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

[Chibson]

It's very important for people to have reservations in terms of savings for their business because there may be financial crisis in the business.

 

[Good-Person]

Right now I do not own a business. I depend on paid to click investment sites and for unfortunate reasons, I do not have enough savings in order to deal with the loss (yes, paid to click investments can be risky and you may suffer from loss). I can just hope things will become good for me in the near future for sure.

 

[Jlife]

This is why in every business one is starting it is always advisable for them to have an emergency fund because this will help them in case there is a business collapse, they will be able to use the emergency fund to start up something else.

 

[Sotherefore]

That is why it is not the best option for people to invest all their money at once in a business, investing 80% of your money in a business is better and the remaining 20% should be on reserve ,in case there is an emergency needs that arises.

 

[Kane]

Maybe saving is a wrong work for a business, but I believe a reserve funds should be there for a business for emergency use such as accidental financing or managing the exit plan

 

[Alexandoy]

Maybe saving is a wrong work for a business, but I believe a reserve funds should be there for a business for emergency use such as accidental financing or managing the exit plan

If the savings are from the excess profit of the business then that can be considered as emergency fund (for the business). But having your own savings for the business is a different story. When you use your personal savings for the business then it should be treated as a loan.

 

[Chibson]

this is why financial Management is very important for anyone who is venturing into in a business because there are some certain times when the money you have saved, will definitely save your business.

 

[Setfragil]

This is why it is very important to have a good business plan. When you have a good business plan, you will always have reserve for your business when things does not go the way you wanted it.

 

[Chibson]

Having reserve savings for your business is very important because there are times when there will be financial crisis and you can easily bring the money and push your business up.

 

[Bousine123]

I think saving is the best option here my friend. You dont know what may happen so saving instead of depending on outsourcing funds is the best option.

 

[Jsoliu004]

The interest rates banks pay on savings accounts are almost always much lower than the average inflation rate. As I’m writing this, most banks pay 0.5% interest or less while inflation is running at 2 or 3%. This means that – in terms of real value – money sitting in a savings account is losing somewhere between 1.5% and 2.5% a year

 

[Mayox25]

When you are making profit in your business there are certain percentage you ought to set aside not even only for the sake of the business going south but even for expansion assuming all went well.

 

[jeff87]

Lots of people makes plans for only their business welfare and profitability. But they don't think way forward if the business face financial redundancy, how will they stand it. Thinking about exit business plan is ideal, we should always have alternative to care for our business when it isn't moving in the right direction due to redundancy caused by unforseen circumstances.

Do you have savings to stand your business when unforseen circumstances hit it hard? Or you have alternative to raise recovery funds for your business??

I don't have any saving for my business. It's because I don't have a business yet. If I have a business, I will surely do what you said that a business should have saving so that when untoward circumstances that will happen to the business then there will be finances to sustain or support the business. But what happens most of the time is because of poverty we could not save because of lack of funds.

 

[Nurudeen]

Definitely I have a reserve savings for my business incase of any eventuality. This is why I don't reinvest all my profit in a business at once. I keep some for emergency and use the rest to foot other bills

 

[Richard92]

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.....

No I do not really have much savings but at least I do have feelings because it is good to have savings in case your business shambles this will help with the business.

 

[akinlolu99]

Reserve is a word that people fail to understand rather they mis-use the word reserve for the word savings. the word save is to help someone survive or keep someone from harm while reserve is to keep back to retain later.

 

[Sincerem]

I don't have any saving for my business. It's because I don't have a business yet. If I have a business, I will surely do what you said that a business should have saving so that when untoward circumstances that will happen to the business then there will be finances to sustain or support the business. But what happens most of the time is because of poverty we could not save because of lack of funds.

No problem when you have a business you can start saving towards it, and knowing too well that the future comes with uncharacterized circumstances.

 

[jeff87]

Having reserve savings for your business is very important because there are times when there will be financial crisis and you can easily bring the money and push your business up.

That is right. You must really have reserved savings. This saving is very important.

It's because when there will be any untoward financial circumstances, you can get easily money from the savings that was saved.

 

[gammarays]

I just learnt something new today. It's good to have a separate saving where you keep part of your business capital. The money can be used to expand your business, invest in another venture or serve as emergency relief fund.

 

[Josemendez]

Yeah. There is usually some amount of money I do set aside for business unforseen circumstances and this is what helps to sort this issues when they come.