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I would go a different path. Companies with 10mil of seed capital in their bank account are not a “small business”. The guy who owns 14 car dealerships in 3 sta

I would go a different path. Companies with 10mil of seed capital in their bank account are not a “small business”. The guy who owns 14 car dealerships in 3 states has less money in their bank account. A “small business” has -100k/+100k in their bank account.

zaroth 4y ago
Typical rule of thumb is 3 months OpEx for a small business’ checking account balance. A tiny $400k run-rate company should have $100k in the bank. Keep in mind we’re talking about expense run-rate not profit. The guy who owns 14 car dealerships might not have $10 mil in their checking account, but they absolutely have payroll and rent obligations at a level where they’re holding at least a couple million. To say nothing of cash requirements for all that inventory…