How To Protect Yourself and Your Business

Running a business is hard—there's no denying that. However, have you given any thought to what would happen to your business if something were to happen to you? Especially if you're a solo outfit and your business relies on you to keep things going each day.

Protecting yourself and your business is vital to ensuring that things do not go according to plan or that unexpected events occur. This post will explore some options for protecting yourself and your business in the face of unforeseen circumstances.

Separate Yourself From The Business

Combining your personal and business finances is a risky move. It's crucial to keep these two entities separate at all times. This separation not only protects your personal assets but also provides a sense of security, knowing that your personal finances are not at risk due to business issues. If you're a sole trader or in a partnership, any financial issues for the company become your personal ones. This means that if your business goes bankrupt, you'll be personally bankrupt, too. However, an LLC can protect you from this and help you keep your personal and business income and finances separate.

Write A Will

Not having a will can lead to confusion and uncertainty about the fate of your business in the event of your death. If something were to happen to you today, what would become of what you've worked so hard to build up? Having a will in place that details the next steps and your wishes can provide a sense of relief, knowing that your business will be taken care of according to your directive. It might also be a good idea to put a power of attorney in place to handle your business should you become incapacitated. Talking to an LPA Solicitor can help you put a directive in place to appoint someone to act on your behalf should you not be found capable of doing so for any reason both for your personal and professional life.

Have Insurance

There is a wealth of insurance you can take out both for the business and for yourself. While you've solely got the legally required business insurance and others in place to cover you, i.e., public liability insurance, etc., do you have any personal insurance that will pay out?

For example, business continuation insurance can help you recoup lost money due to unexpected downtime for any reason, but what will you be living on in the meantime if you're unable to work? You should be considering life insurance if you don't already have it, loss of income insurance, aka income protection insurance, which can cover you in the event of accidents, disabilities, loss of income, and more.

Get Legal Advice

If you don't already have good legal counsel, then you need it. At the very least, talk to a lawyer to find out your rights if you experience difficulties in keeping the business operating for any reason. Seeking legal advice can empower you with the knowledge of your rights and responsibilities, helping you to put effective measures in place so that all of your business affairs will be taken care of no matter what happens.

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