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How to Build an Emergency Fund
June 14, 2024
Young female entrepreneur working from home with baby in lap while she works on finances
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Major economic downturns or natural disasters are obvious situations where an emergency fund can help your business survive. But there are smaller emergencies that can prove devastating, too. What would happen if you were injured or ill and couldn’t work for months? What if your region or industry suffered an economic slump? How would you survive losing a key customer that accounts for half of your revenue? 

Few entrepreneurs are prepared for an emergency. In a 2019 survey by the Federal Reserve Banks, two-thirds of businesses reported having financial challenges in the prior 12 months. When asked how they’d handle two months’ loss of revenues, just 14% of businesses said they could rely on emergency funds. Nearly half would have to use the owners’ personal funds, 37% would cut salaries, 33% would have to lay off employees, and 17% would go out of business. 

Business interruption insurance, emergency loans, or FEMA funds can help in many situations, but as COVID-19 has demonstrated, loans can be hard to come by, and insurance policies can take weeks or months to payout. In the meantime, you need a way to keep your doors open and your employees paid. An emergency fund can help. 

In this eGuide, we’ll explain 

  • How much money to set aside for your emergency fund 
  • The best ways to build up a fund, even in tough times 
  • Where to put your emergency savings and how to manage it 

Learn how to get started saving an emergency fund for your business so you’re ready when the next crisis hits. 


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