Tips to Protect Your Local Business

It doesn’t matter if you have just started your business or have been operating for a while; it’s essential to protect your operations. Unfortunately, entrepreneurs neglect this when trying to get their startup launched and operate it each day.

While protecting your local business may seem like a daunting task, some tips can help.

Choose the Right Business Form

Operating as a sole proprietor, the default choice for a one-person operation is easy. However, it’s not always the right choice for your business. For example, the structure of a sole proprietorship won’t protect your assets. If a vendor demands a payment the business can’t afford or if a customer sues you, the results of this can impact your home, savings, and other assets.

Hire a Lawyer

You may not need legal services often, but you need quick access when you do. Get recommendations from other entrepreneurs and friends about the local attorneys who handle small business situations. You can also ask Portland court reporters for recommendations, as they work with these legal professionals daily.

Compare the recommended attorneys by scheduling a consultation with each one before hiring them. Talk about payment options, too, since most attorneys offer affordable legal solutions for all businesses, even small and startup companies with limited financial resources.

Hire an Accountant

Even if you plan to handle bookkeeping independently, hiring an accountant is a smart investment. Do you have time to keep up with the tax law changes that occur each year? Most small business owners don’t. For accountants, though, this is part of their job.

Along with helping you save money on taxes, an accountant also provides advice regarding business structure, expansion financing, and paying yourself. You may find consulting with your accountant before making a big business decision is also beneficial.

Be Smart When Taking on New Customers

Before accepting a new B2B customer, make sure to conduct a credit check. This will help protect you against common business issues, such as unpaid invoices. Also, never start doing business with a client if you don’t have a contract in place. This is important, no matter how confident you are in the customer’s word. If something does go wrong, having a written contract can be invaluable and help ensure you are paid for the work done.

Purchase Business Insurance

Most businesses require general liability insurance. Professional liability insurance may also be necessary if you offer professional services or advice to your customers. This coverage is also called E&O or errors and omissions coverage.

Depending on the state where you operate, it may be a requirement to have workers’ compensation coverage, too. Other insurance products worth considering include business interruption insurance, cyber insurance, and others.

Invest in Employee Protection

Disaster may occur at any time, which means you must have a disaster plan for emergencies. Create a plan for your business and assign your employees their responsibilities regarding getting customers out of the building and other factors. It’s also important to outline how you plan to keep the business running if you cannot access the physical location.

Put Safeguards in Place for Business Data

It’s smart to back up your company data and documents using cloud storage and sharing solutions to ensure you can access your important files anywhere. When information is stored in the cloud, you don’t have to worry about a fire wiping out your data or a crashed hard drive. If you want to protect your small business from hackers and cybercrimes, install the necessary firewalls and train your workers in the best cyber security measures, like creating strong passwords.

Protecting Your Local Business

As you can see from the information here, there are more than a few steps you can take to protect your local business. Make sure you have a plan that will provide this high level of protection, which will ensure your business can continue operating, even if disaster strikes. Knowing what to do is important and will help you ensure your business’s ongoing success.