3 Surprising Ways To Prepare For Setbacks
No one likes setbacks, especially in business. But setbacks are a part of life, and the key is to prepare for them so that you can recover quickly and move forward. Here are three surprising ways that you can prepare for setbacks:
1. Have an emergency fund
It’s important to have money saved up just in case an unexpected setback throws you a curveball. Having an emergency fund will make it easier to cover costs associated with setbacks, such as having to temporarily lay off staff or needing to invest in new equipment.
What is an Emergency Fund?
An emergency fund is a savings account that you can dip into when unexpected events occur. The emergency fund should be kept separate from other accounts, and the money should only be used in emergency situations.
2. Build relationships and networks
Building connections with other businesses, industry professionals, and suppliers can be invaluable during setbacks. These relationships can come in handy if you need to ask for help or find alternative solutions.
3. Develop a plan B
It may seem counterintuitive, but it’s important to develop a contingency plan for setbacks before they happen – not after. Research different strategies and backup plans that you can implement quickly if you encounter setbacks and make sure everyone on your team is familiar with the plan.
By preparing in advance for setbacks, you’ll be able to move forward faster, and get back on your feet more quickly after a setback. Taking these steps now can help protect your business in the long run. Good luck!
If you’re thinking about hiring a bookkeeper for your small business, contact us at BBS Accounting CPA today. We would be happy to discuss your specific needs and how we can help you take your business to the next level.