For a cash flow forecast to be useful you’ll need to get your guesswork as accurate as you can.
It’s not uncommon for profitable businesses to get strangled by unexpected cash flow problems, but by forecasting and planning your expenditures you can give yourself the best chance of making it through any turbulent times.
You’ve romanticised about the valuation of your business before, everyone has at some stage.
There are times in the business lifecycle when valuing your business needs to be more than a fleeting thought experiment, e.g. capital raising, investments, divestures and sale. Business valuation is a deep and complex topic performed by people with sound knowledge in financial theory. The business owner is not expected to be skilled in this area however there are concepts the business owner should understand in order to assist them in conversations and drive their desired outcome (likely a higher valuation). First some base cases…