You scored out of .
Did you score fewer than 3 points? You're probably not investing too much in your business.
3 points or more? You may want to reconsider your strategy. Read on.
Consider two primary questions before investing any additional personal funds in your business:
1. Are your personal finances in order?
2. Are your business finances in order?
Don’t sacrifice your personal financial health for the health of your business. There are no loans for retirement, and if you can’t handle a personal financial emergency, your business might suffer.
If you want to grow your business, it will be important for the company to have its own bank accounts and its own credit score. If you’re using personal funds to make up for negative cash flow, you may be setting yourself up for bigger challenges later on.
If you haven’t registered your business entity as an LLP, LLC or S corporation, your personal assets could be on the line if your business fails.