Insurance
Every business, no matter the industry, has a certain amount of risk. While this risk may seem unavoidable, there are steps that can be taken to protect the company from the unforeseen disasters life can throw at you. From fires to natural disasters and criminal activity, there are ways to minimize the impact on your financial bottom line with the right insurance policies. Some examples include a business owner’s policy (BOP) that covers you from liability claims like someone slipping and falling or damage to your clients’ property, as well as a general liability policy for protection against lawsuits.
Employees
When employees aren’t doing their jobs well, it can have a devastating financial impact on your business. That’s why it’s important to invest in employee training and development. It can help ensure that your company has the best employees and reduce turnover rates.
Lastly, it’s critical to protect your physical and virtual assets from financial fraud. You can do this by implementing security measures such as requiring two-factor authentication, separating data systems, and limiting access to computers. Also, guarding sensitive hard copy documents is important—such as checks and printed financial statements.
Cash
Having cash reserves can protect your business financially in the event that expenses outpace revenue or sales slump. An emergency fund can also save your company from interest charges and fees associated with business credit cards.
It’s important to diversify your income streams as a business owner, whether that be through investing in a savings account, being involved in real estate, or having a side-gig. That way, if your business is ever hit with financial hardship, you’ll have another source of income to fall back on.
Security
Security is an important part of protecting your business financially. This includes protecting your data and physical assets. It also means establishing and sticking to a set of security protocols.
For example, create and stick to password policies for employees. Use strong passwords that include symbols and numbers and change them regularly. This can help prevent a cyberattack from damaging your financial data.