REDUCING FINANCIAL RISKS Reducing the financial risk inherent in business activity is best achieved by applying the principles and techniques appropriate to the situation. Ensure you are Operating with the Correct Structure. Cross your t's and dot your i's. It seems like a cliché, but it is essential to have the proper business structure-Limited Liability versus C Corporation-to protect yourself and your business. Regularly Review Your Financials Review and interpret accurate, reliable financial statements and key performance indicator figures as often as possible. This helps guide decision-making for immediate corrective actions should financial risks exist, as well as strategic sales, marketing and financial planning to minimize potential financial risks. Build a team of advisors Follow the ABCs: attorneys, bankers and CPAS. Attorneys and CPAS are common, but bankers have been lost in recent years. Most business owners think their banker is the guy down the road at their local branch, but that is not the case. Hire a CFO. Hiring a CFO is a must. It is the best hire I have made in 14 years as a financial entrepreneur. Your CFO will help you move from bottom-line, monthly- income-versus-expense thinking to forecasting revenues well into the future.