4 Simple Tips to Raising Funds for Unplanned Business Expenses

As a business owner, there’s nothing you’d want more than to stay on top of everything, especially when it comes to matters involving money. But you also know that unplanned expenses can come up every now and then, and that could hurt your budget if you don’t know how to manage things well.

To help you raise the funds that you need for these unplanned business expenses, here are four tips that you should follow:

Know what your fixed costs are.

When you have unplanned expenses, it’s easy to get sidetracked and scramble to raise money. But before you do that, make sure that you know your fixed costs first. These are your non-negotiable expenses like rent, insurance, salary and taxes. When you have this number, it’s easier to know how much you really need to raise to cover your expenses for the month or for the next few months. It’s also good to know your variable costs to determine which areas you can cut down or delay to use the money for your fixed expenses.

Take advantage of strata lending.

If you haven’t heard of the idea, Strata lending is a financing option that lets you cover unplanned and unbudgeted projects like repairs, maintenance, replacements, upgrades and even litigation. With such a flexible funding method, you can push through with projects that while unplanned are necessary to keep your operations running or improve your business. If you’re applying for this type of funding for the first time, it’s best to consult with a professional and trusted provider to know your options and get the best deal from your loan.

Build an emergency fund.

It goes without saying that having an emergency fund can really give you that peace of mind when unplanned expenses happen. So even if you’re still a small business, try to practice having an emergency fund that will give you some breathing space in case something unplanned happens in your business. Most entrepreneurs set aside a specific amount from their income every month as an emergency or contingency fund that they can use for unplanned projects or expenses without disrupting their usual budget.

Know what expenses you can cut down.

When you have unplanned expenses, it’s very important to make adjustments to your current expenses to give you some room to recover and get back on your financial footing. To make this possible, try to talk to your team about the situation at hand and what each of your departments can do to keep your current costs as low as possible and free up some cash to pay for your loan or any used up funds that are allocated for something.

Unplanned projects and expenses are sometimes unavoidable. So the best thing that you can do is to prepare yourself for when these situations happen. This  will allow you to handle the situation better, keep your business running and make sure that you don’t get sidetracked from your goals.