Uneasy is the head that wears the crown. Being in charge of your own business can be enormously satisfying, but it can also be a headache. Here are a few tips to keep your business safe from some dangers both inside and out.
1. Never Underestimate the Value of a Good Lawyer
Many small businesses avoid lawyering up, either because they don't think they need one or they don't think they can afford one. But finding a knowledgeable lawyer can save you far more than it costs. Especially when signing any kind of contract; have a lawyer review each one before you sign it. One of my clients saved thousands of dollars when their lawyer suggested a small change in their commercial lease agreement. It may not seem necessary at the time, but the payout can be well worth it.
2. Have an Employee Manual
Obtaining an employee manual is another task that may seem unnecessary, but will be enormously valuable over time. A well-crafted Employee Manual can set expectations for employees, illustrate the benefits they're offered, and ensure that everyone is treated fairly. Plus, setting the standards that are expected of your employees up front can help avoid or win lawsuits, should it ever come to that.
3. Make sure that you are properly insured.
Many employers overlook Employment Practices Liability insurance and Umbrella Liability insurance, and don’t understand who needs to be covered under Workers Compensation. These are issues that can be extremely costly if you're not prepared. Even if you're not necessarily sure that your business needs these coverages, be sure to discuss them with your insurance agent.
4. Pay attention to cyber security
From 2008 to 2010, a group of hackers preyed on and compromised more than 50 small businesses in Seattle, causing over $3 million in combined damages. Many hackers are now targeting small business, because they often have lax or no security measures in place. According to a 2012 study by the National Cyber Security Alliance, 71% of small businesses are dependent on the internet on a daily basis to conduct business, but 83% don't have any sort of formal cyber-security plan. Educate yourself on what is most valuable in your company, and what's most vulnerable, and take steps to protect it. Make sure all of your data is backed up regularly, and shred documents that may contain usable information before discarding (dumpster divers contribute to a large portion of financial crime).
5. Consider Outsourcing Your Bookkeeping
When you're pouring over the same information day after day, it's easy to get desensitized. But when it's something as important as your business's income and expenses, you can't afford to miss a thing. Having an outside set of eyes reviewing your finances can help to catch errors and prevent fraud; one more cost that could be well worth the money.
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