THE recession has been tough on a lot of small businesses. And if you have a family-owned business that is your only source of income, the business may not even be making enough to pay its own expenses- let alone pay you. Good business practice says that you should pay yourself first but in practice this is not what really happens.
The government believes that the purpose of your business is to pay taxes. The community believes that your purpose is to provide jobs. But do you know what your real purpose is or SHOULD BE? It’s to make money! That’s right! Your business exists for the sole purpose of making money.
There’s nothing wrong, unethical, selfish or immoral about that. That’s why you went into business in the first place. If you’re a corporation, you have a legal and ethical duty to your shareholders to conduct your business such that you maximize your profits at all times. And if you are the only shareholder, that means you owe that duty to yourself.
If you’re not making money, you’re NOT in business. You may be going to work every day, working your tail off… no time for yourself or your family…you may be going through the motions, but you’re not in business unless you’re making money.
If this sounds too blunt and insensitive, I apologize. My intention is not to get in your face… it is to remind you that if you’re in this situation YOU NEED TO LEAD THE RECOVERY EFFORT until you’re profitable again. No one cares about your business as much as you do. You can’t delegate this responsibility to your employees, your accountant or anyone else.
If you’re having cash flow problems, you may need to cut your spending to the bare minimum. Necessary bills must be paid and priorities must be set by you. You need to track of every penny that goes in and out of your business. If there was ever a time in your business where your leadership was needed, it’s NOW.
For the last 15 years, I have counseled hundreds of small business owners in finding a solution to their debt problems. I don’t claim to know everything and as a business owner myself, I am still learning myself. But one thing I’ve learned is to always come up with a Plan B if Plan A doesn’t work. If you need a confidential attorney consultation, call my office at 866-477-7772 to schedule one. We have offices in Pasadena, Valencia and Cerritos.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1 (866) 477-7772.