Every entrepreneur knows the importance of finances and funding. The buoyancy of any startup’s cash flow can make or break a business. What business owner’s spend less time considering is emergency provision. Does every entrepreneur have a plan for if their warehouse is broken into and stock is stolen? Can they account for staffing shortages? Or do they know how they would fulfill orders if a supplier went out of business? Knowing how to mitigate these circumstances is vital. While an emergency doesn’t crop up too often, it’s still imperative that you can find a way to continue trading to ensure that your startup isn’t impacted. Take a look at these three simple ways to stay prepared for business emergencies.
It’s vital when you first launch your startup, that you have accounted for your cash flow. When heading to the bank manager or pitching to a business angel, you will be asked how you will fund your first orders. You don’t want to be backed up just because you have too many customer orders and too little money to get them shipped. When applying for funding, ensure that you have a pot of cash ready to account for everyday essentials.
If you find a surprise cost arising such as an increased heating bill, an increase in fuel costs or needing to fix a leaky roof, you can always take a look at fast cash advances online. This way, you can rectify an emergency situation quickly while not taking on ridiculous amounts of debt.
If you don’t have the experience in-house for a business function, it often pays to outsource rather than trying to upskill your own staff. Upskilling costs money and there is no saying that this person that you have spent so much time, effort and money on to skill up won’t resign and move onto a new company. If you are battling with SEO or you don’t quite have your finger on the pulse of social media, outsource to an IT company who can help you with your online goals. If you want more traffic to your website, you want to gain followers on Twitter, or you want to start a blog, a specialist can help you. This can save you money and stop you wasting cash on training up staff who can then leave with their knowledge and your investment.
While most people should have a nest egg to prepare for their retirement, your startup should have a nest egg to prepare for any emergencies. It’s not good enough to keep reinvesting your cash. You need to siphon off some of your money into an account that remains untouched. Allow it to accrue and keep it ring fenced. Never dip into it, even for the tiniest amount, and keep it for those unforeseen expenses. This could be the difference between your business surviving or folding.
Starting your own business is the most exciting way to spend your nine to five existence. Ensure that you prepare for business emergencies and see your business go from strength to strength.