As a business owner, you worked hard to built your company from scratch. And it is essential to protect the fruit of your hard work. Current events reminded business owners that the changes in the economy and other factors could seriously affect every business, no matter how small or big. Although it is unforeseen circumstances, it made us aware to be more vigilant to changes. If you need help in protecting your business, we made this guide specifically for you. Take a look as we summarize some measures that you can do to protect your business in various means.
The first and the easiest way to protect your business is by hiring excellent employees and keeping a good relationship with them. Believe it or not, the most important thing for employees is not the job or the salary, it is the workplace culture. Employees are most likely to leave their job if they feel that the work culture is not suitable. A good company with a healthy relationship with employees makes them thrive and work harder. Recognition and good communication will also decrease burn out.
Moreover, if morale is boost, there will be a lower chance of workplace conflict. Conflicts in the office are one of the huge reasons for unsuccessful business. It creates a barrier between both ends, and in return, affect the products and services offered. Lastly, keeping a good relationship with everyone in the organization improves both parties' trust and confidence. By doing so, you can ensure that your employees will be loyal, happy, contented, and productive in the long-run.
Getting your company insurance is a smart move to protect your business. Most owners think of insurance as an unnecessary cost, but it will save you from financially devastating scenarios. Business insurance will help you cover the costs of any asset damage and liability claims. If you don't have any insurance, you may be forced to pay with your own money if an unfortunate scenario happened.
Here are five types of insurance you can look into:
- Professional liability insurance – (also known as E&O) covers your business against negligence claims. Suppose someone would file a lawsuit due to harm, mistakes, and failure to perform. Professional liability insurance can help cover the costs of that claim.
- Property insurance – covers insurance for the physical location of your business and business assets. These include equipment, signage, inventory, furniture, and documents.
- Product liability insurance – this can protect your company from lawsuit damages from products that you offer.
- Workers' compensation insurance – this will specifically cover medical treatment, disability, and death benefits of your employee.
- Business interruption insurance – this insurance protects you from disaster or catastrophic event that will interrupt your business. It helps in covering the loss from any loss of income during these events.
Ensure that your company has insurance to avoid suffering from a major financial loss.
Legal documents will be an essential key in protecting you as an owner and your business interest. Ensure that your company has all of the legal documents in hand. First, have an employment contract that sets out your company's obligation and expectations from your employee. However, it should also protect the rights of your employee. An employment contract should cover the probation period, pay, benefits, hours, annual leave, and termination. Another one is non-disclosure agreements or NDA, it will help you protect business information that should remain private.
Although not required by law, it is widely recommended to have this agreement for your business. If you generate terms and conditions, you will protect your business from abuses, terminate accounts, limit the liability, and set governing law. Tackling legalities in your business may be complicated, but it doesn't have to be. It is better to settle everything from the start and not have regrets in the end.
What would you feel if someone created a company with the same name and logo as yours? Moreover, what would you do if that business is gaining popularity and customers because of it? Intellectual property is your ideas and the branding of your business. Although most people are not knowledgeable about it, you should trademark and copyright your brand. It will protect your business and give you an exclusive right to use your name, logo, and slogan for a period of time without worrying about anyone using it. Lastly, it will help you sue someone in case they use your trademark name. The process is especially long and complicated. If you want to protect your brand, you can hire an attorney specializing in this field to help you.
Last but not least, you should ensure that your company's finances are well organized. Financial threats, bankruptcy, and disorganized finances can shut down your business quickly. By keeping them in order, you can protect your business. Here are some of the ways you can protect your finances:
- Track your income regularly. You can hire a bookkeeper or use bookkeeping software.
- Track and audit expenses. It can help you monitor if your overspending.
- Make a bank account solely for the purpose of your business. This way, you can see the money flow of your business efficiently.
- Keep soft and hard copies of financial documents.
- If you don't want to hire someone, ensure that you know your company's accounting aspects. However, accountants will help your business afloat and handle all the financial aspects for you, including tax obligations.
Taking these few steps to protect your business can go a long way. Don't let threats or your own negligence make your hard work go to waste. As the famous quote said “Do something today that your future self will thank you for. You don’t need to spend too much money for this to happen, all you need is awareness, good work ethics, and keenness. We hope that this guide can help you be one step ahead in ensuring a thriving and successful company in the future.