Library

Rainy Day Fund -- Building Working Capital in Good Times

Troy Wilson, David Kohl, Dixie Watts Reaves and, Amanda Wilson (June, 1997)

Summary

In order to survive in the long-run, businesses must prepare for the difficult times by saving during the good times. It is essential to build working capital, or liquidity, during profitable periods that will carry the operation through the inevitable periods of break-even returns or losses.