- You have a healthy Pipeline with three months of potential work.
- Behind that, you have you have a healthy A/R worth a months billings.
- Behind that is your WIP, worth at least 3 months billings.
- Cash in the bank worth at least 5% of your annual gross sales.
- And lastly, a “rainy day” credit line of at least $100,000 with a zero balance
It may be tough work to get there, but it is possible, and you’ll appreciate every step in that direction.