Do you allow your company to push you around and take advantage of you? I’m not talking about long hours without proper compensation, that is part of the deal when you run your own company. I’m talking about when your company shifts unnecessary financial risks and legal exposure to you simply because the company has not taken the time to protect you personally.
Last week a small retail merchant told me his company would not spend $600 to begin the process of shifting company debt from his name to the company name. Another merchant in Kentucky who has a successful transportation business is not incorporated because his company would not spend the time and money to do so, therefore he is completely exposed personally to a number of legal threats. A small food service chain owner actually signed a personal guarantee for over $350,000 of expansion capital because the company would not pay a slightly higher rate on the borrowed money.
My advice to each of these owners is very simple: Quit!
The irony in each of these situations is that the owner is the decision maker and he/she decided to put themselves in a dangerous personal situation simply because they would not spend some of the company’s money to protect themselves personally.
Would you work for a company that would not pay a couple thousand dollars more in financing costs to keep you from personally guaranteeing a loan to fund company growth? How would you feel if your boss asked you to be personally, legally accountable for the actions of the company and its employees because they would not spend the money properly organize and incorporate the business?
What if one day you were asked to assume the debts of your employer because they wanted to save $600 in legal fees?
While these sound like ridiculous questions, these are the default decisions many business owners are making every day. Take a look in the mirror and see where and how you are personally exposed in an effort to save your company a few bucks. We see it every day.
The most successful owners I deal with have the ability to distinguish between the company and themselves, in other words they see themselves as executives within the company rather than as an extension of the company. If you will make this mental adjustment, I’m convinced you will make better strategic decisions and eliminate much of the risk of business ownership.
I know life is going 100 mph but if you are exposed or if you are not sure, email and request our white paper on the top areas of business exposure. It may save your business life.
