Learn how to draw a financial and legal line between personal assets and your business assets, ensuring personal assets are put into the business. See why it’s important to protect your financial future from the risk of starting a business.
- When you start a business,…you want to make sure you're protected:…protected from theft, fraud, fire, accidents, lawsuits,…and we should add one more.…You need to protect your business from yourself.…In order for your business to operate properly,…you need to separate it from you.…Even though you probably identify with the business…and you've put a lot of time and sweat…and probably tears into it, it is not you.…Some of this is a state of mind.…Mentally you have to be prepared for the good and the bad.…If things go amazingly,…you can't let your success go to your head.…
Just like you can't let the bad times ruin you mentally.…This is just a business; it's not you.…So given it isn't you, you need to make sure…you separate yourself financially from the business.…You must have separate bank accounts…for your personal finances in the business,…which means you should not use…your personal credit card for your business.…Get a business credit card or get a debit card…for your business account.…Make sure there's a legal division…
- Explain the advantages and disadvantages of different business and corporate structures.
- Determine cash flow using the concepts of revenue and expenses.
- Demonstrate knowledge of best practice fundamentals for business.
- Explain the importance of a cash reserve.
- Differentiate between the types of insurance and other protections a business should have.