All businesses will face some emergency. No matter how big or small the company or how long they have been operating for. It is essential for business owners, employees and investors to understand that emergencies will happen. It is equally as vital to ensure these emergencies are dealt with in the correct way to ensure the long-term stability of the business. Finances are the most crucial factor when it comes to keeping a business stable, with no financial worries; businesses can focus on development rather than survival. This is why it is imperative to have a plan to keep your business finances stable during emergencies.
Separate business and personal accounts
Keeping your business and personal accounts separate is vital at all times. It is, however, crucial to do so during business emergencies. Not only does keeping the accounts separate to make it easier and more professional to manage finances, but it also ensures your taxes are not wrong at the end of the tax year. A mistake with taxes can be very costly, and avoid these mistakes could be the extra boost of cash your business needs to stay stable in an emergency.
Emergency specialist companies
Physical emergencies can happen to your business—no matter what type of business you are. If you are a physical store or own an office, this will impact you more than someone who works at home; however, all business owners should plan for physical emergencies. Flood, fire and crime are just some of the factors that can put your business into a crisis. Insurance is critical as this will ensure your business doesn’t become bankrupt due to the cost of repairs. Contacting an emergency specialist company is also crucial; they will ensure your building is safe to continue working in and also allow your business to get up and running again. Using a 24/7 emergency specialist company such as CleanSafe will enable your business to resume trading as soon as possible.
Staff and payroll
One of the biggest worries for growing businesses, when they face an emergency, is payroll and the fear of losing key staff members. This is why it is crucial to both keep your staff aware of the situation the business is in and aim to keep at least one months of staff wages secure in your business account. This will allow you to keep your staff working and continue trading as a business throughout the emergency until you get further investment or a loan. Part-time and seasonal staff may need to have their hours reduced due to the business emergency; this is normal in the work of the business. If you financially can’t afford the staff during the crisis, it may be a good time to look towards interns and freelancers. These members of the team will only work when you need them too and can tackle critical problems such as I.T issues within the company.
Investors and business loans
Loans should be carefully thought about before being used as an option, speedy one-off loans. They can lead a business to future severe money problems due to the high interest in them. If you are going to take a business loan to ensure you have a payment plan sorted before you accept the loan and you are optimistic you can make every payment. Investors can be used to save your business during an emergency; a business investor will not only bring a cash injection into the company but can also offer the experience to help you out of your trouble.