Few things in life are guaranteed. It’s always a smart idea to prepare for the future, especially when that means preparing for uncertainty. As an entrepreneur, you already know the importance of your mindset and thinking on your toes. Unfortunately, the future isn’t always certain when you work for yourself.
Whether you’re a freelancer, digital nomad, or a small business owner, you never know what waits around the corner. If the COVID19 pandemic taught us anything, it’s that you have to stay prepared for the unexpected. While an unknowable future can be an opportunity for growth, you need to take steps to make sure you have a safety net for your business. In this guide, we’ll share how to prepare for uncertainty as an entrepreneur.
Create an Emergency Fund
Have you ever heard of a rainy day fund? This is an account specifically set aside for emergencies. If you’re a business owner, you need to have an emergency fund for your family and your business. This is the number one way to prepare for uncertainty as an entrepreneur.
Not sure how to begin? It doesn’t have to be intimidating. Start by putting aside a little bit of money each month into a separate account. Avoid touching these funds unless you need to. If you suddenly lose your biggest client, for example, or experience another economic emergency, you’ll have funds to draw upon. This can make all the difference. Unfortunately, the top reason businesses fail is a lack of funding. By keeping this your first priority, you stay in control no matter what.
Diversify Your Income
If you have a side hustle or you work online, consider ways to diversify your income. If you put all of your eggs in one basket as an entrepreneur, you risk losing all of your earnings if that one avenue falls short. If you’re a business owner and you only have one or two clients, this might be fine for a while. However, what happens if one of these clients no longer needs your services or they run out of funds themselves? You could be left struggling with a gap in your income.
Instead, look for ways to diversify your earnings. You might seek clients in different industries, widen your offerings, or start a side hustle. No matter what, never get too comfortable with the clients you have. You never know what the future will bring.
Update Your Skillset
If you’re an entrepreneur, the learning never stops. From listening to the best podcasts to reading business books, never quit learning new things. There is never a bad time to update your skills and look for ways to stand out. Whether you learn how to help your clients in a new way or you improve your marketing, this all adds up to a big change.
The best entrepreneurs are the ones who are always open to new ideas and experiences. Consider taking a new course each year, joining a workshop, or attending industry events. No matter what, never stop learning. If you do need to change quickly, you’ll be ready to adjust your strategy.
Find Peace with Uncertainty
Lastly, do your best to find peace with your own uncertainty. Being an entrepreneur doesn’t mean you have to be fearless. In fact, a healthy dose of fear can help you make stronger decisions about your business and your future. No business owner is 100% certain about what the future might bring, and this is normal.
Consider your own weaknesses, fear, and worries. Once you recognize these, create an action plan for conquering them. Building relationships with other entrepreneurs and talking about your shared worries can bring peace. At the end of the day, having a strong plan is the best foundation possible, but nothing will fully eliminate these realities. However, having the freedom and control over your finances and your business is well worth it for many.
Living with Uncertainty
As a business owner, uncertainty is the name of the game. That being said, this doesn’t have to hold you back. Too many people don’t go for their dreams because they’re worried about the future. Whether you want to be an influencer, content creator, or business owner, you have to put those fears aside and accept the reality of uncertainty.
Are you starting your own business? This job comes with enormous freedoms and perks, but it’s not without its drawbacks. Luckily, uncertainty is a small price to pay for a lifetime of success.