
Ask HN: What should I be doing with our business' cash? - recyclelater
Using a throwaway account, since we are semi well known. We are a mature, cash flow positive and bootstrapped company that is sitting on a business checking account with $280k in it. $100k is earmarked for 2015 taxes with a known due date. The rest is just general operating funds, about 3 months of run. What should we be doing with this cash that we can&#x27;t necessarily spend, but don&#x27;t want to have sit idle making no money for us? Are there any good options that beat the measly &lt; 1% rate a CD would get?
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recyclelater
Additional details: I am mostly interested in hearing about financial
instruments. We do have a murky path to fueling more growth with some
strategic hires (a designer might go a long way), but my founder and I are
trying to ramp up our team, and our ability to manage that team, in a
controlled and smart fashion. Meaning there is obvious gains to be had with an
additional web dev and a designer, but it feels like we are 6 months out from
having the right culture/structure/management skills to use them effectively.
We went from 5 to 8 full time employees this year, so adding more is a bit
risky feeling.

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cambel
Keep it in cash & cash equivalents. Here is a great write-up on companies that
looked at higher yield options: [http://www.feld.com/archives/2015/04/cash-
policies-startups....](http://www.feld.com/archives/2015/04/cash-policies-
startups.html)

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mswen
Tripling your rate of return from 1% to 3% is only an extra $3600 a year. I
suspect the same amount of effort applied to your core business would yield a
better return on your time and mental energy.

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recyclelater
That's my general take as well, but thought I'd float the question. There's
also the consideration of $250k FDIC limits, though for the next 2-3 years
that's as simple as maintaining a couple of different accounts.

