It’s human nature to do everything we can to protect the people we love and the property we value. From drawing up legal documents to purchasing the newest safety products on the market – we are always looking for ways to protect what’s ours. Hopefully, this same mindset governs your business’s risk-management strategy as well.
Do you know that most of your net worth is tied up in your business. That means, if you don’t adequately protect it, you could stand to lose nearly everything you’ve spent your life working for.
Columbus Business First recently published my six tips to help business owners protect their most valuable asset. I encourage you to check them out here as well.
- Draw up a buy-sell agreement.
Why: As the last will and testament of your business, your buy-sell agreement dictates will happen if a shareholder dies, becomes incapacitated, retires or is fired from the business.
- Secure contracts for all key employees.
Why: What would you do if one of your key employees left and took your customers and other employees with them? Before your worse-case-scenario has a chance to materialize, address your concerns in the form of a contract.
- Have a succession plan.
Why: Your company’s value could take a hit if you were to unexpectedly be absent from the business. Select and train your replacement sooner rather than later.
- Comply with government regulations.
Why: Some violations could cost your business hundreds of thousands of dollars – or more.
- Protect your intellectual property.
Why: Your ideas are valuable, especially if your ideas form the foundation of your business. When you protect your intellectual property with patents, copyrights and other legal agreements, you are protecting your business’s value.
- Secure proper insurance coverage.
Why: Without the right coverage, a single lawsuit, accident or natural disaster could take your business’s value to zero.
Want to learn more about how a business valuation can help you grow and protect your business? Check out my website at www.knowandgrow.com. You can also follow me on Twitter for helpful business tips throughout the day.