Tips For Protecting Your Business Financially

Tips For Protecting Your Business Financially
Tips For Protecting Your Business Financially

21st Century business is exhausting volatile.  The accelerating rate of technological innovation means that no business can rest upon past achievements.  Disruption can lead to growth but for the unwary it can also lead to disaster. Safeguarding the quality of your product and the integrity of your brand is paramount, but this can only be done if your business retains its financial equilibrium.

Careful words, careful actions

Remember Gerald Ratner?  He destroyed a multi-million-pound jewellery business in a matter of seconds by standing in front of an audience of 6,000 businesspeople and describing his company’s product as ‘total crap’.  Avoid any public announcements which may be contentious. Avoid business relationships with companies which are perceived as unscrupulous or corrupt. Avoid situations which might be regarded as a conflict of interests. Never give advice which is beyond the scope of your business.

Appropriate insurance

Employer’s Liability Insurance is mandatory in the UK and protects you against the cost of compensation claims in the event a member of your workforce becomes ill or injured under your employment.  You  can find a host of information about this here. Public Liability Insurance covers you against claims by the public or clients.  Professional Indemnity Insurance covers your company in the event of accusations of professional negligence or the loss of client data or money and Cyber Insurance offers protection to your company in the event of cyber attacks or cyber extortion.

Protect your online presence

A high-quality website is crucial to the success of your business, but it is vulnerable.  Ensure that your website has a privacy policy, terms and conditions and a website disclaimer.  If you are providing access to online content, ensure that there is a terms of use contract signed by the client prior to access to reduce the possibility of your materials being copied and remarketed.  Safeguard your client data and know how you will respond in the event of a data breach. If you are transferring money abroad use a money transfer site rather than a bank. A site like TransferWise enables you to send and receive money from abroad up to eight times cheaper than a bank and it supports over 750 currency routes.

Keep business funds and private funds separate

Personal finance should not distract from business operations and business finance should not jeopardise personal savings. Ensure that your business is set up as a separate business entity and create an emergency fund as protection against the unexpected.

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