Starting a business can be exciting, but it’s not without risk — and we don’t just mean the risk that the business will fail to be a hit with customers.
In an age of hyper-competition and plenty of legal obligations, there’s no shortage of things that can happen to fledgling businesses. These things can shake the foundations of a business even when other factors, such as the number of sales and growth projections, seem to be solid.
While there’s no way to completely eliminate the threats posed to your business, there are things you can do that’ll both reduce their likelihood and dampen their impact if they do transpire. In this post, we’ll run through a few key strategies that, when all put together, should put your business in a strong position.
Get Insurance
You can’t always control what will happen, but you can control how well you’re able to move past any issues should they occur by ensuring you have sufficient insurance. While the precise type of coverage you’ll need will depend on the type of business you’re running, in general, it’s best to have:
- General liability insurance
- Commercial property insurance (covers expensive equipment as well as property damage)
- Workers compensation insurance (if you have employees).
Work With Legal Experts
As we mentioned in the opening paragraph, modern businesses are subject to plenty of legal requirements. These obligations are not optional, and failure to comply with them can result in fines, reputational damage, and other undesirable consequences that can disrupt your journey toward success.
While it’s sometimes possible to take care of some of these legal responsibilities yourself, their sheer importance means that it’s usually best to work with a corporate business lawyer, who will be able to take care of the details on your behalf. Aside from giving you peace of mind that your business is fully protected from a legal standpoint, working with a professional will also simply free up your time, ensuring that you can focus on growing your business without worrying about taking care of legal paperwork.
Security Measures
Though we’d like to think otherwise, the fact is that there are people out there who may, given the opportunity, intentionally cause harm to your business. Cybercrime, for example, has been on the rise in recent years, with criminals targeting small businesses in particular. Working with a cybersecurity IT team can ensure that your valuable digital assets are protected.
It’s also recommended to conduct employee background checks before bringing someone on board, especially if they have access to sensitive information. Though it’s highly unlikely that anyone you hire would steal from you, it’s one of those things where it’s better to be safe than sorry.
Written-Down Agreements
Finally, remember the power of written agreements. While casual arrangements can seem fine in the beginning, they can quickly become complicated in the event of a dispute. In that event, written agreements can come to your rescue. Look at using agreements/contacts for all business dealings, including with suppliers, clients, and employees.