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 min

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…