As a business owner, you have a significant number of responsibilities. Keeping on top of everything your business needs and ensuring that it runs smoothly can be difficult. You are faced with a number of different challenges when it comes to making your business grow and thrive. While difficult, it’s not impossible. Learning how to protect your business, yourself, your employees, and your consumers can put you in a much better position to succeed. Here are some of the essential protections that you should have.
Separating the Business from the Personal
While it can be tempting, especially if you are the sole owner of your business, to keep everything together, it is imperative that you separate your business from your personal finances. It might seem easier to just keep one bank account and one credit card, but not separating the two can have severe consequences. If your business is sued, and it is not separate from your personal finances, the person suing you could take your personal assets, including your car and even your home.
In order to protect yourself, it is important that you choose the right legal structure for your business. There are several options, including a sole proprietorship, a limited liability company (LLC), an S-corporation, and a C-corporation. Make sure that you do your research first in order to ensure that you choose the best set-up for your needs.
Establish Some Savings
The cost of running a business can leave you with very little money left over at the end of the month, especially in the early stages, but it is important that you start setting aside some savings. Having savings stashed away for your business will help to ensure that you have an emergency fund in case of unexpected costs or other emergencies. Many banks offer different types of savings accounts for businesses. Check with your bank to see what is available for you.
Have a Good Attorney
It’s a good idea to have a good attorney on retainer in the event of potential legal situations and if you have any legal questions that need to be answered. Prior to choosing an attorney, make sure that you ask trusted friends and contacts for recommendations, conduct interviews, and research reviews. It is also important to make sure that the attorney you choose is local, and familiar with local laws and regulations related to business.
Have a Good Accountant
Along with a good attorney, it is also crucial to have a good accountant. A good accountant will deal with your financial statements, tax documents, and other documents for you. They are knowledgeable of the tax codes. They can also help you to produce accurate reports.
A List of Potential Hires
Even if you have the best employees in the world, you have a great work environment, and your employees love their jobs, employee turnover happens. Having a list of potential hires in your back pocket will help to reduce the stress and the time associated with finding replacements.
Essential Insurance Your Business Needs
In order to protect your business, it is essential that you have certain types of insurance. There are several different types that you should have. General liability helps to protect your business from a wide array of unplanned liabilities and lawsuits that might occur simply as a result of doing business. This type of insurance can cover premises liability, property damages, and more. Product liability covers recalls, injuries as a result of products, and warranty claims. Commercial liability covers your machinery, office furniture, and inventory.
If you have employees, it is critical that you have worker’s compensation. As an employer, you have a duty to protect those who work for you. In this day and age, it’s good to also offer health and life insurance to your employees. Some employers offer affordable insurance that covers the basic costs of a burial.
You also need to protect customers and even trespassers who might come to harm in your facility or buy your equipment. Lawsuits for worker’s compensation can be quite expensive, so it is necessary to be covered in case of an accident.
If you lease or rent the property that you operate your business out of, it is necessary to have renter’s insurance. This type of insurance helps to protect the equipment and other property inside the building. You may want to consider a business interruption policy, which can protect you in the event of an unexpected disaster. You could also look into a business owner’s policy package, which often includes different policies such as business interruption, property insurance, liability insurance, and vehicle coverage. Your policy can be customized to meet the specific needs of your business.
Starting and running your own business can be exciting, but it’s not always easy. As a business owner, it is essential that you’re prepared for the unexpected. Taking steps to protect your business, as well as your customers, will not only provide you with peace of mind but can also help you to run your business successfully.