The short-term version of the cashflow statement is the liquidity plan:

• What are my expected revenues for the next 12-36 months, on a monthly basis
• What are my expected costs for the next 12-36 months, on a monthly basis

For many start-up, revenues in the first 12-18 months can be close to zero

• The cash burn rate can be high (too high?)
• What happens if you can raise more money after you have burned the cash?

The liquidity plan is a MUST HAVE:

• It helps you stay alive
• In practice, you should always make sure that you have 12 months of cash reserve
• Then you don’t have to worry about cash on a daily basis