A business can be profitable and still run out of cash. Sales may slow, a key machine may fail, or a supplier may change payment terms. Set a reserve target based on essential monthly expenses such as rent, wages, transport, utilities, and communication. Start with a small fixed transfer after each week of sales instead of waiting for a large surplus.
Keep the reserve separate from daily operating cash. Do not use it for ordinary stock purchases unless the decision is recorded and a repayment plan exists. Review expenses and remove charges that do not support sales or service. A cash forecast for the next four weeks can show when the business may need more money before the problem becomes urgent.
KobStore can help improve visibility for products and services, but visibility is not a substitute for financial discipline. Use the platform to organise offers and customer enquiries while tracking the cash produced by those sales. A reserve gives a Kenyan business room to serve customers consistently during difficult weeks.
