'Other income' means any amounts you might receive from sources other than your main business activity that haven't been dealt with anywhere else in the cash flow.
Examples of Other income
You may decide to offer other facilities alongside the driving range. These could include:
- a golfing equipment shop
- a cafe or restaurant
- food and drink vending machines
If you plan to offer various facilities alongside your driving range, consider whether you'll run them yourself or rent out part of your premises to other businesses on a 'concession' basis. If you decide that other businesses will run these facilities, consider on what basis this will be, what level of service you would like them to provide and what you will do if the service falls short of your requirements. Your solicitor will help you to draw up a suitable agreement.
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
It's possible that you will continue to earn income from an existing agricultural operation.
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.