Some people are natural entrepreneurs. Whether you got started with natural healthcare clinic or real estate business, it’s important to think about protecting your business assets as your number of enterprises and properties grow. Today, we’re here to share three quick and easy to understand tips on how to make sure no avoidable oversights put your growing assets at risk.
1) Cover Your Insurance Bases
Whatever your businesses, read up on the kinds of insurance that your competition and contemporaries all rely on. At the very least, you will probably need property, liability, worker’s compensation, and inventory insurance. And every industry has a few special types of insurance based on the materials they work with and the services they provide. From working with food to working with animals. Make sure your bases are covered and read your policies in detail so you know exactly where the boundaries lie.
Also, keep very detailed records. Filing an insurance claim can be slippery.
2) Found Multiple Companies
If you are running multiple business, found multiple companies. Running every enterprise under one brand means that a mistake in one area puts everything at risk. In addition, new companies have a three-year grace period for profitability for a reason. The best way to ensure that new or flagging businesses don’t put the rest of your assets at risk is to found a new company with each enterprise. This way, they function as separate financial units and therefore sink or swim on their own. While the other companies remain a source of income for you.
3) Protect Yourself from Liability Suits
Finally, take special care to protect yourself, businesses, and assets from liability suits. Make OSHA compliance an center-point of your business plans. Put up security cameras and keep records. Make sure your HR department is open to reports and knows how to respond to employee complaints. Make sure customer service is equipped with a versatile procedure for customer complaints. Consult with a business law attorney on any loopholes where you might be held liable and haven’t covered yet. The best way to prevent a liability suit from taking out one of your companies is to assume one is around every corner, because it could be and it could cost millions.
Successful entrepreneurs are in a unique financial position in terms of asset protection. Contact us today for more insights on how to protect your businesses and your personal assets.