Below is the podcast summary – go to the podcast on our website to learn more.
Don’t Do This:
1. Take Draws when needed instead of establishing salary
2. Be liberal with personal loans to employees
3. Give bonuses when you hear you’ve won
4. Sign up for season tickets with your favorite sports team
5. Celebrate your success with a new sports car
6. Buy a new house just before you negotiate your Line of Credit
7. Float your company across credit cards
8. Pay yourself well and hire family members
9. Generously pay your consultants & subcontractors early
10. Borrow from the company to pay your income taxes
1. Corporate Structure – S Corp instead of LLC
2. Buy Sell Agreement and Key Man Insurance
3. Determine needs of owners – equity, work effort, pay, benefits
4. Pay Back Shareholder Loans before increasing salary/benefits
5. Don’t use up all your CASH to reduce your year-end taxes
6. Use company credit cards only for business – set a good example
7. Create a line between personal and business – don’t subsidize or use business funds for personal
8. Arrange for line of credit with bank
9. Finance capital investments with term loans
10. Preserve your personal credit during business growth
11. Invest in automated and outsourced corporate services to keep headcount balanced
12. Let initial billings go about 90 days to catch up gap between new hires
13. Pay Subs on a Pay When Paid plus 5 days Basis
14. Wait for profit to be realized before bonuses/pay raises
15. Create an owner’s bonus/compensation plan with a GOVCON business advisor (STEP)
16. Know your strategy for Succession, Transition, Exit and Planning
17. Regular meetings with executives on financial status and cash flow
Want to hear the Podcast? Click here to find it on our website:
You know how small businesses in federal contracting start winning big, and then worry whether their infrastructure can keep up, but still cash-strapped and not sure how to pay for it?
The main problem is that this federal #GovCon business is a strange animal, with arcane rules, lots of bureaucracy and it costs so much to either find the answers yourself or have another painful “learning experience.”
We all know that the keys to success are having the right teammates and partners, including mentors, subcontractors, primes, plus #GovCon subject matter experts in accounting, contracts, legal, human resources, benefits and insurance.
Imagine if you could be part of a peer alliance that brings those resources together for you, and provides many ways for you to participate, including online access.
Solvability is uniquely qualified to bring this together for you, with online and live training, networking events and webinars, the Florida GovCon Podcast and the Florida GovCon Summit (February 28 to March 1, 2018 in Orlando.) Jenny W Clark has over 30 years of experience in #GovCon, focusing on small business growth, and creating the network you need across Florida, Huntsville, and the National Capital Region.
We’ve just launched online training – click here to find out more about our online DCAA Compliant QuickBooks Boot Camp.