If we were to declare an official theme for this year (and perhaps the next four years), it would be ‘Prepare for the Unexpected.’
With all the changes in the federal government and the uncertain impact on businesses and tax rates in the year(s) 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 for the long term, no matter what happens. And as we’ve learned so far this year, 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 Tips for Greater Financial Security:
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. Click To Tweet
Set aside some time each month to review your finances and update your records with the most accurate data around 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.
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 more solid financial ground, even if the you-know-what hits the fan. Anything you would add?
*This is not meant to be a political post – we’re just keeping it real. And, uhh, things have been a little bonkers lately.