Starting a business is very expensive. You want to avoid costly financial and legal mistakes since some can lead not only to hefty expenses, but even put your entire business in jeopardy. You’ll need a foolproof business plan and company policy to keep everything in line and under control. Avoid these mistakes and your business will be covered for the long-run.
Watch What You Say
Carefully watch what your business says and does, not only in the media’s eye, but with your newsletters and other writings. Businesses can sometimes make statements that open them up to liability. One way to protect yourself is to make sure employees never make impromptu public announcements. Employees should be instructed not to comment on matters that they have not been trained to comment on. Make it part of your policy to issue official statements and that only regulated social media accounts can speak for the company.
Implement change management whenever your company is undergoing a major overhauls. This might be when your company changes the types of products that it offers or when you take on new partners. Employees need to be prepared for any major changes both so they can better adapt to them and to reduce turnover. Consider getting an organizational development degree or hiring a special project manager who does. They will have the skills and knowledge necessary to oversee a large project when you don’t have time to.
Make sure that your business has adequate insurance for the risks it might face. There are certain forms of insurance that are required by law, such as worker’s compensation, but it is a good idea to obtain general liability insurance to cover unexpected incidents as well. Depending on the type of industry you are in, there might be specific forms of insurance that your particular business might need to obtain.
Maintain a financial statement of all your company’s assets. Your assets should include your business, equipment, rental property, stock, and mutual funds. Also, include all loans and other forms of credit. Having a financial statement provides you with a greater understanding of how well your business is performing and prepares you for any financial difficulties you may have to face in future.
Get a Patent
Obtain the proper patents for any innovations created by your company. Make sure that the innovation you are patenting is feasible before obtaining a patent. You will have a one year time limit to file a patent, so when you believe that you have a novel innovation, obtain a patent to protect your business from having its idea stolen.
While there are many potential threats to your business, there are also many ways you can keep your business protected from these threats. By consulting with a good attorney, you can make sure you have all your bases covered.
“Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most her time hiking, biking and gardening. For more information on how to create a policy from scratch, check out courses from an organizational development degree online or contact Brooke via Twitter @BrookeChaplan.”