Embezzlement - small business danger

By
Real Estate Agent with The Nines Team at Keller Williams in Lodi BRE# 01390564

The Nines Team in Lodi

 

Small business owners are usually more concerned about their business than they may be in running the business.  The passion and excitement of business ownership does not usually extend to the nuts and bolts of “managing the business.”  Real Estate agents are small business owners, and as individuals we can also be caught up in the “in the business” attitude and not spend as much time on managing our own businesses.

Reaching out into our local small business communities is one way that we can expand our contacts and benefit from the networking that local businesses seem to enjoy more than their bigger corporate cousins.  Small business owners seem more willing to share their resources … corporate sees their resources as a competitive edge.

There is a rising issue in both business worlds that seems to be more dangerous for the small business, than the corporate world.  (The operative word here is “seems.”)  According to the Central Valley Business Journal (January 2011) there is an upward rise in embezzlement activities.  Small business owners not keeping an “eye on the till” are at risk. 

Suggestions for minimizing the danger of embezzlement include getting money-handlers bonded, check your books frequently and sign checks yourself.  In the case of small business the amount of money is usually rather small, at least when compared to the potential millions at risk in some corporate environments.  However, the percentage of damage may be just as devastating to a small business owner as a corporate giant.

The lesson – spend a little more time “in your business” not just “doing business.”  There are other safety nets in money management that stem from the skills of experience.  Consider getting involved with your local business associations … share what you have learned … and learn from other members as well.  We all win when we become part of the community we serve!

If you are looking for a business opportunity in an engaging and evolving community – consider Lodi, California - and The Nines Team has just the right staff to help you find one!  Call us today:

888-868-4398

Live – Work – Play

The Nines Team in Lodi

 

Comments (6)

Susan Goulding
Crown Key Realty, Inc; Tracy & Mountain House Sales and Property Management - Tracy, CA
Northern CA - Tracy & Mountain House Real Estate

Great advise- far too easy in "cash" businesses for employees to take a few dollars here and there. Ultimately resulting in embezzlement.

Jan 17, 2011 06:04 PM
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Jack, excellent input for business owners.

Jan 17, 2011 09:18 PM
Jack Mossman - The Nines Team at Keller Williams in Lodi
The Nines Team at Keller Williams in Lodi - Lodi, CA
The Nines Team in Lodi

Susan - Not just cash ... it's easy to write checks to "vendors" for services that either don't exist or to use "accounts payable" approval reports to skim a little off the top ... sad, but desperate times!

Jan 18, 2011 01:54 AM
Jack Mossman - The Nines Team at Keller Williams in Lodi
The Nines Team at Keller Williams in Lodi - Lodi, CA
The Nines Team in Lodi

Dan - Thanks for the compliment ... it's just a little more "paying attention" ...

Jan 18, 2011 01:55 AM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Jack,

I am always surprised when I read in our local paper that someone has been charged with embezzlement, especially if it's a large sum of money over an extended period of time.

Jan 18, 2011 11:34 AM
Jack Mossman - The Nines Team at Keller Williams in Lodi
The Nines Team at Keller Williams in Lodi - Lodi, CA
The Nines Team in Lodi

Judi - I agree ... I'm afraid my mind just doesn't go there ... but then we all need to be careful!

Jan 18, 2011 01:55 PM