Starting a business is exciting. With that, there are some risks. There are legal, financial and personnel decisions that can really make or break a business. It only takes one misstep or wrong turn for things to start heading in the wrong direction. Here’s how to keep your startup safe.
Get Business Insurance
This is important in protecting your assets should you get sued. From the employee slip and fall incident to worker’s compensation, your business can be on the hook for practically anything. In having business insurance, your business assets are protected should your company be found liable for anything. Captive insurance is a great option to look at if you’re looking for a way to minimize your company’s liability.
Protect your ideas
While this may be a costly option for a business in the initial stages, filing a provisional patent may be a good idea. In filing a provisional patent, the business remains secure for an entire year. This is a great option for a business planning to shop an idea around to seek investors and funding. The downside is that the provisional patent cannot be extended further.
Secure your Data
One of the most expensive mistakes a business can make is failing to get adequate protection for sensitive data. Financial information, customer records, legal documentation and trade secret information should all be secured. In some cases, it is legally required to have some sort of plan in place to safeguard certain types of information. If unsure about what steps to take, you can consult with an expert.
Trademark your Business Name
Most businesses are named because of an idea, invention or concept closely related to a particular industry. The trademark is designed to establish a timeline in the event that the company is ever challenged where a particular concept is done. This will act as proof when any legal dispute occurs where a business concept or product is concerned.
Create an Inventory Tracking Process
It is difficult to stay on top of inventory without establishing great processes. Employee theft is always a risk. Creating routine processes to verify inventory quantity shields your business from loss. Doing this will keep your business from losing revenue. Detecting changes and certain trends will leave you prepared to address any significant changes immediately.
These are several things you can you can do to ensure that your business is protected. These steps are easy to take and implement. Being proactive in protecting your business can potentially save you thousands in the long run.