Should Your Business Have a Bank Roll?

Should Your Business Have a Bank Roll?

Different types of businesses run on different financial models, some of it by necessity, some by choice, even if the business owner does not realize they are making that choice.

A fundamental question any mobile notary should ask is if there is a need for their business to have a bank roll, aka savings.

If I have a Bank Roll, How Big Should it Be?

A business should set a goal to have six months of operating expenses banked in case of a new need, or to cover operations if there is a short blip in the market.

This gives the owner of the business a lot of flexibility. Not just in operations, but in marketing as well.

A business that has a bank roll, is a business that is ready to pounce when an opportunity rears its head.

But I’m Just a Small Business

Your point?

We fully understand there are businesses that live pay period to pay period, just like there are people who live paycheck to paycheck.

Remember, this is a goal, not a rule written in snow stone (Sorry, I’ve been binging Game of Thrones).

Also, don’t forget what got you here in the first place. You decided you wanted to become a mobile notary and you did what you had to do to make it happen.

Look at your company’s bank roll the same way, and you will find a way.

The Borrower

Yes, taxes are just part of doing business. Sometimes borrowing money and having to pay interest on it is just part of doing business as well.

Look realistically, you are a mobile notary, which means you are an entrepreneur, and entrepreneurs take risks. You understand what we are saying.

But, the borrower is always one step behind.

The borrower pays higher than market prices because of interest. The tax write off for costs does not change, so the borrower always comes out behind of where they could be.

Please note, we are not saying to never borrow. Sometimes, it is a risk that pays for itself over and over again. There are a lot of great businesses that borrowed money.

What we are saying, is that your business having a bank roll can help you come out farther ahead more consistently. And not having to pay that interest (or as much of it) means you put more money directly into your business.

The Bank Roll’s Effect on Operations

There is no denying that having a bank roll gives a company much greater flexibility, both when the market is up, as well as when it is down.

If the market surges, a business is ready, because the salary to pay that new employee is already in the coffers.

On the flip side, if the market moves to a slower period, it allows a business to keep employees on for longer. This gives you more time to either create new business, or survive what ends up being a short downturn in the market.

Having more flexibility in operations than your competitors is a massive advantage. And not having to borrow, means you never have to put company equity on the line.

The Bank Roll and Marketing

We recently spoke about finding opportunities for your business.

So, what if you find one?

You have to be ready to jump quickly. By the time financing for the opportunity comes through, it may be too late.

But, what if your company has the money on hand to move rapidly?

What was the word we used earlier? Flexibility.

  • Flexibility to focus on the opportunity at hand, and not to have to worry about money.
  • Flexibility to act fast to take advantage of current events.
  • Flexibility to react faster than your competitors.

It’s a beautiful thing.

Don’t Forget It’s a Goal, Probably a Long Term One

This is not something that has to be completed today. Sure, it would be cooler if it was, but we have to address our business realistically.

It is a goal, plain and simple.

You are not going to be tomorrow where you are today. Same goes for next week, next month, or next year.

And it would be more than nice if you are more flexible then, than you are today.


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