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3. Cash, surviving the first year

Why read this section? Cash is like corporate oxygen, without it your business dies very quickly. The immediate question for you to answer is: 'How many bookings do I need to sell per month to survive?' This section helps you work through to the answer. It then helps you model cash flow to understand any borrowing requirements you might have for your first year of operation.

What you need to know before you read this section: Nothing!

There are four stages to getting to grips with the subject

  1. What are your start up costs?
  2. What are the operating costs of the business?
  3. Constructing the survival and cash flow models
  4. Funding your first year

TTA is very focused on getting your business up and running at low start up costs. We operate a trust fund system which avoids the bonding costs explained in the section on travel regulation.

This system also creates a discipline in how you run your cash flow, which helps avoid nasty surprises which can be fatal to the business. In addition, we provide the core travel technology at a very low cost.

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