It’s a bit of a paradox to say that you should expect the unexpected, because if you’re expecting it, it is no longer unexpected. That said, although you may not be able to expect the unexpected, you should do your best to be prepared for it. This is a very important thing to keep in mind when starting and running your business, whether it be an online endeavor or the opening of a brick-and-mortar store.

This is why it is of paramount importance that you keep a keen eye on your cash flow and always have a contingency fund in place in case of emergencies and unexpected expenses. The size of your contingency fund will depend on a number of factors, like the amount of money coming in and out on a regular basis, as well as the possibility of having to repair and/or replace expensive elements of your business. If you run a printing shop, for example, it can be very expensive to replace one of those large printers. If you’re a freelance writer, on the other hand, the largest replacement cost would just be a simple computer.

In dealing with the cost of day-to-day operations, it’s easy to stretch your cash flow thin. You’re going to have bills to pay on a continual basis, but you should have a fund set aside to take care of unexpected expenses. Don’t leave yourself in the unfavorable position of having to ask for a (potentially high-interest) short-term loan from the bank just to cover an unexpected expense.