Module 3B - Introducing the Business Financial Documents

AUTHOR'S NOTES

The hope and prayer is that the family business will survive and prosper. 

Janet, my four month pregnant, stay-at-home wife, and I purchased a small established general insurance agency from a retiring part-time agent. Guess who became the secretary and bookkeeper? Your answer is correct!! Since the Connelly Insurance Agency was started on a ‘shoe string’ we operated the business from our spare bedroom with used office furniture purchased at an auction. January 1, 1972 is as vivid as if it were yesterday. The residual commission income provided cash flow monthly but no guarantees.  None!!

Within two months a nearby general agency became available due to a sudden death of a competitor agent. His widow offered the agency for sale as a cash sale. The competition among neighboring general agencies was fierce bidding on the purchase price. Approaching our banker about the opportunity she was agreeable to offer a line of credit if Janet and I could secure the borrowed money.  Success!!

Oh, it’s only because my in-laws who co-signed the bank note believed that we were committed to the long term repayment obligation.

 

CASE STUDY: Beth Interviews Personal Banker