The goal of every business is to be viable. In order for your business to thrive and survive, you need to be able to maintain consistent, positive cash flow. But what can you do to ensure you have enough cash coming in?

First and foremost, you need to make reasonable, realistic projections. Business viability is about generating enough cash flow, internally, to cover your expenses. Positive cash flow is not simply about your total sales - it's about making the right sales: those that generate enough profit to cover your expenses.

This is where gross profit comes in. Gross profit is your cost of goods sold subtracted from your sales. The money you generate from gross profit is what you need to cover your overhead expenses which include things like:

• wages (including yours)
• rent
• utilities
• insurance
• legal fees
• taxes
• advertising

This is why reasonable, accurate projections are so important: you need to have a firm grasp on where your business is going, moving forward. If you're successful, your gross profit will cover your overhead, without the help of loans or lines of credit, and, if all goes well, allow you to grow your bank account.

Check out our  Managing your finances  section for more information on cash flow and budgeting.