As a trusted local bookkeeping agency, we’ve seen firsthand how important it is to protect your small business from potential risks. We want to share some insights with you based on a recent article published by SCORE, a resource partner of the U.S. Small Business Administration.
The author of the article, Bridget Weston, points out that small business owners face many risks.
We agree and have seen how these risks can affect our clients. Let’s talk about some ways to keep your business safe.
First, it’s crucial to have the right insurance and it’s always better to be prepared for the what-if rather than trying to figure out a solution in the wake of an unexpected aftermath.
Although we are not in the business of writing insurance, we have numerous connections in Minnesota and across the U.S. who have helped many of our clients figure out what insurance they need and the best rates available based on their current situation.
Each business is different in design, needs, goals, and liability concerns. So, the best insurance brokers will be able to shop for areas such as general liability, property insurance, commercial property or vehicle insurance, or even a business umbrella policy or cyber insurance. There’s also the cost and management of employee benefits and worker’s compensation plans to consider.
Next, Weston emphasizes the importance of having a solid business structure. We couldn’t agree more!
We often recommend that our clients consider forming an LLC or corporation. When set up properly, not only could this intentionally help protect a business owner’s personal assets should another party file a claim or bring a lawsuit against the business, it could also potentially save you money in tax liability.
We recommend that you talk to both your accountant and a trusted business attorney before setting up creating your business entity to ensure you’re setting up the right type of business for both tax purposes and to reduce legal or insurance liability. These are areas we do not recommend you cut corners on.
One example of where you may need help beyond filing your business entity is business agreements and contracts. Having an attorney review your contracts when hiring a contractor or onboarding new clients can leave you open to liability if you miss something. Using fill in the blank forms does not protect you and your business.
We have numerous business attorney, tax, and insurance resources we can confidently refer to you when you’re ready.
Another key point from the article is about keeping good records. This is something we’re passionate about!
Good record-keeping helps you track your business’s health and can be a lifesaver if you ever face legal issues or an audit. On a more basic level, just having an understanding of your numbers and how they’re working for you or not working for you can help you make more strategic financial decisions about your business so you can continue to grow.
Weston also talks about the need for clear contracts. We’ve seen how misunderstandings can lead to big problems. Having well-written contracts with your customers, suppliers, and employees can save you a lot of headaches down the road.
There are some industry CRMs that come equipped with some basic contract template standards that have been vetted by attorneys. These can help you get set up and moving in the beginning, and then you can work with an attorney to help you construct more specific contract needs and complexities.
Again, we’re not in the business of writing contracts. However, any one of our fantastic business attorney partners can aid business owners with these needs and simple Terms of Use and Privacy Policy statements required for today’s business websites.
Lastly, the article mentions the importance of staying up-to-date with laws and regulations.
We help our clients with this all the time. Rules about taxes, employment, and data protection are always changing, and keeping up is crucial.
From HR Consultants to Employment Attorneys, legislative changes in tax law, financial easement counseling and Bankruptcy Attorneys, Financial Planners, Tax Strategists, CPAs, and Tax Attorneys — we have connections to each of them and we would be happy to share those resources when the time comes.
We hope these tips help you feel more confident about protecting your business. If you want to learn more about financial strategies and safeguards, we’d love to chat.
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