How to Prepare When Business is Going Well

Thousands of times I have heard the same story. Business was great, we had more work than we knew what to do with. But then, everything changed. The market crashed, the economy took a dive, my family had an illness.

Stories like these should make your ears perk up, because they may just save your future. So what do you do when your real estate properties are cash flowing or your small business is booming.

The life story of Joseph is amazing in and of itself but we focus on one particular piece of advice he gave the pharoah during emense prosperity in Egypt. He told the there would be seven years of prosperity followed by seven years of famine. This in and of itself is a given, just through the natural cycle of life. And many times, pride comes before the fall.

He advised to put away one fifth of each harvest to use during the years of famine. It is not a season of life that makes a difference. It is the accumulation of small decisions compounded over a long period of time. Anyone can have a successful run in real estate or business but to truly have success, you must have the discernment to prepare for troubling times. This gives you the staying power needed to realize true profit.

Do you agree one fifth is an accurate amount to be stored? What strategies do you use?

This post was reposted from http://finlit.biz/business/how-to-prepare-when-business-is-going-well/, originally written on September 2nd, 2013.