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10 Risks To Keep Business Owners (and their bankers) Up At Night

I love ‘In pictures’ series. Here is their ’10 Risks to Keep Business Owners Up at Night’. I’d say the same risks have their bankers worried. Go take a look at the full article.

  1. General Economic Conditions
  2. Operational Hiccups
  3. Stiffer Competition
  4. Cash Crunch
  5. Partner Problems
  6. Troubled Customers
  7. Talent Shortage
  8. Patent Protection
  9. New Regulations
  10. Headline Risk

Shoot. That list is enough to make any business owner have nightmares in the middle of the day, especially with our current economic conditions and the expected duration of the downturn.

I am guessing that ‘cash crunch’ caught your eye. Here is the author’s short take:

Most small businesses fail because they were undercapitalized, and affordable capital isn’t always easy to find–even for large companies. (Two words: credit crisis.) Young but rapidly growing businesses often play a dangerous game, boasting hockey-stick-style financial projections only to run out of cash before the good times kick in. The best risk-management tool: a nice pot of cash.

So how much cash do they need in the pot? Has your bank increased liquidity requirements for loan approval?

About the Author
Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis. She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans. Creator of the Tax Return Analysis Virtual Classroom at, she speaks at banking associations on risk management, lending and director finance topics.