I know that I’m straying a bit from the core topic of this blog, which is SEO and SEM. But, I think it’s very important to discuss business basics from time to time, rather than just focusing on Strategic and Tactical issues revolving around Search Engine Marketing.
Once you identified a web business for sale, and have entered into the due diligence process, it’s time to evaluate the current financial data, and create some of your own.
So, here’s a handy Cash Flow Spreadsheet template (download) to use, or keep as a reference. Additionally, CCH has a Family Monthly Budget Worksheet (download) that will probably be of interest to many readers.
It’s important to get both the revenue and the expenses to determine whether or not you want to pursue the web business. It’s better to be a little conservative in forecasting, than to be optimistic. Bankers like to see realistic numbers also, just in case you need to go that route.