Friday, December 28, 2012

Small Business Blues: How the Little Guy Funds IT Emergencies

Every small business goes through periods where cash is tight. Investments in new software or a few hours of professional IT service could put you in a very bad situation. What do you do when you do not have the money to fix the computer functions keeping your business operational? Funding emergencies like this takes a plan. That plan should include backups and a strategic alignment with the right professionals who can help.

Hide Emergency Funds

Small businesses can circumvent most types of financial emergencies by having a backup plan in place. A small fund, tucked away with a few thousand dollars can provide the savings necessary for big problems. Remove the funds from the operating budget. Place in an interest-bearing account that is not easily accessible through a debit card. This helps prevent those situations where temptation may lure you into withdrawing funds for the wrong reasons. A backup fund like this is a fantastic plan, especially when you put just a few hundred dollars into it each cycle. It is easy to fund. Via Flickr by newleoforex

Find an Immediate Lender


Turning to pay day loans for your immediate cash flow needs is ideal. In fact, you may face the least amount of downtime this route because you can get cash in hand within a very short period of time, sometimes just hours. However, another key advantage is this option does not come with a long-term repayment. Instead of getting a small business loan that takes weeks to fund and requires credit approval and long-term repayment, this option requires none of these limitations. Repay it within a few weeks when business picks up. Via Flickr by PostPhoto 365

Invest in a Retainer

Going to look for an IT pro when you are facing a shutdown of your system does not make sense. Not only do you have to trust this person to know how to fix the system, but you also have to shell out a small fortune for the service as an emergency. To cut costs and to gain confidence in your IT professional, hire someone to keep on retainer. When you need the help, pick up the phone and call. You will pay less overall if you contact these professionals with small problems that avoid big catastrophes. Via Flickr from Joba1984

Buy on Credit as a Last Resort

Finally, when all else fails, pulling out the plastic may be the route to take. Using a credit card to purchase new equipment or to hire an IT tech may be an option. However, it is an expensive one since most businesses hold onto debt long-term. To make it less overwhelming, get approval for a zero-interest credit card for your business account. Some even offer cash back savings. Make it a priority to repay the debt as soon as possible to prevent any additional charges or lawsuits that could force you to find additional lawsuit funding that would add stress to your business. Via Flickr from demosphere

IT concerns can bring any business to the ground. Yet, nothing is worse than being unable to fund the repairs you need to keep your business operational. With a plan and a backup option or two, you can avoid the risks associated with shutting your doors when your tech stops working. Via Flickr from Julio López Saguar

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