I was asked to instruct a class about Business insurance. The class is to be about two hours long. My first thought was, “Oh, that is easy, not a problem”. Then I got thinking about it and two hours is a long time to talk about a very small portion of taking care of your business. Then I thought a bit longer and WOW, two hours is not enough!
Insurance is not just what you pay the insurance man. It goes way beyond that! The definition of insurance is: the business of insuring persons or property, a means of guaranteeing protection or safety. So guaranteeing the protection or safety of the business. How does one do that?
Insurance is having a plan. A business plan is defined as a document setting out a business’s future objectives and strategies for achieving them. If you just start a business you need to know what your objectives are. Probably the main one is to make money. A business plan will help you set some strategies for achieving them as well.
A business plan is written for two purposes 1) because someone asked you to, probably the bank, especially if you are looking for funding! Or 2) so you know what direction you are going with your business. Most people only write a business plan if they are asked.
A business plan does not have to be formal written document if you are preparing it for yourself. Some of the best plans that I have seen are sketches or a picture of what they wanted their business to look like. With a picture you are able to draw in even the most intricate items such as the silverware at a restraint. Once it is drawn out and visualized it is easier to comprehend what the needs and wants are.
If you have a product or a service you still need to get it to market. The insurance here is a Marketing plan. Again it does not need to be formal plan but could be a calendar that indicates when you will post on Facebook, when you have events that need flyers. I digress, one of my pet peeves is someone that says, “I signed up for the (fill in the blank) and no one came.” Well, if you know you are going to a show PUBLICIZE it. Put it on Facebook, Instagram, Twitter, you name it. Make flyers and post around town. Do not just leave it up to the organizers to do the marketing. If your budget allows, take out an ad in the local paper and submit a press release. Hint here! Writing a Press release is a great thing to do, however, if you are selling something they usually will not print them, but if you purchase an ad, and there is room in the paper, chances are your press release will get in.
Find out what you need to run your business. I do not mean things like a cash box and bags, but rather do you need a license, a permit, certain items for your kitchen, a permit for your sign, an inspection, what town rules do you need to comply with, what state rules do you need to comply with, what federal rules do you need to comply with. The list goes on and on. This is the insurance that is needed to make sure you do not get shut down for technicalities.