Regardless of what stage our businesses are in, chances are we can utilize some steps that are needed to protect our business. Here are things we should do:
- Think Big: We shouldn’t get caught up in the smallish thought process, by thinking that our business is too small to grow further. Many business owners think that they can’t increase their business significantly, just because it’s essentially a one-man show. Nothing is too small if we have big ideas and great determination. We should think big although our business can be the smallest in the world. By thinking big, we can protect our business by exerting outward pressure that counteracts any inward pressure that can constrict our business.
- Put everything in writing: If we are businesspersons who offer services, it’s a good idea to create written agreement, no matter how basic it is. The agreement should clarify understanding, exude professionalism and promote consistency. It doesn’t have to be long and fancy, but it must be clearly understandable. Written agreement will protect our business against any wrongdoing and other unexpected situations.
- Understand tax deductions: We should be properly familiarized with basic elements of tax deductions, so we can maximize our tax write offs. It would benefit us greatly if we know all about the permissible deductions. This should also help us to make better records.
- Separate funds: We could protect our business if we don’t mix personal expenses with business funds. Credit cards and bank accounts for personal and business purposes should be kept separated. For many small businesses with smaller revenue, they can be particularly threatened by personal expenses.
- Be cautious when hiring: As our business grows, we will need more employees and obtain services from external contractors. We should process with caution and be slower when hiring someone. We should do background check, check references and take our time to interview. This will be the time well spent. Bad employees and external contractors could easily ruin our business.
- Particularly in a time of economic uncertainty, we should have some extra fund just in case. Nearly all businesses suffer a downturn that causes them to temporarily experience losses due to external factors. With extra funds, it won’t be necessary to close our business just because we lose money for several months. To protect our business, we shouldn’t use our entire fund, it is important to prepare some to deal with possible worst case scenario.
- Get insurance: We need business insurance if we are in business. We should do ourselves a favour, if we don’t have business insurance. We should work the cost into our budget and we shouldn’t take the chance if we are in a rather riskier business. Insurance should five us the peace of mind knowing that our business is well protected.
- Purchase your domain immediately: Even if our business is still small, we should buy the most relevant domain name, before someone gets it. It would be much more expensive if we wait later and someone has purchased it. The domain name should embody our business and match with our tagline.