Business can be unpredictable. Learn what to do if you can’t meet your debt obligations. Remember, most borrowers would rather work with you to make a plan to recover their money, so be prepared for what that means. Should you be out of options, is bankruptcy your only choice? And what does that mean for you personally and professionally?
- Business can be unpredictable.…Business partners let you down,…contracts fall through, a supplier raises prices,…or a competitor cuts theirs.…Any of these and an infinite number of other things…can push your business into dire financial straits.…If you're a business owner in a partnership…or sole proprietor status, you need to know…that you may be on the hook personally…for debts incurred by your business.…You have to be extra careful in these situations…if you think your business is in trouble.…You don't want your business to destroy…your personal finances.…
Limited liability companies and corporations…on the other hand insulate the owners'…personal assets from the business…so that the business can close and it will not…have an impact on the owners' personal finances.…But regardless of business structure,…dire financial straits are defined…as having more expenses than income,…having little cash in the bank,…and not being able to meet financial commitments…like salaries, accounts payable,…or debt repayments.…But business owners are a resourceful bunch.…
Author
Jane Barratt
Released
1/23/2018- 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.
Skill Level Intermediate
Duration
Views
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Introduction
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1. Set Up a Financially Healthy Business
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Profit or nonprofit?3m 33s
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Cash flow fundamentals3m 16s
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Setup tips and tricks3m 25s
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2. Growth through Leverage
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Debt vs. equity4m 11s
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Prepare to borrow money4m 47s
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Service your debts4m 8s
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Worst case scenario planning4m 11s
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3. Put Your Money to Work
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Manage your burn2m 40s
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Long term investments2m 48s
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4. Protect Your Business
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Insurance: What do you need?3m 22s
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Protect yourself2m 36s
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Conclusion
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What next?1m 57s
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Video: Worst case scenario planning