Today’s chosen theme: “Investing Wisely: A Guide for Small Businesses.” Explore clear, practical ideas to protect your cash, grow it responsibly, and fund your next big leap—without risking the lights going out. If this resonates, subscribe and share your goals with us.
Write Your Investment Policy Statement (IPS)
Spell out liquidity tiers, approved instruments, concentration limits, rebalancing rules, and decision authority. Include counterparty criteria, fee thresholds, and documentation standards. When the plan is visible, smart choices become routine. Want a checklist template? Comment, and we’ll share a community version.
When Reinvesting in the Business Wins
If a $10,000 machine cuts scrap 8% and pays back in 11 months, that may beat a safe yield. Similarly, proven marketing experiments or SEO upgrades with measured CAC and LTV often outpace Treasury rates. Track payback periods honestly and share one reinvestment that surprised you.
Evaluating External Cash Vehicles
For short‑term reserves, consider FDIC‑insured sweep accounts, government money market funds, or short‑duration Treasuries. Compare expense ratios, settlement times, and vendor safeguards. Simplicity reduces errors. Have you tried a cash management account? Tell us what worked and what didn’t.
Balance Liquidity and Yield
Use a three‑bucket approach: operating cash, safety reserve, and strategic funds. Ladder short‑term Treasuries for predictable liquidity while capturing yield. Document thresholds so you never starve operations. How do you split your buckets today? Share your percentages to help peers refine theirs.
Due Diligence and Risk Management
01
Verify custodianship, segregation of client assets, FDIC or SIPC protections, and vendor financial health. Demand two‑factor authentication, access controls, and SOC 2 where applicable. Write down your criteria. Which checks are in your toolkit? Comment to expand our collective safety list.
02
Limit the number of accounts and instruments you actively manage. Set position caps to avoid concentration risk, but keep your setup simple enough to maintain. Diversification only works if you can monitor it. What is your maximum position size? Share your rule of thumb.
03
Run tabletop exercises: What if revenue falls 30%? What if a bank holds deposits? What if a supplier fails? Test whether your liquidity ladder and IPS hold. Tightening bolts before storms saves businesses. Post one scenario you’ll test this month and we’ll compile community insights.
Tax‑Aware, Compliance‑First Investing
Loop in your accountant before placing funds. Align estimated tax schedules, safe‑harbor rules, and reporting needs like 1099‑INT or 1099‑DIV. Early coordination avoids costly surprises and late fees. Ask your accountant one question today, then share the best advice you received.
The Coffee Cart’s Rainy‑Day Fund
A two‑cart espresso team skimmed 8% of weekly revenue into a three‑month T‑bill ladder. When a boiler failed before a festival, their reserve bridged repairs without debt, protecting staff hours and goodwill. What percentage could you skim painlessly? Tell us and inspire someone starting small.
The Agency’s Crypto Detour
A creative agency parked tax reserves in a volatile token after a hot tip, then sold at a loss to meet payroll. The pain birthed an IPS with strict liquidity rules and platform checks. Ever rewired a process after a scare? Share and help another owner sidestep regret.
The Maker’s T‑Bill Ladder
A custom furniture shop moved idle cash into 4‑ and 8‑week T‑bills, staggering maturities. The ladder funded walnut slabs on schedule and still earned thousands in a year. Sleep improved, too. Have you tried laddering? Post your intervals and results so we can compare approaches.
