It doesn’t matter what kind of business you’re in or how big your operation is. Unexpected costs are going to appear. Even if it’s a relatively minor expense, it can still become a stumbling block. Here are some common surprises that show up, and what you can do to prepare for them.
It could be the deep fryer at a restaurant, a spot welder in a metal shop, or the laptop you need to take on the road. If they break down, your productivity has been impaired, and that can mean not just expensive repair or replacement costs but delays that lead to unhappy customers.
You have employees do regular checks on all equipment so you can catch problems early on. This isn’t always a guarantee, so you might want to arrange for on-site service contracts, or find out where you could rent a quick replacement.
If the power goes out, water gets shut off, or the drains back up, business could come to a halt altogether. It can happen due to storms, a ruptured water main, or some wayward driver hitting a utility pole. Older facilities are bound to have wiring and plumbing issues without any of this.
Sometimes there is nothing you can do, and you’ll just have to wait for the utility crews. But to minimize your risks, think about investing in a generator. Keep a good supply of bottled water for employees and visitors.
Storms could also wreak havoc on your property, along with vandals, thieves, or similar occurrences. You might find broken windows, holes in the roof, and ruined equipment or inventory. Even if damage is moderate, you still want it repaired so it doesn’t impact your operations or turn away customers. Contact a contractor like Prime Building & Construction or someone similar to handle this type of issue.
First of all, you must have property insurance in effect to recoup costs. Get a few repair estimates immediately. When you find a contractor who does good work at fair prices, keep that number handy.
At times you may come across potentially game-changing opportunities you simply can’t pass up, like entertaining a huge client, or purchasing the latest and greatest technology at a bargain price. These aren’t exactly problems, but failure to act on could leave your company lagging behind the competition.
Try to keep certain funds set aside for development. Establish priorities for all of your projects. If one of these golden opportunities comes along, it should take precedence over everything else.
Part of your regular budgeting should be setting aside reserve funds to handle these issues. Where money is tight, think about haggling for payment terms or borrowing. You don’t want to lose your company over a single problem you couldn’t afford to fix.