What are the importance of having a cash reserve for a business?

[Emmy]

Cash reserve is used during when transaction needs to take place physically and the supplier is taking cash as a means of payment. It is also useful in case of emergency in business. It is used for petty expenses.

 

[Good-Person]

Yeah, there are also some business people that made a lot of money during the Corona virus pandemic. A typical example is Elon Musk who became the richest man as of that time.

The health companies were making a lots of money. There were many soap manufacturing companies as well that made tons of money because people were buying huge amount of soaps.

 

[Jonaville1]

It's always good to have a backup in case of emergencies. If you don't have backup funds, or any backup in case of problems, than you're bound to run into problems sooner or later.

I don't think I need anyone will be able to do well with his business if he does not have a back up plan. It is truly not a must but you just need to have one. Anything can happen at anytime.

 

[Chibson]

The health companies were making a lots of money. There were many soap manufacturing companies as well that made tons of money because people were buying huge amount of soaps.

Companies that produces health products actually made a lot of money during the Corona virus pandemic. Companies that sells sanitizers also made a lot of money.

 

[Danny4cash]

As a good business owner, you must have a cash reserve because an unexpected may happen anytime in business. Having a cash reserve is important because when you're in urgent need of cash, you can have something to make use of.

 

[Sotherefore]

If you have a reserve fund for your business , it is mainly for emergency purpose. At least you have something to fall back to if occasions demands. This will be a wise arrangement for every business owners.

 

[Ernestnari]

One vital benefit that having a cash reserve as a business is that it gives you the leverage to seize business opportunities as soon as they come. Imagine someone wants to desperately sell a van at a cheap price and you would be needing a van for the business. You can just draw from your cash reserves and buy the van and save money you would have bought a new one later.

 

[McIrx]

According to a couple researches, most business won't break even until at least six months after starting it. Without cash reserves to help the business survive the very hard start businesses crumble.

Also, cash reserve helps in times of opportunity. The market time and again always throws opportunity across one's path. If their is no cash reserve to tap into those opportunities, they'll fly by without being maximized.

 

[Syldan]

Actually having a cash reserve for your business, is more like having a save for you business income which can enable you to be able to meet up with uncertainties that may comes your way.

It's very important to all form of business including families.

 

[Danny4cash]

Actually having a cash reserve for your business, is more like having a save for you business income which can enable you to be able to meet up with uncertainties that may comes your way.

It's very important to all form of business including families.

Exactly, cash reserve is very important for business. As a business owner, some uncertainties may come your way which requires the use of cash. Though, currently many don't have interest in having cash with them, I still believe cash reserve is important for business.

 

[Shigobad20201]

A cash reserve for a business is also called reserve fund which you have specially in case anything happens , a cash reserve is what you used to revive your business when having problem .

 

[Ernestnari]

A cash reserve would allow a business to withstand the shock of a sudden rise in the prices of inputs that the business uses for it's production. With a cash reserve, production can never stop because of rise in prices.

 

[Danny4cash]

A cash reserve for a business is also called reserve fund which you have specially in case anything happens , a cash reserve is what you used to revive your business when having problem .

There can be an emergency in business anytime and some other important things that you need to sort with cash. This highlights the importance of having a cash reserve as a business owner. If you have a cash reserve, there are some opportunity you'll enjoy.

 

[glitch]

You never know what could go wrong or when. I think it is a good idea for anyone that runs a small business to have enough money put aside to cover costs of running things for at least 6 months. I know that can be hard to come by when you are just starting out but you can start saving soon as you are making good profit margins.

 

[Chibson]

There can be an emergency in business anytime and some other important things that you need to sort with cash. This highlights the importance of having a cash reserve as a business owner. If you have a cash reserve, there are some opportunity you'll enjoy.

cases of emergencies are majorly the reason people need cash reserves for their business ventures. without cash reserve it will be difficult for your business to maintain stability on the long run.

 

[Shigobad20201]

A cash reserve is the reserve fund you have for your business that you don't touch , its been for the unexpected event that might happen to the business , Which might require money .

 

[Chibson]

A cash reserve is the reserve fund you have for your business that you don't touch , its been for the unexpected event that might happen to the business , Which might require money .

I think another alternative for cash reserve is going into insurance. When you have insurance for your business it will serve as a backup if there is any unforeseen circumstances.