Hi, I’m Sheryl Hunter, the Entrepreneur’s Attorney and I’m here with the Entrepreneur’s Legal Brief on Limiting your Liability.
As you build your business, you want to protect your company’s assets and certainly your personal assets from lawsuits, fines, and bad reviews.
So let’s go over my 7 step process that I share with all my clients:
Form a Business Entity – If you operate as a corporation or limited liability company, then it’s the business that’s going to be sued or fined, not you personally.
Comply with the Governing Law of your Business Entity – Don’t go co-mingling personal and business assets, file the annual report in which you operate on time and keep good records. If you break the rules, then your assets are at risk.
Get Insurance – Don’t find a salesman, find an advisor. You want someone who will take time to understand your business, its risks and help you find a policy that is best suited to your company for the best price. Most importantly, read the fine print of that policy before you buy it.
Develop Detailed Processes – The fewer precise details you have in place the more risk for human error. You want to have operating procedures and manuals, these are going to help your business be more valuable when you go to sell since someone is going to walk into a turn key business.
Train your People – You need to have those policies and procedures in place, but you also actually have to train people on how to use them. Train your team.
Pay as Much Attention to Problems as you do to Praise – One disgruntled client can do more damage than 10 happy clients can undo. Respond quickly, calmly, and professionally when a client has a complaint.
Get Good Advice – There is no substitute for a team of competent and caring advisors. Every business needs a CPA, a Business Attorney, and an Insurance advisor. People who care about your business and advise you as you rise and grow. These people could make or break you, so make sure they are A-players.
I’m Sheryl Hunter, the Entrepreneur’s Attorney, here with your Entrepreneur’s Legal Brief.