When launching a new startup, it is vital that you know how to protect your new business. There are many risks when launching a startup and numerous threats that could prevent you from achieving your goals, so finding ways to protect your startup is important. When you have proper protection, you can operate confidently each day and give yourself a much better chance of hitting the ground running. So, what are some of the best ways to protect your startup? There are a few key areas to focus on that will provide robust protection against many of the biggest dangers.

1. Choose The Right Legal Structure

First, you need to choose the right legal structure for your business. Your chosen structure will greatly impact tax, liability, management, fundraising, and admin work. Therefore, it is important to research the different options and select the best structure based on your specific operation.

2. Build Up Cash Reserves

Many startups end up folding before they have long enough in the market to succeed because they run out of money. Therefore, it is smart to have cash reserves that will help you cover your expenses if you struggle to find success, have a quiet period, or face an unexpected cost. Cash reserves can also provide reassurance and peace of mind – something that is invaluable when starting a new business!

3. Get Sufficient Insurance

One of the best ways to protect your business is to take out sufficient insurance to protect against some of the main threats. Most startups would struggle to cover the costs involved in the major threats to a modern business, so insurance can provide vital financial protection and peace of mind. It will depend on the type of business that you operate, but a few of the most common forms of insurance include:

  • General liability
  • Business interruption
  • Product liability
  • Professional liability
  • Workers’ compensation
  • Property insurance
  • Cyber

4. Protect IP

When starting a new business, you will always be creating new intellectual property. This can take many forms, including your brand name and logo, product ideas, software, and content, just a few examples. You must protect this information and apply for patents, trademarks, and copyrights. It is also important to use non-disclosure agreements (NDAs) when sharing sensitive information with any party (including employees).

5. Develop Robust Cybersecurity Protection

Many experts state that cybercrime is the biggest threat to businesses in 2023. It is not just the large companies that are targeted either, and many criminals will target startups because they are less likely to have strong protection in place. Therefore, you need to make sure that you have strong protection in place. Education is key here, so reading a cyber security planning guide written by an expert is worthwhile before launching your business. This will inform you of common cyber threats, what cybersecurity products you need to invest in, and how to adopt best practices to stay safe. It is also important that you make an ongoing effort to keep up with the latest cyber threats and developments, as it is a constantly changing and evolving field.

6. Use Contracts For All Agreements

It is also important to draft contracts for all agreements that you have. Contracts should be drawn up for employees, contractors, suppliers, partners, and anyone else involved with the business. Not only will this provide important legal protection if there is a dispute, but it can also be useful for outlining what is expected of both parties in the agreement.

7. Physical Security

You certainly need to prioritize cybersecurity, but you should also make sure that you focus on physical security (especially if you have cash and/or expensive equipment or stock onsite). CCTV cameras, intruder alarms, locks and safes, and access control can all help to protect your building, contents, and employees. This will also help everyone to feel safe and protected, which is hugely important in the workplace.

Hopefully, the information in this article will be useful and help you protect your business. When you have protection against the main threats and risks, you can create a bubble around your business that will help you focus on core activities and, hopefully, improve your chances of hitting the ground running with your business. A new business faces many threats and hazards, so you need to take action to protect your startup and give yourself an opportunity to succeed.

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