4. Maintain a solid financial foundation.
The most successful businesses are the ones that cover the basics: having enough cash reserves to survive any economic cycle.
Adjust your budget to include larger cash reserves.
It’s time to fully fund your cash reserves to cover at least three to six months of operating expenses to help prepare against unexpected costs.
Operating expenses include, but are not limited to: rent, storage, administration costs, supplies, and utilities. Make sure to fully account for additional expenses you have incurred as a as your business grows.
The FAIRWINDS Business Signature Savings Account is an ideal solution to keep your three to six months of expenses separate while earning a higher interest rate. Available with the FAIRWINDS Business Signature Checking Account.
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Monitor your daily cash position.
Ensure your accounts receivables are being processed as quickly and accurately as possible. In other words, make sure you are getting paid by your clients and customers on time.
You can stay on top of your accounts receivables more easily with the Daily Cash Report, available in our Business Banking Suite.
Budget and forecast for the next one, three, and five years.
It’s important to think well beyond the day-to-day of your business. A comprehensive future state toolkit will set you up for success, regardless of the changing economic cycles. Part of your toolkit should include:
A budget and forecast built for the next one, three, and five years.
A focus on retaining earnings and continuing to build a positive net worth on your balance sheet.
A review of your financials monthly, quarterly, semi-annually, and annually.
A review of your business banking accounts, products, and technology. Is there a checking or savings account that can help you save more? Are there digital banking tools currently available that can help you improve efficiencies?
When it comes to your business’s future, review, review – and review some more.