For business owners, both large and small, good planning is essential in order to increase the chances of weathering any events that may arise.
Owners of businesses, both large and small, need to generate income, plan carefully and anticipate challenges to increase their chances of weathering any number of future business disruptions.
A business can build its financial resilience and protect its financial wellbeing by using a structured approach that includes:
- Meeting its financial obligations
- Maintaining sufficient cash reserves
- Maintaining a comprehensive financial management system
- Identifying and planning for business risk
- Allocating resources to cover ups and downs in cash flow
- Putting in place the appropriate level of business protection insurance
- Having access to affordable and timely credit
- Maintaining a sustainable debt load
- Having access to investment capital