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How do I estimate my e-business cash flow?
My website will be one that relies solely on ads for revenue. How can I do a three-year cash flow projection based on that?

Asked by the_hitchhiker
Posted: Wednesday, August 15, 2007  |  Found in Finance & Accounting

More answers by Rosalind Resnick
Answer by Rosalind Resnick
If your website has been around for a while, you probably know how much cash flow it generates on a monthly basis. You probably also know how much money you make per ad (on a CPM or CPC basis) and approximately how many visitors come to your site each month and how many ad impressions they generate. By doing some simple math and factoring in realistic assumptions for your site's traffic growth, you should be able to put together a pretty accurate cash flow forecast for your business.
Rosalind Resnick is the founder and CEO of Axxess Business Consulting, a New York consulting firm that advises startups and small businesses.

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