Being a small business owner is never easy – it can be time-consuming, stressful, and uncertain to say the least. So, it’s really important that you do all you can to minimize the stresses and strains of your day-to-day life. One way to do this is by ensuring that you and your business are as protected from risk as possible. Here’s how:
Incorporate your business
Incorporating your business as a limited liability corporation is one of the best things you can do if you want to ensure that your financial liability as a business owner is limited. It will help to separate your personal funds from your business funds so that you won’t personally be liable for any debts your business accrues over the years.
And keep separate accounts
As well as incorporating your business, you should also make sure that you keep your personal and business accounts totally separate in as many ways as you can. That way, creditors won’t be able to touch your personal money in the event that your business gets into trouble, and you’ll have a far easier time when it comes to doing your taxes. If you struggle with bookkeeping, software like QuickBooks will make life a lot easier for you.
As a small business owner, you need to protect yourself with insurance and lots of it. For starters, you’ll want to have public liability insurance, that will help to protect you should a member of the public start litigation against you due to an accident, injury, or other serious issues that may occur. You may also need product liability for similar reasons. Then, there’s building insurance should you own your business premises, professional liability insurance to cover you personally, and of course medical insurance – Medicare and private insurance together should cover you when you’re sick, but if you’re out of action and unable to run the business, income protection insurance will keep you going when you can’t work. It’s a lot to think about, but the better insured you are, the easier your life as a small business owner will be when things get tough!
Check the regulations
Before you set up your business in any given location, it’s really important that you check the local laws, rules, and regulations in your industry. These can differ from state to state and country to country if you’re operating internationally or online, so it’s easy to be tripped up by them. A good business law lawyer will help to ensure that you comply with all that is asked of you so although it’s another expense to find money in the budget for, it is definitely worth it if it means you don’t end up getting sued or even having legal proceedings made against you.
Take cybersecurity seriously
Cybersecurity breaches that leak data are a big issue right now, and one that could ruin your business, so be sure to protect your data and devices, update security regularly and use best practices when it comes to all things digital for the sake of you and your business.
Don’t get caught out, do all you can to protect yourself and your business now!
(Cover Image Source: Pexels)