A good attorney can help you to choose the right business structure for your small business, but the final decisions are all yours. You have a lot of decisions to make when you start your new business, and many of the decisions you make could make or break your company before you even get started. It is a good idea for any small business owner to know the ways they can protect their business from almost any situation.
Many small businesses start out as sole proprietor business because, honestly, the incorporation process can be expensive. But if you do not incorporate your business, then one accident or one instance where your business operations harm someone, and you could lose everything including your house and all of your savings.
It is good to have liability insurance, but there are limitations to liability insurance that may not protect you or your business. With incorporation, your business becomes its own entity and your personal assets are protected.
Small business owners tend to try and develop networks of business associates they can use and rely on for additional help. You may know a trucker who helps you with your deliveries for a discounted rate, and that helps you keep costs down. But what if your trucker friend suddenly sends you a bill that is much higher than what you are used to because his boss did not like the discount you were getting? Even if you are getting services from your best friend or you father, always get it in writing.
Small businesses tend to attract employees who try to take advantage of how busy the owner is by stealing passwords, or even using the passwords to drain the company bank account. Never give your employees any sensitive computer passwords. If you must give a password to an employee, then have that employee sign a non-disclosure to protect yourself.
Some small business owners consider employee background checks to be unnecessary expenses, but it is safer to know who you are hiring than hope you are hiring a reliable person. Background checks are not as expensive as you may think, and you will be surprised at the information that is publicly available for you to use in the hiring process.
If you use so many different computers to access the company back account or manage your vendor invoices, then someone will eventually get those passwords that you protect so closely. Have dedicated computers that you password protect to do sensitive transactions, and never allow anyone else to borrow or use those dedicated computers.
Business liability insurance may not be as comprehensive as you would like it to be, but it is still essential. Just like you should never skimp on a background check, you should also never skimp on your company's insurance. The proper coverage can make sure you stay in business, no matter what happens.
It takes a lot of work and sacrifice to build a successful small business, but it could all disappear in the blink of an eye if you are not careful. Take every step necessary to protect your business, and you can have peace of mind as you head out to conquer the business world.