7 Effective Tips to Protect Your Business from Disheartening Financial Losses:
Starting a small venture is an arduous task. You have to juggle duties such as securing a business credit, leasing an office, gaining financial stability, and recruiting the right people. Nevertheless, at the beginning of your operation, you may have lots of roles to fulfill to get the ball rolling.
Regardless of the number of roles you have to satisfy, remember to undertake proactive measures to guard your business against disheartening pitfalls.
Here are 7 effective tips you can take to protect you from financial losses:
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Brush up on business laws
No matter what your business is, there is a law that regulates its operation. One good way to protect your business is to arm yourself with thorough information on all available business laws.
Several of the essential legal elements you must brush up on are Employment and labor, Financial, Intellectual property, as well as Marketing and Advertising laws.
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Secure an insurance
Insurance safeguards your business in case you encounter any potential risks. While it secures you, it can also protect your business and customers. No one can really predict what will happen in the future, and one mishap can wipe-out your valuable assets, especially if you don’t have contingency plans.
You can simply start by getting a General Liability insurance, which is crucial for every business. To avail a general liability insurance coverage, call your local representative.
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Let registered professionals handle paperwork
Not everyone is proficient in handling tax filing and record keeping. If these tasks bewilder you, then it is best to let the professionals do the paperworks. Hiring a lawyer to defend your business against fraud is expensive; however, facing fraud charges thumps those legal expenses.
To prevent future headaches, hire registered professionals to handle the necessary business and legal documents while closely analyzing how it is done for your subsequent reference.
See also...The Future of Insurance Agents and Brokers
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Obtain your IP trademarks
Intellectual Property (IP) consists of patents, trademarks, and copyrights. Numerous companies may not have these; however, IP can also be in the form of information, communications, and innovations which offers relevance to the business.
Protecting your IP is significant, in a way that it is what sets you apart from your competitors. It gives you uniqueness by how you produce your product, how you sell it, and how you communicate your brand. Safeguarding your IP gives you a competitive advantage, protects your assets, and strengthens your company’s value.
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Ward off credit fraud
Fraud spree, identity theft, and assumption are different kinds of credit fraud. With this crime, it hurts not only the cardholder but also the business which sells the product or service. For the card owner, he/she may be charged for a portion of the transaction, subject to the terms of his/her credit card.
Meanwhile, the business owner loses the transaction money, and in addition, may be credited with chargeback fees for returning transactions. Basic steps such as verifying IDs and signatures, checking for security features like holograms, plus validating client details are a massive help. Implementing a solid fraud prevention system in place will save you a lot of money.
See also...Do I need Cyber Insurance?
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Be alert of scams
As always, do your research before handing over any money. Stay updated on common business scams and if something sounds too good to be true hold on first to your money.
Before engaging in any business, consistently request for documentation. The business promoter must be able to prove that the amount to be earned they are promising is feasible. If you are not sure about the numbers, discuss it with a legal counsel or an accountant to help you with it. You can also check the validity of a business thru the Better Business Bureau website.
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Consult a legal counsel as needed
As the saying goes, prevention is better than cure. You don’t need a lawyer in every decision you need to make on your business; however, you also don’t need to wait to be sued by a customer before hiring one. Tasks such as preparing a business plan, hiring/contracting vendors, applying for business license/permits are duties you can solely handle. You can research online or study books if you are not sure how to go about it.
On one hand, tasks such as signing a new contract, negotiating a sale or acquiring another asset, or your business is facing a lawsuit or environmental issues are aspects which you will be needing a lawyer. Remember prevention is the key. You don’t need to hastily hire a lawyer, but you can certainly consult one to avoid further problems.
