If there’s one thing that’s certain, both in life and in business, it’s that nothing is ever certain. That’s why you’ve got to take the necessary steps to prepare for the unexpected whenever possible.
With all the changes in the federal government and the uncertain impact on businesses and tax rates in the years to come, it’s more important than ever to have a solid financial foundation for your growing business.
Having your finances on track will help to ensure your business’s chances for survival in the long term, no matter what happens. And as we’ve learned during the last couple of years, in particular, anything can happen.
In the spirit of preparing for the unexpected, we’ve put together a few quick tips to help your business to weather any potential storms that may come your way in the weeks, months, or years to come.
3 Ways to Prepare for the Unexpected:
1. Pay off your debts
Getting your business ‘out of the red’ and ‘into the black’ should be a top priority. Pay off everything you can, as soon as you can. Make frequent small payments if you have to – just pay off any debt your business has sooner rather than later.
If your business has a financial shake-up of some sort, the last thing you want is for your business to suffer because you’re having to pay off debtors rather than putting the money toward your business.
2. Organize your finances
If your business finances are a mess, there’s no way to know if you’ll have the money you need, when you need it.
It’s more important than ever to have a solid financial foundation for your growing business.
Set aside some time each month to review your finances and update your records with the most accurate data on your revenue and expenditures. How can you cut costs? What tasks can you streamline to make your business more efficient?
Don’t have time to organize your finances yourself? Hire a financial pro who can help you stay on top of this.
Read more: 5 Ways to Cut Costs for Your Small Business
3. Build up your emergency fund
You should always (read: always, always, always!) have a financial emergency fund set aside for your business so you’re ready whenever unexpected expenses come up. Ideally, your emergency fund should be able to keep your business afloat for at least three to six months.
All of these things will help your business stand on solid financial ground, even if the you-know-what hits the fan. Anything you would add?