Good-Guy
VIP Contributor
Funding is one of the basic things that are necessary to start a business and it is also needed to manage business. This is because without funds, you will not be able to invest in the first place and you will not be able to invest money for other important things in the business. For example, if you do not have funds, you will probably not be able to hire employees or pay for services that are necessary for your business. This is because there are several expenses in a business and this is where reserve funds play a crucial role. Reserve Funds refer to extra funds which you can utilize in case of emergency. When working capital is no longer effective, reserve funds might be the last hope for the survival of any business. This is why people often say that you must not put all of your eggs in one basket and you must have a secondary plan along with funds. What do you say?