Protecting Yourself: 4 Financial Pointers for Small Business Owners

Getting your small business established is a constant challenge that takes some investment. You have to cover office space, supplies, equipment, and more. Without a good deal of business capital, your business could be in trouble at the first major setback. It’s a good idea to take steps to protect yourself financially. Here are some crucial ways to do this.

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Protect Ideas

The theft of intellectual property costs the U.S. economy about $300 billion each year. When launching a new company, you should take steps to see that your ideas and designs are not stolen from you. Contact a lawyer about filing for copyrights, patents, and trademarks. Have employees sign Non-Disclosure and Non-Competition Agreements so they can’t take your ideas to another company.

Screen Your Partners

Before you sign agreements with other companies such as suppliers or contractors, do your homework to ensure they’re trustworthy. Even if they’re willing to sign an agreement meeting your terms, it’s no guarantee that they’re willing and able to honor it. Then you’ll be forced into a court battle to recover money that you’re owed. Qualifying your business partners should include credit checks and client referrals. When you do find a great business associate, it’s a relationship you’ll want to keep, as it will give you more confidence in your own business decisions.

Prevent Credit Fraud

Hackers, scammers, and dishonest or careless employees can expose both your business and customer credit account numbers. This can lead to identify fraud, stolen funds, or fraudulent purchases. It’s important to have all the latest cyber security such as encryption, firewalls, anti-malware, and data encryption in place and updated. Train employees on measures such as strong passwords, restricted access, securing devices, and being vigilant. Put together security and privacy policies and see that they’re followed. Regularly check your credit and review your account statements.

Get Insurance

Vital insurance policies include general liability and property coverage. Talk to a commercial insurance agent about insurance for HVAC contractors as well as other policies or add-ons specific to your company. Be aware that adequate levels of insurance aren’t always easy for new businesses to get. Obtain quotes from several local insurers and ask about package deals. Take note of issues like deductibles and the claims process. Consider which payment plan works for you, such as monthly, quarterly, or annually.

Protecting your assets at any stage of business growth is essential. Take the time to prioritize where your money should go and find the best alternative.