What are financial resources?
When discussing financial resources, we refer to the extent to which you have access to money. Financial resources are necessary to enable the use of capacity, purchase raw materials, etc. The need for these resources partly varies with the scale of activities, but also follows a somewhat fixed pattern.
Through your company's cash flow, you gain insight into the various cash streams and, more importantly, how you can influence them. This latter aspect is crucial to ensure there are always sufficient financial resources to meet your obligations.
Do not underestimate the importance of a 12-month rolling forecast. This prediction provides insight into how your organization's activities will develop over the next 12 months. It is also a guide for the associated figures, including the operating result (or EBIT) and Cash Flow.
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Also read Successful entrepreneurship can be learned.