6 Clever Steps to Protect Your Small Business

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6 Clever Steps to Protect Your Small Business

Owning a small business and trying to protect it can be very challenging. There are certain steps you need to cover in order to make sure your business can grow and develop. Following these 6 particular steps is the most efficient way for you to do so. 6 clever steps to protect your small business.

Choose the right form of business

Even though operating your business for the sole purpose of proprietorship may be easy, it might not be the best choice. Using this default structure of business for a one-person business is not the best way to protect your business.

For instance, if you choose to use this type of business structure, you must be aware that your persona assets won’t be protected. In other words, in case one of your customers tries to sue you or if a vendor ends up asking for a payment that your company can’t afford, you could end up losing your savings, homes, and other assets. That is why you need to choose your business structure carefully.

Hire an attorney

Hiring an attorney is the next big step. You may end up not needing to use an attorney often. However, in those urgent moments when you need one, it’s convenient to already have a reliable one instead of wasting your time to find a lawyer in a hurry.

You can turn to other business colleagues, entrepreneurs, and friends and ask them if they have any recommendations. Ask them specifically for attorneys that have a lot of experience working with small businesses. You can also schedule a few interviews with several different lawyers that seem good to you. That way you get to see what they have to offer for yourself. When you’re interviewing them, make sure you discuss payment options with them. Most lawyers offer very affordable solutions for small businesses too.

Find an accountant

Hiring an accountant is also very useful. Even if you want to do the bookkeeping yourself, it is still a smart idea to have an accountant. For instance, if you don’t have enough time to keep up to date on tax law changes, your accountant will be doing that for you.

An experienced accountant will help you save a lot of money on taxes. They can also offer valuable advice on how to create your business structure, the best way to finance expansion, and many other things. The accountant is someone you should consult before making any big decision. They can really save your business.

Be smart about new customers

Before you take on a new customer, make sure you conduct a credit check. This step is important because it will protect your business from unpaid invoices.

Also, no matter how much you trust your customer’s word, never do any type of business without a signed contract. If something goes wrong, you will have written evidence that will ensure you get paid for your services.

Buy business insurance

This is the most important part. Your business needs general liability insurance. Apart from that, you might also want to get professional liability insurance that is also usually referred to as E&O meaning errors and omissions. Some other types of insurances you may need are compensation insurance, life insurance for both you and your employees, business interruption insurance, and cyber insurance.

When it comes to general insurance, you have to make sure you are getting the adequate one. That means you must look for specific insurance depending on what your business does. For instance, one of the very popular businesses right now is the pet business. Thus, if your business is pet-oriented,  you will need insurance for pet business. This way, you’ll have peace of mind knowing that your firm is covered in case anything bad happens.

Protect your employees

Lastly, you need to take care of your employees. It’s important that you have a steady disaster plan in case something bad happens. Come up with a plan and assign responsibilities to help your customers and employees get out of the building safely in case of an emergency. Also, make sure you have a steady plan on how to get back to business if you can’t get to your location. Get informed more on how to create an emergency disaster plan.

All things considered, there are many ways you can protect your small business and help it grow. These 6 steps are just an essential and the most simple way you can ensure your business is well protected.

Featured photo by Andrea Piacquadio from Pexels
Emma WIlliams

Emma Williams is an Australian writer with a master‘s degree in business administration, with a passion for anything lifestyle and design related.

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