How Secure Is Your Design Business?

| September 25, 2013 | 2 Comments
How Secure Is Your Design Business?

If one of your clients was livid about something you did and then sued you, what kind of security do you have against that attack? If another business deliberately set out to destroy you, how long could you last?

We all know we should have some sort of protection when it comes to our business but many of us, especially start-ups, don’t worry about having any sort of protection should the sky come raining down on us – at least initially. Do you think you could afford a brute-force attack from another person or business without protection?

Plan

The most important thing you can do for your business should someone or some entity try and put you out of your misery, is have a plan. Insurance usually plays a large part in a business plan in case of an emergency. However, you also need a plan to get your contracts finished if you should happen to become seriously ill. Depending on where you live, you might need a plan for weather disruptions that delay suppliers and contractors.

insurance

I cannot give you a tailored plan because everyone’s design business is different. However I can give you a generalized rule-set to follow, but know you need to seek counsel on your own. Following are a few ideas of what should be considered when formulating your plan.

 

Client Protection

This is my number one. The reason being is that I want to make sure that a lawsuit is not going to affect any other client of mine. If for any reason it does, we could be looking at more than one lawsuit. Not to mention that being bonded/insured is usually a requirement in most fields, or at least required if you want to become a reputable, trusted business.

 

Business Protection

This encompasses everything that keeps your business running. Some of the things to consider are your office, computers, printers, bank accounts, anything that you use on a daily basis to run your business. Again, most companies get insurance for these types of situations. Make sure to consult a professional before you make any decision though

 

Personal Protection

For personal protection we are going to focus on protecting our family and ourselves. Should something happen to your business, we absolutely do not want hellfire to roll down hill to your personal life. We want to make sure that if, at the very worst, you go out of business, your family will be okay. I personally keep family first so this idea is very important to me. Many people create LLC’s and other corporate entities for this very reason.

 

Asset Protection

This one is kind of balanced of business and personal protection. Asset protection can mean real estate, bonds, stock, trusts, or anything else that has been invested in. It would be foolish to leave these things in the open where they can be exploited during a lawsuit. This is another area that could be shielded with an entity.

 

Keep this list, but remember…

 

There is no excuse not to seek legal council. Talk to your attorneys, CPA’s, Accountants, and any other professional that can help you. I am not one of those professionals so don’t take this advice as the gospel. This information is merely intended for you to take into consideration that bad things do happen. We would much rather be prepared and have a backup plan when things go wrong.

 

Protect your business, family, and yourself!

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Category: Project Funding

About the Author ()

Anthony is an Australian native with a knack for world traveling. His passion for art and design has taken him to many countries where he enjoys seeing and learning new things. While aimlessly browsing the internet, Anthony will occasionally find something worth while to share on his blog. He loves learning from other people so while reading the blog make sure to leave a comment or question so we can keep a conversation for the world to benefit from! You can also find him on Google+

Comments (2)

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  1. Joshua says:

    Okay, I will raise my hand in shame. I’m one of those that are “unprotected” but after reading this, you have given me some motivation to protect my business. Thanks for the tips.

    • Hi Joshua, I suppose it’s like AA — The first step is admitting you have a problem. In this case, not much of a problem yet, but good on you! Make sure to seek out legal council before making any decisions as laws vary from state to state and country.

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