StartupCostCheck Glossary
What is Cash buffer?
A cash buffer is business money kept uncommitted for cost overruns, delayed customer payments and necessary expenses missing from the original plan.
Why it matters
Startup estimates are rarely exact, even when the main prices are checked. A delayed payment or replacement tool can create a problem if every pound is already assigned. A separate buffer keeps ordinary surprises from reaching household money.
How to use it
- Keep the buffer separate from planned purchases.
- Size it around realistic delays and costly weak assumptions.
- Use it only for necessary unplanned business costs.
- Rebuild it before adding optional upgrades.
StartupCostCheck includes a business buffer when testing how much cash the plan needs. The free result shows the runway left after that protection is set aside.
Short definitions of the money words behind a safe business start: runway, burn, risk budget, what to buy now and what to delay.
Check my startup runway