You want to plan for different futures.
You need scenario planning.
You need multiple calculators.
You need scenario templates.
Cash flow scenario planning. Best case. Base case. Worst case. Your planning.
This guide shows you how.
Scenario planning. Multiple scenarios. Calculator modeling. Your preparation.
Read this. Model scenarios. Plan for futures.
Key Takeaways
- Model three scenarios—best case, base case, and worst case to see range of possible outcomes
- Use Cash Flow Forecast Calculator—model different revenue and expense scenarios to see cash positions
- Calculate runway for each scenario—use Cash Runway Calculator to see how long cash lasts in each case
- Track burn rate variations—use Monthly Burn Rate Calculator to see how burn rate changes in different scenarios
- Plan for each scenario—develop action plans for best, base, and worst cases to be prepared
Table of Contents
Why Scenario Planning Matters
Scenario planning enables preparation.
What happens without scenario planning:
- Future is unknown
- Plans are rigid
- Surprises cause problems
- Crises develop
What happens with scenario planning:
- Future is explored
- Plans are flexible
- Surprises are anticipated
- Crises are prevented
The reality: Scenario planning enables success.
Best Case Scenario
Model best case:
Revenue Assumptions
What to assume:
- Higher revenue growth
- Better collection rates
- New customer wins
- Market expansion
Why it matters: Assumptions drive scenario.
Expense Assumptions
What to assume:
- Controlled expenses
- Efficient operations
- Optimized costs
- Strategic investments
Why it matters: Assumptions affect cash flow.
Model Best Case
Calculate it:
- Use our Cash Flow Forecast Calculator
- Enter optimistic revenue and expenses
- See best case cash positions
Why it matters: Best case shows potential.
Pro tip: Model best case. Revenue assumptions, expense assumptions, model with calculator. See our Cash Flow Forecast Calculator for modeling.
Base Case Scenario
Model base case:
Revenue Assumptions
What to assume:
- Expected revenue growth
- Normal collection rates
- Current customer base
- Existing markets
Why it matters: Assumptions drive scenario.
Expense Assumptions
What to assume:
- Planned expenses
- Normal operations
- Budgeted costs
- Regular investments
Why it matters: Assumptions affect cash flow.
Model Base Case
Calculate it:
- Use our Cash Flow Forecast Calculator
- Enter expected revenue and expenses
- See base case cash positions
Why it matters: Base case shows likely outcome.
Pro tip: Model base case. Revenue assumptions, expense assumptions, model with calculator. See our Cash Flow Forecast Calculator for modeling.
Worst Case Scenario
Model worst case:
Revenue Assumptions
What to assume:
- Lower revenue growth
- Poor collection rates
- Customer losses
- Market contraction
Why it matters: Assumptions drive scenario.
Expense Assumptions
What to assume:
- Higher expenses
- Inefficient operations
- Unexpected costs
- Emergency spending
Why it matters: Assumptions affect cash flow.
Model Worst Case
Calculate it:
- Use our Cash Flow Forecast Calculator
- Enter pessimistic revenue and expenses
- See worst case cash positions
Why it matters: Worst case shows risk.
Pro tip: Model worst case. Revenue assumptions, expense assumptions, model with calculator. See our Cash Flow Forecast Calculator for modeling.
Scenario Comparison
Compare scenarios:
Runway Comparison
Compare it:
- Use our Cash Runway Calculator
- Calculate runway for each scenario
- Compare time available
Why it matters: Comparison shows range.
Burn Rate Comparison
Compare it:
- Use our Monthly Burn Rate Calculator
- Calculate burn rate for each scenario
- Compare cash consumption
Why it matters: Comparison shows efficiency.
Cash Position Comparison
What to compare:
- Monthly cash positions
- Cash flow patterns
- Reserve needs
- Credit requirements
Why it matters: Comparison shows needs.
Pro tip: Compare scenarios. Runway comparison, burn rate comparison, cash position comparison. Use our calculators for accurate comparisons.
Action Planning
Plan for each scenario:
Best Case Actions
What actions to plan:
- Growth investments
- Expansion opportunities
- Strategic initiatives
- Profit optimization
Why it matters: Best case enables growth.
Base Case Actions
What actions to plan:
- Normal operations
- Steady growth
- Regular investments
- Balanced approach
Why it matters: Base case maintains stability.
Worst Case Actions
What actions to plan:
- Expense reductions
- Cash preservation
- Emergency measures
- Survival strategies
Why it matters: Worst case enables survival.
Pro tip: Plan actions. Best case actions, base case actions, worst case actions. See our cash flow fire drill guide for worst case response.
Your Next Steps
Model scenarios. Compare outcomes. Plan actions.
This Week:
- Review this guide
- Model best case scenario
- Model base case scenario
- Model worst case scenario
This Month:
- Compare all scenarios
- Calculate runway for each
- Develop action plans
- Update scenarios regularly
Going Forward:
- Model scenarios monthly
- Update assumptions
- Adjust plans
- Maintain scenario planning
Need help? Check out our Cash Flow Forecast Calculator for scenario modeling, our Cash Runway Calculator for runway comparison, our Monthly Burn Rate Calculator for burn rate comparison, and our cash flow safety net guide for prevention.
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Sources & Additional Information
This guide provides general information about cash flow scenario planning. Your specific situation may require different considerations.
For cash flow forecasting, see our Cash Flow Forecast Calculator.
For runway calculation, see our Cash Runway Calculator.
For burn rate tracking, see our Monthly Burn Rate Calculator.
Consult with professionals for advice specific to your situation.
