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When starting a new business, one of the main things that the 
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entrepreneur needs to do is come up with a liquidity management
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strategy. They need to create an action plan to avoid liquidity risks and
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The importance of a section covering liquidity in your

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Liquidity can be de�ned as the ease with which an asset can be converted
Please describe your project
into cash. Liquidity for businesses refers to a company’s ability to use its briefly:
current assets to meet its short-term liabilities. To avoid risks, businesses
need to maintain the right amount of liquidity. The liquidity section is an
important part of your overall �nancial plan.
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When starting a new business, you need to de�ne essential processes and
steps to determine the right amount of liquidity for your business. You
need to create a �exible framework that your managers can tweak in the
Investment needed / Required Capital in $ or €
future to ensure they are in accordance with the latest guidelines. To help
accomplish this task, business plan writers include a section dedicated to
(If the amount of capital required
explaining liquidity in their business plans.
has not yet been determined in
detail, please make a rough
The depth and length of this section will also depend on your business
estimate.)
plan objectives and addressees.

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business in with a
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markets volume York
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Dollar

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