Running a small business can be an excellent opportunity to earn money, and it can give you the freedom to write your own work schedule. However, you have certain vulnerabilities when you’re a solo business owner. One of those vulnerabilities is a financial collapse if an unexpected bad accident occurs. Serious illnesses or situations that require an auto accident lawyer can send your business into bankruptcy if you’re not available to keep it running. Fortunately, there are some moves you can make to protect yourself from that.
Assign a Trustworthy Stand-In
The first action you can take is assigning someone to take it over if something should happen to you. That move will protect your business from the aftermath of an accident. The person you assign should be business savvy, trustworthy and available to jump in if something happens to you and your business. It could be a relative, a best friend or a business partner. You should have this person assigned to handle your business legally if something should happen to you that would prevent you from making business decisions for a while. However, you’ll want to put in a stipulation that gives you back control of your company once you recuperate from the illness or injury. That way, you don’t run the risk of losing your business to anyone.
Automate Your Business
You can start introducing tools to your business that will help to automate some of the processes. That will help to keep it afloat if you’re going to be out of commission for a while. Examples of tools that can help automate your business are sales automation software, customer service software and automated marketing tools. These items will do a lot of the work for you so that you can concentrate on recovering.
Save a Cushion or Blanket Fund
Saving money is important when you own a business, and an unexpected accident is one of the reasons why it’s so crucial. You should have a least two years worth of money in the bank before you even start a business, but many owners don’t have it. It’s never too late to start building a fund, however. You can open a business savings account at any time and start putting part of your profits into it for an emergency.
Buy Disability Coverage
Another smart move you can make is buying a disability insurance policy. A disability insurance policy is a plan that pays you money while you are out of work and recovering from a major illness or physical injury. Such a policy will pay you a certain percentage of what you are used to earning during your down period. Disability policies cover a vast assortment of conditions. To get covered and stay covered, you would have to pay a monthly premium. If anything happens, you’d have to file a claim with the insurance company and just make sure you present proof of your illness or injury. You can use some of the money to maintain business operations or continue to pay rent at the building that you use for your business. It’s worth the monthly investment because, as you know, emergencies don’t ever come at a good time.
Those are a few of the ways you can protect your business from a disaster and make sure that it’s still standing when the smoke clears. Figuring which insurance and commercial business laws you can take advantage of could changes your life in the event of an emergency. Start taking steps now because by there very nature, unexpected or freak accidents could happen anytime