Significance of cash reserves

[Moseschidera]

Holding a cash buffer is considered a basic principle of financial management. However, the appropriate level differs significantly depending on factors like industry and growth phase. For those running businesses, how much do you endeavor to keep in readily available reserves? Have you encountered situations where having more or less would have been better?

 

[eLdavis]

For me I don't have a specific amount when it comes to what I keep as reserve though, I simply just keep whatever I can.

 

[Xtynehappy]

I think that the amount on the cash reserves depends on various parameters that affect the business. For instance the size and nature of the business.