Every business hits a slow stretch. A cash reserve turns that from an emergency into a manageable event. The clearest way to think about it is runway.
What runway means
Runway is how many months your business could operate on the cash you have if income stopped. Divide your cash on hand by your average monthly burn and you have it. Many owners aim for a cushion of several months.
Building it without starving growth
- Set a target and automate a small transfer each month.
- Keep the reserve in a separate, interest-bearing account so it earns while it waits.
- Refill it after you draw on it, the same way you would a line of credit.
Reserve plus a backstop
A reserve handles the expected. Pairing it with an open line of credit handles the unexpected without forcing you to raise costly capital under pressure.
Estimate your runway with our business calculators, or explore savings options.