What Happens to Cash When Selling a Business?   When selling a business, the cash stays with the seller unless negotiated otherwise. Cash is not considered an asset but part of the sale proceeds. Suppose you sell your restaurant and keep the $50,000 in the business bank account. That $50k goes to you.   It might seem […]

Buying Into an Existing Business as a Partner  When you buy into an existing business, you purchase a share of ownership in an established business. This way, you become a partner and receive profits based on your ownership percentage.  For example, you buy an existing coffee shop with 30% ownership. If the monthly profits are $100k, […]

Difference Between CPA and CFO Think of a CPA and a CFO as two different kinds of financial doctors for your business. A CPA is like your general physician, focused on diagnosing tax issues, keeping financial records in check, and ensuring you don’t overpay the IRS. A CFO, on the other hand, is more like […]

Burn Rate Explained in 100 Words  Burn rate is the speed at which a company, especially an early-stage startup, burns through its cash reserves while trying to reach profitability. Think of it as a countdown timer; the faster your company spends money without generating enough revenue, the sooner the timer runs out. Investors and founders […]