As an online business owner, you understand what it’s like to work in the constant ebb and flow of a changing and unpredictable landscape. Especially amidst times of uncertainty, it can be reassuring to know that you can take precautions to actively protect the long term health of your business. Fortunately, there are several actionable steps for you to take to ensure that the future of your business remains bright and secure.
Protect your cash flow
For online sellers using Amazon and other marketplaces, using Instant Access allows next-day access to payouts without having to wait 14+ days to receive funds, which are often common to many online marketplaces. For small businesses that rely on quick turnarounds in profit to keep up with increases in demand, Amazon holding back balances for more than 14 days in the form of an unavailable balance can act as a major roadblock in growing your business and capitalizing on new opportunities.
For your business growth, knowing when you will receive payments optimizes your efforts. It protects your future, knowing that you can cover the next round of inventory or upcoming credit card bills. Similarly, planning ahead includes proactively taking measurements to prevent certain situations, while understanding that challenges will arise. Utilizing a tool such as Instant Access can give you peace of mind that even under an unforeseen circumstance, such as a temporary Amazon suspension, that your early access to your money will help you continue business during the reinstatement period.
Prepare for emergencies
Although it’s impossible to know what will happen in the future, working to maintain long-term success for your business includes having set plans for emergencies. Small businesses need to build an emergency fund should anything unexpected happen to the business that requires them to unexpectedly make purchases or dip into their finances. This might include replacing damaged or lost goods, making repairs to production equipment, covering for illness when you are unable to work, and more. An emergency fund acts as a cushion to lean on during uncertain times and will help the business stay afloat despite unexpected challenges.
For business owners who are often the breadwinners of their family, considering the income replacement in the case of an unexpected passing will ensure that your family’s financial stability will remain intact. Furthermore, with any debt that your business might have now or in the future, life insurance will cover the burden of any loans taken out as a result of your business. This is also known as collateral coverage, in which the life insurance would help go towards any dues owed after your death. Additionally, if you share a business with a partner, life insurance plays a crucial part in how your partner or employees will function after you die. This is why selecting the proper beneficiaries and being open with your business partners allows for the protection of your company down the road.
Have a solid inventory management system
Using technology to track inventory acts as a great segue to having long-term direction in maximizing employee efforts and appropriately producing products. As an online business owner, using digital tools to streamline your inventory management creates a centralized location for your business’ records, important documents, information, and transactions. Although it can seem like a laborious task, spend some time researching different software specially designed for online businesses that offer both organization and customization. This will also allow you to pack and ship orders more efficiently. As your business grows, the sophistication of managing your merchandise should also continue to evolve with you.
Depending on your product or service offering, instilling a solid inventory management system will look different for every single business. But the essentialness of keeping track and up to date with supplying the correct amount of products to meet your customer’s needs will create an excellent reputation and workflow for your company.
No matter where life takes you, rest assured that your business can stay on the right track by implementing a few of these best practices. From staying ahead of emergencies, to properly managing insurance, cash flow opportunities, and inventory, your business can thrive while you focus on creating an even brighter future ahead.
Similarly, business owners need to consider situations in which they are no longer around to run their business. With unexpected deaths of owners, ensuring that your company is in good hands and that your loved ones are settled beyond your time will create a business that is profitable under any circumstance. How much insurance coverage you will need will depend on your specific situation, but can act as a safety net for both your loved ones as well as any employees you may have.