Warning Signs:

• Things to be aware of and questions to ask.

Steps to Improve:

• Is the company adequately capitalized, undercapitalized or overcapitalized?
• Is net income stable or growing? How does it compare to industry norms?
• Raise adequate capital to fund rapid growth or shrinkage before you need it.
• Tap outside investors for capital.
• Have an ownership continuity plan.
• Protect the company from the drain estate taxes could cause.