To manage a successful small business, owners must keep an eye on everything from their daily operations to hiring new employees. Handling these responsibilities can make you lose sight of potential issues and even lawsuits that may arise. The latter takes most business owners by surprise.
About 66% of small businesses say lawsuits cost them between 3,000 and 150,000 dollars. The only way to prevent these lawsuits is by implementing the best small business protection strategies. Don’t know how to protect your business?
We’ve got you covered. We’ll tell you the top strategies you should consider to protect your business. Keep reading for your must-follow company protection guide.
Your Straight to the Point Small Business Protection Guide
Most business owners don’t prioritize company protection when it can save them thousands of dollars in the long run. Maybe you left it for later because protecting your business the right way might cost you. However, you shouldn’t leave it for when your business is hit with a lawsuit.
Don’t know where to start? Here are the top 3 small business protection strategies you should prioritize.
1. Document Everything
You may think paperwork is overrated but it’s important to keep all the necessary business documents in order. You might think drafting and signing documents such as non-disclosure agreements and contracts are too much work. However, business owners must use essential legal documents to keep all business affairs in order.
Don’t think the right legal documents can protect your company? An example is how having employees sign a non-disclosure agreement, they can’t disclose any of your trade secrets. You should also prioritize putting all your deals in writing to protect your company from any losses.
2. Get Insured
Getting the right insurance coverage is a must to protect your company. General liability is the basic business insurance you should consider. The amount will depend on your operations and type of business.
It’s recommended to consult an attorney and insurance broker to get an idea of the best company protection insurance coverage. Based on your operations and risk, you may need to get more than one type of business insurance.
3. When in Doubt Ask for Help to Protect Your Business
Small business owners are always looking for ways to save money in order to keep their business afloat. However, you should always prioritize consulting an expert when necessary. While it may cost you a dime, consulting the right expert can save you headaches and money in the long run.
An example is how consulting a workers compensation lawyer can help you protect your company from future worker injury lawsuits. An attorney can explain what claims employees may file against your business and suggest changes to your operations to prevent these claims.
The Bottom Line
In the beginning, implementing the best small business protection strategies may be challenging. However, you should prioritize developing and executing a protection plan tailored to your business needs.
Consider consulting an attorney that specializes in your line of business to obtain a complete picture of your potential lawsuits. You should also look into getting the best insurance coverage to protect all your hard work. While protecting your business may come at a cost, it will be worth it in the long run.
Want to protect your business? Read our article to learn about the types of laws you must follow to protect your company.