3 ms·
It makes sense now, doesn't it? You don't have to plan for a pandemic specifically. Just any kind of a downturn where you might not be making money for months
by olyjohn 7y ago
It makes sense now, doesn't it?
You don't have to plan for a pandemic specifically. Just any kind of a downturn where you might not be making money for months at a time. It's called an emergency fund.
You always hear how people at home should have 6 months worth of expenses saved up in case of emergency. I'm honestly blown away how many businesses don't do the same thing. Basic fucking financials.
I understand a bit more if you're a smaller business, with small margins, and you're just getting started. But if you've been in business for years, with tons of money flowing through... and you can't get through a few months, maybe you should go out of business.
- hemogloben 7y agoThis has been the most frustrating thing for me. The advice for the individual is essentially the exact opposite of the advice for the 'too big to fail'. I understand that the circumstances are different, but it feels frustrating that my accountant would suggest I save 6 months for unforeseen circumstances, but wouldn't provide the same advice to an employer with many people's livelihoods in their hands. That said: Are there any studies on the economic impact of every company hoarding 6 months worth of safety vs the likelihood of that event vs the cost of no company having the safety net during this pandemic?