Unexpected expenses pop up at the worst times. When they aren’t handled right, they can ruin your business model, But, when you plan for them (even though they’re unexpected), you can work around the issue and keep your business on track. Unexpected business expenses happen at the worst times but that doesn’t mean you can’t look forward. Instead, assume what you might face, and create a plan to tackle them. Here are some quick ways to prepare yourself.

Create an Emergency Fund

An emergency fund is money set aside for a true emergency. Only you know your business and what you might consider an emergency. It’s a good idea to write down what the money is for, so you don’t dip into the funds for other reasons. Keep the funds in a separate bank account too so that they aren’t easily accessible.

Know your Options for Equipment Maintenance and Repairs

If your business relies on certain machinery, have a plan in place should the equipment stop working. Do you have a warranty or repair plan you can purchase and have available should your machinery break suddenly? Do you have a place you can rent stand-in machinery so you can continue your business operations without interruption?

Know your Options for Utility Issues

Depending on the age and type of building you work in, you might have more utility problems than you bargained for. Before you start your business, have a plan to deal with the utility issues. Do you have a backup server for your computer equipment? What about buying a generator for electricity? Think of the utilities your business cannot be without to run normal business operations. Work backup plans into your budget so you don’t have to be without them.

Create a Line Item in your Budget for Professional Services

Even though you are the professional in your industry, you may need to rely on other professional services to help you. Pest control, accounting, marketing, and technology services may be just a few of the services you’ll need. While you are an expert at what you do, you might not be a jack-of-all-trades and may need to call in the forces to help you keep your business afloat. Keep a line item in your budget for these times so you have the money available when you need it.

Final Thoughts

Unexpected expenses aren’t fun, but when you plan for them, they don’t have to knock your budget off track. Don’t panic about what you’ll do. Even if you’re looking at a day full of appointments and money-making opportunities, have a plan to handle small and large emergencies.

In a pinch, you can apply for a quick loan to get you through the emergency, but you’re much better off having the money saved for anything that happens so you can handle it with ease and continue with your normal business operations.

If you’d like more help determining how to plan for unexpected expenses or financial planning for your business, contact us today.