We all dream of having a better life, don’t we? And of course, having a business is one way in achieving it.
Starting and handling your very own business is not a walk in the park. It is risky and scary. But nothing will start if you will not take the first step. So, many people venture in small to medium enterprises (SME).
But not all small to medium enterprises are guaranteed to succeed. It is said that only about two-thirds of small businesses survive at least two years and about half survive five years. But as the risk of starting your own business can be high, the rewards of succeeding on it is all worth.
That is why securing and having business protection is important. We do not want to see all our efforts to disappear just because we didn’t have a proper business strategy.
What are small to medium enterprises and business protection?
Small to medium enterprise (SME) is defined as a business in which profits, assets and number of employees fall below a certain level. They make up the majority of businesses in most countries. Also, their contribution is very significant in economic growth.
Getting business protection is important for businesses of any size. But for some small businesses, it is sometimes overlooked.
Business protection can help business owners plan for any unexpected events by giving or providing cover to make sure the business can continue operation following the loss of one of their business owners through death, critical illness or temporary disablement.
Different Business Protection Services for Small to Medium Enterprises
Risks have always been part of running any business and we should never ignore them. Sadly, small and medium business owners most of the time take this for granted.
A well-prepared business protection plan is needed to ensure the life of our business. In assessing business risks, we need to look and take into consideration the business financial issues, compliance concerns and legalities. We should always have resources as preparation for the unforeseen.
Here are some of the business protection services that can shield your business from any risks.
- Business Insurance
Complete and wide-range insurance coverage is vital in every business. The types of insurance will depend on your business type and the products and services you offer. Some of the policies cover:
- Professional liability
- General liability
- Product liability
- Property Insurance
- Vehicle Insurance
- Business interruption insurance
If you have staff and employees, insurances for them are also needed to cover medical charges and other expenses associated with work-related injuries.
Business insurances generally protect your business from negligence, product defect, fire, theft, and even customers’ complaints.
- HR Management Software
The right type of HR platform consolidates all employee’s information where the HR department monitors, updates and gets their daily reports. This also includes information about the employee handbook, company rules and regulations for employees. Having an organized HR system will help avoid any mistakes with payroll, vacation and sick leaves, recruitment regulations. It can also help resolve employee disputes.
- Life Insurance
Just as business insurance is essential, life insurance is also important for business owners. Aside from protecting yourself, this will also protect your family and your business in the event that something happens to you. This includes the opportunity to pay business debts or loans without using your personal properties.
Life insurance also comes in many forms. This includes personal policies and “key person” insurance for the key or top person in your company. Life insurances accrue added cash value during its course which you can withdraw while you’re still alive. You can use this money for business expenses and other financial matters. It is important to choose the best type of life insurance that is best suited and compatible with your business and dependents.
- Legal Insurance
Business insurance policies cover almost all possible risks in your business. But there are situations that only lawyers can handle. Problem is, legal battles are extremely costly. It is something that all businesses try to avoid as much as possible. It is one risk that no business owner would like to ignore. So instead of paying a huge amount of money for any legal consultation or problem, you can get a legal insurance plan to cover legal services for your business.
It is best to ask the experts when it comes to business protection and business strategy. With Doug’s vast experience, he can guide you regarding the best way to protect your business.
Protecting Your Small Business against Legal Problems
For small businesses, avoiding business risks and keeping the business going are top priorities. Just a day of business interruption can cause huge loss for them. So aside from getting business insurances to limit risks, here are some actions to take to prevent any legal battles that can cause huge loss for the business.
- Be careful with what you say and do
Business reputation is important. Hence, business owners and employees should watch their actions. It is best to avoid making public announcements and business deals that are questionable.
- Separate yourself from the business
Many small businesses are operating as a sole proprietorship. This can be an issue in the event that the business is sued because the personal properties of the business owners can easily be attacked by law. One way to limit this possibility is to have trust in the business.
A trust is a business structure that imposes an obligation on the trustee – a person or a company – to hold and operate the business assets. If a trust owns a business and it is sued, in most cases only the assets in the trust itself can be attacked or attached in a lawsuit.
- Get a reliable attorney
It is a good idea to talk first to a lawyer upon starting your business for any legal matters. You can also seek their advice before making changes in your business. Therefore, it is best to hire an attorney that has the knowledge of local laws so they can recommend steps to take to avoid any lawsuit.
As a business owner, it is your responsibility to protect your business (whether it is big or small). But remember that you are not alone in dealing with these things. Having the right person to guide you and give useful advice is a top-notch strategy.
Take control of your business by being prepared and knowledgeable.
