Being a business owner is no small feat, even if it’s only you in the team. There’s a lot to think about, from taxes to logistics, and the important things can sometimes be lost in all of the paperwork and day-to-day tasks. But in the event of any unforeseen events, you’ll want to make sure you’ve taken steps to protect yourself and your business to the best of your ability. Here’s how.
Have an emergency fund
If you’re just starting out, an emergency fund might seem like the last thing on your mind, especially if you’re pooling together all of your resources to set up your business in the first place. But because any number of things can go wrong, it’s a good idea to keep some cash safely aside if you ever need it. If for some reason the work dries up, or you have unexpected bills to pay, it’ll be a lifesaver to know that you’ve planned ahead and have the finances to manage it.
Be strict with your contracts
Although you might be doing some work for family and friends, in order to protect yourself and your earnings you need to have a watertight contract set up so everyone is on the same page. It should state your terms and expectations, particularly around payment, and it should outline the process if these terms are not met. Every client you have needs to sign your contract and also have a copy of it on hand. It’s a good investment to get a lawyer to look over your contract before you send it out to clients.
Sort your insurance
This is one thing that needs to be done first thing, but it can often seem too complicated. Luckily our expert team is here to help! Depending on the size of your business and what it is that you do, there are a few different types of insurance you’ll need to make sure you’re 100% covered. Things like asset insurance, indemnity, commercial property insurance and business interruption insurance are often key insurances a business needs. Book in a time to have a chat with us if you’re not sure what you need and what you don’t!
Separate personal and business
Regardless of the type and size of your business, one of the key factors when keeping yourself protected is ensuring that your personal life and assets are kept separate from your business. Often in the initial growth stages, people tend to use their personal assets to help finance the business, but this is not advised as it can lead to all sorts of problems down the track. There are different business structures that you can set up to keep personal and business separate and it’s a good idea to look into the structure that best suits you.
Here at Haven, we love to see businesses thrive, no matter what stage they’re at. The last thing we want is for you to lose something of value to you or to be in a difficult situation because there wasn’t an important element of protection in place. Come and have a chat with us and we can get you sorted!