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6. Keep emergency cash reserves—If you have any money right now, create an emergency fund that equals one, two or three months of your cash outflows. Put this in an account, and don’t use it unless it’s life or death for the business. This provides a cushion just in case something bad comes along at the worst possible time. If you don’t have cash now, do everything you can to build up such a reserve.
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- Thomas E. Houck
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