Today I want to talk about how money solves problems. You know, money certainly doesn’t give you joy in life. But money does solve problems, especially from a business standpoint. Before we move on, first I want to encourage you as business leaders and 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 problems in business:
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 it all (albeit there’s 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, but you can’t afford them. All in all, from a people 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 less cash, which makes them less likely to hire the help they need. It can then turn into a vicious cycle.
The reality is that cash helps your business in those three ways: weather the 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.