

Mid-term liquidity planning refers to the cash flow forecast for the next 2-3 years. This timeframe is important because it gives the startup the opportunity to generate revenue and achieve profitability.

The long-term liquidity planning includes the cash flow forecast for 5 years or longer. This is important because it allows the startup to plan for future growth and expansion.

When creating a liquidity plan, it is important to use realistic assumptions and projections. The goal is to create a financial plan that gives the startup a clear understanding of its financial needs and how to meet them.

Why liquidity planning is important

There are a number of reasons why liquidity planning is so important for startups. First and foremost, it helps you avoid financial disaster in the event of an unexpected setback. For example, if your startup faces litigation or unexpected repairs, you'll need to have cash on hand to cover those costs. Without a liquidity plan, you may need to take out high-interest loans or even sell equity in your company to raise the necessary funds.

Unexpected expenses always pop up. No matter how well you think you've planned for your company's needs, something will always happen that you didn't expect. Whether it's an unplanned repair or a slow sales month, if you have extra cash on hand, you can be sure your business will weather any storm.

Another reason liquidity planning is so important is that it allows you to seize opportunities as they arise. If you have cash on hand, you can seize new opportunities quickly without having to wait for investor funding. This could make the difference between your startup being a success or failing.

Good liquidity planning can help you get better terms from lenders. If your business is seeking financing, lenders are much more likely to grant you favorable terms if they know you have a solid financial plan for managing your cash flow

Finally, liquidity planning gives you a sense of security.

Knowing that you have a financial plan in place to cover unexpected expenses helps relieve stress and allows you to focus on growing your business.

How to create a liquidity forecast

Now that we've answered the question "What is liquidity planning?" and "Why liquidity planning is important," let's look at how you can create a liquidity forecast for your own business. Here are a few tips:

Know your business cycle: The first step is to know your company's operating cycle, i.e., how long it takes for inventories to turn into cash. This will give you a good idea of how much working capital you need at any given time.

Review your historical financial statements: Take a look at your company's previous financial statements next. This will give you an idea of what your typical cash flow looks like and where any liquidity shortages might occur.

Use financial modeling tools: There are several financial modeling tools that can help you predict future cash flow based on past performance and current trends. These tools can be very helpful in predicting cash flow for your startup.
Make conservative estimates: When in doubt, be rather cautious when preparing your liquidity forecast. It is better to have too much cash on hand than too little!

So haben sie als Unternehmer den Fokus auf Liquidität und Liquiditätsplanung

As a startup, it's critical that you have a solid liquidity planning plan in place. Liquidity planning helps you avoid financial disasters and take advantage of new opportunities as they arise. Most importantly, it gives you the confidence that you are prepared for whatever comes your way.

Was ist ein Liquiditätsplan?

Ein Liquiditätsplan ist ein Dokument, das darlegt, wie ein Unternehmen seinen kurzfristigen Cashflow verwalten will. Der Plan sollte Strategien für die Einziehung von Forderungen, die Kontrolle der und Zahlungseingänge und Ausgaben und den Zugang zu zusätzlichen Finanzmitteln bei Bedarf enthalten. Ein Liquiditätsplan ist wichtig, denn er kann einem Unternehmen helfen, finanzielle Probleme zu vermeiden.

Ein Liquiditätsplan als Controlling Instrument für Ihr Unternehmen

Bargeld ist das Lebenselixier eines jeden Unternehmens, und es ist wichtig, ein solides Cash-Management-System zu haben, um sicherzustellen, dass Ihr Unternehmen flott bleibt. Ein Liquiditätsplan ist eine gute Möglichkeit, die Finanzen, Liquiditätsentwicklung und Zahlungsströme Ihres Unternehmens im Auge zu behalten, und er kann auch als Controlling-Instrument eingesetzt werden, um Cashflow-Problemen vorzubeugen.

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