A 90-day cash flow buffer is crucial for businesses to withstand financial challenges, such as unexpected drops in sales or rising costs. It serves as a safety net, allowing companies to manage unexpected economic fluctuations effectively. This financial cushion helps prevent panic during tough times, promoting clear decision-making. Despite appearing profitable, many small businesses fail due to cash flow shortages. Therefore, proactive financial planning—including maintaining a cash reserve—signifies resilience and readiness for sustainable long-term growth, an increasingly important strategy in today's unpredictable economic climate.
A 90-day cash flow buffer isn't just about surviving hard times - it's about giving yourself the ability to grow with confidence.
Having a financial cushion to fall back on allows businesses to avoid panicking and make good decisions when unexpected challenges arise.
#cash-flow-management #business-finance #financial-resilience #entrepreneurship #small-business-strategy
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