As a business owner, you have a lot on your plate, and it’s easy to forget about the fact that everything you own – and even think – could be taken from you in a single moment. Most people believe the worst will never happen to them, of course, but the reality is somewhat different.
Businesses suffer from disasters all the time, and they are often the root cause of complete and utter failure. If you want to protect your livelihood, you need to take business protection seriously – and here are the main areas of concern.
Intellectual property
Before you even create a logo, open an office, or buy raw materials, you will have a fantastic idea for your business. And it’s here that your problems start. Your thoughts are your intellectual property, and just like any other type of assets they can be stolen. Make sure you get in touch with an IP lawyer to ensure a competitor doesn’t take your ideas and sink your business before you even set sail.
Premises
There are two things you need to consider when it comes to your workplace: it needs to be safe, and it must be secure. If an accident occurs on your property, you will be liable for any injury claims – or worse. Many small companies have ended up bankrupt as a result, so it’s vital that you cover yourself with a robust health and safety policy – and make sure everyone is aware of it. You also need to secure your premises, in several different ways. Your building needs to be locked down when not in use, and you should do the same for your IT systems, too.
You
What happens to your business if you or a vital employee can’t work from illness, injury, or worse? Unless you have something like key man cover in place, things could go awry pretty fast. According to Dartington Employee Benefits, key man insurance – also known as key person insurance – is essential for protection when individuals who are critical to your business cannot work. Many businesses just plump for the standard business protection insurance or general small business insurance but come unstuck when an owner, founder, or vital employee is absent. Income protection insurance can also help when it comes to dealing with long-term illness.
Your cash flow
Of course, money is vital to every business, but your cash flow is, perhaps, even more, important than your profits. You can run a company for a couple of years without seeing a penny of profit, but it is impossible to run without a positive cash flow. Delay paying invoices for as long as possible – but also ensure you pay them within your terms. You should try and encourage people who you credit to pay up quickly, too.
Your longevity
Finally, if you want your company to survive and thrive, you need to be flexible, adaptable, and innovative. The world is changing at an astonishing pace, and if you can’t keep up you will be left behind – it’s as simple as that. Invest in the right people, develop ideas, and keep up with modern technology if you want to remain a relevant player in your industry.
