Dawn Fotopulos

Let's first understand what the definition of bankruptcy really is.

The definition of bankruptcy is running out of cash.

And small businesses do this every day.

And Bear Stearns did this, too.

Bear Stearns was showing a profit the Friday before the Monday that they declared bankruptcy.

OK, so running out of cash or sources of cash is the definition of bankruptcy.

Don Fotopoulos is on a mission to help business owners step up, understand the numbers of their business, and avoid bankruptcy.

And regardless of whether you're a solopreneur or you're an independent contractor or salesperson or you're running a P&L or if you're an employee, the principles are universal.

And she's an associate professor of business at the King's College.

The thing that most impressed me about her, though, was a 20-year career in business and

As an experienced entrepreneur, turning around small businesses, working as vice president at Citigroup, as a Wall Street trader, and she is the author of a book called Accounting for the Numberphobic, A Survival Guide for Small Business Owners.

So, Dawn, thank you for being here with me and all the other numberphobic listeners.

A lot of small business owners just kind of say, hey, I'm just going to hire somebody like an accountant or a bookkeeper.

But you say that's not really good enough.

Why not?

Indeed.

One of the things I think that a lot of people don't realize is that you can be showing a profit and still be going bankrupt.

So talk to me about the balance sheet for a second, because I would say, what should they be looking for to kind of get an understanding of the current state of the business?

And so last little question, the time always flies by.

What is the first thing that somebody should do to get a handle on their numbers?