Running a small business can be thrilling, filled with opportunities and challenges. But like all great adventures, preparation is key. And one of the things you can do is to protect your business several safety nets that keeps those ‘what ifs’ at bay.
This article offers some practical measures on how to protect yourself when starting a business, ensuring your journey as a small business onwer is as smooth as possible.
1. Pick a suitable business structure
The structure you choose for your business can impact its legality and tax obligations. There are four business structures to choose from, each with its unique characteristics.
- Sole trader: The simplest form of business structure which puts you in direct control, but could expose your personal assets to risk.
- Partnership: Suitable for businesses with multiple owners, allowing them to share both responsibilities and rewards. However, each partner also shares liability for business decisions.
- Limited Liability Company (LLC): This structure provides the operational flexibility of a partnership while safeguarding personal assets against business debts.
- Company: A more formalised structure that offers protection for personal assets of business owners, but require adherence to more rigorous regulatory requirements.
Understanding the differences between each structure will help you decide on a suitable option that best suits your business’s needs and growth plans.
2. Hire a lawyer
Picture a situation where you’re dealing with a tricky legal question. Instead of guessing your way through it, a lawyer can give you clear answers, helping you make informed decisions and avoiding potential setbacks.
Lawyers are key players when it comes to creating contracts, resolving disputes, keeping up with laws and regulations, and protecting your business. They help ensure everything you do is above board, providing peace of mind so you can focus on growing your business.
3. Protect your business data
In today’s bustling digital marketplace, your business’s data is a priceless asset that demands top-notch protection. Fear not, for securing your online presence doesn’t have to be complicated. Begin with the essentials – Strong passwords, consistent software updates, and a reliable firewall to ward off cyber attackers. Think of it like locking your doors at night—simple yet effective.
But there’s another layer of security you can consider to protect your business data. Cyber Liability Insurance offers an additional safety net in an age where cyber threats and data breaches are ever-present. BizCover makes it easy to find the right Cyber Liability insurance for your business, ensuring your digital space remains secure and resilient in the face of digital challenges.
4. Protect your employees
Your team is the heartbeat of your business, and protecting your employees is not just good ethics—it’s good business. Creating a trust-filled environment starts with the basics, like consistently meeting payroll. It sends a clear message: you value and respect their hard work.
But it also means going beyond the usual—establishing open-door policies where feedback and ideas are always welcome. Celebrate achievements, big and small, to show appreciation and bolster morale.
Trust also means looking out for your team’s well-being. After all, a safe workplace is a happy workplace. Workers’ Compensation insurance covers the expenses related to medical fees and loss of income for workers who suffer from work-related injuries or illnesses. Besides ticking a compliance box, you’re letting your team know, “I’ve got your back.”
5. Get business insurance
Running a business is no small feat, and unexpected challenges are part of the package. That’s why you need business insurance.
Here’s a snapshot of the types of insurance that can help with those ‘what if’ moments:
- Public Liability insurance: Covers thirds-party injury or property damage claims
- Professional Indemnity insurance: Covers claims of errors or negligence for those offering professional advice or services.
- Personal Accident & Illness insurance: Protects your earnings during unforeseen injuries or illnesses.
- Portable Equipment insurance: Offers cover for the tools and equipment that keeps your business running.
- Cyber Liability insurance: Guards your business against claims following data breaches and cyber-attacks.
6. Protecting your company assets
Just like a castle needs strong walls, your business property needs robust protection. Consider physical security measures such as secure locks, surveillance systems, maybe even an alarm system.
Equally important is proper inventory management. Regular audits and meticulous record-keeping are your best friends, ensuring everything is right where it should be.
Yet, even the best-laid defence plans can face unexpected challenges. That’s where Business Insurance can step in as a protective moat around your business. Theft cover is your line of defence against theft. Meanwhile, Building insurance provides a safety net for your building against insured events like fires and storms. Lastly Contents protects your company assets or contents against damages.
With BizCover’s online platform, you can compare quotes and secure the right Business insurance cover for your business within minutes.
7. Build a strong business reputation
No matter the size of your business, reputation is everything. Achieving a stellar reputation hinges on two factors – quality service and crystal-clear transparency.
Every aspect of your business, from the products you sell to the services you offer, should meet the high-quality standards that your customers expect. And always maintain transparency when dealing with your customers. Make sure your customers know they can rely on you for quality and honesty.
Business insurance also plays an important role in reinforcing your business’s credibility. It signals to your customers you take their safety and satisfaction seriously, which increases their trust in your business. BizCover supports small business owner efforts to keep their business’ reputations shining bright, with tailored insurance options that are fast, affordable and drama-free.
Enhance your business protection with BizCover
Taking the first steps towards business ownership can be daunting. But with the right safeguards in place, you’re already on the path to sustainable success. And when it comes to dealing with the unexpected, the right business insurance can be a reliable ally, offering peace of mind and security.
With BizCover, securing the right insurance is a breeze. You can compare multiple quotes and secure your policy in minutes, with zero paperwork needed. Join over 220,000 small businesses who trust us to keep them covered. Protect your business today, so you can focus on what you do best – growing it.
