Don't go by the word Cash. Due to the recent demonetization act, you might say that we should not hold cash. Otherwise, it might get harmful. By cash, I mean the surplus amount of reserves that you have in your account. Running a Business is no mean task. It is full of uncertainties. Especially in the last 4-5 years market had been moving up & down. In such circumstances, if you have cash reserves in your account, then you can be a King. Almost literally.
When market falls, there are many a businesses which are in problem. People lower the rates of the products so that at least there is some sale and the expenses can be taken care of. Now, imagine if you have quite good amount of money in such a market. You can buy any material, which can be used for long, at dirt cheap rates. For example, you have a factory where the utensils are going at cheap rate. You can just buy them at may be 25-30 % discount. Sometimes even 50 %. It really depends on what type of material you are dealing in or person you are dealing with. Sometimes, the real estate rates are also down in the market.
In essence, you can literally be King. If you show the intent to buy and the party is too desperate then you can negotiate to good amount. And if you get it at such big discounts, and try to sell it even for 6 months, then also your recovery & returns will be big. So, you should not try to be extravagant as soon as you get some good cash, but should just wait till the cash reserves are built up.
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