How Strong Is Your Business? Can You Pass The 3 To 6 Test?
Source: American Express
The "3 to 6 test" is simple. Set aside 3-to-6 months' fixed costs as a cash cushion for your business. The "3 to 6 test" is a rule of thumb. If you have that amount set aside, it can liberate you as the business owner. It can be the catalyst for growth.