By: Robert Core, PNC Bank Senior Business Banker
Last winter, many U.S. cities faced one of the harshest winters in recent history.
According to PNC’s Fall Economic Outlook survey, 38 percent of small-to-mid sized business owners said extreme weather had a negative impact on their business in 2014, and of those, 65 percent say their businesses have not yet fully recovered.
The Farmer’s Almanac is predicting that about three-quarters of the nation will see below-normal temperatures this winter. Realizing last year’s impact, business owners can take proactive steps now to maintain steady footing during peak months.
Robert Core, PNC Bank Senior Business Banker, shared a few tips to help protect businesses on the Eastern Shore from old man winter’s negative impact.
• Acknowledge Weaknesses: Determine how winter months and frigid conditions may impact cash flowing in and out as well as your business’ day to day operations. Talk to your banker to outline possible scenarios and discuss how to plan finances for your unique business cycles.
• Protect Vital Information: Utilize technology like cloud to store and backup financial and insurance records, contracts, permits, customer data and other critical business records to ensure you can access data in alternate locations. Backup daily since you never know when power could go out.
• Enroll in Online or Mobile Banking: If you are not enrolled in online and/or mobile banking, now is a good time to do so. This ensures you have access to your company’s finances and can pay bills or vendors from anywhere, as well as get a picture of your cash flow.
• Establish a Contingency Fund: It’s important to have a backup plan in place in case of unexpected occurrences that may impact your business finances. Your contingency fund should hold anywhere from 3-6 months of operating cash. To serve not only as a safety net but also an investment, consider placing funds in an interest-bearing account such as a money market fund.
