Every entrepreneur understands the challenge of managing their finances. Meeting financial goals, avoiding debt, and just keeping your head above water can be a struggle. Honestly, this is one of my least favorite topics, but it’s incredibly important.
Andy Hill is the award-winning podcaster and blogger behind Marriage, Kids, and Money. He has helped countless young families build wealth so they can thrive. His writing has been featured in USA Today, Business Insider, and NBC News.
It used to be that crises were hypothetical to plan for. With COVID, it’s become a reality for most of us. Andy explains that the number one mistake that entrepreneurs make is not having funds set aside for times like these. With business for many at a standstill, the need for having financial reserves is as apparent as ever.
That’s easier said than done, right? Andy recommends automating your process of creating your financial safety net from the start. If you put whatever you can spare aside each month, you’ll be much better positioned to weather another period of poor business. It’s these small deliberate actions that will get your finances where they need to be.
But sometimes we end up in a situation that we haven’t prepared for. Strategically cutting unneeded business expenses will relieve the burden. Adaptability is also a necessity of survival. As the business landscape changes, being able to pivot what your company does will ensure its longevity.
What does your safety net look like? Let’s talk about it in the comments below!