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Last Updated on January 20, 2024 by Work In My Pajamas
Many businesses, especially new businesses, go bankrupt when they find that they were not adequately protected. This could mean anything from the burglary of a storefront to a lawsuit for inappropriate conduct or malpractice. New business owners are frequently tempted to overlook business protection. This may seem like an easy way to cut costs and may also be the result of great frustration with figuring out exactly what kind of protection your business needs. Whatever line of business you are in, these three things can help protect your business from an unexpected and potentially life threatening surprise.
Hire A Lawyer
Have a lawyer on your team and make sure to utilize their knowledge whenever necessary. Many lawyers only charge you for the time they actually spend working with you, not including quick emails or phone calls. This means that you can get actual answers to legal questions on an ongoing basis. This will greatly help protect you from legal action in your course of business.
Develop Ethical Policies
You should have hard and fast rules and policies for your business and these rules should be based on the laws and ethics in your industry. If you develop a strong foundation of practices from the outset then you will greatly reduce the risk of dangerous business exposure later. This will also help boost your business credibility, which is an added bonus for your overall business model.
Planning for the Future
Small business insurance should not be optional. You want an insurance plan that will protect your business from basic things like theft and damage. If your business has a physical location then you will also want the plan to cover natural disasters and personal injury lawsuits. Insurance may seem like a waste of money, but you will feel differently if you ever find that you need it for something. Shop around and work closely with small business agents to find a plan that covers what you need without breaking the bank. If you are on a super tight budget then talk with your agent about a planned expansion so that you are not without crucial coverage for too long.
Another way to protect your business and ensure you have a fallback is software escrow. It is helpful to use a third party software escrow company like EscrowTech when negotiating a software escrow agreement. By investing in software escrow you are investing in the future safety of your company.