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