The Weatherman: What does the weatherman have to do with small business?
Well, years back, twenty-four inches of snow fell overnight in Southeastern Virginia. Any snowfall in Southeastern Virginia is a rarity, much less two feet overnight, and the weatherman did not predict this massive weather event, and in fact, on the evening weather broadcast that afternoon, he said, somewhat understatedly, “I missed that.” No kidding.
Factors Affecting Small Businesses are Often Unexpected
Just as with the weather, factors affecting small businesses can arise overnight, with no warning. None of us are good predictors all the time. What’s the best protection if the given factor is harmful and hurts the business? Being prepared by having sufficient cash (or access to cash) on hand so as to weather the storm is critical.
Cash is Your Lifeblood
Just as Red Cross blood banks strive to have plenty of blood on hand for emergencies, so should you have plenty of cash, or as much as possible, in reserve. If your business is caught short-handed during a crisis, the results can be catastrophic.
There is no worse time to find out who your friends really are as when your business is short of cash. It’s sorta like looking for friends when it’s time to move, eh?
So be conservative in spending, both personally and from a business perspective, and you’ll be glad you were when the unexpected happens.