No entrepreneur wants to think about the bad things when business is just getting started or going great, but being prepared for the rough spots is essential to success. Consider the quote:
“Long-range planning works best in the short term.” – Doug Evelyn
That really hits the nail on the head when it comes to planning for the unexpected while running a small business. Less than happy times are going to come, but with a little planning they don’t have to sink you or the business. Following are some potential problems that could arise and how to head them off at the pass.
There may very well come a time, when for some reason or another, there is not enough cash in the bank to do what needs to be done. It maybe that you need to order inventory and receivables are turning too slowly, or maybe a rock breaks out a window and it has been a slow month. Whatever the case, having a small business line of credit in place can mean the difference between staying above water and sinking slowing into oblivion. Sites such as Biz2Credit.com connect small business borrowers with banks, credit unions, and alternative lenders that offer small business lines of credit, small business loans, and even capital with the terms that are best for them. It can take time for these things to work out, including a line of credit. If you wait until you need it you have likely waited too late. Having one in place to use if needed is the best plan of action.
If you own your own business, you generally intend to be available to do whatever needs to be done for it. However, it something tragic happens, there needs to be someone who can step in, if only for a short time. Imagine if you were in a coma. There has to be someone else that knows what you know so that when you wake up, everything isn’t destroyed. It can take a while to find the right person and groom them, so start early.
Tornados, hurricanes, blizzards, even just your standard faulty wiring fire can leave more than the building in devastation. For that matter, even something as minor as all of the computers shutting down can render a business useless. Preparing for these types of things ahead of time is essential. Have a plan in place, in writing, and kept away from the physical location. Keep back up for all the computer files in a separate location as well, and never leave cash on the premises. Make sure all staff know what the plan is, and if possible, practice it occasionally.
While it is impossible to anticipate every single thing that could happen over the course of a business’s life, there are certain things that are too risky not to plan for. Taking the time now to get things in order can ensure that trouble doesn’t become tragedy that compromises the future of the business.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.