By Emsie Martin
People get fed up with office politics, bosses and long hours and then decide to rather start an own business, but starting one’s own business is not everybody’s cup of tea. It takes a lot of courage, sacrifice and perseverance.
For those who start their own business or consider doing it, it often starts with a passion for something, a well-considered decision, or by chance! Whatever the reason, it is the start of a new chapter that can be definitive in how the rest of your life turns out. Yes, it’s exciting and terrifying at the same time, while initially it puts a lot of financial pressure on you before you can start reaping the fruits of your hard work.
There already are a host of factors that entrepreneurs should keep in mind, such as drawing up a business plan, market research, the registration of the business and also the tax implications – to mention only a few. On top of that it is important to keep overheads as low as possible.
And yet, one thing that most people do not always keep in mind is the fact that you need business insurance from the outset. Such an insurance policy can give you the necessary peace of mind to avoid a few business pitfalls on the road to success.
Virseker, a product of Auto & General Insurance Company, a licensed non-life insurance company and financial-services provider, has the following suggestions:
Personal short-term insurance is inadequate
People who want to start a new business from their garage often think that the standard short-term insurance taken out in a personal capacity is enough. If you use your home as a base for your business, it is advisable to contact your broker or insurer immediately to make sure that you have the right type of cover because it could cost you dearly if you don’t have it.
Liability pops up unexpectedly
Don’t think because it is only you who work for the business that you do not need liability insurance. This type of cover is necessary no matter how big or small your business is. In this way direct or indirect negligent action could sink your business that has only just found its feet. Your business could also face legal defence costs as a result of legal action taken against you as the business owner or any of your employees.
Your most valuable asset could be yourself
Business owners often forget to recognise themselves as assets. Yes, you are probably your business’s most valuable asset because what would the financial impact on your business be should you as the key staff member die or become permanently disabled? It is therefore very important to look at key-person insurance, which is a type of disability or life insurance that the business can take out on key staff members. Through this insurance the business can proceed to create financial peace of mind for the staff.
Contingencies can be devastating
The basic purpose of any insurance is to provide peace of mind when disaster strikes. Unforeseen events can force your business activities to a sudden stop, which could cause the source of income to run dry immediately. A small business could find it particularly difficult to recover from big unforeseen events. Business interruption insurance, also known as loss-of-profit cover, will cover a business in the event of loss of income after a disaster.
Be smart and make sure that your business insurance is a perfect fit.
Perhaps you would like to change professions and help people become more independent financially. Solidarity Occupational Guilds is a community that not only makes you strong in your profession, but it is a community where you feel at home, work together and learn together. It is a community that focuses on protecting the profession, creating career opportunities for young people, watching over professions, and coming forward with workable solutions for challenges. Visit us at https://gildes.solidariteit.co.za/ for more information about your occupational guild.