Does my ecommerce business need an emergency reserve?

I want to tell you about something we call the squirrel fund.

You know how squirrels spend all fall gathering and storing nuts?

Not because they need them right now, but because they know winter is coming.

That's the mindset I want you to have about your cash reserves.

Only 13% of ecommerce owners have three months of operating expenses set aside as a cash reserve.

Let that sink in for a second.

That means 87% of sellers, the vast majority of people reading this right now, are one unexpected expense away from scrambling.

A slow sales month. A surprise tax bill. A supplier problem that shows up at the worst possible time.

Any one of those things can send you reaching for a credit card or a loan.

Not because your business is failing, but just because there was no cushion.

I've watched this happen to good sellers with strong revenue and solid products that had real momentum.

And they still found themselves in crisis mode because one thing went sideways and there was nothing to absorb the hit.

You need to know that a squirrel fund isn't just about surviving the hard months.

It changes how you show up every single day.

When you have reserves, you're not making decisions from fear.

You negotiate better terms with suppliers because you don't need them to say yes.

You have a bad month and you don't panic.

You sleep better. Honestly, you just do.

Cash gives you runway, and runways give you options.

The goal is three months of operating expenses sitting in a separate savings account. Untouched. Just waiting.

If that feels like a lot right now, start small.

Even $500 a month into that account starts building the cushion.

It adds up faster than you think.

If you'd like help figuring out what your squirrel fund number should be and how to start building toward it, take our Ecommerce Business Performance Assessment and then reach out.

We'll build your runway together.

Cyndi