Reserve profit for longterm financial stability from "summary" of Profit First by Mike Michalowicz
The key to achieving long-term financial stability in your business is to consistently set aside a portion of your profits as reserve profit. By allocating a percentage of your earnings to this reserve fund, you are ensuring that you have a financial cushion to fall back on during lean times. This reserve profit serves as a safety net for your business, allowing you to weather unexpected expenses, fluctuations in revenue, or economic downturns without having to resort to taking out loans or dipping into your operating expenses. By building up this reserve fund over time, you are creating a strong financial foundation for your business that will help you sustain and grow over the long term. In order to effectively reserve profit fo...
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