Comment on Is there a good rule of thumb, or simple formula how much retained earnings a business should hold?

Is there a good rule of thumb, or simple formula how much retained earnings a business should hold?

I'm in my second year of business. I now have nine employees and expect to double this amount in the next year. I'm wondering if there is a general rule-of-thumb for a healthy level of retained earnings? I'm having a difficult time finding anything on this as most search results are from a stock-buyer's perspective, rather than a business owner's.

 

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