Because if you do trust her, there’s no reason you can’t keep that $35,000!

Let me start out by saying I am not an attorney and nor am I giving you legal advice. Quite the contrary…I am telling you to get a good attorney and one who knows how business can (in the event you don’t seek competent counsel ) crush you and your family.

So there is this great scene in Shawshank Redemption where Andy Dufresne and the other prisoners are on the roof of the prison tarring the roof on a detail.

The lead guard Captain Hadley finds out he just received inheritance from his dead brother of $35,000. (Now if you do not like profanity do not watch this scene.

He proceeds to bitch about the taxes and soft costs and risk of the inheritance. Dufresne the convicted wife killer but former banker takes the risk of telling the Captain that he can keep the money…indeed all of it if he trusts his wife.

Now what is the point…well my point is that all too often business owners make mistakes by not asking the question of competent professionals. Now good old Andy the murder (innocent by the way) knew the rules and gave proper counsel all for a bucket of beer. But time and time again I see owners seek poor counsel or no counsel because they do not know the potential cost.

For example…this morning I got a call from a business owner named George. George has a franchise that he bought (had Sally his wife sign on) and got himself a lease (he and Sally signed on to personally guarantee) and they being the Optimistic franchisee that they were under-estimated the time the contractor would take to conduct build out and get their CO for occupancy (it took 2.5 x longer). Now they are hitting low season and they are behind on rent and sales are going down and they blew through reserves so they are cutting ad spend when they should be pushing ad spend to drive sales through the low season.

My questions to George went to protecting their assets.

Before you buy a business or a franchise…BEFORE…I will say it again …BEFORE. You need to imagine what could go wrong and plan and structure so as to mitigate risk.

Lets’ Call It The Do You Trust Your Wife Tactics.

• Does your Spouse need to be on the corporation? Are there risks in doing it? Why are you doing it and is the risk greater than the perceived benefit.
• Are you homesteaded on your personal property? How are your assets (non business) protected? Get with a good estate planning attorney to address these issues
• Do you have to sign a lease personally…all things are negotiable! I would rather no guarantee than free rent. If you have to guarantee then negotiate to keep spouse off the guarantee
• Same as above on the
• Do not use the same banking institution for business and personal accounts. Banks can rob from one account to justify payments of another….even family members ( call for that story).
• Have a real CPA and Real Attorney.

Ignorance is bliss but your actions are permanent. One of the great gifts with Entrepreneurs is they are optimists but it is also their curse. Bad things will never happen to them. And when they do if they did not prepare for the contingency you will pay and pay dearly.

Not everyone has a convicted murder smart money grubbing banker who works for beer in their back pocket so be smart. Hire professionals.