Most experts say that anyone opening a new business should be financially strong enough to operate without business income for
A) 1−3 months.
B) 3−6 months.
C) 6−12 months.
D) 1−3 years.
E) 2−5 years.

Question

Quizplus · Accepted Answer

Most experts recommend having a financial cushion for at least 6-12 months when starting a new business. This allows for unexpected expenses and delays in generating revenue to be covered without facing financial ruin. It also gives the business time to establish itself and gain traction in the market before the pressure of generating income becomes too great. While some businesses may be able to thrive with a shorter financial buffer, it is generally considered best practice to have at least 6-12 months of cash reserves available.

Most Experts Say That Anyone Opening a New Business Should