nsBizTip #7
On the Seventh Day of Business Tips Network Solutions said to me
Set aside a rainy day fund.
Managing cash flow for a small business is much like riding a roller coaster. And with today’s economic situation, having cash on hand is more important than ever before. One method to ensure you’re never short is to open a reserve account which can be set aside for emergency use.
A reserve account is a pool of funds in the form of either a bank account or a line of credit that is held separately from your day-to-day funds to meet any emergency or short-term immediate need. Many people have realized the value of having a reserve account for both their small business and personal financial banking accounts.
In the event of an emergency, a reserve account ensures that you will always have an extra cash cushion. For example, extra funds from sales or another source should be set aside in order to pay off an unanticipated bad debt.
If possible, try not to use lenders as an emergency cash reserve. Borrowed money will only add to your debt and delay the negative impact of your financial emergency if you’re unable to pay it back immediately.
Stay tuned for more 12 Days of Business Tips. In the meantime,
Enter to win
the Twelve Days of Business Tips Holiday Sweepstakes
This year, we’re giving small businesses a spin
on a classic holiday favorite. Prizes awarded daily.
Day 7 Prize:
iCARD Gift Card (prize value $200)
Entries for Day 7 sweepstakes are closed. Click here for more 12 Days of Business Tips.
Three Methods of Entry:
Tell us how a rainy day fund has helped you by
- commenting below; and/or
- posting a “tweet” – must include hash tag #nsBizTip; and/or
- becoming a fan of Network Solutions on Facebook and than posting a comment on Network Solutions’ wall. Visit http://bit.ly/nsfb.
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