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13 SUMMER 2023 ® / ™ Trademark(s) of Royal Bank of Canada. 000000 (00/2021) 4. Create an emergency fund Business owners are acutely aware that external factors completely out of their control can affect their bottom line. Hence the importance of creating an emergency fund for the future. Aim to save at least three months' coverage of your fixed costs. If possible, set aside a six- month runway. 5. Build an opportunities fund Once you've established an emergency fund and your expenses are accounted for, try to set aside a cash reserve for opportunities, however small that might be. Remember, even the pandemic offered unique opportunities for business owners who found creative ways to build their businesses and meet customer needs. Being prepared to act on new ideas can help your business weather tougher times. This article originally appeared on RBC's Discover & Learn portal. discover.rbcroyalbank.com This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates. The Bottom Line Higher interest rates have made borrowing more expensive for business owners, but they also offer the potential for savings growth (and a reason to look at operating expenses closely). Knowing the impact of rates on your business and understanding the options and opportunities available can help keep your business financially healthy. rbc.com/businessadvice

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