Phil Decker explains how to handle a situation when disaster strikes. These situations often come unexpected and every business needs to have a few certain things in order to make the following months as easy and painless as possible. It’s really hard to brace yourself for the unexpected, but Phil says, if you have these few things in order, you can keep the situation under control.
1. Know P and L’s
Profit and Loss. Knowing how much money you need to spend to make your margins. Knowing how much product you need to sell to break even.
Every dollar and every percentage point adds up.
2. Save Your Money
When disaster strikes, you need to be able to pay for things in the short term. Think of it as an emergency fund to cover a few months of salaries and expenses and enough to be able cover unknown costs.
Compounding interest is a beautiful thing. Let your money work for you.
3. Have Good Insurance
Someone you can call on the phone and have them walk you through any situation. Working with a company that cares about each client no matter how big or small can help tremendously in a time of need.