BYOB is a success story for businesses all over America. The custom skills and tools, combined with demand for people capable of applying them practically, make for promising careers in the vast field of independent contracting. Whether you are a tree trimmer, builder, plumber, carpenter, electrician, mason, floor installer, painter, or general handyperson, BYOB may be an option that appeals to you.
Responsible management of finances and cash flow is crucial to survival for any size business. Many BYOB businesses learned the hard way that it isn’t enough to have superior skills or be able to deliver high quality services. If you cannot meet general expenses of your daily operation, weather cyclical fluctuations that dry up demand, or adapt to unexpected setbacks, then your BYOB business is in for a very rough, perhaps sinking, ride.
From the outset, if you are serious about BYOB, then you must be serious about financial planning. Self-financing is a must for most self-starters. Tapping into personal savings accounts and borrowing against some of the paid-off home equity in your personal home are realistic sources of start-up and ongoing cash needs. Realize that significant risk is attached to self-financing. Exercise good judgment and common sense in deciding how much of your personal assets you put at risk. Just because you can borrow “X” amount does not mean it is wise to borrow “X” amount.
Once your BYOB business has a track record to present to a lender, you may consider opening a business line of credit. A credit line may serve as a reliable stream of cash flow and also be ideal for flexibility. You contract with the lender for an agreed loan amount, yet you do not have to access the set maximum; i.e. there is no requirement to use it all. You may also be able to negotiate flexible repayment amount and time period.
Whether you are just beginning a BYOB business or are well underway, call your TRUSTED CHOICE INDEPENDENT INSURANCE AGENT AT THE RICHEY-BARRETT COMPANY (440-835-4800) for your insurance needs today!
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