Article Summary: 4 Habits to Building a Financially Healthy Business | Manta

By Ivy Lamb, Manta Webinar Editor - September 20, 2016

I have pared back this article to the key points.  To read the full article, click the link at the bottom of my summary -- Eric Gall

Smart money management is essential to the success of your small business

Good habits for personal money management:

• Spend less than you earn.
• Set money aside for emergencies.
• Check your bank account on a regular basis.

Business money management isn’t much different from personal. Here are habits to help build a financially healthy small business.

1. Separate business and personal expenses. Commingling personal and business activities can void the liability protection offered through your entity structure. Open a separate bank account solely for your business.
2. Keep good records. Proper accounting provides insight into the health and viability of your business making it easier to borrow funds and raise capital from banks and investors.
3. Track cash flow carefully. Profit and loss is the most popular financial statement; however, for small business owners, cash flow is most crucial. Can you meet payroll? Can you pay invoices? Can you pay yourself? These are key to staying in business.
4. Get insurance. Business owners should acquire insurance under the entity’s name to protect against unforeseen incidents. “Consider general liability, property, and professional liability insurance, worker’s compensation (if you have employees) and an umbrella policy as a safety net.
5. Article LINK

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at Eric@EdisonAvenue.com or 239.738.6227. Also, visit our Edison Avenue website at www.EdisonAvenue.com.