[Twirrim]

If your business cannot figure out its finances well enough to provide a month notice to employees being laid off, you've got some serious incompetency issues.

The US is possibly the only developed nation in the world that believes in "at will" employment, and yet all of those other developed countries (including pretty much the entire G8+) have thriving business market, lots of businesses able to start up, take a shot, go bust, and/or thrive.

[everdev]

When I ran a business I liked to have 2 payrolls worth of cash set aside. So, if a customer was late paying by 3 weeks we'd still be OK. This turned out to be a pretty cautious approach and we were never in danger of missing a payroll (or the following one).

Keep in mind payrolls are for work that's already been performed.

Having enough cash set aside for the work that's been performed plus a month of future work is having 3 payrolls worth of cash set aside at all times.

I could see it working if all companies had to do it, but in a scenario of two identical companies where one can spend more freely they're probably more likely to grow.

[tbrooks]

A lot of businesses don't have the luxury of positive cashflows that software businesses do.

There are a lot of factors that would contribute to running a business without a month's cash on hand. But I wouldn't say that the business owner is _seriously_ incompetent.

[Twirrim]

There's money coming for salaries from somewhere. It's not just mysteriously appearing just in time for payroll time.

It takes almost no financial discipline to set aside enough for a couple of months worth of salaries.

If things are getting that tight where that money becomes in jeopardy, the odds of a miraculous turn-around are negligible, and you should have been rethinking everything a lot sooner.

[jimmy1]

Often times, what one thinks another should do may not be immediately obvious or even remotely close to on another's radar. The beautiful (and sometimes ugly) reality in America is anyone can start a business, and pay some employees. Within that range, you have infinite samples on the "this is how a well oiled machine should run" to "I am doing this for the first time, trying to do the best I can and I hired a few people I know"

Should you be required to know all of these things beforehand before starting a business? Who am I to judge. Ultimately these types of comments display the pure position and perspective of privilege that is so typical on this forum. I am not saying that is a bad thing, we typically talk about the elite companies, and what types of business practices should be followed, just know that this isn't anywhere near close to the majority of American businesses.

I am not one to participate in the current "woke" culture, but

> It takes almost no financial discipline to set aside enough for a couple of months worth of salaries.

This statement drips of pure privilege to me. A couple of months worth of salaries? Are you kidding? Sometimes you have to worry about paying rent on time! We all aren't bootstrapped, VC-backed unicorns. Most of the businesses out there earn every single dollar and have to make tough decisions such as whether or not to pay your employees on time or call the Hobart technician to repair the dishwasher so you can stay open. Oh by the way, the Hobart guy said you need to replace it and it will cost you 10,000 dollars. I think most small business owners are fortunate to have even a couple of weeks set aside.