Having an idea, making it a reality, and being able to give up your day job is an exciting possibility. However, running your own startup can be stressful too. There are so many things that you have to stay on top of to make it work. For instance, when you have a job with a contract, and you’re employed by a company, you may not need to give much thought to your taxes. Your employer (or the HR department) will send off all of your details to the relevant government agency, and the correct amount will be deducted from your paycheck each month. You may resent how much you have to pay, but at least you do not have to calculate it all yourself and fill in reams of paperwork. This is not the case when you run your own business though. Tax codes are notoriously dull and complicated so navigating them yourself can be something that you may not look forward to. This is why so many tax returns are submitted just before the deadline. It is understandable that so many people would want to put off the time when they have to settle down and study their paperwork. This is why you may want to consider retaining an accountant or tax lawyer. Both can be quite expensive, but it is often a lot cheaper than finding that in your inexperience you’ve made a mistake. The penalty for this sort of thing is usually just a fine, but if it is thought that the omission or deception was perpetrated with intent, you may be facing a criminal sentence and the possibility of going to prison.
However, this is just one of the difficult things about running your own business. It is made a little easier by the fact that submitting your tax returns is something that you’ll get used to doing each year before the deadline. Unfortunately, there are a lot of things that are not as regular and predictable. Dealing with surprises is part of life, and sometimes they are fun (like a birthday party for instance, or a thoughtful and unexpected gift), but they can also be quite stressful at times. This is why you need to be able to think prophylactically. Being able to anticipate a potential problem and dealing with it before it becomes too difficult will make your life easier in all sorts of ways. This is especially true in business when things change every day. If you are not able to respond dynamically enough or with the right response, you may find yourself falling behind your more versatile competitors. Here are a few things that you may want to think about with reference to your business to make yourself better prepared:
Learning that one of your employees is going to become a parent is a joyful occasion on a personal level, but from a business perspective, it can be quite difficult. The law states that expectant mothers have the provision to take maternity leave. The duration of that leave and the amount you need to pay depends on the laws in place in your area, but so as not to be caught unawares, you should, if you haven’t already, start to think about a maternity leave policy. Companies like Ellis Whittam can help you draw up an agreement that is both fair and honest. One of the most important things about this situation is that your employees are aware when they start at the company of what they can expect if they do find themselves needing to take time off to give birth. If you are not clear from the beginning, you may find that you are not able to negotiate as effectively. Paying for someone to take maternity leave (and paternity leave in some cases too) is quite expensive because they are probably an important part of your business (or else you would not employ them). Finding someone to replace them is difficult because it costs money. A study conducted in the UK recently found that it costs on average £30,614 (or about $40,000) to replace someone. You will not have to pay them permanently since it will be a temporary contract. However, you will need to train the new person to the standard of the person they are replacing. This costs money on its own, but until they start to work at the same level of competency, you will suffer in terms of lost productivity. There is then the issue of paying the absent employee too. It is an expensive business and being prepared for it is crucial. Dismissing the person on the grounds that they are pregnant (whether or not it is tacit) is illegal and could end up costing you way more in legal fees and a fine.
If you run a small business, the threat of cyber attacks is not as great as if you run a large business. However, the threat is still real. 46% of businesses were attacked in the UK last year. It is not just an annoying surprise that necessitates you reboot your operating system though. A study conducted in the US found that 60% of small businesses that suffer a cyber attack are out of business within just six months. To make matters worse, research has found that a massive 80% of small businesses do not have a cyber attack response plan. Nearly every business in the country will use the internet in one way or another, and while it has made so many aspects of modern commerce so much more convenient, it also represents a real threat. Investing in cyber security software is a must if you want to protect your assets and your livelihood. One particularly damaging thing about which you should be aware is a data breach. The sale of databases of customers’ sensitive personal and financial information on the black market is becoming more common. If your customers do find that they are attacked themselves, and they lose money, or they just have to contact their bank in the event of suspicious activity, they may not trust you again in the future. Building your reputation and a relationship of trust with your customers takes years and it is so brittle. Also, a lot of cyber attacks could easily be avoided if your employees were more aware of what to look out for. Teaching them about potentially dangerous emails could save you a lot of time and money.
