What Every Entrepreneur Needs to Protect Their Business

Entrepreneur Businesswoman

Most entrepreneurs focus on getting their product to the market and selling it in an effective manner. They believe that the biggest danger will come from lack of sales. Unfortunately, this can leave them open to be blindsided by other matters such as lawsuits and ownership or control issues. To avoid these devastating occurrences, you should do the following.

Insurance Coverage

According to the Silicon Valley Bank, there are several useful types of insurance for startups. One of the most important is general liability insurance. This can help you if someone files a claim against your company due to a faulty product. If you have commercial property, commercial property insurance can help you recover if the property is damaged or stolen. If you have employees, you should definitely have workers compensation insurance. This will help cover the costs of medical bills if a worker is injured on the job and you are held liable. You can even get continuation insurance which helps replace your income if an unexpected event causes your business operations to be suspended.

Create a Succession Plan

If for some reason you need to leave the company, either due to your death, injury, or other unforeseen circumstance, you don’t want the business to fall apart. You’ve put a lot of work into it and you don’t want that to go to waste. A succession plan details who ownership or leadership of the company goes to if you are unable to fulfill that role. To make sure that your succession plan is followed, you need to do several things. According to attorney Josh Freeman, converting your business into a sellable asset is a critical step in a succession plan. Getting this done can help the transition process go quickly. Consult with a business lawyer for help in crafting a binding plan.

Operating Agreement

If you aren’t the sole owner of your company, you should have an operating agreement or other binding document that dictates how the company should be run. In the case of a dispute between owners, this document can help prove which individual is at fault. Your operating agreement can be an excellent way for you to protect yourself from losing control of your own company. If you don’t have an operating agreement, your business will be governed by your state’s default rules. Since your business is unique to other businesses, relying on blanket rules from the state is not a good idea.

Following this advice may take some time and money, but it will be worth it. You’ll benefit greatly from the peace of mind that your business is protected against accident, disaster, and legal claims. Failing to follow this advice could result in your business disappearing right before your eyes.

Read this next: Best 5 Tips for Small Businesses for 2021

Categories

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Business Blogging 101: How to Create and Sustain a Successful Blog

Business Blogging 101: How to Create and Sustain a Successful Blog

For businesses, business blogging is becoming a powerful tool to not only attract and engage new customers but also to build brand authority and ultimately grow your brand.
This comprehensive guide will equip you with the essential knowledge and strategies you need to start and succeed in the dynamic world of business blogging.

How to Protect Your Merchandise From Theft

How to Protect Your Merchandise From Theft

Protecting your merchandise from theft is a critical aspect of running a successful business. In a world where security threats are ever-present, safeguarding your inventory is essential. Not only does it protect your bottom line, but it also ensures the safety of...

Experts You Need to Have at Your Business

Experts You Need to Have at Your Business

In the dynamic world of business, having the right team of experts is not just beneficial; it is essential for success and growth. For female leaders who are carving out their paths in business, marketing, or HR, knowing which experts to have on board can make a...

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

7 Tips for Asserting Yourself as a Woman in a Medical Workplace

As a woman in a medical workplace, you have a lot of responsibility, not just to yourself but to other women who will come along after you. Asserting yourself in your workplace and gaining the respect of other employees and leadership is essential to a successful career. You have worked hard to get where you are, you don’t want to lose momentum.

Continue to grow with online leadership training and more. Follow these tips to assert yourself in the medical workplace.