"...ultimately for the sake of your employees, the clients you serve, and your family who are depending on you to secure their financial future...we MUST put proper protections in place."

Running a Mom & Pop business is a labor of love, but it can also be a journey filled with uncertainty. As business women, it's crucial to safeguard our ventures against unforeseen challenges, and safeguard our income for the next generation. 

But a lot of family-owned businesses I work with are missing VITAL pieces of their Financial System, which puts your family, employees and sometimes even clients at risk!

This week on Fierce Feminine Finance, to celebrate Mom & Pop Business Day, I'll share insights on how to financially fortify your family business, ensuring its resilience and longevity.

Imagine this: 

You've poured your heart and soul into building your Mom & Pop business. It's your passion project, your livelihood, and your legacy. 

But then, life throws you a curveball.

Whether it's a sudden illness, a recession, or a natural disaster, the unexpected can jeopardize everything you've worked so hard for. That's why financial preparedness is not just a luxury – it's a necessity for every family-owned business.

Having seen what can go wrong when we women are NOT educated on how to bulletproof your family's financial future, here are 5 things every mom & pop business owner ought to know!

1. Your Emergency Fund Doesn't Have To Lose Buying Power

We've all heard that having an Emergency Fund is important, but the two biggest objections I often hear from women are:

a. Why can't I just use my credit card for that?

and b. If I keep my money in a savings account, it loses buying power and isn't working for me in an investment

But here's the truth:

Your credit card will cost you a LOT more in interest than you would be likely to make by investing that same amount of money!

And... I recommend checking out a High-Yield Savings Account so your Emergency Fund keeps up with inflation.

2. Proper Planning Prevents Piss Poor Performance (...Especially During A Disaster)

Setting aside funds specifically designated for emergencies is just the beginning. Your goal should be to have a minimum of three months’ worth of expenses in a High-Yield Savings Account, earning you interest but highly “liquid” (easy to cash out in an emergency). 

A lot of Mom & Pop businesses are living “paycheck to paycheck” at best… or even borrowing to make payroll on a bad week! 

Putting proper Marketing Systems in place and learning the Plan HER Profits Method can solve a lot of that. But even once you’re making more than you spend, there WILL be slow seasons. An Emergency Fund will give you peace of mind and protect what you’ve built. 

“How do I know how much I need in my emergency fund?” 

Your budget should tell you how much 3 months of expenses cost. But additionally, it’s a good idea to do a little Disaster Preparedness Planning at this stage, too. 

Disaster preparedness is a critical aspect of protecting your family's financial future as a business woman. The emergency you never saw coming (and didn't plan for) will always hit harder economically than the scenario you're fully prepared to have happen!

My dad owns a disaster restoration business and growing up I saw how devastating it can be, emotionally and financially, when a family isn't prepared.

The first step is conducting a thorough assessment of the potential risks your business may face. This involves evaluating your location, industry, and the specific nature of your business. Consider factors such as geographical vulnerabilities (e.g., earthquakes, floods), industry-related risks (e.g., cyber attacks for tech businesses), and other potential threats.

Once you've identified the most likely disasters your family & business are at risk for, the next step is to come up with a plan so you're as prepared as possible (without turning into a crazy prepper stashing 1,000 bags of cornflakes in a bunker!).

A good Disaster Plan has two component parts:

1. Logistical Preparedness

This includes establishing evacuation procedures, securing important documents and data, and setting up off-site backup systems for critical information. Consider the logistics of maintaining business operations during and after a disaster, such as remote work capabilities and alternative suppliers.

2. Financial Preparedness

Having a written Disaster Preparedness Plan like the one we create for clients will answer the question of how much should be in your Emergency Fund.

Additionally, its a good idea to obtain insurance coverage for as many potential risks as possible, such as property insurance, business interruption insurance, and cyber insurance.

Every six months, review and update your insurance policies to reflect changes in your business operations.

Ready To Bulletproof Your Family & Business Against Disasters?

With every episode of Fierce Feminine Finance, I like to empower you with a POWERFUL free resource that goes with the episode which you can implement right away to create some of the same results, if not better, in your business.

This week, since we are talking about ways to financially bulletproof your mom & pop business, I put together a Financially Bulletproof Guide so you can create your own written Disaster Preparedness Plan.

After going through this free training you will be able to create your own step-by-step action plan to financially bulletproof your family, employees, and the people who depend on you.

