In the dynamic realm of business, challenges are inevitable but the good news is, they are not insurmountable. One of the most potent problem-solvers in this context is money. As business owners, you know, money certainly doesn’t give you joy in life. While it’s widely accepted that money isn’t the key to happiness, it undeniably plays a crucial role in navigating business hurdles. Money has 3 ways to solve a problem, especially from a business standpoint. It can act as a strategic solution to your business problems.
Before we move on, first I want to encourage you as business leaders and business owners to build up your stack of cash. More specifically, your emergency fund. Put money aside, and/or make sure you have access to capital through lines of credit, investors, etc.
This is super important. I know you’re thinking, “Okay, I agree, but how do I do that?” Well, that is a different topic beyond the scope of this post, so reach out to us and we’ll help. Right now, I just want to go over:
Three ways in which money can solve your business problems
1. Natural disasters:
It is unbelievable what we’ve gone through in Houston over the last few years. Besides the whole world experiencing COVID and the economic impact it’s caused, we’ve had hurricanes and a major freeze where everything shut down. What I saw was that business owners who had cash/capital survived through their business problems (albeit there are exceptions to this in regards to COVID because money does run out at a certain point). They ended up getting stronger, better, and some even acquired their competition. So it’s important to have cash on hand to make it past natural disasters.
2. Finding talent
Cash enables you to find and acquire talent, team members who will help you get to the next level. A lot of times, businesses without much cash don’t pay their hires effectively. Or, maybe an important team member leaves and you must pay a premium to bring in talent quickly to serve as a stopgap and to help in your business problem-solving. But you can’t afford them. All in all, from a people’s side of things, you can build a solid team that’ll help your business grow faster if you have cash.
3. Hiring advisors
Businesses who have cash can afford to hire advisors, which include business coaches like myself, accountants, attorneys, etc. Whether it’s a situational hire or a long-term deal, these professionals guide owners through tough circumstances or help them make more money in the long run. Those who don’t have cash will not get professional help from these valuable advisors. As a result, they make big mistakes, some of which they may not ever recover from. They end up with even big business problems and less cash, which makes them less likely to hire the help they need. It can then turn into a vicious cycle.
The reality is…
Having a strong cash reserve or access to capital can be your business’ unsung hero. As you navigate the world of business, remember to prioritize building your financial arsenal. After all, it’s not just about having money in the bank; it’s about empowering your business to weather storm during natural disasters, get the right talent for your team, and afford you the professional advisors who can propel your business to the next level.
So go ahead and put some money away, because it’s what will solve your business problems when they inevitably arise.
Have a better than amazing day!
