Cashflow Calculator Guide

The Cashflow Calculator is a powerful tool designed to help e-commerce businesses model their financial projections across multiple product lines. This guide will walk you through how to use each section effectively.

Overview

The calculator provides a 12-month projection of your business's:

• Product-level unit economics
• Overall profit and loss
• Cash flow management
• Inventory management

Getting Started

1. Product Lines Setup

Click on the "Product Lines" tab to begin setting up your products. For each product, you'll need to enter:

• Product Name: Name or identifier for the product
• Unit Cost: Cost to purchase or manufacture one unit
• Unit Price: Selling price per unit
• Shipping Cost per Unit: Average shipping cost for each unit
• Initial Inventory: Current inventory level
• Lead Time: Time (in months) between ordering and receiving inventory

You can add products in two ways:

• Click "Add Manual Product" to enter details manually
• Click "Import Products" to import existing products from your e-commerce platform

2. Business Expenses

In the "Business Expenses" tab, enter:

• Monthly Advertising Budget: Your planned monthly ad spend
• Cost per Click: Average cost per click for your ads (typical range: $0.50-3.00)
• Conversion Rate: Percentage of clicks that convert to sales (typical range: 1-4%)
• Other Expenses: Additional monthly operating expenses

3. Assumptions

The "Assumptions" tab requires:

• Initial Cash Balance: Starting cash position
• Cost of Capital: Annual interest rate on borrowed money
• Monthly Growth Rate: Expected month-over-month growth
• Initial Financing Loan: Any existing loans
• Repayment % of Revenue: Percentage of revenue allocated to loan repayment
• Financing Frequency: How often you plan to seek additional financing

Using the Projection Table

Unit Economics Section

This section shows per-product metrics:

• Orders
• Revenue
• COGS
• Shipping costs
• Gross profit
• Gross profit percentage

Total P&L Section

View consolidated metrics across all products:

• Total orders
• Net revenue
• Overall COGS
• Total shipping costs
• Gross profit
• Advertising expenses
• Post-marketing profit

Cash Management Section

Monitor and manage cash flow:

• Beginning/ending cash balances
• Cash inflows and outflows
• Financing amounts
• Owner draws
• Outstanding loan balances

Use the "Smart Financing" button to get AI-powered recommendations for financing amounts based on projected cash needs.

Inventory Management Section

For each product, manage:

• Monthly reorder quantities
• Inventory arrivals
• Total inventory levels
• Expected orders

Use the "Smart Reorder" button to receive AI-powered recommendations for reorder quantities based on:

• Projected sales
• Lead times
• Safety stock requirements

Special Features

Smart Recommendations

The calculator offers two AI-powered features:

1. Smart Reorder: Automatically calculates recommended reorder quantities considering:

   • Projected demand
   • Lead times
   • Safety stock levels
   • Reorder frequency

2. Smart Financing: Suggests financing amounts based on:

   • Projected cash shortfalls
   • Financing costs
   • Revenue projections
   • Existing loan commitments

Bulk Actions

• Set consistent monthly owner draws using the "Owner Draw" dialog
• Clear all financing amounts, owner draws, or reorder quantities using respective "Clear" buttons

Data Export

Export your projections to PDF, including:

• Charts
• Detailed tables
• Product-level metrics
• Cash flow projections

Interpreting Results

Warning Indicators

The calculator provides visual warnings for:

• Negative cash balances (red text)
• Negative inventory levels (red text)
• Status indicators at the top of the page

Chart Visualization

The main chart displays:

• Cash inflows (green bars)
• Cash outflows (red bars)
• Cash balance trend (blue line)

Hover over chart elements to see detailed breakdowns of each component.

Best Practices

1. Start Simple: Begin with one or two products and add complexity gradually
2. Use Conservative Estimates: Better to underestimate revenue and overestimate costs
3. Regular Updates: Review and adjust projections monthly based on actual performance
4. Scenario Planning: Create multiple versions with different assumptions
5. Monitor Key Metrics: Pay special attention to:
   • Cash balance trends
   • Inventory levels
   • Gross profit margins
   • Marketing efficiency

Troubleshooting

Common Issues

1. Negative Cash Balance

   • Review timing of cash inflows and outflows
   • Consider additional financing
   • Adjust owner draws
   • Optimize inventory ordering

2. Negative Inventory

   • Increase reorder quantities
   • Adjust lead times
   • Review sales projections
   • Consider safety stock levels

3. Unrealistic Projections

   • Verify growth rate assumptions
   • Check conversion rates against industry standards
   • Review cost and price inputs
   • Validate shipping cost estimates

Getting Help

For additional assistance:

• Click the help icon (?) in the calculator
• Review tooltip information by hovering over metrics
• Contact support for technical issues

Remember that this calculator is a planning tool, and actual results may vary. Regular reviews and adjustments will help improve the accuracy of your projections over time.