The role of a cash cushion in year-one survival · Gurwi
What is the primary purpose of a cash reserve for a new business?
To fund growth initiatives like new hires or marketing
To cover the gap between when money is earned and when money is needed
To replace the need for a line of credit
To maximize investment returns
A consulting firm has stable, recurring revenue from long-term contracts, no inventory, and clients who pay within 15 days. Which cash reserve target is most appropriate?
