'Other income' means any amounts you might receive from sources other than your main male grooming business that haven't been dealt with anywhere else in the cash flow.
Examples of Other income
For example, you might decide to rent out part of your premises that you're not using to another business. Any rent that you receive is referred to as Other income.
Your business might also receive Other income from sources such as:
- a notice board in your window or elsewhere on the premises where customers can put an advert in exchange for a small fee
- writing articles for a professional journal
- part time lecturing
- 'renting out' chairs in your salon to freelance stylists
If you think you will have any income of this nature, make an estimate of how much you think you will receive every month and enter this in your cash flow projection. Exclude any loans and grants which you expect to receive. Be careful not to count any income twice - if you've already counted something as 'Cash sales' don't count it again as Other income.
Income from outside the business
It may be the case that you also have some income that's nothing to do with the business at all. For example, you might:
- own a house or flat that you rent out
- have a part time job that you intend to keep up
- have income from investments
Don't include this type of income in your cash flow unless you use it to meet business expenses. If you do spend it on business items it's referred to as 'Capital introduced'. But even if it's nothing to do with the business, be sure to mention it to anyone you approach for a loan - it can help to demonstrate your creditworthiness. On a practical note, it could also help to tide you over during the early days when your new business is still getting established.