Small Business Emergency Preparedness series: Your Finances
Today CPR continues to explore the concept of Small Business Emergency Preparedness. CPR offered six elements, today we will explore Business Finance. We all witnessed the deadly impact CoVID had on our loved ones as well as the economy. Financial experts also link financial crises to “4 deadly D’s”: (1) Sharp economic downturns follow banking crises; (2) with government revenues dragged down, fiscal deficits worsen; (3) deficits lead to debt; (4) as debt piles up rating downgrades follow. Whether Bloomberg, CNN, Financial times, or other media, many are sounding the alarm on the financial uncertainty of the US dollar. So, what can a small business owner do to minimize the effects of the financial crisis? Let's begin!
While there are a plethora of reasons why globally most countries are in a free fall, the boogy man can be linked to the pandemic, which resulted in increased unemployment. In addition; we must be cognizant of what direction the globe is heading. Currently, the goal of the UN 2030 sustainable agenda is to bring all governments under one currency, one ruling, one religion, and one state of mind. As a result whether directly or indirectly, economies are impacted including the US. This brings us back full circle to the veins within our local communities, that is our small businesses. Yesterday we presented recommendations to secure your personnel and implement a culture of safety during these times, today we want you to take a hard look at your business finances and take the following actions.
open a business account if you have not already done so
consider banking with a credit union as opposed to larger banks. During a crisis, the credit unions have a greater guarantee on your money than the larger banks. The larger banks pay their stockholders and larger bankers first.
If you opened a checking account with a larger bank, you can always open another with your credit union and begin to move or closeout from the larger banks
Monitor your monthly statement
Confer with your Chief Financial Officer or your business accountant. Get more expert advice to determine how they view the market.
Don't put all your eggs in one basket. If possible, consider investing in other small businesses. In the event, that the other business survives and your business does not.
Consider investing in other commodities such as cryptocurrency, gold, silver, and even seeds.
Banks closing-Attempt to think of alternative methods of payment for your employees.
It will be hard but bring them into the discussion, so there are no surprises
Get comfortable with numbers. As a leader, master how to read, and understand your company's financial statement.
Discuss with local businesses or the Mayor's office what can be done in an official capacity.
Pay attention to what's going on and communicate your plan to your employees and loved ones and anyone who is directly involved in
There are challenging times ahead. Planning must be prioritized. The bottom line, understand how your finances can be impacted by external emergencies. Then, identify ways to minimize the impact.
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