Do you have reserve savings for your business when it goes shambles?

[Eodine]

It is good to have reserve service for your business because you cannot determine what will happen next in your business. With your reserve savings, you can be able to come back to your present position when your business go shamble

True, but truth be told, it's easier said than done. Everyone knows the importance of saving but business also has it perks especially the ones just starting which is why it is important to have financial advisors.

 

[Ralphjoe]

I have never thought about keeping some reserve funds for when my business fails because I don't consider failure when starting a business. This is actually a very good idea that I will love to incorporate for my business.

 

[Setfragil]

As we all wish not to find ourselves in such situations but challenges like that cannot be ruled out of any business totally. It is good to always have some savings when the sales is doing fine so that if we find our businesses in such situations it will be easy to come to it rescue.

 

[Abigael]

I don't have a business currently but I think the idea of having some reserve savings for the business is very clever. Just like in your personal financial like where having emergency funds savings is great, it is also good to save some money for business related emergencies. This will help you recover faster for example from a loss.

 

[Snazzy001]

Everybody is supposed to know that business will not always go as planned or be that smooth forever, it must have hills and valleys, days where it almost goes bankrupt, and for this, you have to plan by saving.

 

[Fizzy_boi]

To be sincere Right now I don't have any other options if anything happens to me or my businesses . Actually being a student a lot of things sucks up your savings .

 

[Sincerem]

Hmm.... that's true!!! I never thought of it anyways because the business as of today still gives good profit. But who knows what will happen anything which i don't pray for could happen but one need to be prepare for it.....

Our prayer is that unforseen circumstances doesn't hard rock our business towards tumbling. We always pray for way forward and not backsliding. But that shouldn't make us forget to plan and be ready to face unforseen circumstances in our business.
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This is one of the most important considerations that you have to make when you are opening your own business. Do you have to have enough capital in order to run the business on a day-to-day front however at the same time you have to have enough with the capital to bail yourself out in case there are unforeseen circumstances. I think that this should be roughly 50% of your capital investment.

Even if its not 50% capital investment. Atleast 30% capital investment should be saved for emergency business relieve funds to save the business when it faced such kind of uncharacterized issue.

 

[tyrim88]

It is very neccessary to always plan for the rainny day in business.This is because the profit you make should not only be used for personal issues as a business owner.We had similar issue in our business, as when we started ,a lot of our product were given out on credit and when it was time to restock,we did'nt have the funds to do that,we have to fall back on our reserve to be able to restock our business.

 

[Sincerem]

It is very neccessary to always plan for the rainny day in business.This is because the profit you make should not only be used for personal issues as a business owner.We had similar issue in our business, as when we started ,a lot of our product were given out on credit and when it was time to restock,we did'nt have the funds to do that,we have to fall back on our reserve to be able to restock our business.

Yes, we should always have plans for that, any entrepreneur who doesn't plan for the rainy days of his or her business before it gets to that time, risk losing it to unforseen circumstances.

 

[eLdavis]

Like they say, never put your eggs in one basket. This has helped alot. When i suffered some losses, it was the little i had that i was able to use to get my self back together
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You are absolutely right. In fact, we should be planning alternative route whilst we plan our business ideas. Good plans may not work out for some reasons sometimes, hereby we need to have plan b

Yes if possible there should also be a plan C cause anything can happen if or your hope is on just one basket it might fail you

 

[Kelly5]

Every business need to have a reserve savings as a kind of backup plan should that business go south for any reason beyond their control. This will help you to either start up again or change course

 

[Sincerem]

Any business without a backup capital or reserve funds for the future is simply hitting around the bush with no tangible findings. At the end, it wasted some time and not achieving anything.

 

[Ayokex]

I don't think there is anything like reserved savings for business. Many SME you see today struggle to establish their businesses with the little they have and talking about some reserved money must have come from someone who is already well to do and have more than enough.

 

[Razor1911]

Having a backup plan always works. When you invest everything in a single project, it will increase the risk factor. That is why, I Always advice to diversify the portfolio, so that even any of them eats up your money, the rest of the platfrom will save your money.

 

[Eodine]

I have never thought about keeping some reserve funds for when my business fails because I don't consider failure when starting a business. This is actually a very good idea that I will love to incorporate for my business.

Anything can happen, until you get the results, expect anything as you might miss something out and you wouldn't even know so a reserve would help someone stay on track.

 

[Sincerem]

Having a backup plan always works. When you invest everything in a single project, it will increase the risk factor. That is why, I Always advice to diversify the portfolio, so that even any of them eats up your money, the rest of the platfrom will save your money.

You're correct dear, we ought to have future back up funds. Incase one option failed, we can initiate revival using our reserved funds. That's why having diverse escape business route is better.

 

[Trexxxy]

It is important that when you run a business you have some sort of contingency line in place should there be a case of unforeseen circumstances.

 

[Kane]

When I was operating my offline businesses, I did not have reserve funds. I invested what ever I had. IN the beginning when I was making profits, I continued to reinvest.

 

[Kelly5]

That is a very wise way to save your neck and the little you can salvage from the failing business should things not work out as intended in the said business. We should always factor this into our planning process of the business

 

[Senator]

It is always good to have a reserve savings somewhere for the business you are currently running to serve as saving grace ton over for some lack in the running of the business to prevent it from running down