Investment Principals for Entrepreneurs #4
BUILD YOUR CASH RESERVES
As a business owner cash is extremely important. You seek to make it and save it. You save it for a number of reason like expansion, hiring, security, and more. We all know that if you are growing and need more staff then you potentially need a larger office space, more supplies, more equipment and more inventory. All of that requires cash. Then there is the bookkeeper and accountant. As the business grows the overhead grows. That is why cash is important. This is a good problem to have. What we want to be aware of though is saving enough to not have to reach into out investments to fund a function of the business. With investing compounding and time and your best friends. When you take away from them in the short term it can harm you in the long run. That is why you should be saving enough cash to make sure the business and personal spending is covered in case of an emergency.
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