Accidents happen all the time. The fact that one may not have happened to you recently is statistically comprehensible. That does not preclude the fact that you need to be able to protect yourself against them. Some people say that insurance is for pessimists, but when a fire starts and their business burns to the ground, they may start to realise that it is actually just for realists. Property insurance is not the only thing you should consider investing in though. Business insurance may be expensive at times, but it can protect you from all sorts of threats. Commercial liability insurance is important because modern society is becoming so litigious. If someone does fall and injure themselves at your office, you may be personally liable if they claim that you were negligent. This can cost a lot of money, even if you win the case. A good tip to further protect yourself is to register your company as an LLC (limited liability company). Fidelity insurance helps protect you against dishonest employees, while business interruption insurance helps you in the event that you cannot trade for a period of time. All three are necessary to running any type of business.
However, this is just one of the difficult things about running your own business. It is made a little easier by the fact that submitting your tax returns is something that you’ll get used to doing each year before the deadline. Unfortunately, there are a lot of things that are not as regular and predictable. Dealing with surprises is part of life, and sometimes they are fun (like a birthday party for instance, or a thoughtful and unexpected gift), but they can also be quite stressful at times. This is why you need to be able to think prophylactically. Being able to anticipate a potential problem and dealing with it before it becomes too difficult will make your life easier in all sorts of ways. This is especially true in business when things change every day. If you are not able to respond dynamically enough or with the right response, you may find yourself falling behind your more versatile competitors. Here are a few things that you may want to think about with reference to your business to make yourself better prepared:
Learning that one of your employees is going to become a parent is a joyful occasion on a personal level, but from a business perspective, it can be quite difficult. The law states that expectant mothers have the provision to take maternity leave. The duration of that leave and the amount you need to pay depends on the laws in place in your area, but so as not to be caught unawares, you should, if you haven’t already, start to think about a maternity leave policy. Companies like Ellis Whittam can help you draw up an agreement that is both fair and honest. One of the most important things about this situation is that your employees are aware when they start at the company of what they can expect if they do find themselves needing to take time off to give birth. If you are not clear from the beginning, you may find that you are not able to negotiate as effectively. Paying for someone to take maternity leave (and paternity leave in some cases too) is quite expensive because they are probably an important part of your business (or else you would not employ them). Finding someone to replace them is difficult because it costs money. A study conducted in the UK recently found that it costs on average £30,614 (or about $40,000) to replace someone. You will not have to pay them permanently since it will be a temporary contract. However, you will need to train the new person to the standard of the person they are replacing. This costs money on its own, but until they start to work at the same level of competency, you will suffer in terms of lost productivity. There is then the issue of paying the absent employee too. It is an expensive business and being prepared for it is crucial. Dismissing the person on the grounds that they are pregnant (whether or not it is tacit) is illegal and could end up costing you way more in legal fees and a fine.
If you run a small business, the threat of cyber attacks is not as great as if you run a large business. However, the threat is still real. 46% of businesses were attacked in the UK last year. It is not just an annoying surprise that necessitates you reboot your operating system though. A study conducted in the US found that 60% of small businesses that suffer a cyber attack are out of business within just six months. To make matters worse, research has found that a massive 80% of small businesses do not have a cyber attack response plan. Nearly every business in the country will use the internet in one way or another, and while it has made so many aspects of modern commerce so much more convenient, it also represents a real threat. Investing in cyber security software is a must if you want to protect your assets and your livelihood. One particularly damaging thing about which you should be aware is a data breach. The sale of databases of customers’ sensitive personal and financial information on the black market is becoming more common. If your customers do find that they are attacked themselves, and they lose money, or they just have to contact their bank in the event of suspicious activity, they may not trust you again in the future. Building your reputation and a relationship of trust with your customers takes years and it is so brittle. Also, a lot of cyber attacks could easily be avoided if your employees were more aware of what to look out for. Teaching them about potentially dangerous emails could save you a lot of time and money.
Accidents happen all the time. The fact that one may not have happened to you recently is statistically comprehensible. That does not preclude the fact that you need to be able to protect yourself against them. Some people say that insurance is for pessimists, but when a fire starts and their business burns to the ground, they may start to realise that it is actually just for realists. Property insurance is not the only thing you should consider investing in though. Business insurance may be expensive at times, but it can protect you from all sorts of threats. Commercial liability insurance is important because modern society is becoming so litigious. If someone does fall and injure themselves at your office, you may be personally liable if they claim that you were negligent. This can cost a lot of money, even if you win the case. A good tip to further protect yourself is to register your company as an LLC (limited liability company). Fidelity insurance helps protect you against dishonest employees, while business interruption insurance helps you in the event that you cannot trade for a period of time. All three are necessary to running any type of business.