Imagine trying to run a manufacturing warehouse, without any equipment. What about trying to run a supermarket, without a brick and mortar location? Or even worse, what if your employees where to suddenly disappear.
Business assets both tangible, and intangible are the entire reason why you can supply your products/services to customers.
You already know that 66% of small businesses fail on average each year. What you may not know is the majority of these businesses had absolutely no continuity plan, no asset protection protocol; which is why they were heading down a one-way street.
But you don’t need to join this throng of businesses. You can stop the trend. We outline some of the most important tips that you absolutely need to know when it comes to protecting your assets in this article.
Your Most Important Assets – Employees
When you think about it, this should come as no surprise. No business is able to stay profitable without a strong, ethically high workforce behind the strings.
They are the forefront of your business. Responsible for all customer interactions.
Which is why it is incredibly to always focus on protecting their best interests. But it’s not like you can hire bodyguards for all of your employees. So, how on earth can you protect them?
- Establish a strong anti-workplace violence environment.
- Have strong workplace security measures like executive security to keep employees safe against criminal activities.
- Have a set-plan in case of natural disasters to keep your employees safe.
- Make sure you have safety policies in place and adequate training for high-risk jobs.
Insure Your Tangible Assets
Life is full of unexpected problems, and awkward solutions that just seem to happen. But if you learnt anything from running your business – it should be “Being proactive far outweighs the benefits of being reactive.”
What happens if a business vehicle gets hijacked for a courier company? What about natural disasters that turn your physical address to dust? Manufacturing companies, what happens if your most expensive machine goes on the fritz?
Asset insurance is a very real, and important investment for businesses to make. They are the number one way to bounce back from Monday blue surprises. Of course, there are different types of asset and liability insurances that you can choose from. Here is an article to help you a bit more with the process.
Your Business Entity Has A Huge Impact On Your Scope For Asset Protection
When it comes to selecting your business entity – owners tend to focus more on the limitations, and the advantages in terms of tax benefits and all of that good stuff.
But what many homeowners don’t realize…
The entity you become has a significant impact on the asset protection you can apply for. For example, operating as a sole proprietorship is one of the worst choices when it comes to asset protection. The reason being?
It leaves you vulnerable to potential lawsuits. There is no corporate veil to protect yourself.
Which is why if you know you are looking at rapid expansion, you want to apply for an S Corporation, or a Limited Liability company (LLC), as these offer the best coverage for asset advantage.
Keep Things Transparent & Have Set Contracts In Place
One of the most common ways legislatures have the ability to pierce the corporate veil is when businesses try to take shortcuts.
It happens on almost a daily basis.
Poor lease agreements, shady subcontractor agreements, not placing company titles and assets in the business name – all of this leaves you exposed, and waiting for a lawsuit.
Another important thing you should always do as a business is hire legit professionals. That means certified specialists, legal council, tax advisors and so forth.
As famous entrepreneur, and multiple business owner Simon Mainwaring said, “The keys to brand success are self-definition, transparency, authenticity, and accountability.”
Have Set Infrastructure In Place To Safeguard Your Products
Although, the products you sell are not necessarily assets, the money that they bring in, is most certainly.
Considering, the annual average cost of workplace theft amounts to almost $50 billion. And in a recent study, it was shown that out of the participants involved, almost 75% admitted to stealing from the superiors at least once – theft protection is incredibly important.
Now, you don’t need to hire physical security (depending on the value of your products of course.) However, it is recommended to invest in a physical security system such as cameras. If you really want to make sure you are on top of your stock – you could also look into investing in a stock management system.