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How to Easily Protect Your Startup Business

Here you are. You have had a great entrepreneurial idea, undergone all struggles, and finally established your business. Congratulations! But did you know there exist many risks that can lead to the closure of your business or even costly court cases and fines?

Yes, before you get carried away by the creativity, innovation, independence, and potential earnings from your startup, it’s important to note that there are essential factors to consider to protect your business from unscrupulous traders and clients who might want to rip you off from you. Here are seven ways you can take now to protect your newly established company and help it succeed over the years.

Hire an Attorney

Your newly established business might not need a lawyer that often, but when you need one, you need one fast. Your attorney will help you prevent your business and investment as they know the law and training to handle all your business needs. They will also help prevent misunderstandings with your business partners and protect you from personal liability for business debts and legal obligations.

Get an Accountant

Even if you plan on doing the bookkeeping yourself, hiring a good accountant for your startup is worth the price. Who has time to keep up on following tax law changes? Most likely not you, as you will be concerned with the core activities of your firm, but accountants have the time. They also help you track all your finances and provide valuable information on essential issues like saving money on your taxes, how much you should pay yourself, and how you should structure your business to avoid legal problems.

Get Business Insurance

Although you might think that you will never need it, every type of business should take out commercial liability insurance. The insurance protects your business financially when sued by a third party, such as a customer or a supplier. This insurance doesn’t cover things that happen to you, your workers, or your premises.

If your startup provides advice or professional service to clients, you may need professional liability insurance to cover costs incurred due to errors in your work. Also, depending on the state you operate in, it might be essential to have online workers’ compensation insurance which protects your employees from health expenses and lost wages caused by workplace injury like, for example, eye strain resulting from extended usage of computers. Additional insurance policies you may want to consider are business interruption insurance, cyber insurance, and key man insurance on your life and other key workers.

Be Smart About Your Customers

Your customers are the essential aspect of your business. They are the reason you established your firm and should be treated with care and respect. However, before taking on a new B2B customer, always conduct a credit check. This is essential as it protects you against unpaid invoices. Also, never do business without a contract, no matter how confident you are about your client’s word. A written agreement will be the only document to ensure you are paid for your products or services if anything goes wrong.

Protect Your Business Data

Your business data and other vital documents face the risk of loss. To protect this, back up the data in cloud storage and allow access in any location. When you store essential data in the cloud, you don’t have to worry about issues like a fire destroying your premises or a crashed hard drive.

Protect Your Intellectual Property

Your company’s intellectual property is among the most valuable assets of your business. This is why they need to be protected to prevent other businesses from taking advantage of your creativity. You may be surprised how many aspects of your startup can be protected. Your business name, designs, logo, works of intellectual effort, and designs that set you apart from competitors can all be types of intellectual property.

Conclusion

It’s important to note that your business’s security measures will depend on your type of business. For instance, if your new business is a warehouse, fencing or security guards would be good. In contrast, if you have a retail store, security cameras will help to prevent your inventory. However, the above points will help protect your startup no matter the type of business you are operating.