Mitigating risk in your business

We have an insurance renewal coming up. We know prices are going up in general. On top of that we’ve had a couple of claims, which we’re sure will hurt us. We need help and we’re looking for recommendations.

Thoughts of the day: Know what kinds of risk you want protection from. Lower risk by making constructive changes to how you conduct business. Decide how much risk you’re willing to shoulder.

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Digging yourself out of a financial hole

I have no more money to put into the business. Over the years the business has been good to me. It has supported lots of families — mine, as well as my employees. Right now, I need more cash to pay the bills, I can’t get a line of credit like I used to and I’m tapped out. I’m planning to sell the business in the next few years, but it’s going to take some work to get it ready for a good buyer. Have I dug a hole too deep or is there a way out?

Thoughts of the day: It’s a different financial landscape for many businesses today versus 10 years ago. Figure out what got you into trouble in the first place. Be a conservative borrower. Prove your business has high value by turning it into a money machine.

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Buying a building? Think future as well as present

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We’d like to buy a building. We also want to invest in developing more sales. Unfortunately we have limited funds to work with and we’re thinking this building could be a once-in-a-lifetime opportunity. How much do we need to buy a building? What is the best decision to make?

Thoughts of the day… Investing in growth is essential to the future health of any business. On the other hand, a building is a tangible asset, something that most service businesses lack. Make sure you have a handle on all anticipated costs. Cash flow is going to be king as you consider taking on new expenses and juggling priorities. Think long term, while you manage through the short term.

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Using key measures to make a profit

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We’re having trouble making a profit right now. Invoices are up this year, but so is payroll and just about every other expense. If we can’t make money, what’s the point?

Thoughts of the Day: Growth needs a plan in order to get things to turn out right. Figure out what you really want. Don’t try to get it right all at once. To get where you want to go, put someone in charge of managing finance.

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Keeping the Nest Egg Intact

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I don’t want to save money and then spend it to get through our slow months. Every year it feels like we give back all our profits when it gets quiet. Help!

THOUGHTS OF THE DAY: Savings are essential. So is fiscal discipline. Know what you can and cannot afford to do. As the business grows, be careful not to increase volatility. Consider getting into complementary business.

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