Who Is Swimming Naked In Your Back Yard?

Who Is Swimming Naked In Your Back Yard?

Warren Buffet has a saying that goes as follows…

“You never know who is swimming naked until the tide goes out”.

This past week there have been two major businesses who have been exposed as having been “swimming naked”. The major blow up was the investment manager Bernard Madoff, founder of Bernard L. Madoff Investments Securities LLC, to the tune of $50 billion. The other scandal was the lawyer Marc Dreier in New York for $280 million.
Both of these individuals were assumed to be the pillars of their profession and financially secure. In fact, both were big frauds waiting to be exposed. It was only after the financial stress of the past year caught up to them that the world discovered the truth. More to the point the only reason you heard about them is because they were large enough to make it in the Wall Street Journal.

Who Is Swimming Naked In Your Back Yard?

The real question going through your mind should not be about what they did or how they did it. But, instead you should be asking yourself is either:
Who in your community is doing the same thing or something similar?
Or who is swimming naked in your business community?
Often, what we see of people or businesses is only surface deep. I have know several individuals and companies over the years who appear successful on the surface but in reality they don’t have the financial strength to weather a shock to their systems. As this recession takes hold across the country we are going to see who has been fiscally conservative and who has been living on the edge.
As a business owner or CFO you need to be concerned about which receivable is going to be uncollectible. You can rest assured that somewhere in your accounts receivable ledger there is a bad debt that has not been exposed. Now is the time to tighten up your underwriting requirements and collect your old receivables.
To learn more financial leadership skills, download the free 7 Habits of Highly Effective CFOs.
who is swimming naked
who is swimming naked

ARTICLES YOU MIGHT LIKE

The Struggles of Private Company Accounting

Hiring the right accountant  When I meet a business owner operating at a successful $10 million in revenue, they often mention, “My CPA”… I immediately know that CEO/Entrepreneur is referring to their Tax CPA.  That is because one thing that all Entrepreneurs have in common is that they must file a tax return.  So, from

Read More »

IN CRISIS? GET A STRATEGIC CFO! – CEO Blindspots Podcast

Friend of the firm, Birgit Kamps, recently had Strategic CFO President, Dan Corredor, as a guest on her podcast, CEO Blindspots. CEO BLINDSPOTS HOST: Birgit Kamps. She was speaking five languages by the age of 10, and lived in five countries with her Dutch parents prior to becoming an American citizen. Birgit’s professional experience includes starting

Read More »

SHRM calls ICHRA the 401K for Group Health Benefits

Fed-up with group health insurance? ICHRA is the new way to offer great health benefits and avoid ACA penalties, SHRM calls it the 401K for group health benefits.  In 2020 the Department of Labor, HHS and IRS changed the rules for employer health benefits. They changed the Affordable Care Act mandates and penalties for every

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

SHARE THIS ARTICLE

JOIN THE NEXT STRATEGIC CFO™ SERIES

Strategic CFO™ Financial Leadership Workshop
The Art of the CFO®

Days
Hours
Min
Sec

September 12-15th 2022