So, you’ve done it – you’ve started your very own small business! It wasn’t easy; it took a lot of time and, probably, a worrying amount of money, but here you are. The problem, of course, is that you don’t just have to protect your business during its nascent stages – you’re going to need to protect it for life.
A lot of people get into entrepreneurship while greatly underestimating the many risks that can take place in the world of business. It’s essential to understand that starting a new business requires you to put a lot of effort into protecting your many investments. A lot of people neglect to do the sort of things we’re going to list in this article. Sometimes it’s because these things aren’t usually all that cheap, especially if you add up the cost of doing all of them. Some may also assume that their business won’t be in any danger – which is a foolhardy road to take for sure!
Here are the things you need to do to make sure your business is protected.
Hire a lawyer
It is imperative that you have a good lawyer on hand at all times. It is best if you hire one before your business even comes to fruition, however, at the very least you should hire one after. A lawyer will be able to tell you the best and most legal way to approach all aspects of your business. They will also advise you on the best course of action, should you need legal representation. There are many commercial law firms that will offer you a consultation as to how you should move forward with your company.
Have a trust
A trust is a person or a group of people that can own property, business and many other assets. They can file tax returns on behalf of these possessions. It is a good legal plan to have a trust have ownership over certain aspects of your trade. It is easier to be the sole proprietor of your business, but, it also puts you at greater risk from lawsuits. A lawsuit directed at your company may result in the seizing or freezing of your personal assets if you are the only owner of your business. A trust will ensure that in the unfortunate event of you being sued, only some of your possessions will be in forfeit.
Avoid libel or slander
It is very important to be careful about what you say and do, especially in public. The age of mobile phones and the Internet means that anything you say or do can be caught on camera and go viral very quickly. You are the face of your company and if you are held in disrepute so will your company. This also means distancing yourself from any clients or contacts that may not seem completely lawful. You may not be engaging in illegal activity yourself but your name will be forever linked with criminality!
It might seem like a lot of money to have to pay every month but an insurance plan will come in useful in the event of an unfortunate accident. It can be something as simple as a client having an accident in your place of work or something more serious such as being accused of making a mistake. An insurance policy such as public liability insurance coverage will ensure that you are covered in all areas of your business should any unpleasant incident occur. You also have the option of insuring your assets against any legal action that may be taken against you or anyone in your company.
Don’t do your own accounting
This is such a common error, and it’s one you need to avoid! So many people who have started up small businesses are doing their own accounting or bookkeeping. This may seem smart when things are extremely small-scale, but it’s not something that can work out in the long-term. The fact is that it’s a very time-consuming process, especially if you want to do it completely right and save as much money as possible. If you’re reluctant to hire a new full-time employee to do your accounting, then consider looking into getting the job outsourced. In general, outsourcing is something that can help protect your business because it can save you having to hire an entire team of full-time employees – something that cost a lot more than many people assume.
You can use the above information as a way to secure your business from any unfortunate events. It’s always better to be prepared to face any situation instead of being blindsided. A few, important steps and you will have peace of mind as to the state of your company.