How do you know how much cash to save, and how much to spend?
If you read my blog yesterday that is :)
But how much cash should you keep in your main account to reduce the risk of business failure?
Well that's a tricky one.
It depends on the nature of your business
How regular is your income?
Are the external market risks high or low?
Do you have contractual obligations for clients to pay?
Are you selling products and subject to the ad algorithm?
Are you like Richard Branson and happy to risk it all in the name of growth?
Do you wake up in the night worrying about low cash reserves?
If you want to discuss the right level for you just book a call below BUT
Those are the costs that do not vary with sales e.g rent, salaries, internet, insurance and so on.
If you have your team on 1 weeks notice that might be considered a variable cost!
How much cash do you save?
Are you operating the multi bank account system?
Are you getting this kind of advice from your accountant?
If not you could be missing out on maximising your growth by saving too much, or increasing the risk of business failure by
Simon
60-minutes of practical tips and actionable advice you can do today. Master your finances, minimise your tax, and scale your business to grow big!