Don’t Let an Emergency Put You Out of Business

Most door dealers live in utter fear that, because their cash flow is unpredictable, one unexpected expense can put them out of business. A water main break, a small fire, a break-in or a number of other unforeseen events can happen to any business. Here are some financial tips to keep these unfortunate incidents from catching you off guard and destroying your livelihood.

• Update your business insurance. Consider adding things like business interruption insurance in case you need to close your doors for a short time, or key personnel insurance in the event a key staff member can’t work.

• Have an emergency reserve fund – and make sure it’s adequate. Treat it like your personal savings, and set aside a set amount each week or month to go into this fund.

• Don’t assume a credit card or loan will bail you out. A bank is less likely to loan you money in an emergency, because even if your dealership is otherwise successful, you are no longer a desirable candidate when disaster strikes.

For more tips, click on the source article below.

Source:

Open Small Business Forum: 5 Strategies for Preventing a Cash Flow Disruption from Destroying Your Business