During the Government imposed lockdowns in mid 2020, the American economy was technically in a recession, but after the lockdowns were lifted, the economy boomed back. Most small businesses weren’t prepared for these lockdowns. Most small businesses had little to no operational savings and couldn’t afford to pay staff, rent, and other necessities since no or very few sales were occurring. Thankfully the PPP and EIDL loans came through. But being prepared means not having to rely on the Government to help you.

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According to JP Morgan Chase, the median small business has only enough cash in the bank to last 27 days without additional funds. The number of days businesses can survive without bringing in any money varies widely among industries:

• Restaurants: 16 days
• Repair and maintenance: 18 days
• Retail: 19 days
• Construction: 20 days
• Personal services: 21 days
• Wholesalers: 23 days
• Metal and machinery: 28 days
• Health care services: 30 days
• High-tech manufacturing: 32 days
• Other professional services: 33 days
• High-tech services: 33 days
• Real estate: 47 days