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Continue reading →: Accrued Interest vs. Current Interest: What Small Business Owners Need to KnowCurrent interest is the cost tied to a period. Accrued interest is the amount that has already built up but has not been paid. They can be the same number on some dates. They can also be very different. That difference matters when you close the books, check cash flow,…
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Continue reading →: Preferred Equity and Who Gets Paid FirstYour cap table shows ownership. Preferred equity decides who gets the first check when the company sells. Preferred equity is ownership with extra rights. Investors use those rights to protect the money they put in. Founders feel the effect later, when a sale does not produce enough cash for every…
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Continue reading →: Debits and Credits Explained for Small Business OwnersDebits and credits record changes in your business accounts. A debit goes on the left. A credit goes on the right. Whether either one raises or lowers a balance depends on the account. That is why paying rent creates a debit to an expense, while taking out a loan creates…
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Continue reading →: Term Loan vs Line of Credit for Small BusinessA term loan gives your business one lump sum. A line of credit gives it a reusable borrowing limit. That is the core difference in the term loan vs. line of credit decision. A term loan fits a known, long-term cost. A line of credit fits short-term needs that rise…
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Continue reading →: LOI vs. Term Sheet – What’s the Big Difference?An LOI (letter of intent) and a term sheet both outline deal terms before the final contracts are written. They are not the same paper. They show up in different deals, at different times, and in different formats. LOI vs. Term Sheet at a Glance An LOI is a letter.…
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Continue reading →: Most Common Small Businesses in the USThe most common small businesses in the US are professional service firms, transportation businesses, local service shops, construction firms, and real estate businesses. That may surprise anyone picturing a restaurant or store. Those businesses are easy to see. They are not the biggest groups by business count. The United States…
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Continue reading →: When a Small Business Coach Makes Sense If You Do Not Have a BoardI used to think business coaching was a soft expense. Good operators already had customers, a P&L, and more opinions than they needed. Paying someone to talk through the week did not sound useful. That view was not baseless. Some coaching is vague. Some coaches sell motivation instead of judgment.…
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Continue reading →: Key Person Insurance for Small Business What It Covers and CostsMost small businesses insure the building, inventory, and vehicles. They may leave the person who makes those assets useful uninsured. Key person insurance fills that gap. The company buys life insurance on an owner or employee whose death would hurt sales, operations, financing, or the value of the business. If…