1 minute read
Mar 6, 2020
Written by: Shawn Sweeney
Most of us are familiar with the old saying “Hope for the best, prepare for the worst.” Although the origin dates back to the 18th century, the message could not be more relevant today, especially for business owners. From employee turnover to insufficient capital, there are numerous potential threats that could morph into financial disasters overnight. So, when Forbes Finance Council asked me to weigh in on simple steps businesses could take to prepare for such problems, I gladly answered the call.
Ramping up cash flow, factoring in personal credit, adding an actual line item for “unexpected disaster” in the budget – these are just highlights of the helpful tips my peers shared. Given my naval background and experience in project and portfolio management (not to mention Spinnaker’s analytical bend), I tend to gravitate towards a more systematic, orderly approach.
The gist of our recommendation? Prioritization is a must. Business owners must maintain a close eye on all fixed costs, and how they may change from quarter to quarter based on organizational growth or contraction. When it comes to variable costs, rank them in order of priority so that you know where you can and cannot cut when unforeseen disaster hits. Because we can always hope for the best, but we’ll be in a far better position for the long haul if we plan for the worst.
Interested in more intel from the Forbes Finance Council Experts? Check out our forecasts for the banking industry here.
Spinnaker Consulting Group was revealed on October 2, 2019 on Richmond Bizsense RVA25's list as the region's #1 fastest-growing and dynamic organization (on the heels of being placed 516th on the Inc. 5000). This is the seventh year of the annual list and Spinnaker’s debut with a 585 percent average annual growth from 2016 to 2018.
Spinnaker News 1 minute read
For many small and early-stage businesses, serving customers and running day-to-day operations can be enough to overwhelm the day. But it’s critical that these organizations carve out time to tend to their financial health daily, or at the bare minimum several times a week. With so many different metrics to track, it’s important to identify those that give you a line of sight into how your business is performing, as well as those that help you pinpoint issues brewing below the surface.
Spinnaker News, Data & Analytics 1 minute read
An unexpected pot of money lands in your lap. Do you splurge on something exciting? Or spend the money in ways that will support your long-term goals?
Customer Channels & Operations Management, Program Build Out, Business Strategy, Human Capital 1 minute read
Like how we think? Subscribe to have our articles delivered direct to your inbox each month.
Headquarters: 8000 Franklin Farms Drive, Suite 100, Richmond, VA 23229
©2023 Spinnaker Consulting Group. All rights reserved.