Every business has different types of assets. These assets are important for your livelihood, the business’ success, and to basically keep the business alive. This means that you should put a lot of thought and effort into protecting these assets.
Follow these tips and you will be on the right track to protecting your business assets.
- Plan before the claim. Waiting until something goes wrong or a claim needs to happen, is bad practice. You should plan ahead and have an asset protection plan in place from the beginning. As the business grows and changes and the economic and legal environment changes, you may need to adjust the plan, but you should at least have some plan to start with.
- Split your assets. Keeping all your assets under one entity is not a good idea. Your personal and business assets should be split and held in separate entities. Furthermore, if you have more than one business, keep those separate as well. For example, keep your realty under one LLC and your restaurant under another entity. This is the best way to prevent all your assets from being exposed should something go wrong.
- Get insurance. You can’t be without insurance. The type and extent will depend on the nature of your business and the risks involved. Insurance companies will have different options and a consultant will be able to help you decide what the best option will be for your specific business.
- Bankruptcy laws have changed. Don’t count on bankruptcy when things go wrong. The laws have changed and there are now a lot of requirements and also lower homestead exemptions. You will have to see a credit counsellor for 6 months before you file for bankruptcy and you will be required to attend money management classes.
- Keep it simple. Simple is the best policy. Some companies come up with these large and complicated asset management plans that they can’t even explain to someone else. If you cannot understand what the plan is, how will you be able to implement and manage it? So, rather keep it simple, easy to understand, but strong and smart.
- Hire an asset management company. If you are unsure about how to go about building an asset management plan or if you need some expert advice, consider hiring an asset management company like Asset Protection Associates. These companies have professionals that are trained and experts in how to manage and protect your assets. They will help you set up a simple but effective plan. They will also advise you on what types of strategies to use and how to divide your assets to keep them safe.
Asset management and protection are very important and you should not skimp on this aspect. If you don’t properly plan for asset protection, you may regret it later. So, play it smart, play it simple, and stay in business.
You may also be interested in ‘Loss Prevention Tips for Retail Stores’.