Channel Eye has joined forces with Royston Guest, leading Business Growth Coach and CEO/Founder of Pathways Global, in our column, ‘Ask the Business Coach’
Your cash reserves is the money you keep on hand to meet short-term and emergency funding needs and is what you’ll use to fund your business if you experience a period of reduced revenue, or even worse, no revenue.
The big three takeaways!
- Don’t be hand to mouth
- Over the past 18 months, businesses have been burning their cash reserves to survive
- Ideally, aim for between 3-6 months of cash reserves
Episode timestamps
- [O.30] No hard or fast rule, but you should aim for between 3-6 months of cash reserves. Three months is the minimum, and six months is optimum.
- [1.00] During the past 12 months, most businesses have used their cash reserves to fund their business operations.
- [1.50] Save a little amount each month to build back your cash reserves.
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