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What's the liquidity of a small company owner?

Someone who owns a small company with low 7 figure EBITDA an...
self-absorbed red school cafeteria
  04/23/26
it varies so much. most of the businesses are trades owned b...
bateful federal mad-dog skullcap
  04/23/26
Describe the range of outcomes.
self-absorbed red school cafeteria
  04/23/26
wdym? they all do great.
bateful federal mad-dog skullcap
  04/23/26
It depends on the business, but with "low seven figures...
yapping cerebral locus
  04/23/26
All true but my question is more about how much cash they ke...
self-absorbed red school cafeteria
  04/23/26
Are you planning on robbing one?
Translucent stead multi-billionaire
  04/23/26
I own one of these businesses. My total liquid assets equal...
self-absorbed red school cafeteria
  04/23/26
Ah, now I understand. I think it depends on many factors: wo...
Translucent stead multi-billionaire
  04/24/26
Any idea how much liquidity the owners have personally?
self-absorbed red school cafeteria
  04/25/26
I said it was a "business," but it's actually a no...
Translucent stead multi-billionaire
  04/25/26
Nice! Congrats to you on this. I think this sort of life is ...
yapping cerebral locus
  04/24/26
Appreciate you saying so. There are still many issues. I w...
self-absorbed red school cafeteria
  04/25/26
Depending on the size of the business (and the industry to s...
yapping cerebral locus
  04/25/26
Enough to keep the lights on for six weeks is a good baselin...
crimson hospital french chef
  04/23/26
...
vibrant nibblets
  04/23/26
...
self-absorbed red school cafeteria
  04/23/26
at least 11
Cream stirring library toaster
  04/25/26
11 what?
self-absorbed red school cafeteria
  04/25/26
...
self-absorbed red school cafeteria
  04/25/26


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Date: April 23rd, 2026 4:27 PM
Author: self-absorbed red school cafeteria

Someone who owns a small company with low 7 figure EBITDA and somewhere in the dozens of employees? How much cash, liquid stock, etc. do these guys typically have on hand?

Seems like a lot of these guys have great businesses but spend or reinvest a lot and don't have a ton of cash just sitting around.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49837802)



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Date: April 23rd, 2026 4:33 PM
Author: bateful federal mad-dog skullcap

it varies so much. most of the businesses are trades owned by ascended scumbags and their finances are exactly what you'd expect.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49837820)



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Date: April 23rd, 2026 7:27 PM
Author: self-absorbed red school cafeteria

Describe the range of outcomes.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838431)



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Date: April 23rd, 2026 8:13 PM
Author: bateful federal mad-dog skullcap

wdym? they all do great.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838521)



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Date: April 23rd, 2026 8:17 PM
Author: yapping cerebral locus

It depends on the business, but with "low seven figures" EBITDA ($1m - $3m), an owner ought to be able to pull out $500k - $1m annually in addition to a reasonable salary. The bigger thing you see in these situations is stuff getting run through the business. "Work" trucks and what not. Employing spouses and family is another major perk.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838535)



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Date: April 23rd, 2026 8:43 PM
Author: self-absorbed red school cafeteria

All true but my question is more about how much cash they keep on hand. As well as liquid securities like in brokerage accounts. $1 million? Less? More?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838583)



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Date: April 23rd, 2026 9:22 PM
Author: Translucent stead multi-billionaire

Are you planning on robbing one?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838729)



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Date: April 23rd, 2026 10:43 PM
Author: self-absorbed red school cafeteria

I own one of these businesses. My total liquid assets equal about one year's EBITDA. That feels really tight to me and I am trying to stockpile more cash.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838869)



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Date: April 24th, 2026 2:34 PM
Author: Translucent stead multi-billionaire

Ah, now I understand. I think it depends on many factors: working capital needs, e.g., receivables (size and timeliness of collection), inventory, investment needs,etc., plus growth trajectory, how cyclical is the business, and revenue and expense predictability. I usually look at it in terms of how many months of expenses with no income could I endure. 3 months is the goal I have set for a small business on whose board I sit. We're nowhere near that at present, but it's a goal.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49840003)



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Date: April 25th, 2026 12:31 AM
Author: self-absorbed red school cafeteria

Any idea how much liquidity the owners have personally?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49841244)



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Date: April 25th, 2026 5:42 PM
Author: Translucent stead multi-billionaire

I said it was a "business," but it's actually a non-profit. We try to run it like a business.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49842665)



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Date: April 24th, 2026 2:36 PM
Author: yapping cerebral locus

Nice! Congrats to you on this. I think this sort of life is better than virtually any other.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49840010)



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Date: April 25th, 2026 12:12 AM
Author: self-absorbed red school cafeteria

Appreciate you saying so. There are still many issues. I wake up every Monday morning with a sword of Damocles called payroll hanging over my head. Bottom line, no matter what. That's before you get to the challenges of managing an organization, dealing with regulatory pressure, keeping the flow of customers coming, etc.

I am very blessed and very thankful. But the stress is insane sometimes. I am trying to stack enough cash and diversify enough that the business doesn't dominate my life to such an extent. But that's a long process.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49841237)



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Date: April 25th, 2026 6:43 PM
Author: yapping cerebral locus

Depending on the size of the business (and the industry to some extent), you may be in a position to bring on a "professional" #2. Lots of guys out there who can't get from zero to one, but who can take a smaller company with meat on its bones and scale it.

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49842828)



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Date: April 23rd, 2026 10:11 PM
Author: crimson hospital french chef

Enough to keep the lights on for six weeks is a good baseline

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838820)



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Date: April 23rd, 2026 11:31 PM
Author: vibrant nibblets



(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838949)



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Date: April 23rd, 2026 11:06 PM
Author: self-absorbed red school cafeteria



(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49838929)



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Date: April 25th, 2026 12:27 AM
Author: Cream stirring library toaster

at least 11

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49841241)



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Date: April 25th, 2026 12:28 AM
Author: self-absorbed red school cafeteria

11 what?

(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49841243)



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Date: April 25th, 2026 8:19 AM
Author: self-absorbed red school cafeteria



(http://www.autoadmit.com/thread.php?thread_id=5859824&forum_id=2/en-en/#49841456)