How To Protect Your Business From Unexpected Circumstances
As an entrepreneur, the thought of losing everything you have laboured for can be scary. Although there is a more significant percentage for your company to survive, there is also a similar percentage that you may fail. Statistics show that although 660,000 new businesses are registered in the UK every year, 20% of the registered start-ups fail, representing 1 out of 5 companies.
These failures occur due to unexpected events these businesses were not prepared for. So, how do you ensure your business doesn’t fall under the same cloud? What protective measures can you take? Here are a few you should consider.
- Implement an emergency plan
The challenge with most start-up businesses is their inability to design an effective emergency plan. Make it a point to orientate everyone in your company on what to do when a disaster hits you. Get experts from your local fire station or the Office of National Disaster to guide you in developing an action plan to fight disasters. Where a plan is implemented, be sure to have it well mapped out and visible to all persons concerned. This ensures that your staff would respond to disasters effectively and proactively to avoid irreversible loss.
- Prepare against separation
Another unexpected event that can be harmful to your business is separation from a marriage. Family issues such as alimony, and financial settlements, may affect your business’s success. However, you can hire family law solicitors with trusted legal advisors who can help set a clear distinction between a family’s income and their business income. A prenuptial or postnuptial agreement, written by your lawyer, can protect your business from the complexities and uncertainties of divorce. You can include a clause stating your business as separate property and not subject to the division after a divorce when drafting such documents. When you have over 80% shares in your company, you can cushion it against an unexpected breakup that will require you to pay alimony to your ex-spouse.
3. Always keep money set aside for a rainy day
In business, you never know when disaster will strike. That’s why it’s so important to always have money set aside for a rainy day. If you’re able to keep your finances healthy, there are virtually no fires that you will be unable to put out.
Of course, as a startup, you’ll need capital. The best way to get this is to go to a professional provider, such as Aurora Capital, that can provide the funds required to get a business off the ground. This way, you can protect a company with long-run potential, but short-run cash flow issues.
4. Safeguard your company against natural disasters
Natural disasters are unstoppable when they strike. In the occurrence of a fire outbreak, raging fumes can raze down your office complex burning down all your working instruments. Similarly, on the other hand, a flood may leave you out of business for months when it strikes. Fortunately, you can protect yourself against fire outbreaks by installing smoke detectors in your office space. You may also fire sprinkler systems in your office. You can additionally use fireproof doors and fireproof curtains to protect your office space against blazing fires. Furthermore, you can install floodproof devices in your office to safeguard you against unexpected floods. Once you make use of the latest anti-natural disaster devices, your office may stand a chance against unexpected floods and fire outbreaks.
Many external factors can collapse your business aside from unexpected disasters. Fortunately, you may not stop these unforeseen events from happening. Still, you can plan a backup plan on how you can get recovery after the unexpected happens.