It’s important to understand when starting a business that there is no 100% guaranteed way to eliminate the risk that entrepreneurship brings. You can’t be sure your customers will pay you on time. Your employees can quit without notice. Your vendors might deliver damaged products. All of these, among other risks, make it difficult for you to know what’s going to happen tomorrow, much less next year.
And while you can’t completely get rid of that risk, there are at least a few measures you can take to lower it.
Trademark a Business Name
You want your business to be the only one with its name. But without the proper precautions, it’s simply vulnerable. That’s why it’s a good idea to trademark a business name to legally protect it from being used by anyone else.
Keep Money in Reserve
Don’t wait until you have a cash crunch to make a plan on how to keep cash flowing. Sometimes clients don’t pay you on time, and you don’t want that to disrupt your ability to pay your own bills. Set aside a portion of every payment you receive in a savings account that will be available should you have a costly emergency and need to access funds quickly.
Protect Your Personal Assets
There’s no bigger risk in running a small business than putting your personal assets on the line, but that’s exactly what happens when you operate as a sole proprietor. Instead, become an LLC or corporation so that your personal assets are completely separate from that of your business. Then, should you ever be sued, the court can’t come after your home, car, boat or anything else to cover your business debts.
Appoint a Mini-Me
What happens if you get sick for weeks or even months? How will your business run without you? You need to appoint a co-captain to take over the helm in case of emergency. This should be a member of your team that you trust implicitly to act on your behalf. Train her in everything she would be responsible for in your absence. And hey, this comes in handy if you want to take a vacation too!
Market When Business is Booming
Don’t wait until you’ve lost clients and are scrambling to find where your next business is coming from to market your brand. Marketing is essential all the time, in times of feast and famine. Slacking off can cost you down the road.
Corpnet can help you minimize your business risk. Let us help you incorporate online to instantly protect your personal assets!