Running a business is a major undertaking, and one that you want to make sure is handled correctly. No matter what type of business you are running, it is important to really think it through and make good decisions that will help you for years to come. This extensive business guide will answer common questions, provide tips, and much more.
If you own a small business and you want to pass it down to your children or other loved ones, you will want to start preparing as soon as possible. Less than 1/3 of small businesses survive passing down to a second-generation owner. Only about half of those survive making it to the third generation. This is largely because it is handled poorly.
One of the most difficult parts of running a business is making sure you have the necessary cash flow to do the things that need to be done. Without proper planning in this area, your business could be forced to shut down over a relatively minor issue.
Your business should have a set amount of cash on hand to deal with both expected and unexpected expenses. The amount will depend on the size and type of business you are operating, but in general you should be able to cover critical expenses like payroll, inventory costs, rent, and more for a least a set period of time. If your business is particularly vulnerable to swings in the economy, having a larger cash fund to draw on during lean times will be very helpful.