Running your own business is a big job, and there are many different roles to fill as the leader. Protecting the integrity and longevity of your business operation is a paramount, ongoing goal which cannot be ignored. A proactive approach to security is the best defense against ruin.
One of the worst potential mishaps in business is to experience avoidable legal fallout. Read through a few of the most effective tools for protecting your business, and start planning for the future today.
Use written contracts/agreements
Get everything and put everything in writing. You have a much stronger legal standing if you have a signed contract/agreement within your possession. Trusting people on their word, sadly, just isn’t a safe route to travel in modern society.
Every new business relationship you cultivate should be clearly defined and confirmed by both parties with a well-planned written contract. This simple action will protect your business against any disputes regarding the terms of your professional relationship.
Invest in the proper insurance policies
Insurance is vital in life and in business. Running a business simply won’t work without the proper insurance policies on file, and some insurance is legally required for business owners.
Make sure you fully understand what is expected from your business as a legal entity, and maintain your organization’s insurance protections. Here are a few of the most significant policies you should have on file in the office.
- Workers’ Compensation insurance is legally required in most states to protect the rights of employees who are injured or otherwise unable to work due to circumstances directly related to their place of employment.
- Product Liability insurance to protect the integrity of your company’s products or services.
- Professional Liability insurance will assure that one rogue professional doesn’t ruin your operation.
Keep all of your paperwork up to date
In the process of preparing and forming your business as a legal entity, there are several important pieces of paperwork you’ll have to obtain. Once you’ve signed and worked out all the paperwork, the job is not finished.
You have to maintain the documents, and make sure everything you originally put in place is kept up to date. If you are easily scatterbrained when it comes to this sort of thing, it may be best to allocate some funds for hiring an accountant.
Maintain separation between your personal life and the business
The best way to protect yourself and your business is to keep the two separated legally. Your personal bank account should be separate from your business account, and everything thereafter. Do your best to keep your personal identity separate to protect yourself should the business go under.