From the course: The 45-Minute Business Plan

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Cash adequacy protection plan

Cash adequacy protection plan

From the course: The 45-Minute Business Plan

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Cash adequacy protection plan

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- Cash Adequacy Protection Plan. What happens if the economy turns or how will seasonality impact the revenue? This is a question you'll want to have addressed before it happens. So this section is really a very simple paragraph to explain your plan to offset the lean times. So you could say, ABC LLC has a separate bank account specifically set up for this purpose and receives a monthly deposit as it's outlined in the proforma. You may even write in the operating agreement of the company that a separate account cannot take a withdrawal without two-thirds vote of the executive team, which showcases your thoughtful management of finances.

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