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Are you thinking about starting a company? If so, then you need to make sure that you are putting the right protective measures in from day one. In doing so, you will be able to make sure that your business is likely to have a long history on the market. Don’t forget that a lot of businesses fail within their first year. Some reports suggest that 90% of companies won’t make it out of the gate. That’s something to keep in mind, particularly if you are thinking about cutting corners in terms of the protection that you do put in place for your business.
So what type of protection does your company need? Well, there are lots of options that you can explore here. Bear in mind, these are worth considering regardless of the size of your company. Here are a few choices that could be ideal for you.
IT Protection
Be aware that if your business is hit by a security breach these days it likely will be a cyber attack. The issue with an attack like this is that it’s difficult to completely prepare for it. As well as this, there are numerous ways that a hacker can skirt around barriers that you do decide to put in place. That said, it’s still worth taking the time to explore a range of different protection options. For instance, you might want to think about investing in an IT management team. The benefit of an IT management team is that they will set your systems up for you. This means that you can avoid there being holes in security due to the initial setup.
An IT support service can also guarantee that your systems are monitored 24/7. In doing so, they can make sure that a hack is immediately identified even if it can’t be completely avoided.
There are numerous forms of IT protection that could be right for you. For instance, a basic option would be antivirus software. Be aware that a lot of hacks start with a virus being left on your system and then move forward from there. So, if you can avoid the virus, then you could avoid the hack completely.
If you are working from home and you are running a small business, you might think that a hack like this is unlikely. But don’t be so sure because research shows that criminals are likely to hit your business, specifically because you’ll underestimate the danger.
The Right Formation
Next, you should think about how you form your small business. It’s possible that you are operating as a freelancer or a sole trader. This does come with a lot of benefits. It can provide a more flexible work schedule compared with setting up a far larger corporation. However, you are limited in terms of the level of protection that you can access. Part of the problem here is that when you operate as a sole trader, there is no separation between the finances of your company and your personal finances.
This means if you do lose any money through the years in your business, then it is going to hit your personal finances too. This is the last thing that you want.
You can avoid this by setting up with a limited company formation. If you take this step, you will need to pay a small upfront cost. However, your personal finances will be protected from any debt that you take on in your company. This can help you avoid a worst-case scenario of bankruptcy, even if your business does go under.
There are many pros and cons to weigh up when choosing this type of protection for your business. However, ultimately if you opt for this type of structure, then you will find it far easier to manage everything from employee costs to taxation. You just need to find out how to move from being a sole trader to a limited company. There are lots of guides online that discuss this at great lengths.
Insurance
You might also want to consider the different insurance options that could be right for your business. It doesn’t matter what type of business you are running on the market, insurance coverage is always going to work in your favor. The reason for this is that with the right insurance, you will be able to guarantee that you are protected from some of the most common disasters that can hit a company.
One of the most typical forms of insurance that you must have in place is general liability insurance. With general liability insurance, you will be able to guarantee that if a person outside your business is injured and your company is responsible in any way, then you will be protected from legal damages. You might think that this is only relevant for a heavy industrial company, but don’t be so sure. For instance, you might decide to meet a client in a coffee shop to discuss your proposal. If they get up and trip on the strap of your bag that is underneath the table, then you could be found liable. This is where general liability is going to protect you.
Workers comp is another option worth exploring. Of late, businesses have been inundated with personal injury claims. The issue here is that it has led to numerous businesses struggling to stay above water because they have been paying for damages out of their own pocket. With workers comp, this issue is avoided and businesses remain on the right track.
There are other specialist insurance options to consider as well. For instance, if you are storing a massive amount of data in your business then data insurance could be the right choice for you.
Disaster Recovery
It is essential that you do have a disaster recovery plan in place for your business. The right disaster recovery plan will mean that you don’t have to worry about your company going under because data was lost or because critical workstations were inaccessible for an extended period. One of the things to think about here is what type of disaster recovery option is going to be right for you. Be aware that a disaster recovery solution can be run through a cloud server. The benefit of this option is that it means you will be able to make sure that you can gain access to the crucial data you need. It also keeps any backups that you are storing far more secure compared to other hard drive solutions.
If you are looking into disaster recovery, then you need to make sure that you ask the provider how long it will take for your systems to be back up and running online. Don’t forget that even minor levels of downtime can end up costing your business thousands. That’s thousands that probably doesn’t fit into your overall business budget.
Managing Employees
Finally, it is important to make sure that you are managing your employees effectively to protect your business. This begins with the initial hiring process. It is important to think about whether you are vetting your employees the right way and checking for any red lights or warning signs that might be present. This is where a HR service can come in handy and help you avoid a situation where you end up hiring the wrong people.
Next, you should think about training up your employees. Be aware that if there is an accident or incident in your business it will likely be due to human error on some level. If you make sure that you train your employees, you can reduce the danger here. That’s not the only area where training your employees can be an effective solution either. Training your team will also help ensure that you don’t end up in a situation where team members are the reason why your business is exposed to a security issue. This is a common issue related to phishing scams where criminals will play on the ignorance of different members of your team. Training might seem like a lot of money, but it is always going to provide tremendous benefits in the long term.
You should also consider the danger of churn. A high level of employee churn in your business will end up costing your company a fortune. You need to take steps to guarantee that the people that you hire are in it for the long haul and won’t leave your company at the first sign of trouble.
We hope this helps you understand some of the key steps that you can take to protect your company from the beginning of your business life. If you explore the right steps here you will be able to limit the potential damage to your business significantly. This won’t just protect your business finances, it could protect you as well. Taking the right steps might also be the key to ensuring that your company has longevity on the market. This is a crucial goal to aim for. You need to make sure that your business is not going to fizz out after just a few years.