The Importance of Emergency Funds & How to Build Yours?
- Total Finance Resolver
- Apr 7
- 2 min read
Updated: Apr 14
Emergency Funds for Founders & Firms | Total Finance Resolver
Why Emergency Funds Matter in Business?
An emergency fund isn’t just personal finance advice — it’s a survival tool for startups and scaling businesses. When revenue dips, investors delay, or the market shifts, your emergency buffer is what keeps the lights on, payroll running, and strategic control in your hands.
We’ve seen founders sell too much equity or fire key talent — just because they didn’t have 90 days of runway in the bank.
What’s the Right Emergency Fund Amount?
There’s no one-size-fits-all. But here’s what works for:
Startups: Minimum of 3–6 months of monthly burn
SMEs: 3 months of operating expenses
VC-backed firms: Forecast for 2 quarters of zero revenue
These buffers give you leverage when negotiating raises, bridge loans, or M&A deals.
How to Build It — Fast?
Automate Emergency Fund Contributions
Treat it like payroll. Automate a fixed % of monthly net income into a high-yield account.
Cut What Doesn’t Scale
Audit tools, contractors, or travel spend. Redirect savings into your emergency runway.
Forecast Multiple Scenarios
Build Base, Upside, and Downside cases with an offshore FP&A team. This clarifies how much you truly need.
Use It Only When It’s Critical
No new hires. No ad tests. Use it for delays in payments, sudden churn, or supply chain blocks.
Where Total Finance Resolver Comes In?
We help founders and CFOs forecast emergency fund requirements with real financial modeling.
Our services:
📊 Business Plans and Forecasts
🌍 Offshore Financial Planning & Analysis Team
💼 Mergers and Acquisitions Consulting
💻 Scenario planning for investor decks and cap tables
We’re not just consultants. We’re startup allies — from pre-seed to exit.
Book Your Free $200 Emergency Strategy Consult!
Want us to audit your burn rate, forecast your runway, or build your buffer model?
👉 Book now at www.financeresolver.com/book-online