You can download it right away by clicking here or on the photo above 👆

2. Diversify Your Revenue Streams

Relying solely on one source of income is risky! 

Explore opportunities to diversify your revenue streams, whether it's through additional products or services, joint ventures, partnerships, or expansion into new markets. This way, you'll be less vulnerable to fluctuations in any single aspect of your business.

But there is a time and place for adding revenue streams. Typically, I encourage my clients to stabilize their existing revenue using the Plan HER Profits Method, before adding on passive income. 

Want my list of 20 ways to add passive income to your existing business? Click here to pick up a copy of my book From Hustler to InvestHER, available in stores now!

From Hustler To InvestHER by Sarah Nicole Nadler & Destiny Bounds

3. Create A Succession Plan To Protect The Next Generation

What happens to your Mom & Pop business if you're unable to run it someday? Whether due to retirement, illness, or unforeseen circumstances, having a succession plan in place ensures a smooth transition of ownership and management, preserving your legacy for your kids.

And as a business owner, there are two legacies you can leave behind:

1. A chaotic mess of missing paperwork, no will, no life insurance, no business processes... which forces your family to perhaps sell their home, liquidate the business, or take on 2nd and 3rd jobs to survive, while your ex, cousins, or business partners bicker over your assets

2. A peaceful transition of wealth to the next generation, with all assets and property passing smoothly to your beneficiaries, and your loved ones given the time, finance and space to grieve and heal

Which one sounds better?

As a licensed financial advisor and money coach for business women, one of the most heartbreaking parts of my job is dealing with my clients' financials when she passes away.

It doesn't happen often...thank God.

But I've witnessed this enough times to know what happens when a business woman's financial planning is done RIGHT...and when it is not.

Most women don't realize what happens to your money and possessions when you die.

If you own a business and you're married, been divorced, have kids, or parents who outlive you...any one of those people may have a potential claim on the "rights" or ownership of your business when you pass.

To avoid fights in the street over people's possessions, the US Courts System has what is called "probate court" where a judge decides who owns your stuff.

The processes of probate court are long and mostly boring...but the key takeaway here is: a judge will typically take between six months to two years to decide. And during all that time, NO ONE may buy, sell, transfer or trade your money, property or possessions. Including your business.

If you are the sole practitioner or tradeswoman, coach, consultant, healer or expert in your business... and your family relies on your income: that means they have a SERIOUS problem if you die without the proper legal and financial protection in place.

Now, you may be thinking, Well, that's okay. I have life insurance.

Good! Life insurance is a vital part of protecting your family in exactly this type of scenario. But... most insurance companies take typically 60 days to payout.

(Now you see why a proper Emergency Fund is sooo vital! Can your family hold out for 60 days if something happened to you today?)

Statistically speaking, one study showed in 2022 that only 16.4% of family-owned businesses survive the unexpected death of the owner.

If you're like me...you probably started your business out of a passion to serve your community! You don't want your business to die with you: ultimately for the sake of your employees, the clients you serve and your family who are depending on you to secure their financial future...we MUST put proper protections in place.

In our new book From Hustler to InvestHER, Business Attorney Destiny Bounds and I created a checklist to make sure your business and your family are financially prepared:

Let’s check the boxes:

• I earn more than I need for basic expenses. I can pay all my bills and have extra cash left over at the end of the month.

• I have a Disaster Preparedness Plan, have identified the most likely scenarios, and have a fully-funded Emergency Fund to fall back on

• I have life insurance to protect my family, employees and clients in the event that anything were to happen to me

• I have an Estate Plan and Business Exit Strategy my family or employees could use in the event of my sudden demise to ensure the business survives the 60 day wait for insurance payout or up to two years of debate in probate court

• My debts are all income-producing with a greater return than the interest is costing me, or I am debt-free

• I have set up the appropriate business entity for the type of investing I intend to do (as advised by my attorney) and have a high business credit score so I can easily find funding if I need to

• I have consulted an insurance agent and protected myself and my assets from losses too big for my Emergency Fund

• I have consulted with an attorney and protected myself and my assets from potential lawsuit

How many “yes”s do you have? We have programs and courses that can address any “no”s on your list. When you’re ready to tackle them, contact our team for support or a referral at:

For Finance & Insurance:

Sarah Nicole Nadler
www.FierceFeminineFinance.com

For Legal:

Destiny Bounds

www.Legal-fluence.com