Be Prepared: Four Ways to Tackle Unforeseen Business Costs

Every now and then, unforeseen business expenses creep up. It's smart to stay informed about how you can handle unforeseen business expenses and bills for when they arrive.

1. Hiring Legal Counsel

When your business gets hit with a personal injury lawsuit, you have to deal with costly legal expenses. Legal aid is essential for a personal injury lawsuit, a harassment lawsuit, a case of fraud, or many unforeseen issues. Hiring counsel will save the business a lot of time and money in the long run. In many instances, just one personal injury lawsuit or legal problem can shut a company down, so it’s in your best interest to have a solid legal team to help defend you.

2. Insurance

Insurance coverage is key to avoiding catastrophe. The business owner should sit down with a couple of insurance companies and discuss his or her business needs. The business will avoid problems that crop up later because it has proper coverage.

3. Savings Account

Like most people, businesses should have a savings account for emergencies. Having a few thousand dollars in the bank for rainy days can help the business avoid costly problems. If you end up with some stolen inventory or a flooded basement, you want to be sure cash is on hand.

4. Terms With Creditors

Oftentimes when selling goods, the business buys from local producers. When times are tough, the seller often allows the buyer to pay for the product in 30 days. Work out a situation with your creditors to assist in difficult times.

By using some of the five tips above, a business owner can prepare for future expenses and avoid the threat of financial uncertainty.

Littlejohn Barristers Professional Corporation, Lawyers in Barrie, Ontario

About the author

Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing about business and finance and spending time with her dog, Max. Information credited to Fone Angels, smart phone and tablet repairs.


Post new comment

The content of this field is kept private and will not be shown publicly.
This question is for preventing automated spam submissions.