How important is emergency business savings??

sincerem

VIP Contributor
When it comes to business, an entrepreneur is expected to understudy the business ideas, have better plans before carrying it out. Their are many things that needs to be considered in case the business isn't riding on the free-flow system craved for.

We all know that at times uncertainty looms, and it affects the business in one way to the other. It can be financially, or otherwise. In order for an entrepreneur to stay on top of his or her business, different alternative plans needs to be put in place.


One of them is having an exit plan.

What kind of exit plans do you have for your business in order to help you keep it afloat when uncertainty tries to ruin it??

What factors will enable you to run your business long time to work past obstacles posed by uncertainties??

Do you think having emergency relief funds saved for long time can help rescue the business from drainage??
 

Suny

New member
We call such emergency funds a liquid saving account which is a must for any business, big or small. All businesses increase it every year even if they are doing better than their expectation to survive in case of an emergency or an expression plan. By the way such funds are available through financial institutes but it's better to have your own emergency resources for such a situation.
 

sincerem

VIP Contributor
We call such emergency funds a liquid saving account which is a must for any business, big or small. All businesses increase it every year even if they are doing better than their expectation to survive in case of an emergency or an expression plan. By the way such funds are available through financial institutes but it's better to have your own emergency resources for such a situation.
I wouldn't risk saving the funds on wallet that might evaporate my funds. Rather such funds will be locked in my wallet maybe a separate savings account either in the offline bank or online banking app. Where fluctuations won't affect it, since the money is saved for emergency related issues, and i need the funds to be the same as i saved it.
 

Chibson

VIP Contributor
The main reason I always advise people not to invest all their money is because of there are some certain times in which you will need money badly and you may not see it. and invested money is also very important but you need to save some percentage of your income in order not to run out of money in times of want.
 

sincerem

VIP Contributor
The main reason I always advise people not to invest all their money is because of there are some certain times in which you will need money badly and you may not see it. and invested money is also very important but you need to save some percentage of your income in order not to run out of money in times of want.
Yes, one doesn't need to spend all he got into business. Even if you're investing more into the business, always save for the future, in case of emergencies. We already know that uncertainties do occur in a growing business. But when it comes how are we going to sustain our business till then?? That's what we should have in the back of our mind.
 

Lens1000

VIP Contributor
emergency business saving is an exit savings plan when unforseen occurrence looms. It is soft landing plan to rescue your business from liquidation.

It's an alternative and a plan B strategy to rescue business from heavy fall.
It's an important point all investors should take very seriously
 

sincerem

VIP Contributor
emergency business saving is an exit savings plan when unforseen occurrence looms. It is soft landing plan to rescue your business from liquidation.

It's an alternative and a plan B strategy to rescue business from heavy fall.
It's an important point all investors should take very seriously
Yes, when it is planned for, it goes as planned. We don't need to spend our business profit unnecessarily, we should always know that, time of uncertainty comes, and when it comes we need to tackle it. What will help us tactical financial emergency call in our business?? The emergency relief funds or savings will enable us cover for that.
 

Mika

VIP Contributor
It is not possible to have emergency funds to bail out your business unless your business is already succeeding or you had a lot of investors when you were starting a business, you cannot create a reservce funds. However, my opionion is just a thought as I do not have any first had experiece with business.
 

Alexandoy

VIP Contributor
My understanding of exit plan is what you would do to close the business (exit or leave). Anyway, what you mean is contingent action. When there is a problem you resort to the contingent action for resolution of the problem. I always advocate extra capital to the starters of business. That can save your business in times of crisis if you have money in the bank instead of borrowing money.
 

Sotherefore

VIP Contributor
As the name implies emergency business serving is money that is set aside from a business, this could be an amount of money that are purposely kept in case of any serious issue that arises in a business organisation, this is the money that will be used in handling emergency issue rather than touching the original capital of the business.
 

funmi

Verified member
Of course, emergency business savings is very important and necessary because no one knows tomorrow. As the word emergency means, if there is lost or disaster in the cause of doing business, that savings can easily cover for it. This emergency business savings will prevent the business from running down.
 
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