Published on May 30th, 2013 | by Pete0
How to protect your business assets
Anyone who is in business will know that, no matter how good you are at what you do, there are always forces outside our control which can have a direct influence on how well or how badly you do. This can mean anything from a competitor trying to undercut your charges or the overarching global financial situation having a negative effect on the way your business operates.
These things highlight the need to take adequate steps to protect your own assets. Here are some ways in which you can do that.
Many people operate as ‘sole traders’ meaning that they work for themselves in a self-employed capacity. A large number of successful businesses start this way and then go on to employ others as the work begins to take on a larger scale of operations.
Becoming ‘incorporated’ basically means that the business becomes an ‘entity’ in its own right. This means that your own personal assets are separate from those of the business and therefore are safe from any calls that might be made upon the business to pay off debts of any kind.
In the UK there are a number of approaches to incorporation, the most common of which are a ‘limited company’ (LTD) or a ‘limited liability partnership’ (LLP). Bloomberg businessweek has more information on why taking this step can be important in protecting your assets.
Having the right type of insurance cover is important for many areas of life, but in business it can be essential – especially if you are dealing with the public on a day to day basis or have employees who may bring some form of claim or action against you.
Policies can protect your business against employment-related claims or health and safety issues as well as more specific things regarding your area of business. For instance, if you are engaged in working on outdoor events, insurance might be needed to protect your assets against weather damage and so on.
Making sure your financial dealings are in order and up to date is another essential part of looking after you business assets. Obviously if you have an accountant there are certain responsibilities which will be taken care of but on a day-to-day basis it is important to have a level of control in your own hands.
Sage One services provide all types of solutions to meet the needs of every kind of business, no matter what the size of operations or the area in which you work. With a practical approach it is relatively straightforward to make sure both your business and personal assets are protected whatever line of business you are in.
This is a guest post.