What’s the magic number for cash in a small business? Here are strategies to figure that out.
Ask any small-business owner and you’ll be told that having plenty of cash in the bank is probably the most important indicator of our financial health. But managing cash flow continues to be one of the biggest issues we face. Almost two-thirds of small-business owners are “regularly stressed or have anxiety due to cash-flow concerns,” according to a recent survey of more than 500 entrepreneurs from small-business lender Kabbage. More than a quarter of them said that they have gone as long as six months without receiving a paycheck.