It’s your second year or third year in business, things seem to be going well, you are beginning to make a good amount of profit and life seems to be going great. You look back at your business plan and model and it looks good. However, the market begins to change, everything has taken a plunge, inflation is the order of the day, elections are nearing and everyone seems to be hoarding money/resources. You begin to wonder if at all you are ready or had planned for this? Can your business sustain itself for the next six months; will you be able to retain all or most of your employees?
It is important to plan your business and business model in a way that will factor in all possibilities. You can play the ‘What if’ game or generally look for loopholes to help you get solutions before disaster strikes. Every time I am out to make serious money, I figure someone somewhere is playing the ‘what if’ card on me. They think something unexpected may happen resulting to failure.
More often than not, they are right. However, a real business man/woman is able to spot this long before and either plan for it or get his/her money out and into another investment.
Every business is a risk taken. It’s vital to consider where else you can find the extra income. I once wrote about not placing your eggs in one basket as a means to financial freedom. You need to take note of that and make it happen. Let’s face it; you are not a professional footballer or athlete whose personal Manager has made plans to secure their future even after their retirement. As a matter of fact, there are some who become bankrupt once their careers are over or once they retire because they never thought to add another string to their bow (another source of income).
Diversification is the name and rule of the game if you want to be wealthy. Strive to have more than once source of income, broaden your investments. That way, whatever happens in a ‘What if’ scenario, you will be secure.
Be wise, whether you are in business or employed. Do not wait to act once you get fired or retrenched; it might be too late. Sustain your livelihood by letting your money work for you.