While having cash reserves is crucial, knowing when to use them is equally important. Here are some scenarios where tapping into reserves might be necessary:
Unexpected Expenses: Use reserves to cover sudden, unplanned expenses that are critical for the business. Revenue Shortfalls: During periods of low revenue, reserves can help maintain operations and meet financial obligations. Investment in Growth: Utilize reserves for strategic investments that can generate significant returns, such as new product development or market expansion.