Conserving your precious cash reserves is often a very wise decision...because as you may have learned or heard from others, "The worst time to try to get money is when you really, desperately need or want money!" 

Since "Cash-is-King", particularly in the small-and-medium sized business / healthcare practice enterprise, CAPITAL PROVIDER GROUP strongly suggest that you have readily available, via a checking, money market or other very “liquid” account, a reasonable amount of "on-call working capital" so that if a "target of opportunity" quickly appears, you will have the financial capability to swiftly respond before the opportunity evaporates. A typical target range could vary between 5-10% of annual revenue.

Being in the enviable position to immediately seize a significant value could potentially generate for you substantial business productivity or financial rewards far in excess of the “interest cost” incurred to establish the “Cash is King!” reserve. This could be especially useful if your accountant or tax counselor advises you that the interest expense could be utilized as another business deduction.

Some possible “targets of opportunity” could include, i.e.,

**  Limited time “trade show/expo special” asset or equipment purchases.

**  “End of Season” or “Introductory Only Pricing” specials.

**  Significant special discount allowances for groupings of specific business products, professional advanced educational courses / training curriculums or specialized business / practice related equipment or inventory.

**  Investment timing opportunities for deposits and/or contributions into qualified business retirement plans.

In summary, when contemplating the acquiring of additional business Working Capital, think ahead.  You may want to include a realistic amount that would give you and your business / healthcare practice a “sensible and meaningful comfort reserve level.”

As President John F. Kennedy was quoted, “The best time to fix the roof is when the sun is shining!”