The COVID-19 pandemic has highlighted the importance of saving money for a rainy day. While thousands of small businesses closed permanently in the spring of 2020, the ones that had cash reserves on hand for emergencies fared much better—especially considering the hurdles and delays that came with government aid like the Paycheck Protection Program. It shouldn’t have taken a global pandemic for small businesses to see the value of having a cash reserve, but nonetheless, many owners are now more aware of the importance of financial stability. Having cash reserves available can help you cover rent, utilities, and other common expenses until you’re operational again.
Taking steps to put away money isn’t easy, but it is important. Follow the steps below to build a cash reserve for your business.