Budgeting to Protect Your Business
There are a myriad of aspects in operating a small business. Just about every business owner knows the two big keys are in building and protecting that business.
Building a business can be an exciting, albeit stressful time. You never know what the next day will bring. There is the excitement of making a sale, getting a referral and gaining positive reviews, followers and testimonials. Watching your business grow isn’t always easy, but there’s a joy to it that entrepreneurs will tell you is unmatched.
Once that business has experienced some growth and success, there is an obligation to protect it. Granted, protecting or defending a business may not be as thrilling as building it, but it can be equally important. Who and what are the potential threats to your business?
Competitors. They want your share of the market, and you likely want theirs. Both can be accomplished through marketing and hard work. You can better protect yourself from competitors by staying connected with your customers, maintaining a strong reputation for reliability and service, and making sure your clients get value with every transaction. Budget for marketing and reputation management.
A Slowing Economy. A slow economy threatens just about every business. You can better protect your business by operating lean, even in good times. Try to keep debt at a minimum and maintain a reserve. Partner with clients to support each other in an economic downturn.
Lawsuits. Businesses are often viewed as an easy target for those using litigation to get a payday. It can be from a slip and fall or other business-related personal injury. Even claims with little to no validity can threaten a business, which is why a business liability insurance policy is so valuable.
Losses from Natural Disasters. Natural disasters like fires, tornadoes and hurricanes can close a business at least until damages can be repaired. Business property insurance combined with business interruption insurance can provide the protection a business needs to survive such an unfortunate event.
Losses from Man-made Events. Natural events aren’t the only threat to businesses. There are thefts, vandalism, embezzlement, cyber-crime and other activities that can bring a business to its knees. That is unless they have the appropriate business insurance.
No, protecting your business may not be as thrilling as building your business, but it is no less important. It is why you should budget for marketing, facility and equipment maintenance and business insurance. Contact one of our independent business insurance professionals to discuss your specific business and its risks. You may be surprised at not only how affordable business insurance can be, but how much better you may sleep at night. Contact us today for your no cost, no obligation quote.