Embarking on a new business venture can be a daunting endeavor, often likened to navigating uncharted waters. The prevalence of cautionary tales about entrepreneurs who have fallen victim to unforeseen business risks, such as devastating financial consequences resulting from minor accounting oversights or contractual technicalities, can be unsettling. However, it’s essential to prioritize proactive measures to safeguard your interests. By implementing robust protective strategies from the outset, you can significantly mitigate potential risks, ensuring a more secure and peaceful entrepreneurial journey. For more detailed information on safeguarding your company, consult a reliable business insurance resource to explore tailored policies and expert guidance. Here are five ways to ensure your business is protected.
Business Banking
One of the main ways people are caught out in business is that their personal finances and business finances get tangled up. To protect yourself and your business, have a clear demarcation of these finances. Some even opt for a different bank for their business dealings, so that there is a clear separation both legally and symbolically. There are many different business banking options available, such as those that exist solely online.
General Liability Insurance
The first thing you should do when starting out in business is to ensure that you have the correct insurance. While equipment and vehicles may come down the line, general liability business insurance should be your first priority in order to protect you personally – and the business – should any accidents or mistakes happen. Legal fees against you could bankrupt you and the business if you aren’t insured for things that are out of your control, but you could be deemed liable for.
Necessary Accreditation
Depending on your business type, you’ll need to ensure that you have accreditation from the correct organizations. Those at risk are businesses that deal with consumables, which need the correct food hygiene accreditation, allergy checks, and general protections when it comes to selling things for ingestion. At the very least, these accreditations ensure that you have done things correctly, even if something goes awry that is out of your control.
Reputation Management
Sometimes businesses are undermined by negative reviews online. Usually, these reviews aren’t justified or are easily explained away. Most take them with a pinch of salt anyway. But, a negative review from a fellow business, client, or distributor could get you informally blacklisted or leave a negative opinion that takes years to shift. Writing simple non-disparagement clauses into any contracts that prevent discussion with others of any negative aspects they perceived of your service could be a simple sentence that protects your reputation.
Protecting your business is the perfect example of ‘a stitch in time saves nine’ and enables you to have peace of mind as you conduct your business. You’ll be able to focus on making a success of your idea, rather than worrying about any weak points that could leave you vulnerable.
Social Media Sweep
A more abstract way of protecting your business is to check through your social media. Even something as small as badmouthing an actor or throwing abuse at a sports team could be misconstrued to reflect badly on your business. A generic sweep of your social media accounts and removal of all content that could be flagged as inappropriate should do the trick. Personal accounts should also be kept on private to create necessary distance between you and the business entity.
