new business module

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BUSINESS SKILLS
Every year, entrepreneurs should put aside an amount equivalent
to the annual depreciation of their equipment. Once their
respective savings have reached the replacement cost of the
equipment, they can stop.
However, there are other reasons for saving money. Life and
doing business entail certain risks. One way to protect yourself
against risk is to take out insurance. However, insurance is
often not available or too expensive. Another way to protect
yourself against unforeseen events is to accumulate savings.
Entrepreneurs should set money aside for unforeseen events.
This money can be used to protect the business (e.g. machine
breakdown, spoilage of materials due to water damage) and
the family (e.g. sudden illness, breakdown of the stove) against
unforeseen events.
If savings exceed the level considered useful to protect the
business and the family, the excess can be used for investments
or even consumption.
Whenever possible, savings should be kept in a bank account.