Remember that unexpected repair or a client didn't pay you on time?
Or you lost that big account that generates a ton of revenue?
As a business owner, I know there's nothing quite as stressful as getting blindsided by an unexpected financial blow. And as a business owner, you know you need to prepare.
But how? How do you cope with that inevitable cash flow crapper?
Be prepared. If you've been in business for more than a week, you know something unexpected is going to happen. Just get used to it. It's the nature of being a small business owner or entrepreneur. Preparation is the difference between it crippling you and it being a slight speed bump. Preparation will lower your stress levels when the financial blow does occur. It will allow you to work on the solution rather than fixate on your sad state of affairs.
Build your emergency fund. Yes, I'm going to preach about an emergency reserve for your business too. I've written about a cash or emergency reserve for personal reasons quite often. I'd recommend having a rather large reserve, perhaps as much as one year's worth of operation expenses. Having some extra cash on hand will really come in handy when someone stiffs you for payment, or there is another business disaster. Major point coming: Make sure you replace what you remove from this account as quickly as possible. Save your money and one day it will return the favor.
Stay positive. This too shall pass. If you are facing a financial blow to your business, it won't last forever. I've always struggled with keeping a positive attitude. In fact, I can be quite negative at times. But when I stay positive and focus on what's going right with my business, I'm always surprised that it's not quite as bad as it could be. That's when I usually find some solution to my business problem. Focus on solutions and stay positive.
Did you recently have an unexpected financial blow to your business? Struggling to find a solution? I'd love to hear from you and even help.
If you want more of my financial goodies, then click this little hyperlink, and I'll send you an email that you can read with your Saturday morning coffee!