Industry sector: Retail and wholesale

Milk round: Cash sales

'Cash sales' means all income from your domestic customers which you collect each week or fortnight. Although most of your customers will pay you in cash, remember that cash sales can also include:

  • cheques
  • debit and credit card payments (if you accept them)

To prepare your cash flow, you need to estimate how much income you will receive from cash sales over the next 12 months. To do this, you'll need to work out how much milk and other items you are likely to sell, at what price and when you'll receive the money.

There are a number of things to consider when you make your estimates:

Type of business

  • will you be buying an existing round or setting up from scratch
  • who will your customers be
  • will you have a shop as well as a milk round
  • will you deliver daily or less frequently
  • will you be independent or a franchisee
  • will you be able to cope with the early start every day and the likelihood of a long working week

Your products

  • which milk and dairy products will you sell
  • which other product lines will you carry, for example vegetables, orange juice and so on
  • will you offer organic products
  • how often will you introduce new products
  • how will you monitor which are popular/unpopular lines
  • will you register to accept Healthy Start vouchers
  • will you have enough storage space (including refrigerated space) for all the lines you plan to sell

To help with your decisions, click on the checkpoints for guidance. Once you have worked out a Cash sales figure add it to the relevant field in your cash flow forecast.