Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners. These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.
Do you really understand the risks of business ownership? Many times we business owners take on risks that we don’t even know about. My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute. One major example of risk is personal reliability. And then we all have corporations to protect us from personal liability, but if we sign personal guarantees, it doesn’t matter if you have a corporation or not, you are personally liable. Most of us realize we’re personally liable on bank loans and credit cards, but did you also know that you are personally liable for pay roll taxes, sales taxes, wages and other stalk holders? And if those personal liabilities are not risky enough, there are many business owners who are personally liable to their suppliers with a credit application that they filled out at the beginning of the relationship. If you have one of those and you have been paying the supplier on time, ask the supplier for a release immediately. In addition, any time you fill out a credit application, cross out the personal guarantee language before you sign the application. And remember, the most successful business owners know their numbers!