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Protections Every Small Business Needs to Think About
Business protections, something every small business needs to think about. When you are running your small business, your eyes are on the future and the potential it brings. You probably don’t want to think about protecting your business from disaster. That said, it is essential that your business has the protection it needs to continue running smoothly.
Business protection is the process of implementing strategies to preserve, protect and promote the value of a business.
Business owners need to protect the integrity of their business in order to:
- Maintain business operations in the event of the loss of a key employee
- Preserve the value of their business until they choose to exit
- Better facilitate a transfer to family members, key employees, other owners, or third parties upon their exit
Small Business Insurance
The first thing you can do to help your business stay protected is to make sure that you have proper insurance. While no one likes to think about a problem in the future of their business, business insurance can help you to prepare for that possibility.
Business insurance protects you from the unexpected costs of running a business. Accidents, natural disasters, and lawsuits could run you out of business if you’re not protected with the right insurance.
Different businesses have different insurance needs, so it is important to have coverage that matches the needs of your company. Shopping around can help you to get a good deal that covers all of your needs.
Six common types of business insurance
- General liability insurance
- Product liability insurance
- Professional liability insurance
- Commercial property insurance
- Home-based business insurance
- Business owner’s policy
Small Business Legal Advice
Every business needs to have small business legal advice from time to time. Business law seriously affects how your business runs, from contract law to employment law to tax law to workplace safety law and more.
There’s a reason lawyers spend 3 years in school to understand what’s going on! The good news is that you don’t have to become a lawyer. You just need to be aware of potential issues and then work with your lawyers to make sure you’re on the right side of the law.
It’s important that you have a lawyer to help you in these instances since they are most qualified to give you that kind of advice. If you are unlucky enough to have someone violate a contract, you need help figuring out what step to take next.
Contracts are legally binding, and a lawyer can help you to navigate the legal situations that surround getting a contract and any issues that occur with that contract. While it can be difficult to imagine needing legal help, it’s best to plan for that possibility early in running your business.
Separation Between the Owner and the Business
One of the most important things you need to do to protect yourself and your business is to legally separate your business from yourself. If you don’t, you may end up on the hook for a lawsuit after a problem at work. It’s not fun to have to deal with legal battles in the workplace and it is even worse if you haven’t taken steps to solidify your business as its own entity. The last thing you want is to be personally responsible for legal costs from your business.
Running a small business is complicated, but if you take steps to protect your business, you can make it easier. Take your time to get the legal advice you need and invest in insurance, so you and your business are protected. If you are able to do that, you and your business will be in great shape.
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