Running a business is not just about making money off it. You have to ensure its longevity by protecting the business and its assets. Over the years, experts have come to agree that protecting a business is all about tried-and-tested, affordable, and simple habits. There’s no use reinventing the wheel if the old ways of protecting business assets are working. If your business prevented lawsuits in the past and remains significantly strong amid pandemics and economical crashes, then why change what’s not broken?
Incorporate Your Business
One of the first things you need to do is to incorporate your business. This helps protect your personal assets. In case your business faces a lawsuit, the court cannot seize your personal assets. It will not get affected by your business’ liabilities in case you defaulted on your business loan. Limiting your personal liability either through forming an LLC or corporation. This way, even if your business falls through hard times, your personal assets are still protected.
Establish Employment Agreements
What can bring a business down? Labor cases can result in the closure of your business. Your employees may also reveal trade secrets, corporate policies, and other important and sensitive information about your business that can lead to its downfall. Make sure that your employees are forbidden from revealing any restricted record and formula that your company came up with.
Non-disclosure agreements (NDA) are not uncommon in businesses. An NDA protects the business and its management. Ensuring that your employment contracts are iron-clad is one way to protect your business from future lawsuits, scandals, and controversies.
Buy Insurance for Your Business Equipment, Vehicles, Etc.
Get insurance for your business equipment, the fleet of vehicles, and other assets. If you own the office building, make sure that its insurance policy is iron-clad. The same should be done for your company cars. You can get a car paint protection film for them to prevent scratches and make them look new. You’ll be eligible for better insurance coverage.
As for your office supplies and equipment, some insurance companies offer coverage for these, too, in case of natural calamities such as fire and flood. You can start up easier when the insurance company pays for the repair or replacement of your office supplies. This is the biggest advantage of having insurance coverage for your business’ assets.
Apply for Trademarks, Patents, and Copyrights
Whatever ideas your company created, that is yours to profit from. Applying for trademarks, patents, and copyrights will ensure that you are the exclusive owner of these images and ideas. A copyright is used for produced content while patents are for inventions such as machines and equipment. You can also apply for trademarks if you have made a logo or slogan. An example of a trademark is Michael Jordan’s Jumpman logo. No other company can use that aside from the Jordan Brand.
Every article or blog you publish on the website should be protected by copyright, especially if it was a special research done by the company. Copyright is almost always ensured the moment you published the blog and put your name and the date on it. These little details can spell prevent business disasters from happening in the future.
Use Proper Contracts
Never enter into a verbal agreement with a supplier. Nothing good comes out of a verbal agreement because it’s a matter of whom the courts will believe—you or the supplier. What happens then if both of you are reputable businesses with no history of bad service or product? Make sure you have proper contracts in all your business dealings—from leasing agreements to subcontractor agreements to employee contracts.
Make sure you only work with licensed professionals. Avoid doing things under the table. When you need help for your business, you should choose licensed, bonded, and insured service providers, especially when it comes to taxes, repairs, legal services, and contractors.
Proper documentation is needed for the thorough protection of your business and its assets. Don’t be comforted with the fact that everything is digital nowadays. You need the printed copies of your bank statements, taxes, property titles, contract agreements, business registration certificates, and many other things. Although soft copies are quite reliable, having hard copies with you in a safe is still the best option.
Regardless of the size of your company, it is your responsibility as the owner to protect its most valuable assets. There are plenty of ways to do this, so you should not be surprised to find your business in hot water after failing to follow these measures. A test of a good entrepreneur is in the ability to protect the business from downfall.