I was having serious cash flow problems at certain prime growth situations in my business. I was struggling because certain customers constantly did and still don't pay on time. This is a fight you will never win. Especially if your business consists of mainly medium income residential maintenance. To avoid this problem I just decided I needed to have 1.5 month's business expenses set aside when I wanted to add an additional employee. As the owner I can wait on some checks, my employees living paycheck to paycheck cannot. Having this cash on the side that I always reimburse solved my cash flow issues immediately.