What An Entrepreneur Can Learn From A Squirrel
Owners of small businesses are magnificent examples of the entrepreneurial spirit in action. Many individuals choose to own their own company because they want to see their dreams come alive. There is work involved, but the rewards are worth the potential risk. The freedom from having to work for someone else is priceless. The pride that results as a dream becomes a reality is impossible to capture while working for someone else. One of many business tips out there is planning for the unexpected.
Small Business Tips
Entrepreneurs must carefully consider any eventualities that might occur. It is hoped that the company will show steady growth for the first few years, leveling out in the future. Service businesses often earn a profit sooner than a business that is developing and selling a product. Regardless of the type of company, the owners should plan for contingencies. A lesson can be learned from the instinctive behavior patterns of certain animals.
One such creature is the humble squirrel, an animal so good at preparing for the contingencies of life that their name is used as a verb to describe the action of saving something for later. Squirrels do not hibernate but prepare for the bleak winter months by fattening up and storing food. A wise business owner knows to squirrel assets away in profitable times for later, as part of a larger plan to deal with drops in sales, natural disasters, or technological advances. All profit should not be spent, but kept in reserves for future needs.
A Contingency Plan
Savvy squirrels also store food in different places, resulting in the growth of trees from caches not used. This is also good advice for a business owner because multiple investments can lead to multiple streams of nonoperating income that can see a company through hard times. This behavior should be adopted by a business owner and should also appear in their business plan as a formal contingency plan. A contingency plan does not indicate that the owner feels that there is a chance the company could flounder. It is a wise decision that could help the firm stay in business, which is the ultimate goal of the entrepreneur.