Financial Reserves for a Cash Business

[ipsg.glf]

I'm involved with a community group which runs a cafe business. Summer is bedlam and winter pretty quiet.

I need to work out how much we need to have in the bank as a safety net. Is there a standard multiple I should be using in terms of monthly operating costs: x3, x6, x12?

Thanks

[Eric Mc]

No there isn't. You are going to have to work out what your "cash out" requirements in the lean period are going to be.